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Assertion & Reason Test: Globalization & the Indian Economy - Class 10 MCQ


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10 Questions MCQ Test Online MCQ Tests for Class 10 - Assertion & Reason Test: Globalization & the Indian Economy

Assertion & Reason Test: Globalization & the Indian Economy for Class 10 2024 is part of Online MCQ Tests for Class 10 preparation. The Assertion & Reason Test: Globalization & the Indian Economy questions and answers have been prepared according to the Class 10 exam syllabus.The Assertion & Reason Test: Globalization & the Indian Economy MCQs are made for Class 10 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Assertion & Reason Test: Globalization & the Indian Economy below.
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Assertion & Reason Test: Globalization & the Indian Economy - Question 1

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.

Detailed Solution for Assertion & Reason Test: Globalization & the Indian Economy - Question 1
Globalization leads to increased competition in international and domestic markets as there is free movement of goods, services, labour and funds across countries. Also, consumers are better off as they get better quality and increased variety of goods at lower prices.
Assertion & Reason Test: Globalization & the Indian Economy - Question 2

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.

Detailed Solution for Assertion & Reason Test: Globalization & the Indian Economy - Question 2
The removal of barriers to trade is known as liberalization, and the businesses freely deciding which goods to import and export is an outcome of liberalization not a reason for liberalization.
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Assertion & Reason Test: Globalization & the Indian Economy - Question 3

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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.

Detailed Solution for Assertion & Reason Test: Globalization & the Indian Economy - Question 3
Taxes increase the price of imported goods, and so the demand for imports is likely to go down. As a result, the profits of producers who sell imported goods are also likely to reduce. Governments impose taxes to regulate the amount and quality of goods that enter a nation and to protect domestic industry from foreign competition.
Assertion & Reason Test: Globalization & the Indian Economy - Question 4

Direction: Mark the option which is most suitable:

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.

Detailed Solution for Assertion & Reason Test: Globalization & the Indian Economy - Question 4
Since globalization leads to movement of goods, services, people and technology across nations, developing countries are likely to become at par with developed countries in terms of technological development.
Assertion & Reason Test: Globalization & the Indian Economy - Question 5

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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.

Detailed Solution for Assertion & Reason Test: Globalization & the Indian Economy - Question 5
The result of greater foreign investment and greater foreign trade has been greater integration of production and markets across countries. When MNCs conduct joint business processes with local companies, the benefit to local companies is massive as they receive investment funds and exposure to different production techniques.
Assertion & Reason Test: Globalization & the Indian Economy - Question 6

Direction: Mark the option which is most suitable:

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.

Detailed Solution for Assertion & Reason Test: Globalization & the Indian Economy - Question 6
Due to foreign trade, producers in different countries closely compete with each other. This is because the price of similar goods tends to become equal in different markets. Therefore, if a good is priced higher in the domestic market, consumers may prefer importing it from another country at a lower price.
Assertion & Reason Test: Globalization & the Indian Economy - Question 7

Direction: Mark the option which is most suitable:

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.

Detailed Solution for Assertion & Reason Test: Globalization & the Indian Economy - Question 7
Foreign trade creates an opportunity for the producers to reach beyond the domestic markets and thus expands the choices available for consumers.
Assertion & Reason Test: Globalization & the Indian Economy - Question 8

Direction: Mark the option which is most suitable:

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.

Detailed Solution for Assertion & Reason Test: Globalization & the Indian Economy - Question 8
By setting up partnerships with local companies, by using the local companies for supplies, by closely competing with the local companies or buying them up, MNCs are exerting a strong influence on production at distant locations. As a result, production in widely dispersed locations is getting interlinked.
Assertion & Reason Test: Globalization & the Indian Economy - Question 9

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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.

Detailed Solution for Assertion & Reason Test: Globalization & the Indian Economy - Question 9
At times, MNCs set up production jointly with some of the local companies of the host countries. The benefit to the local company from such joint production is twofold as MNCs can provide for additional investments and can bring in newer technology of production that results in fast-paced production.
Assertion & Reason Test: Globalization & the Indian Economy - Question 10

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.

Detailed Solution for Assertion & Reason Test: Globalization & the Indian Economy - Question 10
Globalization leads to connectivity of different countries and goods and services can be transported across the world. Goods, components produced in different parts of the world can be used for production in any country.
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