CBSE Class 11 Business Studies Chapter-11 Important Questions - Free PDF Download
FAQs on Important Questions for CBSE Class 11 Business Studies Chapter 11 - International Business
1. What are the most important questions typically asked from CBSE Class 11 Business Studies Chapter 11 – International Business in board exams (2025–26)?
The most important questions are usually:
- Differentiate between Internal and International Trade (3/5 marks)
- State two necessary documents required for an import transaction (1/3 marks)
- Explain any two modes of entering international business (3 marks)
- Describe the objectives of WTO and its importance (5 marks, expected)
- Discuss the difference between contract manufacturing and wholly-owned subsidiary (3/5 marks)
- List formalities and key steps for getting an export license (3 marks)
Focusing on these ensures coverage of high-weightage areas as per CBSE 2025–26 trends.
2. Explain the concept of 'contract manufacturing' in international business. Why might a company prefer this mode over others?
Contract manufacturing means an Indian/co. hires a foreign manufacturer for producing specific goods/components as per its specifications:
- Low investment and risk
- Faster entry to overseas markets
- Focus on branding and marketing rather than manufacturing abroad
Companies often prefer it as it limits financial exposure and avoids complexities of setting up wholly-owned subsidiaries (2025–26 syllabus).
3. What is the significance of the 'bill of lading' in an international trade transaction? (Frequently asked)
The bill of lading is:
- A legal document issued by a shipping company to the exporter
- Evidence that goods have been received for carriage to the destination
- Functions as a receipt, document of title to goods, and contract of carriage
This document is essential for customs clearance and for claiming goods at the destination port (CBSE Important Questions 2025–26).
4. Why is an Import Export Code (IEC) important for international business as per CBSE Class 11 important questions?
IEC (Import Export Code) is vital because:
- It is legally required for any business to export/import goods from India
- Issued by DGFT, enabling tracking and regulation of international trade
- Acts as an identity proof for transactions at customs and banks
Without IEC, companies cannot engage legally in international business (CBSE 2025–26).
5. What are the main objectives and functions of the WTO as expected in 3-mark or 5-mark questions?
The WTO (World Trade Organization):
- Main objectives: promote free and fair global trade, resolve disputes, and encourage economic development
- Functions: administering trade agreements, acting as a forum for negotiations, handling trade disputes, monitoring policies, offering technical assistance to developing countries
These themes are key for high-mark CBSE questions (2025–26).
6. Critically analyze why some businesses choose franchising or licensing to enter international markets. What are the pros and cons?
Franchising or licensing allows businesses to:
- Expand with low investment and risk
- Leverage local partners’ knowledge
- Avoid complex ownership regulations abroad
Cons:
- Limited control over operations
- Potential for brand dilution or unauthorized use of intellectual property
7. Highlight the differences between internal trade and international trade for 3/5 marks as per CBSE Board standards.
Key differences:
- Nationality: Internal trade – buyers/sellers same country; International – different countries
- Currency: Internal uses home currency; International involves foreign exchange
- Regulations: Domestic has local laws; International follows multiple sets of law/policies
- Risks: Political, regulatory, and exchange risks higher in international trade
8. What problems do businesses typically face while engaging in international business? (CBSE Important FUQ)
International businesses face:
- Currency fluctuations and capital blockages
- Cultural and legal differences
- Political instability, wars, or embargoes
- Complex documentation and compliance
- Higher transaction costs and risk of non-payment
Recognition of such issues is vital for exam application (2025–26).
9. Describe the major steps involved in executing an export order as asked in CBSE 5-mark questions.
The steps are:
- Receipt of enquiry and sending quotation
- Receiving and verifying order
- Obtaining export license and pre-shipment finance
- Production/procurement and pre-shipment inspection
- Excise clearance and securing certificate of origin
- Reservation of shipping space and packing/forwarding
- Insurance of goods and customs clearance
- Obtaining mate’s receipt and bill of lading
- Invoice preparation and securing payment
Each should be explained briefly for maximum marks.
10. What are the key government incentives and schemes provided to promote export as per the latest CBSE Business Studies important questions?
Main incentives:
- Duty drawback scheme (refunds of taxes/duties on exports)
- Advance license and EPCG (for importing goods without/with reduced customs duty)
- Export finance (pre- and post-shipment)
- Export Processing Zones (EPZs) and SEZs
- 100% Export Oriented Units (EOUs)
- Recognition as Export House/Trading House based on performance
11. How is a fully owned subsidiary abroad different from contract manufacturing, and why might a company choose one over the other?
Wholly-owned subsidiary:
- Full ownership/control, high investment/risk, direct market presence
Contract manufacturing:
- No investment in foreign plant, low risk/investment, less control
Large firms (long-term strategy, control needs) pick subsidiaries; firms wanting quick entry/less risk choose contract manufacturing (exam application Q).
12. What are the most common mistakes or misconceptions students make when answering CBSE important questions on International Business?
Common errors:
- Confusing export procedures with import procedures
- Mixing up documents (e.g., bill of lading vs. shipping bill)
- Providing shallow differences between internal/international trade
- Not mentioning mark-weighted points (e.g., failing to list prescribed steps for a 5-mark question)
13. Why is understanding the objectives and functions of institutions like IMF and World Bank considered a high-order thinking skill (HOTS) in CBSE Class 11 exams?
Because students must:
- Relate global concepts to India’s economy
- Evaluate the impact of such institutions on development
- Apply knowledge to real-world scenarios, not just rote memorize
Questions on IMF/World Bank test analytical application (CBSE HOTS 2025–26).
14. What are some key conceptual traps that can be avoided to score well in the International Business 5-mark questions?
To avoid losing marks:
- Always organize answers as per allocated marks (with bullets, headings)
- Do not generalize or repeat information in differences/comparisons
- Precisely name/document each step or term (as per CBSE language)
Mastering exam pattern and thorough revision help maximize scores.
15. How do ethical issues influence international business as per CBSE important question trends for 2025–26?
Common ethical concerns include:
- Diversity and equal opportunity
- Child labour and worker rights
- Environmental protection
- Bribery and corruption
Awareness and actions towards these issues can shape a firm's reputation and global compliance (CBSE, 2025–26 focus).











