MULTIPLE CHOICE
QUESTIONS
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.
Globalization 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. Upto 2006 the number of member countries of WTO was :
(a) 139 (b) 149
(c) 159 (d) 160
Ans.
(b)
Q.14. FDI (Foreign Direct Investment) attracted by globalization 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)
PREVIOUS YEARS’
QUESTIONS
Q.1. 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.2. 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.3. 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.4. 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.5. 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.6. By 2006, how many countries were the members of the World Trade
Organisation ?
(a) 139 (b) 149
(c) 159 (d) 169
Ans.
(b)
Q.7. Rapid integration or inter connection between countries is known as :
(a) Privatisation (b) Globalisation
(c)
Liberalisation (d) Socialisation
Ans.
(b)
Q.8. 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.9. Taxes on imports is an example of :
(a) terms of trade (b) collateral
(c) trade
barriers (d) foreign trade
Ans.
(c)
Q.10. 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.11. 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.12. 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.13. 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.14. Globalisation has posed major challanges for:
(a) Big
producers
(b) Small
producers
(c) Rural poor
(d) Urban poor
Ans.
(b)
Q.15. Investment by MNCs is called :
(a) Mutual
Investment
(b)
Inter-government Investment
(c) Portfolio
Investment
(d) Foreign
Investment
Ans.
(d)
Q.16. Removing barriers or restrictions set by the government is known as :
(a) privatisation (b) globalisation
(c)
liberalisation (d) socialisation
Ans.
(c)
Q.17. 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.18. 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.19. 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.20. 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.21. 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)