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

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.

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.

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.

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.

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.

Direction: Mark the option which is most suitable:

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.