MCQ - Globalization | Business Economics for CA Foundation PDF Download

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CPT SectionC General Economics Chapter 7 Unit 3 
Dr C.Anirvinna 
Page 2


CPT SectionC General Economics Chapter 7 Unit 3 
Dr C.Anirvinna 
a) Free movement of goods, people and money 
b) Integrating the domestic with the world economy 
c) Opening the economy to FDI 
d) All the above 
Answer (d) 
Page 3


CPT SectionC General Economics Chapter 7 Unit 3 
Dr C.Anirvinna 
a) Free movement of goods, people and money 
b) Integrating the domestic with the world economy 
c) Opening the economy to FDI 
d) All the above 
Answer (d) 
a)  
• EXIM bank 
b)  
• Indian Institute of Foreign Trade 
c)  
• IMF 
d) 
• WTO 
Answer 
• (d) 
Page 4


CPT SectionC General Economics Chapter 7 Unit 3 
Dr C.Anirvinna 
a) Free movement of goods, people and money 
b) Integrating the domestic with the world economy 
c) Opening the economy to FDI 
d) All the above 
Answer (d) 
a)  
• EXIM bank 
b)  
• Indian Institute of Foreign Trade 
c)  
• IMF 
d) 
• WTO 
Answer 
• (d) 
a) Improves allocative efficiency of resources 
b) Reduce capital output ratio 
c) Increase labour productivity 
d) All the above 
Answer (d) 
Page 5


CPT SectionC General Economics Chapter 7 Unit 3 
Dr C.Anirvinna 
a) Free movement of goods, people and money 
b) Integrating the domestic with the world economy 
c) Opening the economy to FDI 
d) All the above 
Answer (d) 
a)  
• EXIM bank 
b)  
• Indian Institute of Foreign Trade 
c)  
• IMF 
d) 
• WTO 
Answer 
• (d) 
a) Improves allocative efficiency of resources 
b) Reduce capital output ratio 
c) Increase labour productivity 
d) All the above 
Answer (d) 
a) Increase labour productivity 
b) Improves export spheres 
c) Increase in flow of capital 
d) All the above 
Answer  (d) 
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FAQs on MCQ - Globalization - Business Economics for CA Foundation

1. What is globalization?
Ans. Globalization refers to the process of increased interconnectedness and interdependence among countries through the exchange of goods, services, information, and ideas on a global scale. It involves the integration of economies, cultures, and societies, leading to a more interconnected and interdependent world.
2. How does globalization affect the economy?
Ans. Globalization has a significant impact on the economy. It allows for increased trade and investment opportunities, leading to economic growth and job creation. It promotes competition, which can lead to lower prices and increased consumer choices. However, it can also lead to job displacement and income inequality, as certain industries may face challenges in the face of global competition.
3. What are the advantages of globalization?
Ans. Globalization offers several advantages. It promotes economic growth by facilitating trade and investment, allowing countries to specialize in the production of goods and services they have a comparative advantage in. It fosters technological advancements and innovation through the exchange of ideas and knowledge across borders. It also promotes cultural exchange and understanding, leading to a more interconnected global society.
4. What are the disadvantages of globalization?
Ans. Globalization has some disadvantages. It can lead to job displacement and income inequality, as certain industries may struggle to compete with lower-cost producers in other countries. It can also lead to the exploitation of labor and resources in developing countries. Moreover, globalization can increase the vulnerability of economies to global economic crises and reduce the ability of governments to regulate certain aspects of their economies.
5. How does globalization impact the environment?
Ans. Globalization can have both positive and negative impacts on the environment. On one hand, it promotes the spread of environmentally friendly technologies and practices. On the other hand, increased global trade and production can lead to higher levels of pollution and resource depletion. Additionally, the transportation of goods across long distances contributes to carbon emissions and climate change. It is crucial to address these environmental challenges through sustainable practices and international cooperation.
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