Multiple Choice Questions and Answers on Globalisation and the Indian Economy

1. The past two decades of globalisation has seen rapid movements in:

(a) goods, services and people between countries

(b) goods, services and investments between countries


(c) goods, investments and people between countries

(d) none of these

2. 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) both (a) and (b)

3. Globalisation has led to higher standards of living of:


(a) well-off consumers

(b) poor consumers

(c) big producers

(d) small producers


4. A company that owns or controls production in more than one nation is called:

(a) multinational corporation

(b) joint stock company

(c) global company (d) none of these


5. Where do MNCs choose to set up production?

(a) Cheap goods

(b) Cheap labour resources

(c) Economic sustainability


(d) None of these

6. Cargill Foods, an MNC has bought over which indigenous Indian company?

(a) Amul (b) Britannia

(c) Parakh Foods (d) Dabur

7. Ford Motors entered the Indian automobile business in collaboration with which Indian manufacturer?

(a) Mahindra and Mahindra

(b) Tata Motors

(c) Maruti Suzuki

(d) Hindustan Motors

8. What is happening with the import of Chinese toys in India ?

(a) Indian toys are selling more

(b) Indian consumers are buying less

(c) Indian consumers are getting more choice at cheaper rates

(d) Chinese consumers are falling short of choice

9. Trade between countries:

(a) determines prices of products in different countries

(b) decreases competition between countries

(c) makes a country dependent on the other

(d) none of these

10. Globalisation by connecting countries leads to:

(a) lesser competition among producers

(b) greater competition among producers

(c) no competition between producers

(d) none of these

11. One major factor that has stimulated the globalisation process is:

(a) effective utilisation of resources

(b) increase in income and wealth

(c) willingness to cooperate

(d) rapid improvement in technology

12. If tax is imposed on Chinese toys, what will happen?

(a) Chinese toy-makers will benefit

(b) Indian toy-makers will prosper

(c) Chinese toys will remain cheap

(d) Indian consumers will buy more Chinese toys

13. Which out of the following is an example of a trade barrier?

(a) Foreign investment

(b) Delay or damage of goods

(c) Tax on imports

(d) None of these

14. Removing barriers or restrictions set by the government is called:

(a) liberalisation

(b) investment

(c) favourable trade

(d) free trade

15. WTO aims at:

(a) establishing rules for domestic trade

(b) restricting trade practices

(c) liberalising international trade

(d) none of these

16. Which out of the following industries has a large number of well-off buyers in urban areas?

(a) Footwear

(b) Automobiles

(c) Jewellery

(d) Clothing and accessories

17. Globalisation has created new opportunities of:

(a) employment

(b) emerging multinationals

(c) providing services

(d) all of the above

18. One major government initiative to attract foreign companies to invest in India is:

(a) to raise the standard of education

(b) to promote unemployment in the public sector

(c) to build special economic zones

(d) both (a) and (c)

19. Globalisation has posed major challenges for:

(a) big producers

(b) small producers

(c) rural poor

(d) none of these

20. With the growing competition, most employers these days prefer to employ workers:

(a) flexibly

(b) quickly

(c) selectively

(d) none of these

21. Globalisation opportunities for paid work for women has denied them:

(a) good health

(b) good education

(c) permanent job

(d) none of these

22. Fair globalisation would mean:

(a) fair opportunities for all

(b) fair benefits for all

(c) more support to small producers

(d) all of the above

23. Government can make globalisation more ‘fair’ by:

(a) increasing competition

(b) increasing employment

(c) implementing the labour laws

(d) imposing trade barriers

Answers for Multiple Choice Questions:





3. (a)

4. (a)

5. (b)

6. (c)







10. (b)

11. (d)

12. (b)

13. (c)







17. (d)

18. (c)

19. (b)

20. (a)