CBSE Class 10 Social Science Globalization and The Indian Economy MCQs Set 01

Question :  Small Scale industries face competition from

• a) Cheap imports
• b) Rising prices
• c) Exports
• d) Subsidy

Answer :  A 

Question :  Which one is false?

• a) MNCS offer subsidy to the small scale industries
• b) MNCs acquire small companies to expand production
• c) MNCs enter into joint venture to enter into foreign markets
• d) MNCs set up own production center in foreign countries

Answer :  A  

Question :  Globalization is not supported by

• a) None of the options
• b) Privatization
• c) Liberalization
• d) Information and communication technology

Answer :  A 

Question : The most important factor that has stimulated globalisation is ......... .
a) population explosion
b) spread of education
c) urbanisation
d) rapid improvement in technology

Answer : D

Question : It creates an opportunity for the producers to reach beyond the domestic markets. What does it refer to?
a) Technology
b) Investments
c) Trade barriers
d) Globalisation

Answer : D

Question : Which one of the following is not an MNC?
a) Reebok Shoes
b) Tata Motors
c) SAIL
d) Infosys

Answer : C

Question : 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.

Answer : B

Question :  SEZ stands for

• a) Special Economic Zone
• b) Special Economic Package
• c) Special Ecology Zone
• d) None of the options

Answer :  A 

Question :  WTO stands for

• a) World Trade Organization
• b) World Tennis Organization
• c) World Trade Office
• d) World Trade center

Answer :  A 

Question : Which of the following industries has a large number of well-off buyers in urban areas?
(a) Electronics
(b) Fast food
(c) Automobiles
(d) All of these

Answer : D

Question : Identify which one of the following organisations lays stress on liberalisation of foreign trade and foreign investment?
(a) International Monetary Fund
(b) International Labour Organisation
(c) World Health Organisation
(d) World Trade Organisation

Answer : D

Question : The investment made by MNCs is called ______.
(a) foreign investment
(b) foreign trade
(c) foreign demand
(d) foreign supply

Answer : A

Question : Identify why do MNCs set up offices and factories in more than one nation?
(a) Because the cost of production is high and the MNCs can earn profit.
(b) Because the cost of production is low and the MNCs undergoes a loss.
(c) Because the cost of production is low and the MNCs can earn greater profit.
(d) Because the MNCs want to make their presence felt globally.

Answer : C

Question : Globalisation, by connecting countries, leads to:
(a) no competition between producers.
(b) lesser competition between producers.
(c) greater competition between producers.
(d) none of the above

Answer : C

Question : Removing barriers or restrictions set by the government is called:
(a) investment
(b) liberalisation
(c) favourable trade
(d) free trade

Answer : B

Question : Which Indian company has been bought by Cargill Foods, an MNC?
(a) Amul
(b) Parakh foods
(c) Britannia
(d) Dabur

Answer : B

Question : Name the Indian manufacturer with which Ford Motors entered the Indian automobile business.
(a) Mahindra and Mahindra
(b) Suzuki
(c) Maruti
(d) Hindustan Motors

Answer : B

Question : Which of the following is an example of globalization?
(a) Indians consuming goods produced abroad.
(b) Indians becoming self-sufficient in terms of production of goods and services.
(c) Indians moving across different states in domestic territory.
(d) Indians producing huge amount of agricultural produce.

Answer : A

Question : The aim of Special Economic Zones (SEZ) developed by the Government of India is _____.
(a) to attract foreign companies to invest in India.
(b) to encourage small investors.
(c) to encourage regional development.
(d) none of the above.

Answer : A

Question : The main aim of World Trade Organisation is _____________.
(a) to liberalise domestic trade.
(b) to liberalise international trade.
(c) to restrict trade from foreign countries.
(d) none of the above

Answer : B

Question : Which of the following is a benefit of globalization?
(a) Consumers pay higher amount for goods and services, so producers are better off.
(b) Asymmetric information cannot exist in a globalized market.
(c) Consumers get a wide variety of goods to choose from.
(d) Homogeneous goods are sold in a globalized market.

Answer : C

Question : Globalisation so far has been more in favour of _________.
(a) developed countries
(b) developing countries
(c) poor countries
(d) none of the above

Answer : A

Question : ‘Increased job opportunities’ in countries is an impact of _____________ .
(a) privatisation
(b) liberalisation
(c) globalisation
(d) none of these

Answer : C

Question : Which of the following is an advantage of globalization to multinational companies?
(a) Multinational companies do not have to procure raw materials from other countries as globalization leads to self-sufficiency of companies.
(b) Spreading out production across international borders can help in lowering the cost of production.
(c) When multinational companies expand production across the world, they do not have to pay taxes as they help in generating employment.
(d) Multinational companies can easily put the burden of increased cost of production on global consumers and continue to earn high profits.

Answer : B

Question : Identify which one of the following Indian industries has been hit hard by globalisation?
(a) Information Technology (IT)
(b) Toy making
(c) Jute
(d) Cement

Answer : B

Question : Identify in which year did the government decide to remove barriers on foreign trade and investment in India?
(a) 1993
(b) 1992
(c) 1991
(d) 1990

Answer : C

Question : Which of the following can be a benefit to local businesses if they conduct business with MNCs?
(a) Local businesses do not have to invest in the business as MNCs do all the investment.
(b) MNCs provide cheap labour to local businesses.
(c) MNCs can bring advanced techniques of production.
(d) Local businesses earn higher profits as their cost of production becomes nil.

Answer : C

Question : Study the picture and answer the question that follows:

Which of the following aspects best signifies above image?
(a) Liberalisation
(b) Trade
(c) WTO
(d) Internet

Answer : A

Question : Match the following Questions:

Options:
(a) A-i, B-ii, C-iii
(b) A-ii, B-iii, C-i
(c) A-iii, B-i, C-ii
(d) A-iii, B-ii, C-i

Answer : B

Question : A___________is a company that owns or controls production in more than one nation/country.
(a) Domestic company
(b) Multinational corporation
(c) International corporation
(d) None of the above

Answer : B

Question : Study the picture and answer the question that follows:

Which of the following aspects best signifies above image?
(a) Liberalisation
(b) Trade
(c) WTO
(d) Internet

Answer : D

Question : Identify which one of the following is a major benefit of joint production between a local company and a Multi- National Company?
(a) MNCs can bring latest technology in the production.
(b) MNCs can control the increase in the price.
(c) MNCs can buy the local company.
(d) MNCs can sell the products under their brand name.

Answer : A

Question : Identify the incorrect feature of a Multi-National Company.
(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.

Answer : D

Question : Identify the correct statement: Globalisation has led to improvement in living conditions:
(a) of all the people.
(b) of people in the developed countries.
(c) of workers in the developing countries.
(d) none of the above.

Answer : C

Question : Identify the one which is a ‘barrier’ in foreign trade:
(a) Tax on import
(b) Quality control
(c) Sales tax
(d) Tax on local trade

Answer : A

Question : Identify the correct option which contributes to globalisation:
(a) internal trade
(b) external trade
(c) large scale trade
(d) small scale trade

Answer : B

Question : Trade between countries:
(a) decreases competition between countries.
(b) determines prices of products in different countries.
(c) makes a country dependent on the other.
(d) none of the above

Answer : B

Question : What was the far reaching change in the policy made in India in 1991?
(a) Instil trade barriers
(b) Removal of trade barriers
(c) Remove taxation
(d) None of the above

Answer : B

Question :  Liberalization does not include

• a) Introducing quota system
• b) Removing trade barriers
• c) Disinvestment
• d) Liberal policies

Answer :  A 

Question :  Tax on imports is an example of

• a) Trade barrier
• b) Investment
• c) Disinvestment
• d) Privatization

Answer :  A 

Question : How many countries are currently the members of the World Trade Organisations?
a) 140 countries
b) 145 countries
c) 159 countries
d) 149 countries

Answer :  D

Question : WTO is dominated by countries like ......... .
a) U.S. and U.K.
b) China and France
c) India and Japan
d) Ireland and Germany

Answer :  A

Question : A company that owns or controls production in more than one nation is called ......... .
a) Foreign company
b) Multi National Company
c) International company
d) Local company

Answer :  B

Question : What was the idea behind developing Special Economic Zones (SEZs) in India?
a) To attract foreign companies to invest in India
b) To earn foreign exchange
c) To make India financially stable
d) To make India a developed country

Answer :  A

Question :  Production of services across countries has been facilitated by

• a) Information and communication technology
• b) Money
• c) Machine
• d) Labor

Answer :  A

Question :  Globalization was stimulated by

• a) Transportation
• b) Money
• c) Population
• d) Computers

Answer :  A 

Question :  Foreign Trade

• a) Decreases earnings
• b) Increases choice of goods
• c) Decreases prices of goods
• d) Increases competition in the market

Answer :  A 

Question : Globalisation has led to improvement in living conditions
a) of all the people
b) of people in the developed countries
c) of workers in the developing countries
d) None of the above

Answer :  C

Question : What is the full form of WTO?
a) World Transactions Organisation
b) Wealth Trade Organisation
c) World Trade Organisation
d) None of the above

Answer :  C

Question : What are the investments made by MNCs called?
a) Foreign investments
b) International investments
c) Multi National investments
d) None of these

Answer :  A