Chapter 21 ECONOMICS : Globalisation and the Indian Economy — Online MCQ Test
SOCIAL STUDIES · CLASS 10 · Andhra State Board
Practice Chapter 21 ECONOMICS : Globalisation and the Indian Economy with a free chapter-wise online MCQ test.
This chapter covers: This chapter covers foreign trade foreign investment multinational corporations MNCs technological factors WTO impacts and fair globalisation principles..
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Chapter 21 ECONOMICS : Globalisation and the Indian Economy — Important Questions & Answers
What is the primary motive of Multinational Corporations (MNCs) when setting up production in other countries?
- A. To provide free goods to the local population
- B. To control the government of that country
- C. To increase profits by reducing production costs
- D. To promote local cultural values
Answer: C. To increase profits by reducing production costs
MNCs invest in other countries to access cheaper labor and resources, thereby increasing their profit margins.
MNCs invest in other countries to access cheaper labor and resources, thereby increasing their profit margins.
Which organization works at the international level to liberalize foreign trade and foreign investment?
- A. World Trade Organization (WTO)
- B. United Nations (UN)
- C. World Bank
- D. International Monetary Fund (IMF)
Answer: A. World Trade Organization (WTO)
The WTO aims to liberalize international trade by removing barriers between countries.
The WTO aims to liberalize international trade by removing barriers between countries.
How do MNCs control production in other countries?
- A. By directly taking over the parliament of the host country
- B. By setting up joint ventures, placing orders with small producers, or buying up local companies
- C. By donating all their profits to the poor
- D. By forcing consumers to buy only their products
Answer: B. By setting up joint ventures, placing orders with small producers, or buying up local companies
MNCs use strategies like buying local firms, forming partnerships, or outsourcing to local producers to control production.
MNCs use strategies like buying local firms, forming partnerships, or outsourcing to local producers to control production.
If an MNC buys a local company to expand its production, this is an example of:
- A. A trade barrier
- B. A direct investment strategy
- C. A protectionist policy
- D. A government-led merger
Answer: B. A direct investment strategy
Buying a local firm is a common investment strategy used by MNCs to gain immediate market share and infrastructure.
Buying a local firm is a common investment strategy used by MNCs to gain immediate market share and infrastructure.
Why is the impact of globalisation not uniform across all sectors in India?
- A. Only service sectors have seen MNC investment, while agriculture remains largely excluded from trade
- B. Large companies have benefited, while small producers have been marginalized
- C. Consumers prefer foreign goods regardless of quality
- D. The government only promotes multinational companies
Answer: B. Large companies have benefited, while small producers have been marginalized
Globalisation has created unequal outcomes, favoring those with capital and skills over small, unorganized sectors.
Globalisation has created unequal outcomes, favoring those with capital and skills over small, unorganized sectors.