Q 1 – Globalisation has led to improvement in
(a) choice to consumers
(b) quality of goods and services
(c) foreign investment
(d) all the above
(d) all the above
Q 2 – Which one of the following organisations lay stress on the liberalisation of foreign trade and foreign investment?
(a) International Monetary Fund
(b) International Labour Organisation
(c) World Health Organisation
(d) World Trade Organisation
(d) World Trade Organisation
Q 3 – Which of the following is a ‘barrier’ to foreign trade?
(a) Tax on import
(b) Quality control
(c) Sales tax
(d) Tax on local trade
(a) Tax on import
Q 4 – Which sector has not benefited from the policy of globalisation?
(a) Agricultural sector
(b) Manufacturing sector
(c) Service sector
(d) All the above
(a) Agricultural sector
Q 5 – Ford Motors set up its first plant in India at
(a) Kolkata
(b) Mumbai
(c) Chennai
(d) Delhi
(c) Chennai
Q 6 – Cheaper imports, inadequate investment in infrastructure lead to
(a) the slowdown in the agricultural sector
(b) replace the demand for domestic production
(c) the slowdown in the industrial sector
(d) all the above
(d) all the above
Q 7 – In which year did the government decide to remove barriers to foreign trade and investment in India?
(a) 1993
(b) 1992
(c) 1991
(d) 1990
(c) 1991
Q 8 – “MNCs keep in mind certain factors before setting up production”. Identify the incorrect option from the choices given below
(a) Availability of cheap skilled and unskilled labour
(b) Proximity to markets
(c) Presence of a large number of local competitors
(d) Favourable government policies
(c) Presence of a large number of local competitors
Q 9 – Which has played a big role in spreading globalisation?
(a) Information technology (IT)
(b) Transport technology
(c) Both (a) and (b)
(d) None of the above
(c) Both (a) and (b)
Q 10 – Taxes on imports is an example of :
(a) terms of trade
(b) collateral
(c) trade barriers
(d) foreign trade
(c) trade barriers
Q 11 – Removing barriers or restrictions set by the government is known as :
(a) privatisation
(b) globalisation
(c) liberalisation
(d) socialisation
(c) liberalization
Q 12 – Globalisation leads to rapid movements of the following between countries :
(a) goods and services
(b) investments
(c) people
(d) all the above
(d) all the above
Q 13 – The most common route for MNC investments is to buy up _____________
(a) Local resources
(b) Local technology
(c) Excess land for factories
(d) Local companies
(d) Local companies
Q 14 – Why do MNCs set up offices and factories in more than one nation?
(a) The cost of production is high and the MNCs can earn profit.
(b) The cost of production is low and the MNCs undergoes a loss.
(c) The cost of production is low and the MNCS can earn greater profit.
(d) The MNCs want to make their presence felt global.
(c) The cost of production is low and the MNCS can earn greater profit.
Q 15 – Which of the following factors has not facilitated globalisation?
(a) Technology
(b) Liberlisation of trade
(c) WTO
(d) Nationalisation of banks
(d) Nationalisation of banks
Q 16 – Which one of the following is a major benefit of a joint production between a local company and a Multi-National Company?
(a) MNC can bring the latest technology in the production
(b) MNC can control the increase in the price
(c) MNC can buy the local company
(d) MNC can sell the products under their brand name
(a) MNC can bring the latest technology in the production
Q 17 – Which Indian companies have invested abroad?
(a) Coca Cola
(b) Ranbaxy
(c) Nike
(d) Pepsi
(b) Ranbaxy
Q 18 – When was the WTO established?
(a) 1985
(b) 1995
(c) 2000
(d) 2005
(b) 1995
Q 19 – Which one among the following is a far-reaching change in the policy made in India in 1991?
(a) Removing barriers or restrictions set by the government which is known as liberalisation.
(b) Put barriers to foreign trade and foreign investments.
(c) Restrictions set by the government to protect the producers within the country from foreign competition.
(d) By giving protection to domestic producers through a variety of means.
(a) Removing barriers or restrictions set by the government which is known as liberalisation.
Q 20 – Suppose the Indian government puts a tax on the import of toys from China, what would happen?
(a) Toys will get cheaper, more purchase by a consumer
(b) No effect
(c) Toys will get expensive, less purchase by a consumer
(d) Toys will get expensive, more purchase by a consumer
(c) Toys will get expensive, less purchase by a consumer
Q 21 – FDI (Foreign Direct Investment) attracted by globalisation in India belongs to the
(a) World Bank
(b) multinationals
(c) foreign governments
(d) none of the above
(b) multinationals
Q 22 – Which Indian Company has emerged as an MNC?
(a) Mahindra & Mahindra
(b) Tata Motors
(c) Renault
(d) Maruti Suzuki
(b) Tata Motors
Q 23 – The most common route for investments by MNCs in countries around the world is to:
(a) set up new factories
(b) buy existing local companies
(c) form partnerships with local companies
(d) None of these
(a) set up new factories
Q 24 – Liberalisation refers to
(a) freeing the economy from direct control
(b) putting an end to various restrictions
(c) opening up the economy
(d) all the above
(d) all the above
Q 25 – By 2006, how many countries were the members of the World Trade Organisation?
(a) 139
(b) 149
(c) 159
(d) 169
(b) 149
Q 26 – Which one of the following has benefited least because of globalisation in India?
(a) Agriculture Sector
(b) Industrial Sector
(c) Service Sector
(d) Secondary Sector
(a) Agriculture Sector
Q 27 – Multinational corporations have succeeded in entering global markets through
(a) WTO
(b) UNO
(c) UNESCO
(d) none of the above.
(a) WTO
Q 28 – Which one of the following is not true regarding the impact of the globalisation of India?
(a) It has created jobs in the service sector.
(b) People with education, skill and wealth have not been benefited.
(c) Benefits of globalisation are not shared equally.
(d) Labour laws are not implemented properly and workers are denied their rights.
(d) Labour laws are not implemented properly and workers are denied their rights.
Q 29 – Which one of the following is not true regarding the World Trade Organisation?
(a) It allows free trade to all countries without any trade barriers.
(b) Its aim is to liberalise international trade.
(c) It establishes rules regarding international trade.
(d) WTO rules have forced developing countries to remove trade barriers.
(a) It allows free trade to all countries without any trade barriers.
Q 30 – What attracts an MNC?
(a) Cheap labour
(b) Ready demand for the product
(c) Both (a) and (b)
(d) None of the above
(c) Both (a) and (b)
Q 31 – Special Economic Zones (SEZ) developed by the Government of India aim
(a) to attract foreign companies to invest in India
(b) to encourage small investors
(c) to encourage regional development
(d) none of the above
(a) to attract foreign companies to invest in India
Q 32 – Investment means spending on
(a) factory building
(b) machines
(c) equipment
(d) all the above
(d) all the above
Q 33 – ‘The impact of Globalisation has not been fair.’ Who among the following people has not benefitted from globalisation?
(a) Well off consumers
(b) Small producers and workers
(c) Skilled and educated producers
(d) Large wealthy producers
(b) Small producers and workers
Q 34 – “MNCs keep in mind certain factors before setting up production”. Identify the incorrect option from the choices given below
(a) Availability of cheap skilled and unskilled labour
(b) Proximity to markets
(c) Presence of a large number of local competitors
(d) Favourable government policies
(c) Presence of a large number of local competitors
Q 35 – Which of the following contributes to globalisation?
(a) internal trade
(b) external trade
(c) large scale trade
(d) small scale trade
(b) external trade
Q 36 – _____________ refers to all those different economic reforms or policy measures and changes that aim at increasing the productivity and efficiency by creating an environment of competition in the economy.
New Economic Policy
Q 37 – Benefits enjoyed by companies who set up production units in the SEZs are:
(a) they do not have to pay taxes for some years
(b) reduction in excise duty
(c) reduced tariffs and barriers
(d) none of the above
(a) they do not have to pay taxes for some years
Q 38 – _____________ refers to exchange of goods, i.e., purchase and sale, across geographical boundaries of the countries.
Foreign Trade
Q 39 – Integration of markets means
(a) operating beyond the domestic markets
(b) wider choice of goods
(c) competitive price
(d) all the above
(d) all the above
Q 40 – The main aim of World Trade Organization is _____________ .
To liberalize international trade