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

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


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





ANSWER= D. World Trade Organisation

 

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





ANSWER= D. Liberalisation

 

3. Which one of the following refers to investment?





ANSWER= C. The money spent to buy assets such as land

 

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





ANSWER= A. Tax on import

 

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





ANSWER= B. foreign investment

 

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





ANSWER= C. all substandard domestic producers

 

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





ANSWER= C. Chennai

 

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





ANSWER= A. Dairy products

 

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





ANSWER= C. 1991

 

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





ANSWER= C. Presence of a large number of local competitors

 

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





ANSWER= C. The cost of production is low and the MNCS can earn greater profit.

 

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





ANSWER= A. set up new factories

 

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





ANSWER= C. liberalisation

 

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





ANSWER= D. all small scale producers.

 

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





ANSWER= A. Agriculture Sector

 

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





ANSWER= A. MNC can bring latest technology in the production

 

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





ANSWER= A. It allows free trade to all countries without any trade barriers.

 

18. Which of the following statements are true about MNCs?





ANSWER= D. All of the above.

 

19. Started at the initiative of the ____, WTO establishes rules regarding international trade, and sees that these rules are obeyed.





ANSWER= D. developed countries

 

20. _____ provides the advantage of being a cheap manufacturing location.





ANSWER= A. China

 

21. Cargill Foods, a very large ____ MNC, is the largest producer of edible oil in India, with a capacity to make 5 million pouches daily.





ANSWER= D. American

 

22. ____, footwear, sports items are examples of industries where production is carried out by a large number of small producers around the world.





ANSWER= B. Garments

 

23. ____, an American company, is one of the world’s largest automobile manufacturers with production spread over 26 countries of the world.





ANSWER= A. Ford Motors

 

24. 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 the ___.





ANSWER= D. All of the above

 

25. Ford Motors came to India in ___ and spent Rs. 1700 crore to set up a large plant near Chennai.





ANSWER= A. 1995

 

26. When Ford established its manufacturing plant in India, it had collaborated with ___.





ANSWER= D. Mahindra & Mahindra

 

27. Ford Motors was selling 27,000 cars in the Indian markets, while 24,000 cars were exported from India to South Africa, Mexico and ___.





ANSWER= A. Brazil

 

28. Chinese toys have become more popular in the Indian markets. Within a year, _____ of the toy shops have replaced Indian toys with Chinese toys.





ANSWER= D. 70 to 80 percent

 

29. Which of the following is true regarding the opening of trade?





ANSWER= D. All of the above.

 

30. Starting around ____, some far-reaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe.





ANSWER= C. 1991

 

31. ___ have led to huge reduction in port handling costs and increased the speed with which exports can reach markets.





ANSWER= A. Containers

 

32. The cost of __has fallen. This has enabled much greater volumes of goods being transported by ____.





ANSWER= A. air transport, airlines

 

33. Nearly ___ countries of the world are members of the WTO, as of June 2014.





ANSWER= C. 160

 

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





ANSWER= D. liberalisation

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