This quiz works best with JavaScript enabled. Home > General Knowledge > Indian Economy > Global > Globalisation And The Indian Economy – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Globalisation And The Indian Economy Quiz 1 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Globalisation, by connecting countries, shall result in A) Lesser competition among producers. B) Greater competition among producers. C) No change in competition among producers. D) None of above. Show Answer Correct Answer: B) Greater competition among producers. 2. Globalization so far has been more in favour of: A) Developed countries. B) Developing countries. C) Poor countries. D) None of these. Show Answer Correct Answer: A) Developed countries. 3. Amalgamation and rapid unification between countries can be identified as A) Socialisation. B) Liberalisation. C) Privatisation. D) Globalisation. Show Answer Correct Answer: D) Globalisation. 4. Rapid integration or interconnection between countries is known as: A) Liberalisation. B) Socialisation. C) Privatisation. D) Globalisation. Show Answer Correct Answer: D) Globalisation. 5. World Trade Organisation (WTO) was started at the initiative of developing countries. A) False. B) True. Show Answer Correct Answer: A) False. 6. In recent years China has been importing steel from India. Explain how the import of steel by China will affect.(a) steel companies in China.(b) steel companies in India.(c) industries buying steel for production of other industrial goods in China. A) Steel companies in China will face competition and may have to lower their prices.(b) Steel companies in India will benefit from increased demand and may increase their production.(c) Industries buying steel for production of other industrial goods in China will have access to cheaper steel. B) Steel companies in China will benefit from increased supply and may increase their production.(b) Steel companies in India will face competition and may have to lower their prices.(c) Industries buying steel for production of other industrial goods in China will have access to cheaper steel. C) Steel companies in China will face competition and may have to increase their prices.(b) Steel companies in India will benefit from increased demand and may decrease their production.(c) Industries buying steel for production of other industrial goods in China will have access to more expensive steel. D) Steel companies in China will benefit from decreased supply and may decrease their production.(b) Steel companies in India will face competition and may have to increase their prices.(c) Industries buying steel for production of other industrial goods in China will have access to more expensive steel. Show Answer Correct Answer: A) Steel companies in China will face competition and may have to lower their prices.(b) Steel companies in India will benefit from increased demand and may increase their production.(c) Industries buying steel for production of other industrial goods in China will have access to cheaper steel. 7. Which of the following factors has not facilitated globalisation? A) WTO. B) Nationalisation of banks. C) Technology. D) Liberalisation of trade. Show Answer Correct Answer: B) Nationalisation of banks. 8. Fair globalisation refers to ensuring benefits to: A) Labourers. B) Producers. C) Consumers. D) All the above. Show Answer Correct Answer: D) All the above. 9. Assertion:developed countries have unfairly retained trade barriers. Reason:WTO rules have forced the developing countries to remove trade barriers. A) A is correct but R is incorrect. B) A is false and R is true. C) Both A & R are true. D) None of above. Show Answer Correct Answer: C) Both A & R are true. 10. In which year did the government decide to remove barriers on foreign trade and investment in India? A) 1993. B) 1991. C) 1992. D) 1995. Show Answer Correct Answer: B) 1991. 11. SEZ may prove harmful to the farmers whose lands have been acquired and to the small producers. A) False. B) True. Show Answer Correct Answer: B) True. 12. Removing Barriers or restrictions from foreign trade is called Privatization of foreign Trade. A) False. B) True. Show Answer Correct Answer: A) False. 13. Suppose the Indian government puts the tax on the import of toys from China, what would happen? A) Toys will get expensive, more purchase by a customer. B) Toys will get expensive, less purchase by a customer. C) No effect. D) Toys will get cheaper, more purchase by a customer. Show Answer Correct Answer: B) Toys will get expensive, less purchase by a customer. 14. Which one is false? A) MNCs acquire small companies to expand production. B) MNCs enter into joint venture to enter into foreign markets. C) MNCS offer subsidy to the small scale industries. D) MNCs set up own production center in foreign countries. Show Answer Correct Answer: C) MNCS offer subsidy to the small scale industries. 15. A ..... is a company that owns or controls production in more than one nation/country. A) Microsoft. B) Uni Lever. C) MNC. D) Reliance. Show Answer Correct Answer: C) MNC. 16. Removing barriers or restrictions set by the government is called- A) Favourable Trade. B) Free Trade. C) Investment. D) Liberalisation. Show Answer Correct Answer: D) Liberalisation. 17. Which of the following has played a big role in organising production across the country? A) Consumers. B) Domestic companies. C) Information technology. D) WTO. Show Answer Correct Answer: C) Information technology. 18. A nation may put a limit on the amount of foreign goods imported by placing a ..... on these goods. A) Quota. B) Export. C) Trade Surplus. D) Deficit. Show Answer Correct Answer: A) Quota. 19. All ..... buy and sell goods. A) Nations. B) Businesses. C) Villages. D) People. Show Answer Correct Answer: A) Nations. 20. Selected areas created and are equipped with world class facilities are called ..... A) Special Economic Zones. B) Electronic Capital. C) IT centers. D) None of above. Show Answer Correct Answer: A) Special Economic Zones. 21. 'Increased job opportunities' is an impact of ..... A) Liberalisation. B) Industrialisation. C) Privatisation. D) Globalisation. Show Answer Correct Answer: D) Globalisation. 22. Special Economic Zones (SEZs) are being set up to attract A) Foreign tourists. B) Foreign investment. C) Foreign policies. D) Foreign goods. Show Answer Correct Answer: B) Foreign investment. 23. Investment made by MNCs are termed as- A) Indigenous Investment. B) Foreign Investment. C) Entrepreneurial Investment. D) None of These. Show Answer Correct Answer: B) Foreign Investment. 24. Large companies that have their presence in more than on country are called ..... A) Large National Companies. B) Multi National Corporations. C) Multi International Companies. D) None of above. Show Answer Correct Answer: B) Multi National Corporations. 25. NAFTA was made among ..... A) The U.S., Canada, and Mexico. B) European Countries. C) Developing Countries. D) The U.S., Russia, and China. Show Answer Correct Answer: A) The U.S., Canada, and Mexico. 26. Which Indian company was bought over by Cargill Foods-a large American MNC? Pick out the name from the alternatives provided. A) Parakh Foods. B) Agro Tech Foods Ltd. C) Amul. D) Fun Foods Ltd. Show Answer Correct Answer: A) Parakh Foods. 27. Which of the following organisations lays stress on liberalisation of foreign trade and foreign investment? A) World Trade Organisation. B) International Labour Organisation. C) International Monetary Fund. D) World Health Organisation. Show Answer Correct Answer: A) World Trade Organisation. 28. What is happening with the import of Chinese toys in India? A) Indian toys are selling more. B) Indian consumers are buying less. C) Indian consumers are getting more choice at cheaper rates. D) Chinese consumers are falling short of choice. Show Answer Correct Answer: C) Indian consumers are getting more choice at cheaper rates. 29. A furniture factory is an example of ..... A) Primary Industry. B) Secondary Industry. C) Tertiary Industry. D) Quaternary Industry. Show Answer Correct Answer: B) Secondary Industry. 30. Globalisation has led to improvement in A) Choice to consumers. B) Quality of goods and services. C) Foreign investment. D) All the above. Show Answer Correct Answer: D) All the above. 31. Globalisation has led to higher standards of living of: A) Well-off consumers. B) Poor consumers. C) Big producers. D) Small producers. Show Answer Correct Answer: A) Well-off consumers. 32. ..... markets are a trait of the global economy. A) Regional. B) World Wide. C) Local. D) Isolated. Show Answer Correct Answer: B) World Wide. 33. ..... refers to all those different economic reforms or policy measures and changes which aim at increasing the productivity and efficiency by creating an environment of competition in the economy. A) Globalisation. B) Closed Economy. C) Mixed Economy. D) New Economic Policy. Show Answer Correct Answer: D) New Economic Policy. 34. What is the definition of globalisation in this chapter? A) The integration between countries through foreign trade and foreign investments by multinational corporations (MNCs). B) The rapid rise and influence of MNCs in the globalisation process. C) The interconnectedness of regions across the world in various dimensions. D) The integration of production and markets through MNCs. Show Answer Correct Answer: A) The integration between countries through foreign trade and foreign investments by multinational corporations (MNCs). 35. 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. Show Answer Correct Answer: C) Of workers in the developing countries. 36. Cargill Foods, an MNC has bought over which indigenous Indian company? A) Dabur. B) Amul. C) Britannia. D) Parakh Foods. Show Answer Correct Answer: D) Parakh Foods. 37. Fisheries is an example of ..... A) Primary Industry. B) Quaternary Industry. C) Secondary Industry. D) Tertiary Industry. Show Answer Correct Answer: A) Primary Industry. 38. "MNCs keep in mind certain factors before setting up production" . Identify the incorrect option from the choices given below A) Proximity to markets. B) Availability of cheap skilled and unskilled labour. C) Favourable government policies. D) Presence of a large number of local competitors. Show Answer Correct Answer: D) Presence of a large number of local competitors. 39. Fair Globalisation in WTO is a fight against A) Developing countries. B) Domination of developed countries. C) Implementation of tax. D) Dissimilarity in interests. Show Answer Correct Answer: B) Domination of developed countries. 40. Which one of the following is not characteristic of' Special Economic Zone'? A) They do not have to pay taxes at all. B) Government has allowed flexibility in labour laws. C) They have world class facilities. D) Government allows flexibiilty of labour laws. Show Answer Correct Answer: A) They do not have to pay taxes at all. 41. If tax is imposed on Chinese toys, what will happen? A) Chinese toy-makers will benefit. B) Chinese toys will remain cheap. C) Indian toy-makers will prosper. D) Indian consumers will buy more Chinese toys. Show Answer Correct Answer: C) Indian toy-makers will prosper. 42. The Central and state governments in India have set up ..... to attract foreign companies to invest in India? A) Special investment zones. B) Special business zones. C) Special economic zones. D) Special trade zones. Show Answer Correct Answer: C) Special economic zones. 43. ..... refers to exchange of goods, i.e., purchase and sale, across geographical boundaries of the countries. A) Foreign trade. B) Trade. C) State trade. D) Local trade. Show Answer Correct Answer: A) Foreign trade. 44. Which one of the following is not characteristic of'Special Economic Zone'? A) They do not have to pay taxes for long period. B) Government has allowed flexibility in labour laws. C) They have world class facilities. D) They do not have to pay taxes for an initial period of five years. Show Answer Correct Answer: A) They do not have to pay taxes for long period. 45. Tax on imports is an example of A) Terms of trade. B) Collateral. C) Trade barriers. D) None of above. Show Answer Correct Answer: C) Trade barriers. 46. 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 the above. Show Answer Correct Answer: B) Buy existing local companies. 47. Which out of the following is an example of a trade barrier? A) Foreign investment. B) Delay or damage of goods. C) Tax on imports. D) None of these. Show Answer Correct Answer: C) Tax on imports. 48. Liberalisation is ..... A) Help by the government. B) Removing barriers or restrictions set by the government. C) More trade. D) Checking barriers by the government. Show Answer Correct Answer: B) Removing barriers or restrictions set by the government. 49. The reason due to which multinational companies set up their branches in other countries is A) Cheap labour and resources. B) Welfare motive. C) To generate employment. D) To generate income. Show Answer Correct Answer: A) Cheap labour and resources. 50. 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. Show Answer Correct Answer: A) To attract foreign companies to invest in India. 51. Globalization has largely favored the rich, highly educated and skilled persons of the society. A) True. B) False. Show Answer Correct Answer: A) True. 52. Chinese are exporting electrical goods and other consumer goods in the Indian market in a big way. It is posing problems for India and Indian manufacturer. A) False. B) True. Show Answer Correct Answer: B) True. 53. Cheaper imports, inadequate investment in infrastructure lead to A) Slowdown in agricultural sector. B) Replace the demand for domestic production. C) Slowdown in industrial sector. D) All the above. Show Answer Correct Answer: D) All the above. 54. In developed countries like the USA and Australia, which sector do most people work in? A) Quaternary. B) Tertiary Sector. C) Primary Sector. D) Secondary Sector. Show Answer Correct Answer: B) Tertiary Sector. 55. Deregulation of Industries' is a feature of economic reforms introduced in 1991 in India. A) False. B) True. Show Answer Correct Answer: B) True. 56. Why do MNCs set up offices and factories in more than one nation? A) The cost of production is high and the MNCs can earn profit. B) The cost of production is low and MNCs undergoes a loss. C) The cost of production is low and the MNCs can earn greater profit. D) The MNCs want to make their presence felt globally. Show Answer Correct Answer: C) The cost of production is low and the MNCs can earn greater profit. 57. Mc Donald's is an example of a multinational corporation. A) False. B) True. Show Answer Correct Answer: B) True. 58. Assertion(A):In India, the primary sector is the largest employer.Reason(R):The demand for services has increased enormously. A) Both A and R are true and R is the correct explanation of A. B) Both A and R are true and R is not the correct explanation of A. C) A is true but R is false. D) A is false but R is true. Show Answer Correct Answer: B) Both A and R are true and R is not the correct explanation of A. 59. What was the main channel connecting countries in the past? A) Religion. B) Technology. C) Labour. D) Trade. Show Answer Correct Answer: D) Trade. 60. What is the advantage of spreading out production across borders for MNCs? A) It allows MNCs to tap into the advantages of large markets, lower production costs, and availability of resources in different countries. B) It enables MNCs to control production and exert influence on distant producers. C) It provides opportunities for interlinking production across countries. D) It allows MNCs to buy up local companies and expand production. Show Answer Correct Answer: A) It allows MNCs to tap into the advantages of large markets, lower production costs, and availability of resources in different countries. Next →Related QuizzesIndian Economy QuizzesGeneral Knowledge QuizzesGlobalisation And The Indian Economy Quiz 2Globalisation And The Indian Economy Quiz 3Globalisation And The Indian Economy Quiz 4India S Foreign Policy QuizIndustries Infrastructure And Foreign Trade QuizInternational Organisations And Human Development Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books