Multiple Choice Questions
ECONOMICS - Globalisation and the Indian Economy
Practice Questions with Answers
Total 32 questions available
Q. 1
The main aim of World Trade Organisation is __________ .
A
None of the aboveB
to restrict trade from foreign countries.C
to liberalise domestic trade.D
to liberalise international tradeClick an option to check your answer
Q. 2
Identify the incorrect feature of a Multinational
Company.
A
It owns/controls production in more than one nationB
It sets up factories where it is close to the markets.C
It organises production in complex waysD
It employs labour only from its own countryClick an option to check your answer
Q. 3
Identify which one of the following is a major
benefit of joint production between a local
company and a Multinational Company?
A
MNCs can control the increase in the price.B
MNCs can bring latest technology in the production.C
MNCs can sell the products under their brand name.D
MNCs can buy the local company.Click an option to check your answer
Q. 4
Which of the following is an example of a trade
barrier?
A
Interest on bondsB
Tax on importsC
Cost of transportationD
Remittances to foreignersClick an option to check your answer
Q. 5
WTO aims at:
A
none of the above.B
restricting trade practices.C
liberalising international tradeD
establishing rules for domestic trade.Click an option to check your answer
Q. 6
Identify the correct option which contributes to
globalisation:
A
internal tradeB
external tradeC
small scale tradeD
large scale tradeClick an option to check your answer
Q. 7
Name the Indian manufacturer with which Ford
Motors entered the Indian automobile business.
A
Hindustan MotorsB
MarutiC
SuzukiD
Mahindra and MahindraClick an option to check your answer
Q. 8
Identify why do MNCs set up offices and factories
in more than one nation?
A
Because the MNCs want to make their presence felt globally.B
Because the cost of production is low and the MNCs can earn greater profit.C
Because the cost of production is low and the MNCs undergo a lossD
Because the cost of production is high and the MNCs can earn profit.Click an option to check your answer
Q. 9
Identify the incorrect statement in respect of
SEZS.
A
Government has allowed flexibility in labour lawsB
They have world class facilities.C
They do not have to pay taxes for long period.D
They do not have to pay taxes for an initial period of five years.Click an option to check your answer
Q. 10
Which one of the following is a major benefit to
a local company which goes for joint production
with an MNC?
A
MNC might ask for labour and capital investment from local company.B
MNC provides Money and Technology to local company.C
MNC purchases all shares of local company for faster production.D
MNC takes all decisions to reduce burden of local companyClick an option to check your answer
Q. 11
Identify which one of the following Indian
industries has been hit hard by globalisation?
A
Information Technology (IT)B
CementC
Toy-makingD
JuteClick an option to check your answer
Q. 12
Increased job opportunities' in countries is an
impact of ________ .
A
liberalisationB
globalisationC
none of theseD
privatisationClick an option to check your answer
Q. 13
Companies which set up production units in the
Special Economic Zones (SEZs) do not have to pay
taxes for an initial period of __________ .
A
2 yearsB
5 yearsC
4 yearsD
10 yearsClick an option to check your answer
Q. 14
__________ refers to all those different economic
reforms or policy measures and changes which
aim at increasing the productivity and efficiency
by creating an environment of competition in the
economy.
A
None of the aboveB
Public sector reformsC
New economic policyD
Five year plansClick an option to check your answer
Q. 15
Which of the following industries has a large
number of well-off buyers in urban areas?
A
All of theseB
AutomobilesC
Fast foodD
ElectronicsClick an option to check your answer
Q. 16
Trade between countries:
A
None of the aboveB
makes a country dependent on the otherC
decreases competition between countriesD
determines prices of products in different countriesClick an option to check your answer
Q. 17
There were ___________ countries who were the
members of the World Trade Organisation in 2006.
A
139B
169C
149D
159Click an option to check your answer
Q. 18
Which of the following is a benefit of
globalisation?
A
Consumers pay higher amount for goods and services, so producers are better off.B
Asymmetric information cannot exist in a globalised market.C
Consumers get a wide variety of goods to choose fromD
Homogeneous goods are sold in a globalised marketClick an option to check your answer
Q. 19
The aim of Special Economic Zones (SEZ)
developed by the Government of India is _________ .
A
to attract foreign companies to invest in IndiaB
to encourage regional development.C
None of the aboveD
to encourage small investors.Click an option to check your answer
Q. 20
Globalisation, by connecting countries, leads to:
A
no competition between producersB
lesser competition between producers.C
greater competition between producersD
None of the aboveClick an option to check your answer
Q. 21
The investment made by MNCs is called _________ .
A
foreign investmentB
foreign supplyC
foreign tradeD
foreign demandClick an option to check your answer
Q. 22
The past two decades of globalisation have seen
rapid movements in:
A
goods, investments and people between countriesB
None of the aboveC
goods, services and people between countriesD
goods, services, technology and investments between countries.Click an option to check your answer
Q. 23
Globalisation so far has been more in favour of ________ .
A
none of the aboveB
poor countriesC
developing countriesD
developed countriesClick an option to check your answer
Q. 24
What was the far reaching change in the policy
made in India in 1991?
A
favourable tradeB
liberalisationC
free tradeD
investmentClick an option to check your answer
Q. 25
Which of the following is a reason for the
government to impose barriers on trade?
A
To improve the performance of domestic producers.B
To increase competition in domestic marketC
To remove monopoly markets from the country.D
To regulate the type and amount of goods that can enter the country.Click an option to check your answer
Q. 26
Which of the following is an example of
globalisation?
A
Indians consuming goods produced abroad.B
Indians moving across different states in domestic territoryC
Indians becoming self-sufficient in terms of production of goods and services.D
Indians producing huge amount of agricultural produce.Click an option to check your answer
Q. 27
Which Indian company has been bought by Cargill Foods, an MNC?
A
AmulB
Parakh foodsC
BritanniaD
DaburClick an option to check your answer
Q. 28
Identify, in which year did the government
decide to remove barriers on foreign trade and
investment in India?
A
1991B
1992C
1990D
1993Click an option to check your answer
Q. 29
Why did the Indian government liberalize trade
regulations in 1991?
A
Government wanted to maintain good relations with Western Countries.B
Government wanted foreign exchange equivalent to Indian Currency.C
Government wanted Indian producers to compete in the World Market.D
Government wanted to provide socio economic justice to all.Click an option to check your answer
Q. 30
In what way did the pressure of competition
affect the workers in the garment industry?
A
Reduced cost of raw materialsB
Reduced labour costC
Decreased working hoursD
Protection to workersClick an option to check your answer
Q. 31
Identify which one of the following organisations
lays stress on liberalisation of foreign trade and
foreign investment?
A
World Health OrganisationB
International Monetary FundC
International Labour OrganisationD
World Trade OrganisationClick an option to check your answer
Q. 32
Globalisation has led to improvement in living
conditions:
A
of all the people.B
None of the aboveC
of workers in the developing countries.D
of people in developed countries.Click an option to check your answer
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