{"id":18960,"date":"2021-02-16T16:25:54","date_gmt":"2021-02-16T10:55:54","guid":{"rendered":"https:\/\/mcq-questions.com\/?p=18960"},"modified":"2022-03-02T10:51:23","modified_gmt":"2022-03-02T05:21:23","slug":"ncert-solutions-for-class-11-business-studies-chapter-12","status":"publish","type":"post","link":"https:\/\/mcq-questions.com\/ncert-solutions-for-class-11-business-studies-chapter-12\/","title":{"rendered":"NCERT Solutions for Class 11 Business Studies Chapter 12 International Business 2"},"content":{"rendered":"

Detailed, Step-by-Step NCERT Solutions for 11 Business Studies<\/a> Chapter 12 International Business 2 Questions and Answers were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation.<\/p>\n

International Business 2 NCERT Solutions for Class 11 Business Studies Chapter 12<\/h2>\n

International Business 2 Questions and Answers <\/span>Class 11 Business Studies Chapter 12<\/h3>\n

Multiple Chioce Questions<\/span><\/p>\n

Question 1.
\nWhich of the following documents are not required for Obtaining an export license?
\n(a) IEC number
\n(b) Letter of credit
\n(c) Registration cum
\n(d) Bank account number membership certificate
\nAnswer:
\n(b) Letter of credit<\/p>\n

Question 2.
\nWhich of the following documents is not required in connection with an import transaction?
\n(a) Bill of lading
\n(b) Shipping bill
\n(c) Certificate of origin
\n(d) Shipment advice
\nAnswer:
\n(c) Certificate of origin<\/p>\n

\"NCERT<\/p>\n

Question 3.
\nWhich of the following do not form part of duty drawback scheme?
\n(a) Refund of excise duties
\n(b) Refund of customs duties
\n(c) Refund of export duties
\n(d) Refund of income dock charges at the port of shipment
\nAnswer:
\n(a) Refund of excise duties<\/p>\n

Question 4.
\nWhich one of the following is not a document related to fulfill the customs formalities
\n(a) Shipping bill
\n(b) Export licence
\n(c) Letter of insurance
\n(d) Proforma invoice
\nAnswer:
\n(b) Export licence<\/p>\n

Question 5.
\nWhich one of the following is not a part of export documents?
\n(a) Commercial invoice
\n(b) Certificate of origin
\n(c) Bill of entry
\n(d) Mate\u2019s receipt
\nAnswer:
\n(c) Bill of entry<\/p>\n

Question 6.
\nA receipt issued by the commanding officer of the ship when the cargo is loaded on the ship is known as
\n(a) Shipping receipt
\n(b) Mate receipt
\n(c) Cargo receipt
\n(d) Charter receipt
\nAnswer:
\n(b) Mate receipt<\/p>\n

\"NCERT<\/p>\n

Question 7.
\nWhich of the following documents is prepared by the exporter and includes details of the cargo in terms of the shippers name, the number of packages, the shipping bill, port of destination, name of the vehicle carrying the cargo?
\n(a) Shipping bill
\n(b) Packaging list
\n(c) Mate\u2019s receipt
\n(d) Bill of exchange
\nAnswer:
\n(a) Shipping bill<\/p>\n

Question 8.
\nThe document containing the guarantee of a bank to honour drafts drawn on it by an exporter is :
\n(a) Letter of hypothetication
\n(b) Letter of credit
\n(c) Bill of lading
\n(d) Bill of exchange
\nAnswer:
\n(b) Letter of credit<\/p>\n

Question 9.
\nWhich of the following does not belong to the World Bank Group?
\n(a) IBRD
\n(b) IDA
\n(c) MIGA
\n(d) IMF
\nAnswer:
\n(d) IMF<\/p>\n

Question 10.
\nTRIP is one of the WTO agreements that deal with :
\n(a) Trade in agriculture
\n(b) Trade in services
\n(c) Trade-related investment
\n(d) None of these measures
\nAnswer:
\n(d) None of these measures<\/p>\n

Short Answer Questions<\/span><\/p>\n

Question 1.
\nDiscuss the formalities involved in getting an export license.
\nAnswer:
\nImportant formalities in getting an export license are as follows:<\/p>\n

    \n
  1. Opening a bank account in any bank authorized by the Reserve Bank of India (RBI) and getting an account number.<\/li>\n
  2. \u00a0Obtaining Import Export Code (EEC) number from the Directorate Genial Foreign Trade (DGFT) or Regional Import Export Licensing Authority.<\/li>\n
  3. Registering with the appropriate export promotion council.<\/li>\n
  4. Registering with Export Credit and Guarantee Corporation (ECGC) in order to safeguard against risks of non-payments.<\/li>\n<\/ol>\n

    \"NCERT<\/p>\n

    Question 2.
    \nWhy is it necessary to get registered with an export promotion council?
    \nAnswer:
    \nIt is obligatory for every exporter to get registered with the appropriate export promotion council. Various export promotion councils such as Engineering Export Promotion Council (EEPC) and Apparel Export Promotion Council (AEPC) have been set up by the Government of India to promote and develop exports of different categories of products.<\/p>\n

    It is necessary for the exporter to become a member of the appropriate export promotion council and obtain a Registration cum Membership Certificate (RCMC) for availing benefits available to export firms from the Government.<\/p>\n

    Registration with the Export promotion council is necessary in order to protect overseas payments from political and commercial risks. Such registration also helps the export firm in getting financial assistance from commercial banks and other financial institutions.<\/p>\n

    Question 3.
    \nWhat is IEC Number?
    \nAnswer:
    \nImport Export Code (IEC) number is given to an export firm by Director General for Foreign Trade (DGFT) which the firm needs to be filled in various export\/import documents. For obtaining the IEC number, a firm has to apply to the DGFT with documents such as exporter\/importer profile, bank receipt of the requisite fee, a certificate from the banker on the prescribed form, two copies of photographs attested by the banker, details of the non-resident interest and declaration about the applicant\u2019s non-association with caution listed firms.<\/p>\n

    Question 4.
    \nWhat is pre-shipment finance?
    \nAnswer:
    \nOn receipt of the letter of credit and confirmation order, the exporter approaches his banker for obtaining pre-shipment finance to undertake export production. Pre-shipment finance is the finance that the exporter needs for procuring raw materials and other components, processing, and packaging of goods, and transportation of goods to the port of shipment.<\/p>\n

    \"NCERT<\/p>\n

    Question 5.
    \nWhy is it necessary for an export firm to go in for pre\u00acshipment inspection?
    \nAnswer:
    \nAn export firm has to go in for pre-shipment inspection as required by the Government of India to ensure that only good quality products are exported from the country. The government has passed the Export Quality Control and Inspection Act, 1963 for the purpose of compulsory inspection of certain products by a competent agency as designated by the government.<\/p>\n

    If the product to be exported comes under such a category, the exporter needs to contact the Export Inspection Agency (EIA) or the other designated agency for obtaining an inspection certificate. The pre-shipment inspection report is required to be submitted along with other export documents at the time of exports.<\/p>\n

    Such an inspection is not compulsory in case the goods are being exported by star trading houses, trading houses, export houses, industrial unit\u2019s setup in Export Processing Zones\/ Special Economic Zones (EPZs\/SEZs), and 100% Export Oriented Units (EOUs).<\/p>\n

    Question 6.
    \nDiscuss the procedure related to excise clearance of goods.
    \nAnswer:
    \nExcise duty is payable on the materials used in manufacturing goods as per Central Excise Tariff Act. The exporter, therefore, has to apply to the concerned Excise Commissioner in the region Auth an invoice.<\/p>\n

    If the Excise Commissioner is satisfied, he may issue the exercise clearance. On many products of export which are competitive in the world market, the government may exempt the payment of excise duty or make a refund of excise at later stage. This scheme of exemption of excise duty is known as Duty Drawback.<\/p>\n

    The scheme is administrated by the Directorate of Drawback under the Ministry of Finance which is responsible for fixing the rates of drawback for different products. The work relating to sanction and payment of drawback is, however, looked after by the Commissioner of Customs or Central Excise Incharge of the Concerned port, airport or land custom station from where the export of goods is considered to have taken place.<\/p>\n

    Question 7.
    \nExplain briefly the process of customs clearance of export goods.
    \nAnswer:
    \nThe goods must be cleared from the customs before they can be loaded on the ship. For obtaining customs clearance, the exporter prepares the shipping bill which contains particulars of the goods being exported, the name of the vessel, the port at which goods are to be discharged, country of final destination, exporter\u2019s name and address, etc.<\/p>\n

    Five copies of the shipping bill along with the following documents are then submitted to the Customs Appraiser at the Customs House for clearance:<\/p>\n