MCQ Questions for Class 10 Economics: Ch 4 Globalisation and the Indian Economy

MCQ Questions for Class 10 Economics: Ch 4 Globalisation and the Indian Economy

1. Fair globalisation refers to ensuring benefits to:

(a) labourers

(b) producers

(c) consumers

(d) all the above

► (d)

2. Globalisation has led to improvement in

(a) choice to consumers

(b) quality of goods and services

(c) foreign investment

(d) all the above

► (d)

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

(a) Agricultural sector

(b) Manufacturing sector

(c) Service sector

(d) All the above

► (a)

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

► (b)

5. 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

► (d)

6. 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

► (c)

7. Globalisation so far has been more in favour of:

(a) developed countries

(b) developing countries

(c) poor countries

(d) none of the above

► (a)

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

(a) goods and services

(b) investments

(c) people

(d) all the above

► (d)

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

(a) Technology

(b) Liberlisation of trade

(c) WTO

(d) Nationalisation of banks

► (d)

10. When was the WTO established?

(a) 1985

(b) 1995

(c) 2000

(d) 2005

► (b)

11. 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

► (b)

12. 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

► (d)

13. Multinational corporations have succeeded in entering global markets through

(a) WTO

(b) UNO

(c) UNESCO

(d) none of the above

► (a)

14. What attracts an MNC?

(a) Cheap labour

(b) Ready demand for the product

(c) Both (a) and (b)

(d) None of the above

► (c)

15. Investment means spending on

(a) factory building

(b) machines

(c) equipments

(d) all the above

► (d)

16. 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

► (b)

25. Which of the following contributes to globalisation?

(a) internal trade

(b) external trade

(c) large scale trade

(d) small scale trade

► (b)

26. 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

► (a)

28. Integration of markets means

(a) operating beyond the domestic markets

(b) wider choice of goods

(c) competitive price

(d) all the above

► (d)

29. 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

► (a)

30. 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.

► (a)

31. 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.

► (d)

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

► (a) MNC can bring latest technology in the production

33. 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.

► (a)

34. 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

► (a)

35. By 2006, how many countries were the members of the World Trade Organisation?

(a) 139

(b) 149

(c) 159

(d) 169

► (b)

36. 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.

► (d)

37. 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
► (a)

38. Removing barriers or restrictions set by the government is known as :
(a) privatisation

(b) globalisation
(c) liberalisation

(d) socialisation
► (c)

39. Taxes on imports is an example of :

(a) terms of trade

(b) collateral

(c) trade barriers

(d) foreign trade

► (c)

40. 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

► (a)

41. 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.

► (a)

42. 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.

► (c)