Multiple Choice Questions

ECONOMICS - Globalisation and the Indian Economy

Updated for CBSE 2027
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Total 32 questions available

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Q. 1
The main aim of World Trade Organisation is __________ .
A
None of the above
B
to restrict trade from foreign countries.
C
to liberalise domestic trade.
D
to liberalise international trade
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Q. 2
Identify the incorrect feature of a Multinational Company.
A
It owns/controls production in more than one nation
B
It sets up factories where it is close to the markets.
C
It organises production in complex ways
D
It employs labour only from its own country
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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.
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Q. 4
Which of the following is an example of a trade barrier?
A
Interest on bonds
B
Tax on imports
C
Cost of transportation
D
Remittances to foreigners
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Q. 5
WTO aims at:
A
none of the above.
B
restricting trade practices.
C
liberalising international trade
D
establishing rules for domestic trade.
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Q. 6
Identify the correct option which contributes to globalisation:
A
internal trade
B
external trade
C
small scale trade
D
large scale trade
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Q. 7
Name the Indian manufacturer with which Ford Motors entered the Indian automobile business.
A
Hindustan Motors
B
Maruti
C
Suzuki
D
Mahindra and Mahindra
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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 loss
D
Because the cost of production is high and the MNCs can earn profit.
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Q. 9
Identify the incorrect statement in respect of SEZS.
A
Government has allowed flexibility in labour laws
B
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.
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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 company
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Q. 11
Identify which one of the following Indian industries has been hit hard by globalisation?
A
Information Technology (IT)
B
Cement
C
Toy-making
D
Jute
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Q. 12
Increased job opportunities' in countries is an impact of ________ .
A
liberalisation
B
globalisation
C
none of these
D
privatisation
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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 years
B
5 years
C
4 years
D
10 years
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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 above
B
Public sector reforms
C
New economic policy
D
Five year plans
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Q. 15
Which of the following industries has a large number of well-off buyers in urban areas?
A
All of these
B
Automobiles
C
Fast food
D
Electronics
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Q. 16
Trade between countries:
A
None of the above
B
makes a country dependent on the other
C
decreases competition between countries
D
determines prices of products in different countries
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Q. 17
There were ___________ countries who were the members of the World Trade Organisation in 2006.
A
139
B
169
C
149
D
159
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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 from
D
Homogeneous goods are sold in a globalised market
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Q. 19
The aim of Special Economic Zones (SEZ) developed by the Government of India is _________ .
A
to attract foreign companies to invest in India
B
to encourage regional development.
C
None of the above
D
to encourage small investors.
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Q. 20
Globalisation, by connecting countries, leads to:
A
no competition between producers
B
lesser competition between producers.
C
greater competition between producers
D
None of the above
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Q. 21
The investment made by MNCs is called _________ .
A
foreign investment
B
foreign supply
C
foreign trade
D
foreign demand
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Q. 22
The past two decades of globalisation have seen rapid movements in:
A
goods, investments and people between countries
B
None of the above
C
goods, services and people between countries
D
goods, services, technology and investments between countries.
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Q. 23
Globalisation so far has been more in favour of ________ .
A
none of the above
B
poor countries
C
developing countries
D
developed countries
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Q. 24
What was the far reaching change in the policy made in India in 1991?
A
favourable trade
B
liberalisation
C
free trade
D
investment
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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 market
C
To remove monopoly markets from the country.
D
To regulate the type and amount of goods that can enter the country.
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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 territory
C
Indians becoming self-sufficient in terms of production of goods and services.
D
Indians producing huge amount of agricultural produce.
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Q. 27
Which Indian company has been bought by Cargill Foods, an MNC?
A
Amul
B
Parakh foods
C
Britannia
D
Dabur
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Q. 28
Identify, in which year did the government decide to remove barriers on foreign trade and investment in India?
A
1991
B
1992
C
1990
D
1993
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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.
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Q. 30
In what way did the pressure of competition affect the workers in the garment industry?
A
Reduced cost of raw materials
B
Reduced labour cost
C
Decreased working hours
D
Protection to workers
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Q. 31
Identify which one of the following organisations lays stress on liberalisation of foreign trade and foreign investment?
A
World Health Organisation
B
International Monetary Fund
C
International Labour Organisation
D
World Trade Organisation
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Q. 32
Globalisation has led to improvement in living conditions:
A
of all the people.
B
None of the above
C
of workers in the developing countries.
D
of people in developed countries.
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