Question for Assertion & Reason Type Questions: Globalisation and the Indian Economy
Try yourself: Match the following items given in column A with those in column B:
Explanation
(i) MNCs buy at cheap rates from small producers: MNCs buy Garments, Footwear, Sports items at cheap rates from small producers because it reduces their cost of production and using their brand value they sell them at high prices and earn profits.
(ii) Quotas and taxes on imports are used to regulate trade: Quotas and taxes on imports are used to regulate trade items received through import. These are called Trade barriers. These are imposed to protect the domestic industries from the competition by foreign goods. In the absence of trade barriers the imports would flood the domestic market.
(iii) Indian companies who have invested abroad: Tata motors, Ranbaxy and Infosys are the Indian companies which have invested in foreign countries.
(iv) IT has helped in spreading of production of services: With the development of satellite communication and e-mail, the Information technology led to the establishment of call centres for the easy dissemination of information.
(v) Several MNCs have invested in setting up factories in India for production: Because of the presence of huge population and improving living standards, the number of automobiles in India are increasing. Also, because of the increase in Foreign direct investment, several companies have established automobile industries in India.
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Q2:
Question for Assertion & Reason Type Questions: Globalisation and the Indian Economy
Try yourself: Match the following items given in column A with those in column B:
Explanation
(i) Tata Motors: Tata Motors Limited is an Indian multinational automotive manufacturing company, headquartered in Mumbai, Maharashtra which is part of Tata Group.
(ii) Asian Paints: Asian Paints Ltd is an Indian multinational paint company, headquartered in Mumbai. The company is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home decor, bath fittings and providing of related services.
(iii) Infosys: Infosys Limited is an Indian multinational information technology company that provides business consulting, information technology and outsourcing services. The company was founded in Pune and is headquartered in Bangalore.
(iv) Sundaram Fasteners: “Now, Sundram Fasteners is not just a fastener company any more, but a broad-based engineering company capable of undertaking the manufacture of various components and assembly systems for automotive and other engineering applications in India and abroad.
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Q3:
Question for Assertion & Reason Type Questions: Globalisation and the Indian Economy
Try yourself: Arrange the following in the correct Sequence:
(i) Meanwhile, the company ’s customer care is carried out through call centres located in India.
(ii) And then have the components manufactured in China.
(iii) A large MNC, Producing industrial equipment, designs its products in research centres in the United States.
(iv) These are then shipped to Mexico and Eastern Europe where the products are assembled and the finished products are sold all over the world.
Explanation
Correct sequence is
(iii) A large MNC, Producing industrial equipment, designs its products in research centres in the United States.
(ii) And then have the components manufactured in China.
(iv) These are then shipped to Mexico and Eastern Europe where the products are assembled and the finished products are sold all over the world.
(i) Meanwhile, the company ’s customer care is carried out through call centres located in India.
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Q4:
Question for Assertion & Reason Type Questions: Globalisation and the Indian Economy
Try yourself: Arrange the following in the correct Sequence:
(i) A news magazine published for London readers is to be designed and printed in Delhi.
(ii) The designing is done on a Computer. After printing the magazines are sent by air to London.
(iii) The payment of money for designing and printing from a bank in London to a bank in Delhi is done instantly through the Internet (E-banking)
(iv) The text of the magazines is sent through is sent through Internet to the Delhi office The designers in Delhi office get orders on how to design the magazine from the office in London using telecommunication facilities.
Explanation
Correct sequence is
(ii) The designing is done on a Computer. After printing the magazines are sent by air to London.
(iv) The text of the magazines is sent through is sent through Internet to the Delhi office The designers in Delhi office get orders on how to design the magazine from the office in London using telecommunication facilities.
(i) A news magazine published for London readers is to be designed and printed in Delhi.
(iii) The payment of money for designing and printing from a bank in London to a bank in Delhi is done instantly through the Internet (E-banking) .
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Q5:
Question for Assertion & Reason Type Questions: Globalisation and the Indian Economy
Try yourself: Analyze the information given below, considering one of the following correct options:
Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers. An example of this is the current debate on trade in agricultural products.
Explanation
The World Trade Organization is an intergovernmental organization that regulates and facilitates international trade between nations. Governments use the organization to establish, revise, and enforce the rules that govern international trade.
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Q6:
Question for Assertion & Reason Type Questions: Globalisation and the Indian Economy
Try yourself: Analyze the information given below, considering one of the following correct options:
A news magazine published for London readers is to be designed and printed in Delhi. The text of the magazine is sent through the Internet to the Delhi office. The designers in the Delhi office get orders on how to design the magazine from the office in London using telecommunication facilities. The designing is done on a computer. After printing, the magazines are sent by air to London. Even the payment of money for designing and printing from a bank in London to a bank in Delhi is done instantly through the Internet (e-banking)!
Explanation
Technology is the vital force in the modern form of business globalization. Technology has enabled the software experts to work collaboratively over the network with companies from around the world. The technological advancement has helped a lot in creation and growth of global market.
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Q7:
Question for Assertion & Reason Type Questions: Globalisation and the Indian Economy
Try yourself: In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the Statements and choose the correct option:
Assertion (A) : The Indian government, after independence, had put barriers to foreign trade and foreign investment.Reason (R) : The government considered it necessary to protect the producers within the country from foreign competition.
Explanation
The Indian government after independence had put barriers to foreign trade and investment. This was done to protect the producers within the country from foreign competition. To protect the Indian economy from foreign infiltration in industries affecting the economic growth of the country as planned.
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Q8:
Question for Assertion & Reason Type Questions: Globalisation and the Indian Economy
Try yourself: In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the Statements and choose the correct option:
Assertion (A) : The car manufacturing plant of Maruti Udyog Ltd in India produces cars for Indian markets.Reason (R) : It also exports cars to other developing countries and exports car components for its many factories around the world.
Explanation
The Company has manufacturing facilities in Gurgaon and Manesar in Haryana and a state of the art R&D centre in Rohtak, Haryana. The Company, formerly known as Maruti Udyog Limited, was incorporated as a joint venture between the Government of India and Suzuki Motor Corporation, Japan in February, 1981.
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Q9:
Question for Assertion & Reason Type Questions: Globalisation and the Indian Economy
Try yourself: Find the incorrect option:
Explanation
Globalization has helped to improve the living conditions of the workers in developing countries by providing them better employment opportunities. This has helped the people to improve on their standards of living.
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Q10:
Question for Assertion & Reason Type Questions: Globalisation and the Indian Economy
Try yourself: Find the incorrect option:
Explanation
MNCs set up production worldwide where cheap labour is available, where markets are near, and where government policies look after their interests. Since the MNCs are producing as well as selling in many countries, they are interlinking the economies of these countries and thus speeding up globalization.
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Q11:
Question for Assertion & Reason Type Questions: Globalisation and the Indian Economy
Try yourself: 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.
Explanation
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.
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Q12:
Question for Assertion & Reason Type Questions: Globalisation and the Indian Economy
Try yourself: 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.
Explanation
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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Q13:
Question for Assertion & Reason Type Questions: Globalisation and the Indian Economy
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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.
Explanation
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.
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Q14:
Question for Assertion & Reason Type Questions: Globalisation and the Indian Economy
Try yourself: 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.
Explanation
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.
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Q15:
Question for Assertion & Reason Type Questions: Globalisation and the Indian Economy
Try yourself: Direction: Mark the option which is most suitable:
Assertion : Foreign trade and foreign investment results in disintegration of production across countries.Reason : MNCs disrupt the production processes in domestic countries.
Explanation
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.
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Q16:
Question for Assertion & Reason Type Questions: Globalisation and the Indian Economy
Try yourself: 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.
Explanation
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.
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Q17:
Question for Assertion & Reason Type Questions: Globalisation and the Indian Economy
Try yourself: 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.
Explanation
Foreign trade creates an opportunity for the producers to reach beyond the domestic markets and thus expands the choices available for consumers.
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Q18:
Question for Assertion & Reason Type Questions: Globalisation and the Indian Economy
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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.
Explanation
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.
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Q19:
Question for Assertion & Reason Type Questions: Globalisation and the Indian Economy
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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.
Explanation
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.
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Q20:
Question for Assertion & Reason Type Questions: Globalisation and the Indian Economy
Try yourself: 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.
Explanation
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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The document Class 10 Economics Chapter 3 Assertion and Reason Questions - Understanding Economic Development is a part of Class 10 category.
