International Business · Class 11 · CBSE · Commerce Business Studies
An Indian business purchases specialised machinery from a company located in Japan. This transaction is an example of:
Practice question from International Business (Class 11 · CBSE · Commerce Business Studies), with the correct answer and a step-by-step solution.
easy · MCQ · Q-2CE5EC
An Indian business purchases specialised machinery from a company located in Japan. This transaction is an example of:
- A.Export trade
- B.Import tradeCorrect answer
- C.Entrepot trade
- D.Domestic trade
Solution
Import trade refers to the purchase of goods and services from another country. Since the Indian business buys machinery from Japan, the transaction is an import.
More from International Business
- Which feature most clearly distinguishes international business from domestic business?
- An Indian company permits a foreign company to use its patent and technology in return for a fee, without making a direct investment in the…
- A company wants complete ownership and control over its foreign operations and is prepared to commit substantial capital while accepting hi…
- State any two benefits of international business to a country and briefly explain each.
Practise more Business Studies
Sign up free for adaptive practice on this chapter, with instant feedback and hints on every question.
Start practising freeFree to start · No credit card needed