Globalization and the Indian Economy Test

Result

Globalization and the Indian Economy Test - 2

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Weekly Quiz Competition

Question 1
1 / -0

Globalisation has been facilitated by several factors. Which among the following is NOT one of them?

A
Rapid improvement in technology

B
Shift from capitalist towards mixed economy

C
Liberalisation of trade and investment policies

D
Pressure from international organisations

Solution

Globalisation has been facilitated by several factors. Three of these have been highlighted: rapid improvements in technology, liberalisation of trade and investment policies and pressure from international organisations such as the WTO.
Question 2
1 / -0

Why do MNCs set up offices and factories for production in other regions?

A
To lower the cost of production

B
To get more skilled labour

C
To increase their presence in the world

D
To compete with other companies

Solution

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.
Question 3
1 / -0

Which of the following factors do the MNCs keep in mind while setting up production centres in other countries?

I. Availability of Labour
II. Closeness to market
III. Availability of other MNCs
IV. Low cost raw material
V. Government policies

A
I, II, III and IV

B
II, III, IV and V

C
I, II, IV and V

D
I, III, IV and V

Solution

Availability of other MNCs do not influence the setting up of MNCs.
Question 4
1 / -0

The money spent by MNCs to buy assets such as land, building, machines and other equipment is called

A
expenditure

B
investment

C
security

D
token amount

Solution

The money that is spent to buy assets such as land, building, machines and other equipment is called investment. Investment made by MNCs is called foreign investment.
Question 5
1 / -0

Which of given statements is NOT true?

Statement I : Large MNCs in developed countries place orders for production with small producers.
Statement II: The products are supplied to MNCs, which then sell these under the producers' names to the customers.

A
Only I

B
Only II

C
Both I and II

D
None of these

Solution

The products are supplied to MNCs, which then sell these under their own brand names to the customers.
Question 6
1 / -0

Consider the following statements:

I. Cargill Foods, an American MNC, bought Parakh Foods.
II. Cargill is now the largest producer of edible oil in India.

Which of the above statements is/are true?

A
Only I

B
Only II

C
Both I and II

D
None of these

Solution

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.
Question 7
1 / -0

Globalisation in the past two decades has seen rapid movements in

A
goods, services and people between countries

B
goods, services and investments between countries

C
goods, investments and people between countries

D
None of these

Solution

Globalisation is the process of rapid integration or interconnection between countries. More and more goods and services, investments and technology are moving between countries. Due to globalisation there is rapid movements in goods, services and investments between countries in the past two decades.
Question 8
1 / -0

Globalisation leads to

A
more competition among buyers

B
more competition among countries

C
more competition among producers

D
All of the above

Solution

Globalisation increases competition, provides greater choice to the consumers, improves quality of goods, etc.
Question 9
1 / -0

How can we make Chinese toys in India expensive?

A
By increasing the orders

B
By abstaining from buying Chinese toys

C
By increasing tax on import of toys

D
By exporting toys to China

Solution

Tax on imports is an example of trade barrier. It is called a barrier because some restrictions have been setup. Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each, should come into the country.
Question 10
1 / -0

What happened in 1991?

A
The government decided that Indian producers were ready to compete with producers around the globe.

B
Liberalisation

C
Trade barriers were removed.

D
All of the above

Solution

In 1991, the government decided that the time had come for Indian producers to compete with producers around the globe. It felt that competition would improve the performance of producers within the country since they would have to improve their quality. This decision was supported by powerful international organisations.Thus, barriers on foreign trade and foreign investment were removed to a large extent.
Question 11
1 / -0

What are the steps taken by governments to attract foreign investment?

A
Providing services

B
Establishing rules for domestic trade

C
Tax on imports

D
Setting up of industrial zones

Solution

The central and state governments in India are taking special steps to attract foreign companies to invest in India. Industrial zones, called Special Economic Zones (SEZs), are being set up.
Question 12
1 / -0

Government can make globalisation 'fair' by

A
implementing labour laws

B
supporting small producers

C
using trade and investment barriers

D
All of the above

Solution

Government can make globalisation 'fair' by implementing labour laws, supporting small producers and using trade and investment barriers. Hence, option 4 is the answer.
Question 13
1 / -0

Tax on imports is an example of

A
investment

B
globalisation

C
trade barrier

D
privatisation

Solution

Tax on imports is an example of trade barrier. It is called a barrier because some restrictions have been set up. Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each, should come into the country.
Question 14
1 / -0

Globalisation is not supported by

A
information and technology

B
privatisation

C
liberalisation

D
None of these

Solution

Advances in our ability to communicate and process information in digital form has proven to be a driving factor in the process of globalisation.
Privatisation refers to the participation of private entities in businesses and services and transfer of ownership from the public sector (or government) to the private sector as well.
Liberalisation is any process whereby a state lifts restrictions on some private individual activities.
So, globalisation is supported by all the three options.
Question 15
1 / -0

What is foreign investment?

A
Investment made by WTO

B
Investment made by Government

C
Investment made by small industries

D
None of these

Solution

Investment made by multinational corporations (MNCs) is called foreign investment.

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Re-Attempt Weekly Quiz Competition

Globalization and the Indian Economy Test - 2

Result

Globalization and the Indian Economy Test - 2

Score

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SHARING IS CARING

Question 1

Rapid improvement in technology

Shift from capitalist towards mixed economy

Liberalisation of trade and investment policies

Pressure from international organisations

Solution

Question 2

To lower the cost of production

To get more skilled labour

To increase their presence in the world

To compete with other companies

Solution

Question 3

I, II, III and IV

II, III, IV and V

I, II, IV and V

I, III, IV and V

Solution

Question 4

expenditure

investment

security

token amount

Solution

Question 5

Only I

Only II

Both I and II

None of these

Solution

Question 6

Only I

Only II

Both I and II

None of these

Solution

Question 7

goods, services and people between countries

goods, services and investments between countries

goods, investments and people between countries

None of these

Solution

Question 8

more competition among buyers

more competition among countries

more competition among producers

All of the above

Solution

Question 9

By increasing the orders

By abstaining from buying Chinese toys

By increasing tax on import of toys

By exporting toys to China

Solution

Question 10

The government decided that Indian producers were ready to compete with producers around the globe.

Liberalisation

Trade barriers were removed.

All of the above

Solution

Question 11

Providing services

Establishing rules for domestic trade

Tax on imports

Setting up of industrial zones

Solution

Question 12

implementing labour laws

supporting small producers

using trade and investment barriers

All of the above

Solution