MCQ Class 10 Social Science Chapter 4 Globalization and The Indian Economy

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Globalization and The Indian Economy Class 10 Social Science MCQs Questions with Answers

Refer below for MCQ Class 10 Social Science Chapter 4 Globalization and The Indian Economy with solutions. Solve questions and compare with the answers provided below

Question. What is the benefit of container used in transportation of goods?
(a) Reduction in port handling costs
(b) Reduction in delays
(c) Reduction in damaged goods
(d) All of them

Question. Tax on imports is an example of __________.
(a) Indirect tax
(b) Trade barrier
(c) Sales tax
(d) Direct tax

Question. Indian government has put barriers to foreign trade and foreign investment known as
(a) trade restrictions.
(b) trade barriers.
(c) trade transactions.
(d) trade deficit.

Question. World Trade Organisation is the organisation whose aim is to liberalise
(a) internal trade.
(b) international trade.
(c) external trade.
(d) national trade.

Question. The aim of WTO is
(a) to keep watch on trade of less developing countries
(b) to support only the least developed countries
(c) to promote trade in developed countries
(d) to liberalize international trade

Question. Favourable balance trade means :
(a) The value of visible exports is less than the value of visible imports
(b) The value of both is equal
(c) The value of visible exports and value of visible imports is different
(d) The value of visible exports is more than the value of visible imports

Question. Where is the headquarters of World Trade Organisation situated ?
(a) Washington
(b) Geneva
(c) Delhi
(d) Calcutta

Question. In general, where does MNC prefer to set up production units?
(a) Where tax rate is high
(b) Countries who are member of WTO
(c) Where other MNC’s exist
(d) Where labour is available at low costs

Question. Liberalization means
(a) removing trade barriers.
(b) adding more trade barriers.
(c) protecting domestic industries.
(d) closing domestic economy.

Question. In India, the first plant set up by Ford Motors was established in
(a) Kashmir
(b) Punjab
(c) Bangalore
(d) Chennai

Question. According to 2011, the member countries of WTO are
(a) 129.
(b) 139.
(c) 153.
(d) 159.

Question. Government has set trade barriers
(a) to increase foreign trade.
(b) to protect international companies.
(c) to regulate foreign trade.
(d) to increase the production of wheat.

Question. Which of the following statement is not true regarding the world trade organization ?
(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 international trade.
(d) W.T.O. Rules have forced the developing countries to remove trade barriers.

Question. In which five year plan, Mahalanobis Model was adopted in India?
(a) Fifth
(b) First
(c) Second
(d) Third

Question. Rapd integration or inter-connection between countries is called
(a) urbanisation.
(b) liberalisation.
(c) globalisation.
(d) migration.

Question. The restriction imposed on imports is known as
(a) tade formality
(b) trade barrier
(c) trade control
(d) trade shortage

Question. Ford Motors came to India in
(a) 1994
(b) 1995
(c) 1996
(d) 1997

Question. Investment made by MNCs is called
(a) foreign investment.
(b) direct investment.
(c) indirect investment.
(d) domestic investment.

Question. What is the major benefit to the local company of a joint production with MNC?
(a) Domestic labours get high wages
(b) Production reduces
(c) Domestic companies started following labour laws
(d) MNC’s can provide money for additional investments

Question. How can government use a trade barrier?
(a) To increase foreign trade
(b) To protect international companies
(c) To decide how much of any commodity should come into the country
(d) To increase production of wheat

Question. The past decades of globalization has seen rapid movements in ______.
(a) goods, services and people
(b) goods, technology, investments and services
(c) goods and people
(d) Technology and goods

Question. What is meant by Incuced Investment ?
(a) Investment motivated by the Govt.
(b) Investment made by the private enterpreneur
(c) investment that depends on income and profit
(d) Investment independent of income and profit.

Question. In which year was the World Trade Organisation established ?
(a) 1995
(b) 1998
(c) 1991
(d) 1992

Question. ‘SAPTA’ is an agreement on Trade among the SAARC Nations. The expansion of SAPTA is one of the following :
(a) South Asian Protection of Trade Agreement
(b) South Asian Preferential Trade Agreement
(c) South Asian Partial Trade Agreement
(d) South Asian Pacific Trade Agreement

Question. What do you mean by liberalization?
(a) Removing trade barriers
(b) Adding more trade barriers
(c) Protecting domestic industries
(d) Closing domestic economy

Question. Important role played In globalization:
(a) Intenational Company
(b) Multinational Company
(c) National Company
(d) Government Company

Question. The Multi-national Company of India is
(a) Infosys
(b) Asian Paints
(c) Tata Motors
(d) All of These

Question. What does WTO stand for?
(a) World Telecommunication Organization
(b) World Toll Organization
(c) World Trade Organization
(d) World Trade Orientation

Question. Companies that own and control production in more than one country are called
(a) Multiple National Companies
(b) Multiple Nation Companies
(c) Multi National Corporations
(d) Multiple Nation Corporations

Question. Name an MNC dealing in medicines
(a) Ranbaxy
(b) Asian Paints
(c) Tata Motors
(d) Tata Indicom

Question. What do you mean by investment?
(a) Money spent for investment
(b) The money used to build the factory only
(c) Money used by owners for luxuries
(d) Money that is spent to buy assets such as land, building, machines and other equipment

Question. Started at the initiative of ______ countries, WTO established rules regarding international trade.
(a) Least developed
(b) Developing
(c) Developed
(d) Poor

Question. Companies who set up production units in SEZ’s do not have to pay taxes for an initial period of _____ years.
(a) 2
(b) 3
(c) 4
(d) 5

Question. Who are the most affected from WTO rules?
(a) Indian farmers
(b) Farmers of USA
(c) Industrialist in India
(d) Industrialist in China

Question. How can government of a country play a major role in making Globalization fairer?
(a) Government can ensure that labour laws are properly implemented
(b) Government can support large producers to improve their performance
(c) Government can negotiate at UNO for fairer rules
(d) Government should negotiate with USA

Question. Cargill Foods, an American MNC, had bought smaller Indian companies such as
(a) Pillsbury Foods.
(b) Parakh Foods.
(c) Aashirwad Foods.
(d) MTR Foods.

Question. Which group demanded a New International Economic Order [NIEO] ?
(a) Group of 77 (G-77)
(b) SAARC countries
(c) Group of 8 (G-8)
(d) All the above

Question. Globalisation has enabled which large Indian company to emerge as multinational company ?
(a) Tata Motors
(b) Infosys
(c) Ranbaxy
(d) All of these

Question. Within a year, 70% to 80% of toy shops have replaced Indian toys with Chinese toys due to
(a) cheaper prices.
(b) good material.
(c) easy availability.
(d) better quality.

Question. What is Globalisation?
(a) Process of rapid integration between countries
(b) Process of rapid integration of various states of a country
(c) Rapid integration of people of various countries only
(d) Integration of technologies of different countries only

Question. How is an MNC defined?
(a) A MNC is a company that owns or controls production in more than one district in a country
(b) A MNC is a company that owns or controls production in more than one state in a country
(c) A MNC is a company that owns or controls production in more than one nation
(d) All of the above.

Question. The duration of the First Five yera Plan of India was…………
(a) 1947-1952
(b) 1950-1955
(c) 1955-1960
(d) 1951-1956

Question. Choose the correct sequence to indicate the following statements as True(T) or False (F) :
A. The W.T.O. has formulated a policy of free trade among the member nations.
B. The developing nations are immensely benefited by free trade policy.
C. The developed countries are interested in helping the weaker countries through this policy.
D. The developing countries are subjected to economic exploitation to economic exploitation in the name of free trade policy.
(a) T, T, F, F
(b) F, F, T, T
(c) F, T, T, T
(d) T, F, F, T

Question. What is the basic function of foreign trade?
(a) Connects markets of two countries only
(b) Creates opportunity for only the buyer to approach foreigh goods
(c) Connects markets of different countries
(d) Foreign trade connects developed countries only

Question. Globalization has mostly affected ______.
(a) Developed countries
(b) Small producers
(c) Large producers
(d) MNC’s

Question. What special step has been taken by the central and state goverenments to attract foreign companies in India ?
(a) SEZs
(b) EU
(c) NPO
(d) JSY

Question. Which of the following term is used to describe trade between two or more countries :
(a) Internal trade
(b) International trade
(c) External trade
(d) Local trade

Question. What is the name given to an economy which has no relation with rest of the world?
(a) Capitalist Economy
(b) Mixed Economy
(c) Socialist Economy
(d) Closed Economy

Assertion and Reason Based MCQs

Directions : In the following questions, A statement of Assertion (A) is followed by a statement of Reason (R).
Mark the correct choice as:
(A) Both A and R are true and R is the correct explanation of A.
(B) Both A and R are true but R is NOT the correct explanation of A.
(C) A is true but R is false.
(D) A is false and R is true.

Question. Assertion (A): The Indian government, after independence, had put barriers to foreign trade and foreign investment.
Reason (R): The government considered it necessary to protect the producers within thec ountry from foreign competition.

Question. Assertion (A): The car manufacturing plant of Maruti Udyog Ltd. in India produces cars for Indian markets.
Reason (R): It also exports cars to other developingco ntries and exports car components for its many factories around the world.

Question. Assertion (A): Global production has a complexstruct ure.
Reason (R): Production of one good may take place in different parts of the world. For instance, an equipment may be formed by combining components produced in different countries.

Question. Assertion (A): Local businesses may set up jointprodu ction process with MNCs and earn higher profits.
Reason (R): MNCs can provide money for additional investments, like buying new machines for faster production.

Question. Assertion (A): MNCs can exert a strong influence on production at distant locations.
Reason (R): MNCs set up partnerships with local companies, use local companies for supplies, compete with the local companies or buy them up.

Question. Assertion (A): Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
Reason (R): Foreign trade expands the choice of goods beyond what is domestically produced.

I. Read the source given below and answer the questions that follows:

 India has become a second home to many multinationals’ over the years. 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. MNCs set up production where it is close to the markets; where there is skilled and unskilled labour available at low costs; and where the availability of other factors of production is assured. But the most common route for MNC investments is to buy up local companies and then to expand production. MNCs with huge wealth can quite easily do so. To take an example, 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, with a capacity to make 5 million pouches daily. Large MNCs in developed countries place orders for production with small producers. Garments, footwear, sports items are examples of industries where production is carried out by a large number of small producers around the world. The products are supplied to the MNCs, which then sell these under their own brand names to the customers. These large MNCs have tremendous power to determine price, quality, delivery, and labour conditions for these distant producers. Ford Motors, an American company, is one of the world’s largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks.

Answer the following MCQs by choosing the most appropriate option:

Question. In which regions MNCs set up offices and factories for production?
(A) Close to the market.
(B) Availability of skilled/unskilled labour at low cost.
(C) Favourable government policies.
(D) All of the above

Question. Ford Motors entered the Indian automobile business in collaboration with which Indian manufacturer?
(A) Mahindra and Mahindra
(B) Tata Motors
(C) Maruti Suzuki
(D) None of the above

Question. Investment made by MNCs is called:
(A) Investment
(B) Foreign trade
(C) Foreign investment
(D) Foreign direct investment

Question. MNCs do not increase:
(A) Competition
(B) Price war
(C) Quality
(D) All of the above

II. Read the extract given below and answer the questions that follow:

Globalization expands and accelerates the movement and exchange of ideas and commodities over vast distances. Globalisation has created more competitive environment in India. In the past two to three decades, more and more MNCs have been looking for locations around the world which would be cheap for their production. Foreign investment by MNCs in these countries has been rising. At the same time, foreign trade between countries has been rising rapidly. A large part of the foreign trade is also controlled by MNCs. The result of greater foreign investment and greater foreign trade has been greater integration of production and markets across countries. Globalisation is this process of rapid integration or interconnection between countries. MNCs are playing a major role in the globalisation process. More and more goods and services, investments and technology are moving between countries. Besides the movements of goods, services, investments and technology, there is one more way in which the countries can be connected. This is through the movement of people between countries. People usually move from one country to another in search of better income, better jobs or better education. Rapid improvement in technology has been one major factor that has stimulated the Globalisation process. Even more remarkable have been the developments in information and communication technology. Globalisation and greater competition among producers – both local and foreign producers – has been of advantage to consumers, particularly the well-off sections in the urban areas. There is greater choice before these consumers who now enjoy improved quality and lower prices for several products. As a result, these people today, enjoy much higher standards of living than was possible earlier. Globalisation has also created new opportunities for companies providing services, particularly those involving IT.

Answer the following MCQs by choosing the most appropriate option:

Question. Process of integration of different countries is called:
(A) Liberalization
(B) Privatization
(C) Globalization
(D) None of the above

Question. Globalisation has led to higher standards of living of:
(A) Well-off consumers
(B) Poor consumers
(C) Big producers
(D) None of the above

Question. Globalisation has created new opportunities of:
(A) Employment
(B) Emerging multinationals
(C) Providing services
(D) All of the above

Question. Globalisation has posed major challenges for:
(A) Big Producers
(B) Small Producers
(C) Rural Poor
(D) None of these

III. Read the extract given below and answer the questions that follow:

In the last twenty years, globalisation of the Indian economy has come a long way. What has been its effect on the lives of people? Let us look at some of the evidence. Globalisation and greater competition among producers – both local and foreign producers – has been of advantage to consumers, particularly the well-off sections in the urban areas. There is greater choice before these consumers who now enjoy improved quality and lower prices for several products. As a result, these people today, enjoy much higher standards of living than was possible earlier. Among producers and workers, the impact of globalisation has not been uniform. Firstly, MNCs have increased their investments in India over the past 20 years, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas. These products have a large number of well-off buyers. In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc., to these industries have prospered. Secondly, several of the top Indian companies have been able to benefit from the increased competition. They have invested in newer technology and production methods and raised their production standards. Some have gained from successful collaborations with foreign companies. Moreover, globalisation has enabled some large Indian companies to emerge as multinationals themselves! Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts and bolts) are some Indian companies which are spreading their operations worldwide. Globalisation has also created new opportunities for companies providing services, particularly those involving IT. The Indian company producing a magazine for the London based company and call centres are some examples. Besides, a host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in countries such as India and are exported to the developed countries.

Answer the following MCQs by choosing the most appropriate option:

Question. Why have MNCs increased their investments in India over the past 20 years?
(A) To attract costumers
(B) To evade taxes
(C) To make use of the market potential
(D) To do social service

Question. Why do people have a preference for foreign products?
(A) They think foreign products are of better quality.
(B) They think it will improve their social status.
(C) They think the product is much cheaper than Indian product.
(D) None of the above.

Question. How several of the top Indian companies have been able to benefit from the increased competition?
(A) They have invested in newer technology.
(B) They have no rivals in the market.
(C) They get to travel the world.
(D) They can work in isolation.

Question. Globalisation has been advantageous to:
(A) Consumers
(B) Producers
(C) Consumers and producers
(D) Limited sector of the society

FILL IN THE BLANKS

Question. __________ balance of trade means exports are more than imports.

Question. __________ protect the interest of all the people in the country.

Question. Investment made by __________ is called foreign invesment.

Question. Rapid incerase in __________ has been one major factor that has stimulated the globalization process.

Question. Foreign trade connects markets of different __________.

TRUE / FALSE

Question. WTO is one of such organisation whose aim is to liberalise international trade.

Question. Removing barriers or restrictions set by the government is what is known as liberalisation.

Question. The developing nations are immensely benefited by free trade policy.

Question. Tax on imports is an example of trade Barrier.

Question. Rapid inter connection between countries is called globalisation.

Match the column

	Column-A		Column-B
(i)	MNCs buy at cheap rates from small producers	(a)	Automobiles
(ii)	Quotas and taxes on imports are used to regulate trade	(b)	Garments,footwear, sports items
(iii)	Indian companies who have invested abroad	(c)	Call centres
(iv)	IT has helped in spreading of production of services	(d)	Tata Motors,Infosys, Ranbaxy
(v)	Several MNCs have invested in setting up factories in India for production	(e)	Trade barriers

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