Choose the correct option:
Question 1.
Which one of the following organisations lay stress on liberalisation of foreign trade and foreign investment?
(a) International Monetary Fund
(b) International Labour Organisation
(c) World Health Organisation
(d) World Trade Organisation
Answer
Answer: (d) World Trade Organisation
Question 2.
Removing barriers or restrictions set by the government is known as
(a) Globalisation
(b) Privatisation
(c) Nationalism
(d) Liberalisation
Answer
Answer: (d) Liberalisation
Question 3.
Which one of the following refers to investment?
(a) The money spent on religious ceremonies
(b) The money spent on social customs
(c) The money spent to buy assets such as land
(d) The money spent on household goods
Answer
Answer: (c) The money spent to buy assets such as land
Question 4.
Which of the following is a ‘barrier’ on foreign trade?
(a) Tax on import
(b) Quality control
(c) Sales tax
(d) Tax on local trade
Answer
Answer: (a) Tax on import
Question 5.
Special Economic Zones (SEZs) are being set up to attract
(a) foreign tourists
(b) foreign investment
(c) foreign goods
(d) foreign policies
Answer
Answer: (b) foreign investment
Question 6.
Entry of MNCs in a domestic market may prove harmful for
(a) all large scale producers
(b) all domestic producers
(c) all substandard domestic producers
(d) all small-scale producers
Answer
Answer: (c) all substandard domestic producers
Question 7.
Ford Motors set up its first plant in India at
(a) Kolkata
(b) Mumbai
(c) Chennai
(d) Delhi
Answer
Answer: (c) Chennai
Question 8.
Which of the following industries have been hard hit by foreign competition?
(a) Dairy products
(b) Leather industry
(c) Cloth industry
(d) Vehicle industry
Answer
Answer: (a) Dairy products
Question 9.
In which year did the government decide to remove barriers on foreign trade and investment in India?
(a) 1993
(b) 1992
(c) 1991
(d) 1990
Answer
Answer: (c) 1991
Question 10.
“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
Answer
Answer: (c) Presence of a large number of local competitors
Question 11.
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 globally.
Answer
Answer: (c) The cost of production is low and the MNCS can earn greater profit.
Question 12.
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
Answer
Answer: (a) set up new factories
Question 13.
Removing barriers or restrictions set by the government is known as :
(a) privatisation
(b) globalisation
(c) liberalisation
(d) socialisation
Answer
Answer: (c) liberalisation
Question 14.
Entry of MNCs in a domestic market may prove harmful for:
(a) all large scale producers.
(b) all domestic producers.
(c) all substandard domestic producers.
(d) all small scale producers.
Answer
Answer: (d) all small scale producers.
Question 15.
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
Answer
Answer: (a) Agriculture Sector
Question 16.
Which one of the following is a major benefit of joint production between a local company and a Multi-National Company?
(a) MNC can bring 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
Answer
Answer: (a) MNC can bring latest technology in the production
Question 17.
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 internaional trade.
(d) WTO rules have forced the developing countries to remove trade barriers.
Answer
Answer: (a) It allows free trade to all countries without any trade barriers.
Question 18.
Integration of markets means
(a) operating beyond the domestic markets
(b) wider choice of goods
(c) competitive price
(d) all the above
Answer
Answer: (d) all the above
Question 19.
Which of the following contributes to globalisation?
(a) internal trade
(b) external trade
(c) large scale trade
(d) small scale trade
Answer
Answer: (b) external trade
Question 20.
Investment means spending on
(a) factory building
(b) machines
(c) equipments
(d) all the above
Answer
Answer: (d) all the above
Question 21.
Multinational corporations have succeeded in entering global markets through
(a) WTO
(b) UNO
(c) UNESCO
(d) none of the above
Answer
Answer: (a) WTO
Question 22.
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
Answer
Answer: (b) multinationals
Question 23.
Which of the following factors has not facilitated globalisation?
(a) Technology
(b) Liberlisation of trade
(c) WTO
(d) Nationalisation of banks
Answer
Answer: (d) Nationalisation of banks
Question 24.
Globalisation so far has been more in favour of:
(a) developed countries
(b) developing countries
(c) poor countries
(d) none of the above
Answer
Answer: (a) developed countries
Question 25.
Cheaper imports, inadequate investment in infrastructure lead to
(a) slowdown in agricultural sector
(b) replace the demand for domestic production
(c) slowdown in industrial sector
(d) all the above
Answer
Answer: (d) all the above
Question 26.
Which sector has not benefited by the policy of globalisation?
(a) Agricultural sector
(b) Manufacturing sector
(c) Service sector
(d) All the above
Answer
Answer: (a) Agricultural sector
Question 27.
Fair globalisation refers to ensuring benefits to:
(a) labourers
(b) producers
(c) consumers
(d) all the above
Answer
Answer: (d) all the above
