Practice Test

Q1) Read the given statements in context of 'globalization' and choose the correct option:
Show Answer

Q2) What is foreign investment? Show Answer

Q3) An organization whose aim is to liberate international trade is- Show Answer

Q4) What is the idea behind the development of Special Economic Zones (SEZs) in India? Show Answer

Q5) Removing barriers or restrictions set by the government is known as- Show Answer

Q6) When and where did the Ford Motors set up their large plant in India? Show Answer

Q7) Arrange the following in the correct Sequence:
(i) Meanwhile, the company's customer care is carried out through call centres located in India.
(ii) And then has components manufactured in China.
(iii) A large MNC, Producing industrial equipment, designs its products in research centres in the United States.
(iv) These are then shipped to Mexico and Eastern Europe where the products are assembled and the finished products are sold all over the world. Show Answer

Q8) Arrange the following in the correct Sequence:
(i) A news magazine published for London readers is to be designed and printed in Delhi.
(ii) The designing is done on a Computer. After printing the magazines are sent by air to London.
(iii) The payment of money for designing and printing from a bank in London to a bank in Delhi is done instantly through the Internet (E-banking)
(iv) The text of the magazines is sent through is sent through Internet to the Delhi office. The designers in Delhi office get orders on how to design the magazine from the office in London using telecommunications facilities. Show Answer

Q9) Analyze the information given below, considering one of the following correct options:
Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers. An example of this is the current debate on trade in agricultural products. Show Answer

Q10) Analyze the information given below, considering one of the following correct options:
A news magazine published for London readers is to be designed and printed in Delhi. The text of the magazine is sent through Internet to the Delhi office. The designers in the Delhi office get orders on how to design the magazine from the office in London using telecommunications facilities. The designing is done on a computer. After printing, the magazines are sent by air to London. Even the payment of money for designing and printing from a bank in London to a bank in Delhi is done instantly through the Internet (E-banking). Show Answer

Q11) Find the incorrect option from the following: Show Answer

Q12) Find the incorrect option from the following: Show Answer

Q13) Directions : In the following questions, A statement of Assertion (A) is followed by a statement of Reason (R) . Mark the correct choice as.
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 developing countries and exports cars components for its many factories around the world. Show Answer

Q14) Directions : In the following questions, A statement of Assertion (A) is followed by a statement of Reason (R) . Mark the correct choice as.
Assertion (A) : Global production has a complex structure.
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. Show Answer

Q15) Directions : In the following questions, A statement of Assertion (A) is followed by a statement of Reason (R) . Mark the correct choice as.
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 the country from foreign competition. Show Answer

Q16) Directions : In the following questions, A statement of Assertion (A) is followed by a statement of Reason (R) . Mark the correct choice as.
Assertion (A) : Local businesses may set up joint production process with MNCs and earn higher profits.
Reason (R) : MNCs can provide money for additional investments, like buying new machines for faster production. Show Answer

Q17) Directions : In the following questions, A statement of Assertion (A) is followed by a statement of Reason (R) . Mark the correct choice as.
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. Show Answer

Q18) Directions : In the following questions, A statement of Assertion (A) is followed by a statement of Reason (R) . Mark the correct choice as.
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.
Show Answer

Q19) In which regions MNCs set up offices and factories for production ? Show Answer

Q20) Ford Motors entered the Indian automobile business in collaboration with which Indian manufacturer ? Show Answer

Q21) Investment made by MNCs is called Show Answer

Q22) MNCs do not increase Show Answer

Q23) Process of integration of different countries is called Show Answer

Q24) Globalization has led to higher standards of living of : Show Answer

Q25) Globalization has created new opportunities of : Show Answer

Q26) Globalization has posed major challenges for : Show Answer

Q27) Why have MNCs have increased their investments in India over the past 20 years ? Show Answer

Q28) Why do people have a preference for foreign products ? Show Answer

Q29) How several of the top Indian companies have been able to benefit from the increased competition ? Show Answer

Q30) Globalization has been advantageous to : Show Answer

Q31) Rapid integration or interconnection between countries is known as: Show Answer

Q32) Globalization has led to improvement in living conditions: Show Answer

Q33) Which one of the following Indian industries has been hit hard by globalization? Show Answer

Q34) World Trade Organisation (WTO) was started at the initiative of which one of the following groups of countries? Show Answer

Q35) Which of the following organizations lays stress on liberalization of foreign trade and foreign investment? Show Answer

Q36) Investment made by MNCs are termed as: Show Answer

Q37) Which of the following is not a feature of a Multi - National Company? Show Answer

Q38) Tan on imports is an example of: Show Answer

Q39) Which one of the following is not characteristic of 'Special Economic Zone'? Show Answer

Q40) Companies who set up production units in the Special Economic Zones (SEZs) do not have to pay taxes for an initial period of: Show Answer

Q41) It refers to the globalization which creates opportunities for all and ensures that its benefits are better shared. Show Answer

Q42) 'Increase in GNP' is a positive impact of liberalization. Show Answer

Q43) 'Deregulation of Industries' is a feature of economic reforms introduced in 1991 in India. Show Answer

Q44) Rapid integration or interconnection between countries is known as socialization. Show Answer

Q45) World Trade Organization (WTO) was started at the initiative of developing countries. Show Answer

Q46) 'Ensuring that rules are being followed' is a function of World Trade Organization. Show Answer

Q47) As on July 2016, 175 countries are the members of World Trade Organization. Show Answer

Q48) In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the Statement and chose the correct option:
Assertion (A): A wide ranging choice of goods is available in the Indian markets.
Reason (R): It has been the result of integration of world market. Show Answer

Q49) In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the Statement and chose the correct option:
Assertion (A): SEZs are being set up with world class facilities: electricity, water, roads, transport, storage, recreational and educational facilities.
Reason (R): To attract foreign companies to invest in India. Show Answer

Q50) In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the Statement and chose the correct option:
Assertion (A) : Until the middle of the twentieth century, production was largely organized within countries. What crossed the boundaries of these countries were raw material, food stuff and finished products. Colonies such as India exported raw materials and food stuff and finished goods.
Reason (R) : MNCs owned and controlled the production in more than country. Show Answer

Q51) The Indian government, after Independence, had put barriers to foreign trade and foreign investment. This was considered necessary to protect the producers within the country from foreign competition.
Starting around 1991, barriers on foreign trade and foreign investment were removed to a large extent. This meant that goods could be imported and exported easily and also foreign companies could set up factories and offices here.
Analyse the information given above, considering one of the following correct option. Show Answer

Q52) Large MNCs in the garment industry in Europe and America order their products from Indian exporters. These large MNCs with worldwide network look for the cheapest goods in order to maximize their profits. To get these large orders, Indian garment exporters try hard to cut their own costs. As cost of raw materials cannot be reduced, exporters try to cut labour costs. Where earlier a factory used to employ workers only on a temporary basis so that they do not have to pay workers for the whole year. Workers also have to put in very long working hours and work nights shifts on a regular basis during the peak season. Wages are low and workers are forced to work overtime to make both ends meet.
Analyse the situation under globalization given above, considering one of the following correct option. Show Answer

Q53) Find the incorrect option: Show Answer

Q54) Arrange the following in the correct sequence:
i. The products supplied to MNCs
ii. Large MNCs place orders for production with small producers
iii. MNCs determine price, quality and delivery.
iv. Large companies sell the products under their own brand name.
Show Answer

Q55) What is the major benefit to the local company of a joint production with MNC ? Identify the correct option. Show Answer

Q56) What do you mean by investment ? Choose the correct option. Show Answer

Q57) Globalisation does not involve which one of the following ? Show Answer

Q58) Which among the following example given in the options has the least possibility of globalisation ? Show Answer

Q59) Fill in the blanks with suitable option.
Globalisation leads to ..... . Show Answer

Q60) 35 years old Sunil works from 8 am to 8 pm all seven days of the week in a garment exporter firm. He works as a contract labour. His employer does not give him any other facility. He knows that he is employed just for few months of the year but he continues to work as he has no other option.
Analyse the information, considering one of the following correct option. Show Answer

Q61) The Indian government has been following the policy of liberation, globalisation and privatisation since ..... Show Answer

Q62) India's maximum foreign exchange is spent on which of the following ? Show Answer

Q63) What is the benefit of using containers in transportation of goods ? Identify. Show Answer

Q64) World Trade Organisation (WTO) is an organisation whose aim is to liberalise. Show Answer

Q65) Identify the terminology with the help of the following features.
* Through this, businesses are allowed to make decisions freely about import or export.
* It helps to remove restrictions on foreign trade.
Select the appropriate option from the following. Show Answer

Q66) Assertion (A) :
Local businesses may set up joint production process with MNC's and can earn higher profits.
Reason (R) :
MNC's can provide money for additional investments, like buying new machines for faster production. Show Answer

Q67) Assertion (A) :
MNC's can exert a strong influence on production at distant locations.
Reason (R) :
MNC's can set up partnerships with local companies, use local companies for supplies, compete with the local companies or buy them up. Show Answer

Q68) 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. Show Answer

Q69) Assertion (A) :
Trade barrier is a restriction on the free international exchange of goods or services.
Reason (R) :
Quotas are a way of restriction on volume or quantity of goods to be imported or exported. Show Answer

Q70) Assertion (A) :
Globalisation leads to increased competition in international and domestic markets.
Reason (R) :
Globalisation makes the consumers better off as they have a wider variety of goods to choose from at lower prices. Show Answer

Q71) The Chinese toys have made a global presence in Indian markets too. If India bans Chinese products in their market then what will it imply ? Show Answer

Q72) What is the basic function of foreign trade with reference to the given case ? Identify the best suitable option from the following. Show Answer

Q73) What will happen if tax is imposed on Chinese toys ? Choose the correct option. Show Answer

Q74) How many markets been transformed in recent years ?
Infer the correct option with reference to the above context. Show Answer

Q75) How does foreign trade integrate the markets ? With reference to the given context, infer the correct Codes. Show Answer

Q76) Read the following statements and choose the incorrect statements about the impacts of Chinese goods on Indian goods market.
(I) Indian goods are facing crises due to cheap products offered by China into the Indian markets.
(II) Chinese goods dominate the Indian markets.
(III) Indian goods are less expensive then Chinese goods. Show Answer

Q77) Enabling producers of one country to sell their goods in other countries is known as Show Answer

Q78) Which one of the following types of countries has benefitted most from globalisation ? Show Answer

Q79) What does fair globalisation means ? Choose the correct option : Show Answer

Q80) Choose the incorrect option about Globalisation from the given statements.
(I) Globalisation causes integration of markets as well as production centres.
(II) Globalisation has increased migration of people.
(III) It has facilitated new and improved technology by which even local companies can take benefit.
(IV) Globalisation has increased trade restrictions among the regions of the world. Show Answer

Q81) With the growing competition, most employers these days prefer to employ workers .... Show Answer