This quiz works best with JavaScript enabled. Home > General Knowledge > Indian Economy > Global > Globalisation And The Indian Economy – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Globalisation And The Indian Economy Quiz 2 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When did the Indian Government introduced a policy of liberalisation known as 'New Economic Policy'? A) 1980. B) 1991. C) 1994. D) 2000. Show Answer Correct Answer: B) 1991. 2. Foreign trade creates an opportunity A) Producers can sell their produce not only in markets located within the country but can also compete in markets located in other countries of the world. B) For the buyers, import of goods produced in another country is one way of expanding the choice of goods, at cheaper price. C) Both are correct. D) None of the above. Show Answer Correct Answer: C) Both are correct. 3. When was the WTO established? A) 2005. B) 1995. C) 2000. D) 1985. Show Answer Correct Answer: B) 1995. 4. Globalization was stimulated by A) Computers. B) Transportation. C) Population. D) Money. Show Answer Correct Answer: B) Transportation. 5. MNCs do not increase A) Competition. B) Price war. C) Quality. D) None of the above. Show Answer Correct Answer: D) None of the above. 6. Examples of industries where production is carried out by a large number of small producers around the world. A) Garments. B) Footwear. C) Sports items. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. Removing barriers or restrictions set by the government is what is known as ..... A) Liberalisation. B) Globalisation. C) Socialisation. D) None of the above. Show Answer Correct Answer: A) Liberalisation. 8. The money spent on buying assets such as land, building, machinery etc is known as A) Investment. B) Capital. C) Rent. D) Production. Show Answer Correct Answer: A) Investment. 9. The industrial zones which are set up to attract the foreign investment are known as ..... A) SISCO. B) Special Economic Zone. C) SIPCOT. D) Industrial Zone. Show Answer Correct Answer: B) Special Economic Zone. 10. MNCs bring with them the latest technology and Investment for production. A) False. B) True. Show Answer Correct Answer: B) True. 11. The primary driver of globalization is A) Natural resources. B) Technology. C) Communication. D) None of above. Show Answer Correct Answer: B) Technology. 12. To check the free flow of Chinese goods in the Indian markets, what the Indian government can do? A) Impose tax on exports. B) Complain to UNO. C) Impose tax on imports. D) Ban trade with China. Show Answer Correct Answer: C) Impose tax on imports. 13. What does outsourcing and offshoring mean for you? A) Nothing, USA will always be number one. B) We compete for our jobs with people all over the world. C) I get to own a boat. D) I get my own resources. Show Answer Correct Answer: B) We compete for our jobs with people all over the world. 14. The most common way to control production by MNCs is A) Set up production with the local company. B) Buy the local company. C) Place order for production with small producers. D) Compete with the local company. Show Answer Correct Answer: B) Buy the local company. 15. By 2006, how many countries were the members of the World Trade Organisation? A) 159. B) 139. C) 169. D) 149. Show Answer Correct Answer: D) 149. 16. What is the basic function of foreign trade? A) To create an opportunity for producers to reach beyond domestic markets and compete in markets located in other countries. B) To facilitate the integration of markets and the interlinking of production across countries. C) To provide consumers with a wide choice of goods and services. D) To attract foreign investment and promote economic development. Show Answer Correct Answer: A) To create an opportunity for producers to reach beyond domestic markets and compete in markets located in other countries. 17. Which of the following industries have been hard hit by foreign competition? A) Leather industry. B) Dairy products. C) Cloth industry. D) Vehicle industry. Show Answer Correct Answer: B) Dairy products. 18. Which sector has not benefited by the policy of globalisation? A) Agricultural sector. B) Manufacturing sector. C) Service sector. D) All the above. Show Answer Correct Answer: A) Agricultural sector. 19. Liberalization does not include A) Liberal policies. B) Removing trade barriers. C) Introducing quota system. D) Disinvestment. Show Answer Correct Answer: C) Introducing quota system. 20. A company that owns or controls production in more than one nation is called: A) Multinational corporation. B) Joint stock company. C) Global company. D) None of these. Show Answer Correct Answer: A) Multinational corporation. 21. ..... is the interconnection of the global economy. A) Globalization. B) Global. C) Global Studies. D) Market. Show Answer Correct Answer: A) Globalization. 22. Indian government felt the need for removing barriers on foreign trade and foreign investment in ..... A) 1991. B) 1992. C) 1993. D) 1990. Show Answer Correct Answer: A) 1991. 23. Investment means spending on ..... A) Land. B) Building. C) Machines. D) All of the above. Show Answer Correct Answer: D) All of the above. 24. Integration of markets means A) Wider choice of goods. B) Operating beyond the domestic markets. C) Price of the product tend to become equal. D) All the above. Show Answer Correct Answer: D) All the above. 25. The main reason behind MNCs investments are A) To benefit foreign countries. B) To provide financial support to the country's government. C) For the welfare of underprivileged people. D) To increase the assets and earn profits. Show Answer Correct Answer: D) To increase the assets and earn profits. 26. Tax on imports can be treated as A) Trade Barriers. B) Terms of Trade. C) Collateral. D) Foreign Trade. Show Answer Correct Answer: A) Trade Barriers. 27. An important factor causing globalisation is A) Technological development. B) More income. C) Urbanisation. D) Expansion of markets. Show Answer Correct Answer: A) Technological development. 28. Which among the following is NOT a factor that promote MNCs to set up their production unit? A) Favourable Government Policies. B) Proximity of market. C) Trade barrier. D) Availability of labour. Show Answer Correct Answer: C) Trade barrier. 29. Till which time period, production was organised within the countries? A) Starting of twentieth century. B) Middle of twentieth century. C) Till nineteenth century. D) End of twentieth century. Show Answer Correct Answer: B) Middle of twentieth century. 30. Globalisation is created by ..... A) Multinational Companies. B) Sharing of knowledge and technologies. C) Music and film. D) All of the responses. Show Answer Correct Answer: D) All of the responses. 31. Two factors that enabled Globalisation ..... A) Foreign Trade and Foreign Investment. B) World Trade organisation and Exports. C) Development in Technology and Liberalization of Foreign Trade. D) None of above. Show Answer Correct Answer: C) Development in Technology and Liberalization of Foreign Trade. 32. Globalisation will result in A) To generate income. B) Less competition among producers. C) No change in competition among producers. D) More competition among producers. Show Answer Correct Answer: D) More competition among producers. 33. Why all major multinationals are American, Japanese or European, such as Nike, Coca-Cola, Pepsi, Honda, Nokia.? A) They have much political influence in the world. B) They have huge sum of money to expand their production to other countries. C) They have many franchises that are supported by different governments. D) Their production coast is cheap because of advanced technology. Show Answer Correct Answer: B) They have huge sum of money to expand their production to other countries. 34. Mahindra & Mahindra an automobile company has a collaboration with which of the following MNC's A) Honda. B) Suzuki. C) Ford. D) BMW. Show Answer Correct Answer: C) Ford. 35. Investment by a person or company based in another country is called ..... A) Imports. B) Distribution. C) Economic interdependency. D) Foreign investment. Show Answer Correct Answer: D) Foreign investment. 36. Multinational corporations have succeeded in entering global markets through A) WTO. B) UNO. C) UNESCO. D) None of the above. Show Answer Correct Answer: A) WTO. 37. What are the advantages of globalisation? A) Improvement in technology. B) Competition among producers. C) Creation of new job opportunities. D) Availability of international market. E) All of these. Show Answer Correct Answer: E) All of these. 38. 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. Show Answer Correct Answer: D) All small-scale producers. 39. Which organization provides loans to developing countries for capital projects? A) The World Bank. B) The WTO. C) The IMF. D) The GATT. Show Answer Correct Answer: A) The World Bank. 40. What is the main motive behind the investment of MNCs? A) The main motive is to increase their assets and earn profit. B) The main motive is the welfare of the poor people. C) The main motive of an MNC is is to offer financial support to the Government of their country. D) The main motive is to benefit foreign countries. Show Answer Correct Answer: A) The main motive is to increase their assets and earn profit. 41. FDI (Foreign Direct Investment) attracted by globalisation in India belongs to the A) World Bank. B) Multinationals. C) Foreign governments. D) None of the above. Show Answer Correct Answer: B) Multinationals. 42. When did the government remove the barriers for investment and investment in India? A) 1999. B) 1950. C) 1990. D) 1991. Show Answer Correct Answer: D) 1991. 43. Which of the following is a 'barrier' on foreign trade? A) Tax on local trade. B) Quality control. C) Tax on import. D) Sales tax. Show Answer Correct Answer: C) Tax on import. 44. International trade is an important part of globalisation because ..... A) It allows for countries to share technology and resources. B) It provides raw materials for countries to create products. C) It allows for countries to have trade partnerships with strengthens relationships between countries. D) All of the responses. Show Answer Correct Answer: D) All of the responses. 45. Which organisation support liberalisation of foreign trade and investment in India? A) International labour organisation (ILO). B) World Trade organisation. C) International monetary fund. D) World Bank. Show Answer Correct Answer: B) World Trade organisation. 46. Fill in the blank. Globalization is the result of several factors. Advances in communication & transportation have played a big part. Another major factor is the movement toward " ..... " A) Multinational corporation. B) Imports. C) Distribution. D) Free trade. Show Answer Correct Answer: D) Free trade. 47. Any substance that makes a spectacular dish A) Freshness. B) Food miles. C) Ingre. D) Diet. Show Answer Correct Answer: C) Ingre. 48. It refers to the globalisation which creates opportunities for all and ensures that its benefits are better shared. A) Privatisation. B) Fair globalisation. C) World Trade Organisation (WTO). D) Special Economic Zones (SEZs). Show Answer Correct Answer: B) Fair globalisation. 49. The process of rapid integration or interconnection between countries through free trade, free mobility of capital and labour is called A) Foreign trade. B) Globalisation. C) Liberalisation. D) Privatisation. Show Answer Correct Answer: B) Globalisation. 50. How is a tariff best described? A) Contributing to a favorable balance of trade. B) A tax on imports. C) A violation of human rights. D) Comparative Advantage. Show Answer Correct Answer: B) A tax on imports. 51. According to Friedman (2005), this phase continues to spread globalization due to technologies like fiber-optic network. A) Globalization 1.0. B) Globalization 2.0. C) Globalization 3.0. D) None of above. Show Answer Correct Answer: C) Globalization 3.0. 52. Production of services across countries has been facilitated by A) Money. B) Machine. C) Labour. D) Information and communication technology. Show Answer Correct Answer: D) Information and communication technology. 53. Globalization is not supported by A) Privatization. B) Liberalization. C) Information and communication technology. D) None of these. Show Answer Correct Answer: D) None of these. 54. What is the role of MNCs in the globalisation process? A) MNCs play a major role in promoting globalisation by investing in foreign countries, establishing production facilities, and facilitating the exchange of goods and services between countries. B) MNCs have no role in the globalisation process. C) MNCs hinder the globalisation process by creating trade barriers and restricting the flow of goods and services between countries. D) MNCs only benefit from the globalisation process without contributing to it. Show Answer Correct Answer: A) MNCs play a major role in promoting globalisation by investing in foreign countries, establishing production facilities, and facilitating the exchange of goods and services between countries. 55. Which of the following contributes to globalisation? A) Internal trade. B) External trade. C) Large scale trade. D) Small scale trade. Show Answer Correct Answer: B) External trade. 56. 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. Show Answer Correct Answer: A) It allows free trade to all countries without any trade barriers. 57. 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. Show Answer Correct Answer: C) MNC can buy the local company. 58. Assertion(A):There are several goods and services that the society needs; however, the private sector does not produce all of them.Reason(R):Private sector is profit driven. 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) Assertion is true, but reason is false. D) Assertion is false, but reason is true. Show Answer Correct Answer: A) Both A and R are true and R is the correct explanation of A. 59. Countries impose restriction or barrier on foreign trade by ..... A) Applying High rate of interest. B) Banning import and export of certain goods. C) Banning trade with certain countries. D) All of the above. Show Answer Correct Answer: D) All of the above. 60. Where do MNCs choose to set up production? A) Cheap goods. B) Cheap labour resources. C) Economic sustainability. D) None of these. Show Answer Correct Answer: B) Cheap labour resources. ← PreviousNext →Related QuizzesIndian Economy QuizzesGeneral Knowledge QuizzesGlobalisation And The Indian Economy Quiz 1Globalisation 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