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

Question: How can government of a country play a major role in making Globalization fairer?
a) Government can ensure that labour laws are properly implemented
b) Government can support large producers to improve their performance
c) Government can negotiate at UNO for fairer rules
d) Government should negotiate with USA
Answer: a

Question: What is Globalisation?
a) Process of rapid integration between countries
b) Process of rapid integration of various states of a country
c) Rapid integration of people of various countries only
d) Integration of technologies of different countries only
Answer: a

Question: What is meant by Induced Investment?
a) Investment motivated by the Govt.
b) Investment made by the private entrepreneur
c) Investment that depends on income and profit
d) Investment independent of income and profit.
Answer: c

Question: Globalisation has enabled which large Indian company to emerge as multinational company?
a) Tata Motors
b) Infosys
c) Ranbaxy
d) All of the options
Answer: d

Question: What do you mean by liberalization?
a) Removing trade barriers
b) Adding more trade barriers
c) Protecting domestic industries
d) Closing domestic economy
Answer: a

Question: What do you mean by investment?
a) Money spent for investment
b) The money used to build the factory only
c) Money used by owners for luxuries
d) Money that is spent to buy assets such as land, building, machines and other equipment
Answer: d

Question: What does WTO stand for?
a) World Telecommunication Organization
b) World Toll Organization
c) World Trade Organization
d) World Trade Orientation
Answer: c

Question: Name an MNC dealing in medicines
a) Ranbaxy
b) Asian Paints
c) Tata Motors
d) Tata Indicom
Answer: a

Question: ‘SAPTA’ is an agreement on Trade among the SAARC Nations. The expansion of SAPTA is one of the following:
a) South Asian Protection of Trade Agreement
b) South Asian Preferential Trade Agreement
c) South Asian Partial Trade Agreement
d) South Asian Pacific Trade Agreement
Answer: b

Question: Cargill Foods, an American MNC, had bought smaller Indian companies such as
a) Pillsbury Foods.
b) Parakh Foods.
c) Aashirwad Foods.
d) MTR Foods.
Answer: b

Question: Companies who set up production units in SEZ’s do not have to pay taxes for an initial period of _____ years.
a) 2
b) 3
c) 4
d) 5
Answer: d

Question: Who are the most affected from WTO rules?
a) Indian farmers
b) Farmers of USA
c) Industrialist in India
d) Industrialist in China
Answer: a

Question: What is the past decades of globalization has seen rapid movements in ______.
a) goods, services and people
b) goods, technology, investments and services
c) goods and people
d) Technology and goods
Answer: b

Question: Within a year, 70% to 80% of toy shops have replaced Indian toys with Chinese toys due to
a) cheaper prices.
b) good material.
c) easy availability.
d) better quality.
Answer: a

Question: In which year was the World Trade Organisation established?
a) 1995
b) 1998
c) 1991
d) 1992
Answer: a

Question: Important role played in globalization:
a) International Company
b) Multinational Company
c) National Company
d) Government Company
Answer: b

Question: Started at the initiative of ______ countries, WTO established rules regarding international trade.
a) Least developed
b) Developing
c) Developed
d) Poor
Answer: c

Question: The Multi-national Company of India is
a) Infosys
b) Asian Paints
c) Tata Motors
d) All of the options
Answer: d

Question: 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 of the options
Answer: a

Question: Companies that own and control production in more than one country are called
a) Multiple National Companies
b) Multiple Nation Companies
c) Multi National Corporations
d) Multiple Nation Corporations
Answer: c

Question: What is the name given to an economy which has no relation with rest of the world?
a) Capitalist Economy
b) Mixed Economy
c) Socialist Economy
d) Closed Economy
Answer: d

Question: How is an MNC defined?
a) A MNC is a company that owns or controls production in more than one district in a country
b) A MNC is a company that owns or controls production in more than one state in a country
c) A MNC is a company that owns or controls production in more than one nation
d) All of the options
Answer: c

Question: Globalization has mostly affected ______.
a) Developed countries
b) Small producers
c) Large producers
d) MNC’s
Answer: b

Question: The duration of the First Five Year Plan of India was…………
a) 1947–1952
b) 1950–1955
c) 1955–1960
d) 1951–1956
Answer: d

Question: 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
Answer: b

Question: What special step has been taken by the central and state governments to attract foreign companies in India?
a) SEZs
b) EU
c) NPO
d) JSY
Answer: a

Question: What is the basic function of foreign trade?
a) Connects markets of two countries only
b) Creates opportunity for only the buyer to approach foreign goods
c) Connects markets of different countries
d) Foreign trade connects developed countries only
Answer: c

Question: 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 developing nations are immensely benefited by free trade policy.
C. The developed countries are interested in helping the weaker countries through this policy.
D. The developing 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
Answer: d
 

I. Read the source given below and answer the questions that follows:

India has become a second home to many multinationals’ over the years. MNCs set up offices and factories for production in regions where they can get cheap labour and other resources. This is done so that the cost of production is low and the MNCs can earn greater profits. MNCs set up production where it is close to the markets; where there is skilled and unskilled labour available at low costs; and where the availability of other factors of production is assured. But the most common route for MNC investments is to buy up local companies and then to expand production. MNCs with huge wealth can quite easily do so. To take an example, Cargill Foods, a very large American MNC, has bought over smaller Indian companies such as Parakh Foods. Parakh Foods had built a large marketing network in various parts of India, where its brand was well-reputed. Also, Parakh Foods had four oil refineries, whose control has now shifted to Cargill. Cargill is now the largest producer of edible oil in India, with a capacity to make 5 million pouches daily. Large MNCs in developed countries place orders for production with small producers. Garments, footwear, sports items are examples of industries where production is carried out by a large number of small producers around the world. The products are supplied to the MNCs, which then sell these under their own brand names to the customers. These large MNCs have tremendous power to determine price, quality, delivery, and labour conditions for these distant producers. Ford Motors, an American company, is one of the world’s largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks.

Answer the following MCQs by choosing the most appropriate option:

Question: In which regions MNCs set up offices and factories for production?
a) Close to the market.
b) Availability of skilled/unskilled labour at low cost.
c) Favourable government policies.
d) All of the options
Answer: d

Question: Ford Motors entered the Indian automobile business in collaboration with which Indian manufacturer?
a) Mahindra and Mahindra
b) Tata Motors
c) Maruti Suzuki
d) None of the options
Answer: a

Question: Investment made by MNCs is called:
a) Investment
b) Foreign trade
c) Foreign investment
d) Foreign direct investment
Answer: c

Question: MNCs do not increase:
a) Competition
b) Price war
c) Quality
d) All of the options
Answer: d

II. Read the extract given below and Answer: the questions that follow:

Globalization expands and accelerates the movement and exchange of ideas and commodities over vast distances. Globalisation has created more competitive environment in India. In the past two to three decades, more and more MNCs have been looking for locations around the world which would be cheap for their production. Foreign investment by MNCs in these countries has been rising. At the same time, foreign trade between countries has been rising rapidly. A large part of the foreign trade is also controlled by MNCs. The result of greater foreign investment and greater foreign trade has been greater integration of production and markets across countries. Globalisation is this process of rapid integration or interconnection between countries. MNCs are playing a major role in the globalisation process. More and more goods and services, investments and technology are moving between countries. Besides the movements of goods, services, investments and technology, there is one more way in which the countries can be connected. This is through the movement of people between countries. People usually move from one country to another in search of better income, better jobs or better education. Rapid improvement in technology has been one major factor that has stimulated the Globalisation process. Even more remarkable have been the developments in information and communication technology. Globalisation and greater competition among producers – both local and foreign producers – has been of advantage to consumers, particularly the well-off sections in the urban areas. There is greater choice before these consumers who now enjoy improved quality and lower prices for several products. As a result, these people today, enjoy much higher standards of living than was possible earlier. Globalisation has also created new opportunities for companies providing services, particularly those involving IT.

Answer the following MCQs by choosing the most appropriate option:

Question: Process of integration of different countries is called:
a) Liberalization
b) Privatization
c) Globalization
d) None of the options
Answer: c

Question: Globalisation has led to higher standards of living of:
a) Well-off consumers
b) Poor consumers
c) Big producers
d) None of the options
Answer: a

Question: Globalisation has created new opportunities of:
a) Employment
b) Emerging multinationals
c) Providing services
d) All of the options
Answer: d

Question: Globalisation has posed major challenges for:
a) Big Producers
b) Small Producers
c) Rural Poor
d) None of the options
Answer: b

III. Read the extract given below and Answer: the questions that follow:

In the last twenty years, globalisation of the Indian economy has come a long way. What has been its effect on the lives of people? Let us look at some of the evidence. Globalisation and greater competition among producers – both local and foreign producers – has been of advantage to consumers, particularly the well-off sections in the urban areas. There is greater choice before these consumers who now enjoy improved quality and lower prices for several products. As a result, these people today, enjoy much higher standards of living than was possible earlier. Among producers and workers, the impact of globalisation has not been uniform. Firstly, MNCs have increased their investments in India over the past 20 years, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas. These products have a large number of well-off buyers. In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc., to these industries have prospered. Secondly, several of the top Indian companies have been able to benefit from the increased competition. They have invested in newer technology and production methods and raised their production standards. Some have gained from successful collaborations with foreign companies. Moreover, globalisation has enabled some large Indian companies to emerge as multinationals themselves! Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts and bolts) are some Indian companies which are spreading their operations worldwide. Globalisation has also created new opportunities for companies providing services, particularly those involving IT. The Indian company producing a magazine for the London based company and call centres are some examples. Besides, a host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in countries such as India and are exported to the developed countries.

Answer the following MCQs by choosing the most appropriate option:

Question: Why have MNCs increased their investments in India over the past 20 years?
a) To attract costumers
b) To evade taxes
c) To make use of the market potential
d) To do social service
Answer: c

Question: Why do people have a preference for foreign products?
a) They think foreign products are of better quality.
b) They think it will improve their social status.
c) They think the product is much cheaper than Indian product.
d) None of the options.
Answer: a

Question: How several of the top Indian companies have been able to benefit from the increased competition?
a) They have invested in newer technology.
b) They have no rivals in the market.
c) They get to travel the world.
d) They can work in isolation.
Answer: a

Question: Globalisation has been advantageous to:
a) Consumers
b) Producers
c) Consumers and producers
d) Limited sector of the society
Answer: c