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Class 10 Social Science Economics Chapter 4 Globalisation and the Indian Economy MCQ

1. Which one of the following organisations lay 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) World Trade Organisation

2. Multinational corporations have succeeded in entering global markets through
(a) WTO
(b) UNO
(c) UNESCO
(d) none of the above

Answer: (a) WTO

3. Removing barriers or restrictions set by the government is called:
(a) Liberalisation
(b) Investment
(c) Fovourable trade
(d) Free trade

Answer: (a) Liberalisation

4. Which one of the following refers to investment?
(a) The money spent on religious ceremonies
(b) The money spent on social customs
(c) The money spent to buy assets such as land
(d) The money spent on household goods

Answer: (c) The money spent to buy assets such as land

5. What attracts an MNC?
(a) Cheap labour
(b) Ready demand for the product
(c) Both (a) and (b)
(d) None of the above

Answer: (c) Both (a) and (b)

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6. Which of the following is a ‘barrier’ on foreign trade?
(a) Tax on import
(b) Quality control
(c) Sales tax
(d) Tax on local trade

Answer: (a) Tax on import

7. Investment means spending on
(a) factory building
(b) machines
(c) equipments
(d) all the above

Answer: (d) all the above

8. Special Economic Zones (SEZs) are being set up to attract
(a) foreign tourists
(b) foreign investment
(c) foreign goods
(d) foreign policies

Answer: (b) foreign investment

9. 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

Answer: (b) inflow of capital from abroad

10. 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

Answer: (c) all substandard domestic producers

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11. Which of the following contributes to globalisation?
(a) internal trade
(b) external trade
(c) large scale trade
(d) small scale trade

Answer: (b) external trade

12. Ford Motors set up its first plant in India at
(a) Kolkata
(b) Mumbai
(c) Chennai
(d) Delhi

Answer: (c) Chennai

13. 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

Answer: (a) they do not have to pay taxes for some years

14. Which of the following industries have been hard hit by foreign competition?
(a) Dairy products
(b) Leather industry
(c) Cloth industry
(d) Vehicle industry

Answer: (a) Dairy products

15. Integration of markets means
(a) operating beyond the domestic markets
(b) wider choice of goods
(c) competitive price
(d) all the above

Answer: (d) all the above

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16. 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) 1991

17. 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

Answer: (a) to attract foreign companies to invest in India

18. 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

Answer: (c) Presence of a large number of local competitors

19. 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.

Answer: (a) It allows free trade to all countries without any trade barriers.

20. 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

Answer: (a) set up new factories

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21. 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.

Answer: (d) Labour laws are not implemented properly and workers are denied their rights.

22. 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.

Answer: (d) all small scale producers.

23. 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

Answer: (a) MNC can bring latest technology in the production

24. 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

Answer: (a) Agriculture Sector

25. 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.

Answer: (a) Removing barriers or restrictions set by the government which is known as liberalisation.

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26. 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

Answer: (a) MNC can bring latest technology in the production

27. By 2006, how many countries were the members of the World Trade Organisation?
(a) 139
(b) 149
(c) 159
(d) 169

Answer: (b) 149

28. 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.

Answer: (a) It allows free trade to all countries without any trade barriers.

29. Integration of markets means
(a) operating beyond the domestic markets
(b) wider choice of goods
(c) competitive price
(d) all the above

Answer: (d) all the above

30. Which of the following factors has not facilitated globalisation?
(a) Technology
(b) Liberlisation of trade
(c) WTO
(d) Nationalisation of banks

Answer
Answer: (d) Nationalisation of banks

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