NCERT Solutions for Class 11 Business Studies Chapter 12

International Business-II Class 11

Chapter 12 International Business-II Exercise Solutions

<< Previous Chapter 11 : International Business-I

Multiple choice questions : Solutions of Questions on Page Number : 308

Q1 :  

Which of the following document are not required for obtaining an export license?

(a) IEC number

(b) Letter of credit

(c) Registration cum membership certificate

(d) Bank account number


Answer :

To obtain an export licence, an exporter requires an IEC (Importer Exporter Code) number, a registration-cum-membership certificate and a bank account number. However, a letter of credit is not required for obtaining an export licence. A letter of credit is issued by the bank of an importer guaranteeing payments to the exporter's bank.

Hence, the correct answer is option (b).

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Q2 :  

Which of the following documents is not required in connection with an import transaction?

(a) Bill of lading

(b) Shipping bill

(c) Certificate of origin

(d) Shipment advice


Answer :

An import transaction involves various documents, such as a bill of lading, certificate of origin and shipment advice. However, a shipping bill is not required for an import transaction—it is a document required in connection with an export transaction. In an import transaction, a shipment advice is sent by the supplier to the importer as proof of dispatch of goods. After the shipment of goods, the supplier prepares a set of documents, such as a bill of lading, certificate of origin and marine insurance, to be handed over to the banker for further transmission.

Hence, the correct answer is option (b).

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Q3 :  

Which of the following do not form part of duty drawback scheme?

(a) Refund of excise duties

(b) Refund of custom duties

(c) Refund of export duties

(d) Refund of income dock charges at the port of shipment


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Q4 :  

Which of the following documents is not a document related to the fulfill the customs formalities?

(a) Shipping bill

(b) Export licence

(c) Letter of insurance

(d) Proforma invoice


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Q5 :  

Which one of the following is not a part of export documents?

(a) Commercial invoice

(b) Certificate of origin

(c) Bill of entry

(d) Mate's receipt


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Q6 :  

A receipt issued by the commanding officer of the ship when the cargo is loaded on the ship is known as

(a) Shipping receipt

(b) Mate receipt

(c) Cargo receipt

(d) Charter receipt


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<< Previous Chapter 11 : International Business-I

Short answersmultiple choice questions : Solutions of Questions on Page Number : 309

Q1 :  

Discuss the formalities involved in getting an export licence.


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Q2 :  

Why is it necessary to get registered with an export promotion council?


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Q3 :  

What is IEC number?


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Q4 :  

What is pre-shipment finance?


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Q5 :  

Why is it necessary for an export firm to go in for pre-shipment inspection?


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Q6 :  

Discuss the procedure related to excise clearance of goods.


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Q7 :  

Which of the following document 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?

(a) Shipping bill

(b) Packaging list

(c) Mate's receipt

(d) Bill of exchange


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Q8 :  

Explain briefly the process of customs clearance of export goods.


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Q9 :  

The document containing the guarantee of a bank to honour drafts drawn on it by an exporter is

(a) Letter of hypothetication

(b) Letter of credit

(c) Bill of lading

(d) Bill of exchange


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Q10 :  

What is bill of lading? How does it differ from bill of entry?


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Q11 :  

Which of the following does not belong to the World Bank group?

(a) IBRD

(b) IDA

(c) MIGA

(d) IMF


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Q12 :  

What is shipping bill?


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Q13 :  

TRIP is one of the WTO agreements that deal with

(a) Trade in agriculture

(b) Trade in services

(c) Trade related investment measures

(d) None of these


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<< Previous Chapter 11 : International Business-I

Short answerslong answers : Solutions of Questions on Page Number : 310

Q1 :  

Rekha Garments has received an order to export 2000 men's trousers to Swift Imports Ltd. located in Australia. Discuss the procedure that Rekha Garments would need to go through for executing the export order.


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Q2 :  

Your firm is planning to import textile machinery from Canada. Describe the procedure involved in importing.


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Q3 :  

Discuss the principal documents used in exporting.


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Q4 :  

List and explain various incentives and schemes that the government has evolved for promoting the country's export.


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Q5 :  

Identify various organisations that have been set up in the country by the government for promoting country's foreign trade.


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Q6 :  

What is World Bank? Discuss its various objectives and role of its affiliated agencies.


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Q7 :  

What is IMF? Discuss its various objectives and functions.


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Q8 :  

Write a detailed note on features, structure, objectives and functioning of WTO.


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Q9 :  

Explain the meaning of mate's receipt.


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Q10 :  

What is a letter of credit? Why does an exporter need this document?


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Q11 :  

Discuss the process involved in securing payment for exports.


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Q12 :  

Differentiate between the following

(i) Sight and usance drafts

(ii) Bill of lading and airway bill

(iii) Pre-shipment and post-shipment finance


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Q13 :  

Explain the meaning of the following documents used in connection with import transactions

(i) Trade enquiry

(ii) Import licence

(iii) Shipment of advice

(iv) Import general manifest

(v) Bill of entry


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Q14 :  

List out major affiliated bodies of the World Bank.


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Q15 :  

Write short notes on the following

(i) UNCTAD

(ii) MIGA

(iii) World Bank

(iv) ITPO

(v) IMF


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<< Previous Chapter 11 : International Business-I

Business Studies : CBSE NCERT Exercise Solutions for Class 11th for International Business-II will be available online in PDF book form soon. The solutions are absolutely Free. Soon you will be able to download the solutions.

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