CBSE Class 10 Social Science Globalization and The Indian Economy MCQs Set 03

Question: According to 2011, the member countries of WTO are
a) 129
b) 139
c) 153
d) 159
Answer: c

Question: Investment made by MNCs is called
a) foreign investment
b) direct investment
c) indirect investment
d) domestic investment
Answer: a

Question: What is the major benefit to the local company of a joint production with MNC?
a) Domestic labours get high wages
b) Production reduces
c) Domestic companies started following labour laws
d) MNC’s can provide money for additional investments
Answer: d

Question: The restriction imposed on imports is known as
a) tade formality
b) trade barrier
c) trade control
d) trade shortage
Answer: b

Question: Indian government has put barriers to foreign trade and foreign investment known as
a) trade restrictions
b) trade barriers
c) trade transactions
d) trade deficit
Answer: b

Question: Favourable balance trade means:
a) The value of visible exports is less than the value of visible imports
b) The value of both is equal
c) The value of visible exports and value of visible imports is different
d) The value of visible exports is more than the value of visible imports
Answer: d

Question: Ford Motors came to India in
a) 1994
b) 1995
c) 1996
d) 1997
Answer: b

Question: What is the benefit of container used in transportation of goods?
a) Reduction in port handling costs
b) Reduction in delays
c) Reduction in damaged goods
d) All of them
Answer: d

Question: Rapd integration or inter-connection between countries is called
a) urbanisation
b) liberalisation
c) globalisation
d) migration
Answer: c

Question: The aim of WTO is
a) to keep watch on trade of less developing countries
b) to support only the least developed countries
c) to promote trade in developed countries
d) to liberalize international trade
Answer: d

Question: Tax on imports is an example of __________.
a) Indirect tax
b) Trade barrier
c) Sales tax
d) Direct tax
Answer: b

Question: Liberalization means
a) removing trade barriers
b) adding more trade barriers
c) protecting domestic industries
d) closing domestic economy
Answer: a

Question: In general, where does MNC prefer to set up production units?
a) Where tax rate is high
b) Countries who are member of WTO
c) Where other MNC’s exist
d) Where labour is available at low costs
Answer: d

Question: In which five year plan, Mahalanobis Model was adopted in India?
a) Fifth
b) First
c) Second
d) Third
Answer: a

Question: World Trade Organisation is the organisation whose aim is to liberalise
a) internal trade
b) international trade
c) external trade
d) national trade
Answer: b

Question: Government has set trade barriers
a) to increase foreign trade
b) to protect international companies
c) to regulate foreign trade
d) to increase the production of wheat
Answer: c

Question: How can government use a trade barrier?
a) To increase foreign trade
b) To protect international companies
c) To decide how much of any commodity should come into the country
d) To increase production of wheat
Answer: c

Question: In India, the first plant set up by Ford Motors was established in
a) Kashmir
b) Punjab
c) Bangalore
d) Chennai
Answer: d

Question: 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 liberalise international trade
c) It establishes rules regarding international trade
d) W.T.O. Rules have forced the developing countries to remove trade barriers
Answer: d

Question: Where is the headquarters of World Trade Organisation situated?
a) Washington
b) Geneva
c) Delhi
d) Calcutta
Answer: b

Assertion and Reason Based MCQs

Directions : In the following questions, A statement of Assertion (A) is followed by a statement of Reason (R).
Mark the correct choice as:
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is NOT the correct explanation of A.
c) A is true but R is false.
d) A is false and R is true.

Question:
Assertion (A): The Indian government, after independence, had put barriers to foreign trade and foreign investment.
Reason (R): The government considered it necessary to protect the producers within thec ountry from foreign competition.
Answer: a

Question:
Assertion (A): The car manufacturing plant of Maruti Udyog Ltd. in India produces cars for Indian markets.
Reason (R): It also exports cars to other developingco ntries and exports car components for its many factories around the world.
Answer: c

Question:
Assertion (A): Global production has a complexstruct ure.
Reason (R): Production of one good may take place in different parts of the world. For instance, an equipment may be formed by combining components produced in different countries.
Answer: a

Question:
Assertion (A): Local businesses may set up jointprodu ction process with MNCs and earn higher profits.
Reason (R): MNCs can provide money for additional investments, like buying new machines for faster production.
Answer: a

Question:
Assertion (A): MNCs can exert a strong influence on production at distant locations.
Reason (R): MNCs set up partnerships with local companies, use local companies for supplies, compete with the local companies or buy them up.
Answer: a

Question:
Assertion (A): Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
Reason (R): Foreign trade expands the choice of goods beyond what is domestically produced.
Answer: b

FILL IN THE BLANKS

Question: __________ balance of trade means exports are more than imports.
Answer: Favourable

Question: __________ protect the interest of all the people in the country.
Answer: Policies

Question: Investment made by __________ is called foreign invesment.
Answer: MNC’s

Question: Rapid incerase in __________ has been one major factor that has stimulated the globalization process.
Answer: technology

Question: Foreign trade connects markets of different __________.
Answer: countries

TRUE / FALSE

Question: Removing barriers or restrictions set by the government is what is known as liberalisation.
Answer: True

Question: Rapid inter connection between countries is called globalisation.
Answer: True

Question: The developing nations are immensely benefited by free trade policy.
Answer: True

Question: Tax on imports is an example of trade Barrier.
Answer: True

Question: WTO is one of such organisation whose aim is to liberalise international trade.
Answer: True

Match the column

     Column-A                                                                                                               Column-B
(i) MNCs buy at cheap rates from small producers                                                  a) Automobiles
(ii) Quotas and taxes on imports are used to regulate trade                                    b) Garments,footwear, sports items
(iii) Indian companies who have invested abroad                                                    c) Call centres
(iv) IT has helped in spreading of production of services                                         d) Tata Motors,Infosys, Ranbaxy
(v) Several MNCs have invested in setting up factories in India for production       e) Trade barriers
Answer:
a) (i)-(e), (ii)-b), (iii)-d), (iv)-c), (v)-a)
b) (i)-b), (ii)-(e), (iii)-d), (iv)-a), (v)-c)
c) (i)-b), (ii)-(e), (iii)-d), (iv)-c), (v)-a)
d) (i)-b), (ii)-(e), (iii)-c), (iv)-d), (v)-a)