Sub - Eco MCQ. Chap -4 ( The globalisation and Indian Economy )
1. Removing barriers or restrictions set by the government is called:
(a) Liberalisation. (b) Investment
(c) Fovourable trade. (d) Free trade
2. Investments made by MNCs are termed as:
(a) Indigenous investment. (b) Foreign investment
(c) Entrepreneur’s investment. (d) None of the above
3. Which of the following is not a feature of a Multi-National Coorporation ?
(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.
4. Which one of the following is not characteristic of ‘Special Economic Zone’ ?
(a) They do not have to pay taxes for long period.
(b) Government has allowed flexibility in labour laws.
(c) They have world class facilities.
(d) They do not have to pay taxes for an initial period of five years.
5. 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
6. Which of these organisation favours the policy of liberalisation?
(a) World Trade Organisation (WTO)
(b) International Monetary Fund (IMF)
(c) World Bank
(d) Planning Commission
7. Identify the company that has gained and become a multinational as a result of globalization.
(a) IOC. (b) HAL
(c) BHEL. (d) Infosys
8. The World Trade Organisation was formed in ____.
(a) 1995. (b) 1985
(c) 1975. (d) 1982
9. Globalisation does not involve which one of the following?
(a) Rapid integration between countries
(b) Movement of people between countries for jobs, education etc.
(c) Increased taxes on imports
(d) More goods and services moving between countries
10. Which of the following statements regarding WTO are true ?
(a) World Trade Organisation (WTO) is one such organisation whose aim is
to liberalise international trade.
(b) It was started at the initiative of the
developed countries.
(c) WTO establishes rules regarding international trade, and sees that these rules
are obeyed.
(d) India is also one of the member of this organisation
(i) a , b , c and d. (ii) a , c and d. (iii) b , c and d. (iv) a , b and d
11. Which of the following statements regarding Impact of Globalisation are true ?
(a) New jobs have been created.
(b) Several of the top Indian companies have invested in newer technology and
production methods and raised their production standards.
(c) Globalisation has enabled some large Indian companies
to emerge as multinationals themselves i.e Tata Motors, Infosys .
(d) Buyers now have more variety of options available
(i) a , b and c. (ii) b , c and d. (iii) a , c and d. (iv) All
12. Trade barrier refers to :
(a) Tax on export. (b) Tax on sale
(c) Tax on import. (d) None of these
13. IT stands for :
(a) Institution Technology. (b) Inspection Technology
(c) Information Technology. (d) None
14. Which of the following statements regarding Information and Communication
Technology are true ?
(a) It is used to contact one another around the world
(b) It is used to access information instantly.
(c) This has been facilitated by satellite communication device.
(d) It has played a major role in spreading out production of services across countries.
(i) a , b , c and d. (ii) a , b and c. (iii) a , c and d. (iv) b , c and d
15. Mention the factors that have enabled globalisation ?
(a) Transportation Technology. (b) Information Technology
(c) Liberalisation. (d) a , b & c
16. The money that is spent to buy assets such as land,
building, machines and other equipment is called ______.
(a) Currency. (b) Cheque.
(c) Investment. (d) None
17. Foreign trade refers to ____
(a) Trade in foreign currency. (b) exchange of goods among countries
(c) Trade within a country. (d) None
18. MNCs set up production jointly with some of the local
companies. The benefit to the local company is ----------
(a) MNCs can provide additional investments for buying
new machines for faster production.
(b) MNCs might bring with them the latest technology for production.
(c) a & b
(d) None
19. Ford Motors, an American company, is one of the world’s largest _______ manufacturers .
(a) Bulb. (b) Bicycle
(c) Automobiles. (d) None
1. A 2. B 3. D 4. A 5 . C
6. A 7. D 8. A 9. C 10. i
11. D 12. C 13. C 14. i 15 . D
16. C 17. B 18. C 19. C
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