GLOBALISATION AND THE INDIAN ECONOMY (IMPORTANT NTSE MSQ QUESTION WITH SOLUTION)

                                GLOBALISATION AND THE INDIAN ECONOMY

Q-1. It has helped in spreading of production of services-

a) Automobile

b) Transport

c) Call Centers 

d) Garment 

Ans. (c) Call Centers 

Q-2. Globalization has led to improvement in living condition-

a) Of all the people

b) Of people in the developed

c) Of workers in the developing countries

d) None of the above

Ans. (b) of people in the developed

Q-3. Quotas and taxes on imports are used to regular-

a) Trade barriers

b) Investment

c) Foreign investment

d) All the above

Ans. (a) Trade barriers

Q-4. MNCs buy at ……………. Rates from small producers-

a) High 

b) Low

c) Mixed

d) More than high

Ans. (b) Low

Q-5. Indian company who has invested abroad-

a) Infosys

b) Lux

c) Swastika

d) None of these

Ans. (a) Infosys

Q-6. Investment made by the MNCs is called-

a) Investment 

b) Foreign investment 

c) Trade

d) All the above

Ans. (b) foreign investment

Q-7. The money that is spent to buy assets is called ………….

a) Investment 

b) Foreign investment 

c) Trade fair

d) None of these

Ans. (a) Investment

Q-8. ITT of USA (MNCs) has branches-

a) 507

b) 608

c) 550

d) 708

Ans.  (d) 708

Q-9. The main motto of MNCs is to gain-

a) More profit

b) Social welfare

c) Loss 

d) None of these

Ans. (a) more profit

Q-10. It is a company that owns or controls production in more than one country is called-

a) Swadeshi

b) MNCs

c) Both

d) None of these

Ans. (b) MNCs

Q-11. Which of the following term is used to describe trade between two or more countries:

a) Internal trade

b) International trade

c) External trade

d) Local trade

Ans. (b) international trade

Q-12. What is meant by induced investment?

a) Investment motivated by the Govt.

b) Investment made by the private enter preneur

c) Investment that depends on income and profit 

d) Investment independent of income and profit 

Ans. (c) Investment that depends on income and profit 

Q-13. The duration of the first five year plan of India was…………

a) 1947-1952

b) 1950-1955

c) 1955-1960

d) 1951-1956

Ans. (d) 1951-1956

Q-14. Choose the correct sequence to indicate the following statements as True (T) or False (F):

A. The W.T.O has formulated a policy of free trade among the member nations.

B. The developed nations are immensely benefited by free trade policy

C. The developed countries are interested in helping the weaker countries through this policy

D. The developed countries are subjected to economic exploitation to economic exploitation in the name of free trade policy.

a) T,T,F,F

b) F,F,T,T

c) F,T,T,T

d) T,F,F,T

Ans. (d) T, F, F, T

Q-15. Favourable balance trade means:

a) The value of visible export is less than the value of visible imports

b) The value of both is equal

c) The value of visible export and value of visible imports is different

d) The value of visible export is more than the value of visible imports

Ans. (d) the value of visible export is more than the value of visible imports

Q-16. Where is the headquarters of world trade Organisation situated?

a) Washington

b) Geneva

c) Delhi 

d) Calcutta 

Ans. (b) Geneva

Q-17. In which year was the world trade organization established?

a) 1995

b) 1998

c) 1991

d) 1992

Ans. (a) 1995

Q-18. Which of the following statement is not true regarding the world trade organization?

a) It allows free trade to all countries without any trade barriers

b) Its aim is to liberalize international trade

c) It establishes rules regarding international trades

d) W.T.O. rules have forced the developing countries to remove trade barriers

Ans. (d) W.T.O. rules have forced the developing countries to remove trade barriers

Q-19. Which group demanded a New International Economic order (NIEO)?

a) Group of 77(G-77)

b) SAARC countries

c) Group of 8(G-8) 

d) All the above

Ans. (a) Group of 77(G-77)

Q-20. Globalisation has enable which large Indian company to emerge as multinational company?

a) Tata Motors

b) Infosys

c) Ranbaxy

d) All of these

Ans. (d) All of these

Q-21. One major factor that has stimulated the globalisation process is

a) Effective utilization of resource

b) Increase in income and wealth

c) Willingness to cooperate

d) Rapid improvement in technology

Ans. (d) Rapid improvement in technology

Q-22. If tax is imposed on Chinese toys, what will happen?

a) Chinese toy-makers will benefit

b) Indian toy-makers will prosper

c) Chinese toys will remain cheap

d) Indian consumers will buy more Chinese toys

Ans. (b) Indian toy-makers will prosper

Q-23. Which out of the following is an example of a trade barrier?

a) Foreign investment

b) Delay or damage of goods

c) Tax on imports

d) None of these

Ans. (c) Tax on imports

Q-24. Removing barriers or restrictions set by the government is called

a) Liberalization 

b) Investment

c) Favourable trade

d) Free trade

Ans. (a) Liberalization

Q-25. WTO aims at

a) Establishing rules for domestic trade

b) Restricting trade practices

c) Liberalizing international trade

d) None of these

Ans. (c) Liberalizing international trade

Q-26. Which out of the following industries has a large number of well-off buyers in urban areas?

a) Footwear

b) Automobiles 

c) Jewellery

d) Clothing and accessories

Ans. (b) Automobiles

Q-27. Globalization has created new opportunities of 

a) Employment

b) Emerging multinationals

c) Providing services

d) All of the above

Ans. (d) All of the above

Q-28. One major government initiative to attract foreign companies to invest in India is

a) To raise the standard of education

b) To promote unemployment in the public sector

c) To build special economic zones

d) Both (a) and (c)

Ans. (c) To build special economic zones

Q-29. Globalization has posed major challenges for

a) Big producers

b) Small producers

c) Rural poor

d) None of these

Ans. (b) Small producers

Q-30. With the growing competition, most employers these days prefer to employ workers

a) Flexibly

b) Quickly

c) Selectively

d) None of these

Ans. (a) Flexibly

Q-31. The past two decades of globalization has seen rapid movements in

a) Goods, services and people between countries

b) Goods, services and investments between countries

c) Goods, investment and people between countries

d) None of these

Ans. (b) Goods, services and investments between countries

Q-32. The most common route for investment by MNCs in countries around the world is to

a) Set up new factories

b) Buy existing local companies

c) From partnership with local companies

d) Both (a) and (b)

Ans. (c) From partnership with local companies

Q-33. Globalization has led to higher standards of living of 

a) Well-off consumers

b) Poor consumers

c) Big producers

d) Small producers

Ans. (a) Well-off consumers

Q-34. A company that owns or controls production in more than one nation is called

a) Multinational corporation

b) Joint stock company

c) Global company

d) None of these

Ans. (a) Multinational corporation

 Q-35. Where do MNCs choose to set up production?

a) Cheap goods

b) Cheap labour resources

c) Economic sustainability

d) None of these

Ans. (b) cheap labour resources

Q-36. Cargill Foods, an MNC has bought over which indigenous Indian company?

a) Amul

b) Britannia

c) Parakh Foods 

d) Dabur

Ans. (c) Parakh Foods 

Q-37. Ford Motors entered the Indian automobile business in collaboration with which Indian Manufacturer?

a) Mahindra and Mahindra

b) Tata Motors

c) Maruti Suzuki

d) Hindustan Motors

Ans. (a) Mahindra and Mahindra

Q-38. What is happening with the import of Chinese toys in India?

a) Indian toys are selling more

b) Indian consumers are buying less

c) Indian consumers are getting more choice at cheaper rates

d) Chinese consumer are filling short of choice 

Ans. (c) Indian consumers are getting more choice at cheaper rates

Q-39. Trade between countries

a) Determines the prices of products in different countries

b) Decreases competition between countries

c) Makes a country dependent on the other

d) None of these

Ans. (a) determines the prices of products in different countries

Q-40. Globalization by connecting countries leads to 

a) Lesser competition among producers

b) Greater competition among producers

c) No competition between producers

d) None of these

Ans. (b) Greater competition among producers

Q-41. Globalization opportunities for paid work for women has denied them:

a) Goods health 

b) Good education 

c) Permanent job

d) None of these

Ans. (c) Permanent job

Q-42.  Fair globalization would mean:

a) Fair opportunities for all

b) Fair benefits for all

c) More support to small producers

d) All of the above

Ans. (d) All of the above

Q-42. Government can make globalization more ‘Fair’ by:

a) Increasing competition

b) Increasing employment 

c) Implementing the labour laws

d) Imposing trade barriers

Ans. (c) Implementing the labour laws

Q-43. On July 12, 1982, the ARDC was merged into:

a) RBI

b) NABARD

c) EXIM BANK

d) None of the above

Ans. (b) NABARD