Monday 11 January 2021

MCQ of Globalisation & It's Impact on Indian Economy

 Q.1. Which sector has not benefited by the policy of globalisation?

(a)  Agricultural sector

(b)  Manufacturing sector

(c)  Service sector

(d)  All the above

Ans. (a)

Q.2. 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

Ans. (d)

Q.3. Fair  globalisation  refers  to  ensuring benefits to :

(a)  labourers                  (b) producers

(c)  consumers               (d) all the above

Ans. (d)

Q.4. Globalisation results in

(a)  lesser competition among producers 

(b)  greater competition among producers 

(c)  no  change  in  competition  among producers

(d)  none of the above

Ans. (b)

Q.5. When was the WTO established?

(a)  1985                        (b) 1995 (c)  2000                        (d) 2005

Ans. (b)

Q.6. Globalisation leads to rapid movements of the following between countries :

(a)  goods and services

(b)  investments

(c)  people

(d)  all the above

Ans. (d)

Q.7. 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

Ans. (c)

Q.8. Globalisation has led to improvement in

(a)  choice to consumers

(b)  quality of goods and services

(c)  foreign investment

(d)  all the above

Ans. (d)

Q.9. Which of the following factors has not facilitated globalisation?

(a)  Technology                       (b)  Liberlisation of trade

(c)  WTO                                 (d)  Nationalisation of banks

Ans. (d)

Q.10. One of the major results of globalisation in India has been in the growth of

(a)  outsourcing by MNCs

(b)  transportation services

(c)  telecommunication services

(d)  none of the above

Ans. (a)

Q.11. Globalisation so far has been more in favour of

(a)  developed countries (b)  developing countries 

(c)  poor countries           (d)  none of the above

Ans. (a)

Q.12. Multinational corporations have succeeded in entering global markets through

(a)  WTO                 (b) UNO       (c)  UNESCO          (d) none of the above

Ans. (a)

Q.13. At present what is the  number  of  member countries of WTO :

(a)  169                          (b) 164         (c)  179                          (d) 170

Ans. (b)

Q.14. 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

Ans. (b)

Q.15. When economic activities in a country are influenced by economic activities in other countries, it is called

(a)  foreign trade           (b) competition

(c)  globalisation            (d) all the above

Ans. (c)

Q.16. A company that operates in more than one country is called a

(a)  partnership              (b) corporation

(c)  foreign company     (d) multinational

Ans. (d)

Q.17. Investment means spending on

(a)  factory building      (b) machines

(c)  equipments              (d) all the above

Ans. (d)

Q.18. Which  of  the  following  contributes  to globalisation?

(a)  internal trade      (b) external trade

(c)  large scale trade (d) small scale trade

Ans. (b)

Q.19. Integration of markets means

(a)  operating   beyond   the   domestic markets

(b)  wider choice of goods

(c)  competitive price

(d)  all the above

Ans. (d)

Q.20. 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

Ans. (d)

Q.21. Name the organisation whose aim is to liberalise international trade.

(a)  ILO  (International Labour Organisation)

(b)  WHO (World Health Organisation) 

(c)  WTO (World Trade Organisation)

(d)  NSSO  (National  Sample  Survey Organisation)

Ans. (c)

Q.22. What attracts an MNC?

(a)  Cheap labour

(b)  Ready demand for the product

(c)  Both (a) and (b) (d)  None of the above

Ans. (c)

Q.23. What is the impact of LPG policy of the government?

(a)  Stiff competition among producers

(b)  Increase in inequalities

(c)  Greater choice to consumers

(d)  All the above

Ans. (d)

Q.24. Globalisation results in

(a)  inflow of labour from abroad (b)  inflow of capital from abroad 

(c)  inflow of tourists from abroad (d)  all the above

Ans. (b)

Q.25. Globalisation leads to 

(a)  more competition (b)  less competition

(c)  monopoly             (d)  none of the above

Ans. (a)

Q.26. 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

Ans. (a)

Q.27. 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

Ans. (a)

Q.28. Globalisation is called fair globalisation when it benefits

(a)  labour                      (b) investors

(c)  consumers               (d) all the above

Ans. (d)

Q.29. 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.

Ans. (a)

Q.30. Which one of the following is not true regarding impact of 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.

Ans. (d)

Q.31. 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.

Ans. (a)

Q.32. 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

Ans. (a)

Q.33. Globlisation shall result in :

(a)  lesser competition among producers

(b)  greater competition among producers

(c)  no  change  in  competition  among producers

(d)  destruction of large scale producers

Ans. (b)

Q.34. Rapid  integration  or  inter  connection between countries is known as :

(a)  Privatisation     (b)  Globalisation

(c)  Liberalisation   (d)  Socialisation

Ans. (b)

Q.35. 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

Ans. (a)

Q.36. Taxes on imports is an example of : 

(a)  terms of trade         (b) collateral

(c)  trade barriers           (d) foreign trade

Ans. (c)

Q.37. What is foreign investment ?

(a)  Investment made by foreign governments.

(b)  Investment made by foreign companies.

(c)  Investment made by the foreign MNCs.

(d)  Investment made by the IMF and the World Bank.

Ans. (c)

Q.38. 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.

Ans. (d)

Q.39. Which  of  the  following  organisations lays stress on liberalisation of foreign trade and foreign investment ?

(a)  International Labour Organisation

(b)World Health Organisation

(c)  International Monetary Fund

(d)World Trade Organisation

Ans. (d)

Q.40. Which  one  of  the  following  is  an example of a trade barrier? 

 (a)  Tax on export

(b)  Tax on imports

(c)  Tax on local trade

(d)  High income tax

Ans. (b)

Q.41. Globalisation    has    posed    major challanges for:                     

 (a)  Big producers         (b)  Small producers

(c)  Rural poor               (d) Urban poor

Ans. (b)

Q.42. Investment by MNCs is called :

(a)  Mutual Investment             (b)  Inter-government Investment

(c)  Portfolio Investment           (d)  Foreign Investment

Ans. (d)

Q.43. Removing barriers or restrictions set by the government is known as :

(a)  privatisation            (b) globalisation

(c)  liberalisation           (d) socialisation

Ans. (c)

Q.44. What  is  the  most  common  route  for investments by MNCs in countries around the world ?      (a)  Set up new factories

(b)  Buy existing local companies

(c)  Form    partnerships    with    local companies

(d)  None of the above

Ans. (b)

Q.45. Which one of the following categories refers to investment ?       

(a)  The money that is spent to buy assets such as land, building, machines, etc.

(b)  The money that is spent on religious ceremonies.

(c)  The  money  that  is  spent  on  social customs.

(d)  The money that is spent on household goods.

Ans. (a)

Q.46. Which  one  of  the  following  is  not  a Multinations Company?     

 (a)  Tata Motors            (b) Infosys IT

(c)  Ranbaxy                  (d)  Tata Iron and Steel Company

Ans. (d)

Q.47. Which one of the following has benefied least because of globalisation in India? 

(a)  Agriculture Sector

(b)  Industrial Sector

(c)  Service Sector

(d)  Secondary Sector

Ans. (a)

Q.48. 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.

Ans. (c)


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