Globalisation and The Indian Economy Class 10 Worksheet Economics Chapter 3

Multiple Choice Questions
Q1: Identify the incorrect statement in respect of SEZs.
(a) They do not have to pay taxes for long period.
(b) Government has allowed flexibility in labour laws.
(c) They have world class facilities.
(d) They do not have to pay taxes for an initial period of five years.

Q2: Companies which set up production units in the Special Economic Zones (SEZs) do not have to pay taxes for an initial period of ___________.
(a) 2 years
(b) 5 years
(c) 4 years
(d) 10 years

Q3: Which of the following is an example of a trade barrier?
(a) Remittances to foreigners
(b) Cost of transportation
(c) Tax on imports
(d) Interest on bonds

Q4: Which of the following best describes an MNC?
(a) An MNC is a company that controls production of good and services in multiple nations.
(b) An MNC is a government organized body that controls the distribution of resources in a country.
(c) An MNC is an organization that ensures new technology is used by the farming sector of a country.
(d) An MNC is a conglomerate of domestic companies that controls production of goods and services in the domestic region.

Q5: WTO aims at:
(a) restricting trade practices.
(b) establishing rules for domestic trade.
(c) liberalising international trade.
(d) none of the above.

Q6: There were __________ countries who the members of the World Trade Organisation in 2006.
(a) 139
(b) 149
(c) 159
(d) 169

Q7: In what way did the pressure of competition affect the workers in the garment industry?
(a) Reduced cost of raw materials
(b) Reduced labour cost
(c) Decreased working hours
(d) Protection to workers

Fill in the Blank
Q1: ________ owns or controls production in more than one nation.

Q2: _______ monitors the liberalisation of trade at international level.

Q3: Another name for the World Bank is _____.

Q4: Exports now finance over 80% of imports, as compared to 60% in 1985. This situation is because of ______.

Q5: Special Economic Zones are being set up by ________ and _________ governments.

True & False
Q1: Globalisation and competition among producers are beneficial to the government.

Q2: MNCs set up production units on the basis of proximity to the markets.

Q3: MNCs, who set up production units in SEZ, do not have to pay taxes for first five years.

Q4: Foreign trade creates an opportunity for the retailers to reach beyond the domestic markets.

Q5: MNCs are playing a major role in the globalisation process.

Assertion and Reason Type Questions
Direction: In the following questions, a statement of assertion is followed by a statement of reason. Mark the correct choice as:
Q1. Assertion : Foreign trade and foreign investment results in disintegration of production across countries.
Reason: MNCs disrupt the production processes in domestic country.
(a) If Both assertion and reason are true, and reason is the correct explanation of assertion.
(b) If Both assertion and reason are true, but reason is not the correct explanation of assertion.
(c) If Assertion is true, but reason is false.
(d) If Both assertion and reason are false.

Q2: 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.
(a) If Both assertion and reason are true, and reason is the correct explanation of assertion.
(b) If Both assertion and reason are true, but reason is not the correct explanation of assertion.
(c) If Assertion is true, but reason is false.
(d) If Both assertion and reason are false.

Q3: 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.
(a) If Both assertion and reason are true, and reason is the correct explanation of assertion.
(b) If Both assertion and reason are true, but reason is not the correct explanation of assertion.
(c) If Assertion is true, but reason is false.
(d) If Both assertion and reason are false.

Q4: 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.
(a) If Both assertion and reason are true, and reason is the correct explanation of assertion.
(b) If Both assertion and reason are true, but reason is not the correct explanation of assertion.
(c) If Assertion is true, but reason is false.
(d) If Both assertion and reason are false.

Q5: 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 witnqhe local companies or buy them up.
(a) If Both assertion and reason are true, and reason is the correct explanation of assertion.
(b) If Both assertion and reason are true, but reason is not the correct explanation of assertion.
(c) If Assertion is true, but reason is false.
(d) If Both assertion and reason are false.

Q6: 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.
(a) If Both assertion and reason are true, and reason is the correct explanation of assertion.
(b) If Both assertion and reason are true, but reason is not the correct explanation of assertion.
(c) If Assertion is true, but reason is false.
(d) If Both assertion and reason are false. 

Q7: Assertion: Due to foreign trade, producers in different countries closely compete with each other.
Reason: Foreign trade leads to similar prices of good across boundaries, and the producers who do not offer competitive prices may lose the market share.
(a) If Both assertion and reason are true, and reason is the correct explanation of assertion.
(b) If Both assertion and reason are true, but reason is not the correct explanation of assertion.
(c) If Assertion is true, but reason is false.
(d) If Both assertion and reason are false.

Q8: 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.
(a) If Both assertion and reason are true, and reason is the correct explanation of assertion.
(b) If Both assertion and reason are true, but reason is not the correct explanation of assertion.
(c) If Assertion is true, but reason is false.
(d) If Both assertion and reason are false. 

Q9: Assertion: Local businesses may set up joint production process with MNCs and earn higher profits.
Reason: MNCs can provide money for additional investments, like buying new machines for faster production.
(a) If Both assertion and reason are true, and reason is the correct explanation of assertion.
(b) If Both assertion and reason are true, but reason is not the correct explanation of assertion.
(c) If Assertion is true, but reason is false.
(d) If Both assertion and reason are false. 

Q10: 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.
(a) If Both assertion and reason are true, and reason is the correct explanation of assertion.
(b) If Both assertion and reason are true, but reason is not the correct explanation of assertion.
(c) If Assertion is true, but reason is false.
(d) If Both assertion and reason are false. 

Very Short Answer Type Questions
Q1: MNC stands for _________.

Q2: Investment made by MNCs is called ___________.

Q3: Process of integration of different countries is called ___________.

Q4: MNCs increase ____________.

Q5: This helps to create an opportunity for the producers to reach beyond the domestic market.

Q6: Why is fair globalisation necessary ?

Q7: What are the ways to interconnect countries?

Q8: When is money called an investment ?

Q9: Name some of the Indian multinationals.

Q10: International Monetary Fund (IMF) is an organisation whose aim is to liberalise international trade.

Short Answer Type Questions 
Q1: Examine any three conditions which should be taken care of by Multinational Companies to set up their production units.

Q2: How is foreign trade interlinking markets of different countries? Explain with example.

Q3: ‘Barriers on foreign trade and foreign investment were removed to a large extent in India since 1991.’ Justify the statement.
or
Why have the barriers on foreign trade and foreign investment been removed to a large extent by the Indian government? Explain.

Q4: “Globalisation and greater competition among producers has been advantageous to consumers.” Justify the statement with examples.

Q5: What is foreign trade? How does it integrate markets? Explain with examples.
or
How does foreign trade integrate the markets of different countries? Explain with examples.

Q6: “Technology has stimulated the globalisation process.” Support the statement with examples.
or
“Information and Communication Technology has played a major role in spreading our production of services across countries”. Justify the statement with examples.
or
How has Information and Technology stimulated globalisation process? Explain with examples.

Q7: How did Cargill Foods became the largest producer of the edible oils in India? Explain.

Q8: How does foreign trade connect the markets of different countries? Explain with example.

Q9: How do Multinational Companies manage to keep the cost of production of their goods low? Explain with examples.

Q10: How are MNCs spreading their production across countries? Explain with an example. 

Long Answer Type Questions
Q1: How has foreign trade been integrating markets of different countries? Explain with examples.

Q2: Explain any three ways by which MNCs exercise control on production.

Q3: “The impact of globalisation has not been uniform.” Explain this statement.

Q4: Globalisation will continue in the future. Can you imagine the world would be like twenty years from now ? Give reasons for your answer.

Q5: Explain any five positive impacts of globalisation.

Q6: How do MNCs interlink production across countries?

Q7: Critically examine the functioning of WTO.

Q8: Describe the contribution of technology in promoting the process of globalization.
or
How has improvement in technology stimulated the globalisation process? Explain.
or
Explain the role of technology in stimulating globalisation process.

The solutions of the worksheet "Worksheet Solutions: Globalisation & The Indian Economy"