Test: Globalization And The Indian Economy - 4


20 Questions MCQ Test Economy and Indian Economy (Prelims) by Shahid Ali | Test: Globalization And The Indian Economy - 4


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QUESTION: 1

Which sector has not benefited by the policy of globalisation ?

Solution:

The correct answer is A agriculture is the most ignored sector.
 

QUESTION: 2

Cheaper imports, inadequate investment in infrastructure lead to

Solution:

The industrial sector has performed poorly in the reform period because of decreasing demand of industrial products due to various reasons' such as cheaper imports, inadequate investment, infrastructure etc. Cheaper imports have replaced the demand for domestic goods in India.

QUESTION: 3

Fair globalisation refers to ensuring benefits to :

Solution:

The correct option is D.
Fair globalisation would create opportunities for all and also ensure that benefits of globalisation are shared better. (i) Government policies must protect the interests not only of the rich and powerful but of all the people in the country.

QUESTION: 4

Globalisation results in

Solution:
QUESTION: 5

When was the WTO established ?

Solution:
QUESTION: 6

Globalisation leads to rapid movements of the following between countries :

Solution:
QUESTION: 7

Which has played a big role in spreading globalisation ?

Solution:

A. Rapid improvement in technology has been one major factor that has enabled the globalisation process. 

B. Improvement in information technology has played a major role in spreading out production of services across countries. Telecommun ication facilities are used to contact one another around the world to access info rmation instantly and to communicate from remote areas. 

C. Improvement in transportation has made possible muc h faster delivery of goods across long distances at low cost. 

D. Due to the pressure of WTO many developing countrie s have removed many of the trade barriers to foreign trade and investment and thus promoted and facilitate the globalisation. 

E. Multilateral trade agreement has promoted foreign t rade and free flow of investments. 

QUESTION: 8

Globalisation has led to improvement in

Solution:
QUESTION: 9

Which of the following factors has not facilitated globalisation ?

Solution:

- Nationalisation of banks in India initiated in 1969 because of socialistic principles of government.

- Liberalisation, Privatisation and Globalisation (LPG) reforms started in  1991.

- Technology intrusion, Liberalisation of trade and emergence of World Trade Organisation were started after 1991 LPG reforms.

- These reforms opens the Indian market to foreign companies which results in people of India gets the cheapest goods, domestic companies faced the competition from Multi-national companies and service-led growth.

QUESTION: 10

One of the major results of globalisation in India has been in the growth of

Solution:

Greater integration of global commodities markets leads to constant fluctuation in prices. This has increased the vulnerability of Indian farmers. Farmers are also increasingly dependent on seeds and fertilizers sold by the MNCs.

QUESTION: 11

Globalisation so far has been more in favour of

Solution:
QUESTION: 12

Multinational corporations have succeeded in entering global markets through

Solution:
QUESTION: 13

Upto 2006 the number of member countries of WTO was :

Solution:

B is the correct option.The WTO as of November 2006 had 149 members, the latest addition being Vietnam making it 150. As of this date Russia was the largest state that was not yet a member.

QUESTION: 14

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

Solution:
QUESTION: 15

When economic activities in a country are influenced by economic activities in other countries, it is called

Solution:

C is the correct option. Globalization is the word used to describe the growing interdependence of the world's economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.

QUESTION: 16

A company that operates in more than one country is called a

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QUESTION: 17

Investment means spending on

Solution:
QUESTION: 18

Which of the following contributes to globalisation?

Solution:
QUESTION: 19

Integration of markets means

Solution:

Market integration occurs when prices among different locations or related goods follow similar patterns over a long period of time. Groups of good often move proportionally to each other and when this relation is very clear among different markets it is said that the markets are integrated.

QUESTION: 20

Liberalisation refers to

Solution:

Economic liberalization refers to those government policies which promote economic growth by opening up trade to international markets, extending the use of markets and lessening the restrictions and regulations placed on business. Economic liberalization does not always come without its drawbacks. Domestic companies may face difficulties in competing with foreign companies once the international trade barriers are removed. There is also the risk of brain drain and the environmental degradation that can follow in the wake of deregulation. Many developing third world countries, however, view economic liberalization as an approach for which there is no alternative.