MCQ Questions for Class 10 Economics Chapter 4 Globalisation and the Indian Economy with Answers

Globalisation and the Indian Economy Class 10 MCQs Questions with Answers

Question 1.
Which one of the following organisations lag stress on liberalisation of foreign trade and foreign investment?
(a) International Monetary Fund
(b) International Labour Organisation
(c) World Health Organisation
(d) World Trade Organisation
Answer:
(d) World Trade Organisation

Explanation: The World Trade Organisation was created with an aim to regulate and monitor if appropriate rules were being implemented by the countries.

Question 2.
Choose the correctly matched pair:
(a) Sundaram Fasteners – Indian MNC
(b) Ranbaxy-Chinese MNC
(c) Ford Motors-British MNC
(d) Xiaomi-Korean MNC
Answer:
(a) Sundaram Fasteners-Indian MNC
Explanation: Ranbaxy-Indian MNC
Ford Motors-American MNC
Xiaomi-Chinese MNC

Question 3.
Entry of MNCs in a domestic market may prove harmful for
(a) Large scale producers
(b) Domestic producers
(c) Native Bankers
(d) Exporters of goods
Answer:
(b) Domestic producers

Explanation: The entry of MNC into the domestic market will prove fruitful to native bankers, large scale producers as they will be involved in the manufacturing and exporters as export will improve. The domestic producers alone will be harmed as it might close down their production.

Question 4.
Which one of the following has been major source of foreign investment in the IT industry?
(a) Bharat Heavy Electricals Limited
(b) Oil India Limited
(c) Steel Authority of India Limited
(d) Business process outsourcing
Answer:
(d) Business process outsourcing

Explanation: The other choices are all manufacturing units.

Question 5.
Which one of the following types of countries has been more benefited from Globalisation?
(a) Rich countries
(b) Poor countries
(c) Developing countries
(d) Developed countries
Answer:
(c) Developing countries

Explanation: Employment has been generated to the youth in many developing countries, which means better quality of living.

Question 6.
Which one of the following Indian industries has been hit hard by globalisation?
(a) IT
(b) Toy making
(c) Jute
(d) Cement
Answer:
(b) Toy making

Question 7.
Removing barriers on or restrictions set by the government is known as:
(a) Globalisation
(b) Privatisation
(c) Nationalisation
(d) Liberalisation
Answer:
(d) Liberalisation

Question 8.
Ford Motors set up its first plant in India at
(a) Kolkata
(b) Mumbai
(c) Chennai
(d) Delhi

Question 9.
…………. has helped most in the spread of production of services.
(a) Manufacturing Industry
(b) Automobile Sector
(c) Call centres
(d) IT Sector
Answer:
(d) IT Sector

Question 10.
“MNCs keep in mind certain factors before setting up production”. What of the following statements is wrong when that assertion is concerned?
(a) MNCs keep the availability of cheap skilled and unskilled labour in mind.
(b) Proximity to markets is another important factor when MNCs are established.
(c) Presence of a large number of local competitors also changes the opinions of people while establishing an MNC.
(d) Favourable government policies are important for establishment of an MNC.
Answer:
(c) Presence of a large number of local competitors also changes the opinions of people while establishing an MNC. Explanation: MNCs are not interested in the local competitors as most of their products are for the export market.

Question 11.
…………… have led to a huge reduction in port handling costs and increased the speed with which exports can reach markets.
(a) Containers
(b) Airports
(c) Vessels with Stands
(d) Ships
Answer:
(a) Containers

Question 12.
Cheaper imports, inadequate investment in domestic infrastructure might lead to
(a) the slowdown in the agricultural sector
(b) the slowdown in demands of domestic goods in the country
(c) the slowdown in the industrial sector
(d) slowdown in services
Answer:
(b) the slowdown in demands of domestic goods in the country

Question 13.
Which of the following country is NOT in the list of countries whom Ford Motors exporting its cars?
(a) South Africa
(b) Mexico
(c) Brazil
(d) All of these
Answer:
(d) All of these

Explanation: Ford Motors, an American company, is one of the world’s largest automobile manufacturers with production spread over 26 countries of the world.

Related Theory
Ford Motors came to India in 1995, invested Rs.1700 crore to set up a plant near Chennai in collaboration with Mahindra and Mahindra, manufacturer of jeeps and trucks in India.

Question 14.
Which of the following company is the largest producer of edible oil in India?
(a) Parakh Foods
(b) Cargill Foods
(c) Mahindra and Mahindra
(d) None of the above
Answer:
(b) Cargill Foods

Explanation: Cargill Foods is a very large American MNC, producing 5 million pouches of edible oil in India daily.

Related Theory
Cargill has bought over Parakh Foods which had built a large marketing network in various parts of India, also it had four oil refineries whose control has now shifted to Cargill.

Question 15.
Which of the following statement is NOT correct about a multinational company?
(a) It set up new factories for production.
(b) It may buy existing local companies to expand its business.
(c) It forms partnerships with local companies.
(d) It does not have new technology and large huge money with it.
Answer:
(d) It does not have new technology and huge money with it.

Question 16.
Which one of the following companies is NOT a multinational company?
(a) Tata Motors
(b) Reliance India Ltd.
(c) Ranbaxy
(d) Infosys
Answer:
(b) Reliance India Ltd.

Explanation: Globalisation has enabled some large Indian companies to emerge as multinationals themselves. For example, Tata Motor (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (Paints), Sundaram Fasteners (nuts and bolts) are some Indian companies which are spreading their operations worldwide.

Question 17.
With what objective was World Trade Organisation set up?
(a) To liberalise international trade
(b) To allow free trade for all
(c) To establish rules regarding international trade
(d) All of these
Answer:

Question 18.
Which of the following statement clearly defines what an MNC is?
(a) A large company that owns or controls production in more than one nation.
(b) A large company that owns or controls raw material for production.
(c) A large company that deals in automobiles.
(d) All of these.
Answer:
(a) A large company that owns or controls production in more than one nation.

Question 19.
The most common route for investments by MNCs in countries around the world is to:
(a) set up new factories
(b) buy existing local companies
(c) form partnerships with local companies
(d) none of these
Answer:

Question 20.
Which of the following attributes are NOT determined by an MNC?
(a) Price, Quality, delivery and raw material
(b) Price, labour conditions, quality, delivery
(c) Delivery and price only
(d) Raw material and transport cost
Answer:
(b) Price, labour conditions, quality, delivery

Question 21.
Large MNCs in developed countries place orders for production with small producers which include:
(a) Garments
(b) Footwear
(c) Sports
(d) All of these
Answer:
(d) All of these

Identify

Question 22.
Identify the following organization on basis of the hints given.
(1) It was established with the aim to liberalise international trade.
(2) 164 countries are its members.
Answer:
The World Trade Organisation

Correct and Rewrite/ True-False
State whether the following statements are True or False. If false, correct the statement.

Question 23.
The removal of barriers or restrictions by the government is known as globalisation.
Answer:
The removal of barriers or restrictions by the government is called liberalisation. Explanation: Liberalisation helps to remove all types of barriers to allow easy and affordable exchange of ideas, culture and even goods between countries.

Related Theory
Globalisation is the process of rapid integration or interconnection between countries by exchange of trade, ideas, culture, information and even markets.

Question 24.
International Monetary Fund (IMF) is an organisation whose aim is to liberalise international trade. [CBSE 2020,15]
Answer:
WTO is an organisation whose aim is to liberalise international trade.

Explanation: World Trade Organisation (WTO) forms uniform rules and regulations to make trade simpler across the world.

Related Theory
International Monetary Fund was created to support economic stabilisation of Second World War economies. Nations were hurt and affected and hence needed funding and support to develop again.

Fill in the blanks with suitable information:

Question 25.
………… results in connecting the markets or integration of markets in different countries.
Answer:
Foreign trade

Explanation: ForeignTrade helps manufacturers to find markets in various countries. It results in tax on imports which governments can use to increase or decrease foreign trade and to decide what kind of goods and how much of each, should come into the country.

Question 26.
………………… is the process of rapid integration or interconnection between countries.
Answer:
Globalisation

Question 27.
………. refers to some restrictions including the tax on Imports which governments can use to increase or decrease foreign trade and to decide what kind of goods and how much of each, shouLd come into the country.
Answer:
Trade barrier

Explanation: Indian government put barriers on foreign trad and foreign investment after independence to protect the producers within the country from foreign competition.

Question 28.
………… is the freedom of markets and abolition of state imposed restrictions on the movement of goods.
Answer:
Liberalisation

Question 29.
……….. is an international organisation whose aim is to liberalise international trade:
(a) WTO
(b) UNDP
(c) World Bank
(d) MNC
Answer:

Match the Columns Choose the correct pairs:

Question 30.
Match the following Indian companies from column A with the products these companies deal in from column B:

Column A (Indian Companies) Column B (Products these companies deal in)
(a) Tata Motors (i) IT
(b) Infosys (ii) Automobiles
(c) Ranbaxy (iii) Paints
(d) Asian Paints (iv) Medicines

Answer:

Column A (Indian Companies) Column B (Products these companies deal in)
(a) Tata Motors (ii) Automobiles
(b) Infosys (i) IT
(c) Ranbaxy (iv) Medicines
(d) Asian Paints (iii) Paints

Explanation: Globalisation has enabled these large Indian companies to emerge as MNCs. Another company that has become an MNC is Sundaram Fasteners which deals in nuts and bolts.

Question 31.
Match the following key terms given in column A with their meanings in column B:

Column A (Key Terms) Column B (Meanings)
(a) Globalisation (i) Investment by multinationals
(b) Liberalisation (ii) Controlling foreign trade
(c) Tax barrier (iii) Integration between economies
(d) Foreign investment (iv) Removing trade barriers

Answer:

Assertion Reasoning questions Class 10 Economics Chapter 4

In each of the following questions, a statemant of Assertion (A) is given followed by a corresponding statement of Reason (R). Select the correct answer to codes (a), (b) (c) or (d) as given below:
(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 correct but (R) is wrong.
(d) (A) is wrong but (R) is correct.

Question 32.
Assertion (A): People also can play an important role in the struggle for fair globalisation.
Reason (R): Governments have done exceptionally well in implementing the rules of WTO.
Answer:
(c) (A) is correct but (R) is wrong.

Explanation: Massive campaigns and representation by people’s organisations have influenced important decisions relating to trade and investments at the WTO.

Question 33.
Assertion (A): Not everyone has benefited from Globalisation equally.
Reason (R): People with education, skill and wealth have made the best use of the new opportunities while others have not been able to make the best use of it.
Answer:
(a) Both (A) and (R) are true and (R) is the correct explanation of (A).

Question 34.
Assertion (A): Several of the top Indian companies have been able to benefit from the increased competition.
Reason (R): They have been able to get more customers using the existing technology.
Answer:
(c) (A) is correct but (R) is wrong.

Explanation: Greater competition has forced the companies to invest in newer technologies and more infrastructure, along with better quality products which has helped these companies to gain a better consumer base with help from the competition.

Question 35.
Assertion (A): Foreign companies are demanding more rigidity in labour laws.
Reason (R): Flexible Labour laws give better chances for companies to profit.
Answer:

MCQ Questions for Class 10 Social Science with Answers