Globalisation

Globalisation is the particular process where countries are becoming interconnected with each other. It has improved the services, goods, technologies, investments, etc., among the countries. Overall, its main aim is to make the lives of people better by lessening cultural differences. 

Thus, globalization has helped businesses grow overseas with effective communication and technology. Globalisation has also helped in increasing the number of services and goods across the world. Global chains like Starbucks, Mcdonald’s, KFC, etc., are the result of Globalisation. 

1. Which of the following organisations does not handle the globalisation process? 

1. 1. World Bank 
   2. IMF
   3. WTO
   4. Asian Bank 

Answer– 4. Asian Bank

2. Globalisation caused

1. 1. Easy movement of goods, capital and services
   2. Increasing the international trade
   3. Companies easily operating in various countries
   4. All of the above

Answer– 4. All of the Above

3. Which of the following can be considered an investment? 

1. 1. Spending money on different assets, for example, land
   2. Spending money on healthcare
   3. Spending money on household items
   4. Spending money on any social ritual or custom

Answer– 1. Spending money on different assets, for example, land

4. What is the full form of SEZ? 

1. 1. Special Economic Zones
   2. Special Education Zones
   3. Social Economic Zones
   4. Special Effective Zones

Answer– 1. Special Economic Zones

5. Opening and improving the Economy with other major economies to take it to the international level is known as 

1. 1. Privatisation
   2. Liberalisation
   3. Globalisation
   4. None of the above

Answer– 3. Globalisation

6. Where was the first plant of Ford Motors set up in India? 

1. 1. Mumbai
   2. Kolkata
   3. Delhi
   4. Chennai 

Answer– 4. Chennai 

7. When did the Indian Government decide to waive foreign investments and trade restrictions? 

1. 1. 1990
   2. 1991
   3. 1993
   4. 1992

Answer 2. 1991

8. Which industry was affected by foreign competition after globalisation? 

1. 1. Leather Industry 
   2. Dairy Products 
   3. Vehicle Industry 
   4. Clothing Industry 

Answer 2. Dairy Products

9. What is the reason why MNCs set up new factories and offices across various nations? 

1. 1. Production cost is low, and they can earn great profit
   2. Production cost is high, and they can earn a high profit
   3. MNCs can create a significant presence across
   4. The production cost is low, and MNCs can face a loss

Answer 1. Production cost is low, and they can earn great profit

10. Which sector experienced the least profit due to the effect of globalisation? 

1. 1. Industrial Sector 
   2. Service Sector 
   3. Agriculture Sector 
   4. Secondary Sector 

Answer  Agriculture Sector 

11. What are the benefits of Globalisation? 

1. 1. Use of Innovation and Technology 
   2. Low Production Costs
   3. Get Access to Various New Cultures
   4. All of the Above

Answer 4. All of the Above

12. Which of the following promotes Globalisation? 

1. 1. External trade
   2. Trade at a large scale
   3. Trade at a small trade 
   4. Internal Trade 

Answer 1. External Trade 

13. The Foreign Direct Investments caused by globalisation in India are associated with which one of the following? 

1. 1. Foreign Governments
   2. Multinational Companies
   3. World Bank 
   4. None of the Above

Answer 2. Multinational Companies

14. Globalisation has largely improved the growth of which of the following?

1. 1. Poor Countries
   2. Developing Countries
   3. Developed Countries
   4. None of the Above 

Answer 3. Developed countries

15. Globalisation helps in ensuring various economic and social benefits to: 

1. 1. Labourers
   2. Consumers
   3. Producers
   4. All of the Above 

Answer 4.  All of the above

16. Improper investments and cheap imports for infrastructure can cause

1. 1. Slow development of the industrial sector 
   2. Finding alternative options for domestic productions
   3. The slow growth of the agricultural sector
   4. All of the Above

Answer 4. All of the above

17. Multinational Companies entered the global market with the help of: 

1. 1. UNESCO 
   2. WTO 
   3. UNO 
   4. All of the Above

Answer 2. WTO 

18. Which of the following option can be a restriction for foreign trade? 

1. 1. Sales Tax
   2. Import Taxes
   3. Local Trade Taxes 
   4. Quality Control

Answer 2. Import taxes

19. The World Trade Organisation helps the MNCs by providing what? 

1. 1. Funds for Trade and Investments
   2. Providing Foreign Labour
   3. Support by Foreign Governments
   4. Goods and Services

Answer 1. Funds for Trade and Investments

20. MNCs always consider important factors before deciding to set up their production in a new country. What is the correct factor from the following? 

1. 1. Supportive policies by governments
   2. Presence of local competitors in the country
   3. Availability of unskilled and cheap labour 
   4. Market proximity 

Answer 2. Presence of local competitors in the country

21. What are the challenges of Globalisation? 

1. 1. The exploitation of foreign workers
   2. Difficulty in the expansion of MNCs 
   3. High Charges in Export Taxes
   4. All of the above

Answer 4.All of the above

22. In the Union Budget of 2006-207, the customs rate was cut down to what rate? 

1. 1. 10%
   2. 12%
   3. 9%
   4. 20%

Answer 1. 10%

23. The International Monetary Fund began its operation in India from 

1. 1. April 1957
   2. December 1947
   3. March 1947
   4. August 1957

Answer 3. March 1947

24. What is another name referred to the World Bank? 

1. 1. IDA
   2. IBRD
   3. IFC
   4. All of the above

Answer 2. IBRD

25. Identify the correct statement from the following. 

1. 1. World Bank gives loans to the retail borrowers
   2. World Bank gives loans to the member countries
   3. World Bank gives loans to the institutional investors from abroad
   4. World Bank gives loan to those who needs money

Answer 2. World Bank gives loans to the member countries

26. Indian Market has mainly become a _______ market with Globalisation

1. 1. Monopsony Market 
   2. Seller’s Market 
   3. Monopoly Market
   4. Buyer’s Market 

Answer  4. Buyer’s Market

27. Which of the following international organisation deals with the trade rules among different nations? 

1. 1. OPEC 
   2. WTO 
   3. STC
   4. UNO 

Answer 2. WTO 

28. General Agreement on Trade and Tariff was replaced by which organisation in 1995? 

1. 1. World Bank 
   2. OPEC 
   3. World Trade Organisation
   4. International Monetary Fund

Answer 3. World Trade Organisation

29. Which of the following organisation is also called the soft lending arm?

1. 1. IDA
   2. IMP
   3. IDF 
   4. IFC

Answer 1. IDA

30. In which year the Special Drawing Rights were issued? 

1. 1. 2000
   2. 1969
   3. 1989
   4. 1970

Answer 4. 1969

31. In which year the World Trade Organisation was formed? 

1. 1. 1970
   2. 1990
   3. 1995
   4. 2000

Answer 3. 1995

32. Which among these is not the feature of a Special Economic Zone? 

1. 1. Top class facilities
   2. The government allows the flexibility in labour laws
   3. SEZs don’t have to pay taxes for a significant time
   4. They have to pay some taxes initially

Answer 3. SEZs don’t have to pay taxes for a significant time

33. For how many years do the companies in the SEZs don’t need to pay taxes? 

1. 1. 6 years
   2. 10 years 
   3. 20 years 
   4. 5 years

Answer 4. 5 years

34. After the introduction of Globalisation, which Indian company was acquired by an American MNC called Cargill Foods? 

1. 1. Fun Foods Ltd. 
   2. Parakh Foods
   3. Amul 
   4. Agro Tech Foods Ltd. 

Answer 2. Parakh Foods

35. Which among the following statements is not true for Globalisation? 

1. 1. Workers were denied for their rights because labour laws were not implemented.
   2. It helped in creating several jobs in the service sectors
   3. People having wealth, skill, and education were not benefited from globalisation
   4. Globalisation has unequal benefits

Answer 3. People having wealth, skill, and education were not benefited from globalisation

36. What is the primary benefit of the joint production of an MNC with a local company? 

1. 1. MNC helps in bringing the latest technology for the production
   2. MNCs can easily control the increase of the rate among their products
   3. MNCs sell their products under their own brand name
   4. The MNCs can buy the local companies

Answer 2. MNCs can easily control the increase of the rate among their products

37. Who introduced the new Economic Policy of India in 1991? 

1. 1. Vallabhbhai Patel 
   2. P. V. Narsimha Rao 
   3. Dr Manmohan Singh 
   4. Rajiv Gandhi

Answer 3. Manmohan Singh

38. The World Trade Organisation had how many members in 2006?

1. 1. 159
   2. 139
   3. 149
   4. 169

Answer 3. 149 

39. What is the meaning of market integration? 

1. 1. Offering competitive price
   2. A large variety of goods
   3. Operation across overseas markets
   4. All of the above

Answer 4. All of the above

40. Which of the following companies has emerged as an MNC? 

1. 1. Tata Motors
   2. Maruti Suzuki 
   3. Mahindra & Mahindra
   4. Renault 

Answer 1. Tata Motors

41. What has helped in the expansion of the production of services?  

1. 1. Call centres
   2. Email 
   3. Fax 
   4. Telegraph 

Answer 1. Call Centres