CBSE Class 10 I Economics I MCQ TEST -1 I Chapter 4 I Globalisation and the Indian Economy

Q1. Which one of the following organisations lay stress on liberalisation of foreign trade and foreign investment?

International Monetary Fund

International Labour Organisation

World Health Organisation

World Trade Organisation

Q2. Removing barriers or restrictions set by the government is known as

Globalisation

Privatisation

Nationalism

Liberalisation

Q3. Which one of the following refers to investment?

The money spent on religious ceremonies

The money spent on social customs

The money spent to buy assets such as land

The money spent on household goods

Q4. Which of the following is a ‘barrier’ on foreign trade?

Tax on import

Quality control

Sales tax

All of these

Q5. Special Economic Zones (SEZs) are being set up to attract

foreign tourists

foreign investment

foreign goods

foreign policies

Q6. Entry of MNCs in a domestic market may prove harmful for

all large scale producers

all domestic producers

all substandard domestic producers

all small-scale producers

Q7. Ford Motors set up its first plant in India at

Kolkata

Mumbai

Chennai

None of these

Q8. Which of the following industries have been hard hit by foreign competition?

Dairy products

Leather industry

Cloth industry

Vehicle industry

Q9. In which year did the government decide to remove barriers on foreign trade and investment in India?

1993

1992

1991

1990

Q10. “MNCs keep in mind certain factors before setting up production”. Identify the incorrect option from the choices given below

Availability of cheap skilled and unskilled labour

Proximity to markets

Presence of a large number of local competitors

Favourable government policies

Q11. Why do MNCs set up offices and factories in more than one nation?

The cost of production is high and the MNCs can earn profit

The cost of production is low and the MNCs undergoes a loss

The cost of production is low and the MNCS can earn greater profit

The MNCs want to make their presence felt globally

Q12. The most common route for investments by MNCs in countries around the world is to:

set up new factories

buy existing local companies

form partnerships with local companies

None of these

Q13. Which one of the following has benefited least because of globalisation in India?

Agriculture Sector

Industrial Sector

Service Sector

Secondary Sector

Q14. Which one of the following is a major benefit of joint production between a local company and a Multi-National Company?

MNC can bring latest technology in the production

MNC can control the increase in the price

MNC can buy the local company

MNC can sell the products under their brand name

Q15. Which one of the following is not true regarding the World Trade Organisation?

It allows free trade to all countries without any trade barriers

Its aim is to liberalise international trade

It establishes rules regarding internaional trade

WTO rules have forced the developing countries to remove trade barriers

Q16. Which of the following contributes to globalisation?

internal trade

external trade

large scale trade

small scale trade

Q17. Multinational corporations have succeeded in entering global markets through

WTO

UNO

UNESCO

None of the above

Q18. FDI (Foreign Direct Investment) attracted by globalisation in India belongs to the

World Bank

multinationals

foreign governments

none of the above

Q19. Cheaper imports, inadequate investment in infrastructure lead to

slowdown in agricultural sector

replace the demand for domestic production

slowdown in industrial sector

all the above

Q20. Fair globalisation refers to ensuring benefits to:

labourers

producers

consumers

all the above