Chapter Exam

Chapter 21: Globalisation and the Indian Economy — Online MCQ Test

Q: Which of the following is an example of foreign investment?

Answer: C. An MNC setting up a factory in India — Foreign investment occurs when an MNC or foreign company invests in assets such as factories or offices in another country.

Q: Why do MNCs usually set up production units in countries where labour is cheap?

Answer: B. To reduce cost and earn higher profits — MNCs look for locations with low production costs, including cheap labour, to increase their profits.

Q: Read the statements: I. Globalisation has been beneficial for all sections of people in India equally. II. Globalisation has increased competition among producers. Which option is correct?

Answer: B. Only II is true — Globalisation has increased competition, but its benefits have not been shared equally among all sections.

SOCIAL SCIENCE · Grade 10 · CBSE(NCERT)

Practice Chapter 21: Globalisation and the Indian Economy with a free chapter-wise online MCQ test for CBSE(NCERT) Grade 10 SOCIAL SCIENCE. This chapter covers: Globalisation Multinational corporations MNCs Liberalisation Privatisation WTO Foreign investment Technology Trade Integration. AI-generated questions from basic to board-exam level, with instant results and explanations.

Questions

20m

Time Limit

Attempts Left

10 random questions from this chapter (mixed difficulty)
Questions you've seen before won't repeat until the pool resets
You have 20 minutes — exam auto-submits when time is up
Maximum 3 attempts per chapter
Results and explanations shown immediately after submission

New here? Register free — includes 3 free chapter exams.

Chapter 21: Globalisation and the Indian Economy — Important Questions & Answers (FAQ)

Frequently asked questions from CBSE(NCERT) Grade 10 SOCIAL SCIENCE — Chapter 21: Globalisation and the Indian Economy, with answers and explanations. These are sample questions; the exam has its own separate question set.

What is meant by globalisation in the NCERT chapter 'Globalisation and the Indian Economy'?

A. Integration of markets and production across countries ✓
B. Closing a country’s economy to foreign goods
C. Only the growth of agriculture within a country
D. Government control over all industries

Answer: A. Integration of markets and production across countries
Globalisation refers to the growing interconnection and integration of countries through foreign trade and foreign investment.

A Multinational Corporation, or MNC, is a company that:

A. Produces goods only in its home country
B. Owns or controls production in more than one country ✓
C. Sells products only in local village markets
D. Is always owned by the government

Answer: B. Owns or controls production in more than one country
An MNC is a company that owns or controls production in more than one nation.

In economics, investment generally means money spent on:

A. Buying luxury items for personal use
B. Assets such as land, buildings, machines and equipment ✓
C. Daily household consumption
D. Paying only wages to domestic workers

Answer: B. Assets such as land, buildings, machines and equipment
Investment refers to money spent on assets like land, buildings, machines and other equipment that can help in production.

Which of the following is an example of foreign investment?

A. A farmer buying seeds from a local shop
B. An Indian family buying vegetables from a market
C. An MNC setting up a factory in India ✓
D. A student buying a notebook made in India

Answer: C. An MNC setting up a factory in India
Foreign investment occurs when an MNC or foreign company invests in assets such as factories or offices in another country.

Why do MNCs usually set up production units in countries where labour is cheap?

A. To increase production cost
B. To reduce cost and earn higher profits ✓
C. To avoid selling products globally
D. To stop using raw materials

Answer: B. To reduce cost and earn higher profits
MNCs look for locations with low production costs, including cheap labour, to increase their profits.

Which of the following is NOT a common reason for an MNC to set up production in a particular country?

A. Closeness to markets
B. Availability of skilled and unskilled labour at low costs
C. Favourable government policies
D. High cost of production without any market advantage ✓

Answer: D. High cost of production without any market advantage
MNCs generally choose locations that reduce costs or improve market access; high cost without advantage is not a suitable reason.

Two countries trade with each other. Country X produces cotton cloth cheaply, while Country Y produces electronic goods cheaply. What is the likely effect of trade between them?

A. Consumers in both countries may get more variety at better prices ✓
B. Both countries will stop production completely
C. Only one country can benefit in every case
D. Prices will always rise for all goods

Answer: A. Consumers in both countries may get more variety at better prices
Foreign trade allows countries to access goods produced efficiently elsewhere, increasing choice and often improving prices.

An Indian toy producer faces losses after cheaper imported toys enter the market. Which statement best explains this situation?

A. Globalisation always benefits every producer equally
B. Competition from imports can harm small producers who cannot compete ✓
C. Foreign trade has no effect on domestic markets
D. Liberalisation prevents imported goods from entering markets

Answer: B. Competition from imports can harm small producers who cannot compete
While consumers may benefit from cheaper imports, small domestic producers can suffer if they cannot compete with foreign producers.

Read the statements: I. Globalisation has been beneficial for all sections of people in India equally. II. Globalisation has increased competition among producers. Which option is correct?

A. Only I is true
B. Only II is true ✓
C. Both I and II are true
D. Neither I nor II is true

Answer: B. Only II is true
Globalisation has increased competition, but its benefits have not been shared equally among all sections.

Which of the following situations best represents 'production across countries' by an MNC?

A. Designing a product in one country, manufacturing parts in another, assembling it in a third, and selling it globally ✓
B. A local shopkeeper selling vegetables grown in the same village
C. A farmer consuming all the crop produced on his own farm
D. A government office issuing ration cards within one district

Answer: A. Designing a product in one country, manufacturing parts in another, assembling it in a third, and selling it globally
MNCs often spread different stages of production across countries to reduce costs and access markets, technology and labour.

← Previous Chapter

Chapter 20: Money and Credit

Next Chapter →

Chapter 22: Consumer Rights