Direction: Mark the option which is most suitable:
Assertion : Globalization leads to increased competition in international and domestic markets.
Reason : Globalization also makes the consumers better off as they have a wider variety of goods to choose from at lower prices.
Direction: Mark the option which is most suitable:
Assertion : The removal of barriers to trade is known as liberalization.
Reason : federalization of trade allows businesses to freely decide which goods to import and export.
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Direction: Mark the option which is most suitable:
Assertion : A tax on imports makes the market for imported goods lucrative in terms of earning higher profits.
Reason : Taxes are imposed to ensure smooth trade between nations and higher tax revenues for the governments of the countries.
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Assertion : Rapid improvement in technology has been one major factor that has stimulated the globalization process.
Reason : Developing countries are likely to become at par with developed countries in terms of technological development due to globalization.
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Assertion : Foreign trade and foreign investment results in disintegration of production across countries.
Reason : MNCs disrupt the production processes in domestic countries.
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Assertion : Due to foreign trade, producers in different countries closely compete with each other.
Reason : Foreign trade leads to similar prices of goods across boundaries, and the producers who do not offer competitive prices may lose the market share.
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Assertion : Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
Reason : Foreign trade expands the choice of goods beyond what is domestically produced.
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Assertion : MNCs can exert a strong influence on production at distant locations.
Reason : MNCs set up partnerships with local companies, use local companies for supplies, compete with local companies or buy them up.
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Assertion : Local businesses may set up joint production processes with MNCs and earn higher profits.
Reason : MNCs can provide money for additional investments, like buying new machines for faster production.
Direction: Mark the option which is most suitable:
Assertion : Global production has a complex structure.
Reason : Production of one good may take place in different parts of the world. For instance, an equipment may be formed by combining components produced in different countries.
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