Globalisation And The Indian Economy - Olympiad Level MCQ, Class 10 SST - Class 10 MCQ

Reasons why MNCs set up offices and factories in more than one nation:

1. Access to new markets:

• MNCs expand their operations globally to tap into new markets and reach a larger customer base.


• Setting up offices and factories in multiple nations allows them to cater to the specific needs and preferences of different markets.

2. Cost advantages:

• MNCs often set up offices and factories in nations where the cost of production is lower.


• This enables them to take advantage of lower labor costs, cheaper raw materials, and favorable tax policies, resulting in cost savings.


• By diversifying their production locations, MNCs can mitigate risks associated with fluctuations in currency exchange rates, inflation, and political instability.

3. Resource availability:

• Establishing operations in multiple nations allows MNCs to access and utilize different resources available in each location.


• This includes skilled labor, technology, infrastructure, and natural resources.


• By leveraging these resources, MNCs can enhance their competitive advantage and improve their overall business performance.

4. Strategic positioning:

• MNCs set up offices and factories in different nations to strategically position themselves in key markets or regions.


• This enables them to strengthen their global presence, establish a local customer base, and build strong relationships with local suppliers and partners.


• Strategic positioning also allows MNCs to respond quickly to market changes, adapt to local regulations, and stay ahead of competitors.

5. Research and development:

• MNCs often establish research and development (R&D) centers in multiple nations to access diverse talent pools and foster innovation.


• By having R&D facilities in different locations, MNCs can gather valuable market insights, develop customized products, and adapt to local preferences.


• This helps them stay competitive, improve product quality, and address the specific needs of different markets.

Overall, the establishment of offices and factories in more than one nation allows MNCs to achieve various advantages such as market expansion, cost savings, resource utilization, strategic positioning, and innovation.

Analysis:
To determine which sector has benefited least from globalization in India, we need to evaluate the impact of globalization on each sector individually.
Agriculture Sector:
- Globalization has led to increased competition from imported agricultural products, which has put pressure on Indian farmers.
- The sector has also faced challenges in terms of price fluctuations and market access.
Industrial Sector:
- Globalization has had a positive impact on the industrial sector in India.
- It has opened up opportunities for foreign investment, technology transfer, and market expansion.
- The sector has witnessed significant growth and development, contributing to India's economic progress.
Service Sector:
- The service sector has been one of the major beneficiaries of globalization in India.
- It has experienced rapid growth due to outsourcing and offshoring of services, such as IT, BPO, and telecommunication.
- The sector has created employment opportunities and contributed to India's GDP.
Secondary Sector:
- The secondary sector, which includes manufacturing and construction, has also benefited from globalization.
- It has attracted foreign investment, leading to the establishment of industries and infrastructure development.
Conclusion:
Among the given options, the agriculture sector has benefited least from globalization in India. It has faced challenges such as increased competition and price fluctuations, which have affected the livelihood of Indian farmers. On the other hand, the industrial sector, service sector, and secondary sector have experienced significant growth and development due to globalization.

Answer:
To determine which one of the following options is not a Multinational Company (MNC), we need to analyze each option individually:
A: Tata Motors
- Tata Motors is a well-known Indian multinational automotive manufacturing company. It operates in multiple countries and has a global presence.
B: Infosys IT
- Infosys is one of the leading IT consulting and services companies in India. It is a multinational corporation with operations and clients worldwide.
C: Ranbaxy
- Ranbaxy Laboratories Limited is an Indian multinational pharmaceutical company. It operates in multiple countries and has a significant presence in the global pharmaceutical market.
D: Tata Iron and Steel Company
- Tata Iron and Steel Company (TISCO) is not a multinational company. It is an Indian steel-making company that primarily operates within the country.
Therefore, the correct answer is D: Tata Iron and Steel Company, as it is not a multinational company. The other options, A, B, and C, are all multinational companies with operations outside of their home country.

Investment

Category: A: The money that is spent to buy assets such as land, building, machines, etc.

Investment refers to the act of allocating money or resources to acquire assets that are expected to generate income or appreciate in value. It involves the commitment of funds with the aim of earning a return or achieving a long-term financial goal. Among the given categories, the one that specifically relates to investment is:

• Category A: The money that is spent to buy assets such as land, building, machines, etc.

This category aligns with the definition of investment as it involves spending money on acquiring assets that have the potential to generate future income or appreciate in value. Examples of investments include purchasing stocks, real estate, or capital equipment for a business.

On the other hand, the remaining categories do not directly relate to investment:

• Category B: The money that is spent on religious ceremonies.


• Category C: The money that is spent on social customs.


• Category D: The money that is spent on household goods.

These categories involve spending money on religious or social practices, as well as purchasing household goods for personal use, but they do not encompass the concept of investment.

Therefore, the correct answer is category A, which refers to investment as the money spent on acquiring assets.

Explanation:
To answer this question, we need to understand the meaning of the given options and identify the one that matches the description of removing barriers or restrictions set by the government. Let's analyze each option:
- Privatisation: Privatisation refers to the process of transferring ownership or control of a government-owned organization or industry to a private entity. It does not directly relate to removing barriers or restrictions set by the government.
- Globalisation: Globalisation refers to the increasing interconnectedness and interdependence of countries through the exchange of goods, services, information, and ideas. While it involves reducing barriers to international trade, it does not specifically focus on removing barriers or restrictions set by the government.
- Liberalisation: Liberalisation refers to the relaxation or removal of government regulations or restrictions on various sectors of the economy. It involves opening up markets, reducing trade barriers, and allowing more competition. This option aligns with the description of removing barriers or restrictions set by the government.
- Socialisation: Socialisation refers to the process of acquiring the values, norms, and behaviors of a particular society. It does not relate to the removal of government barriers or restrictions.
Therefore, the correct answer is Option C: Liberalisation as it accurately describes the action of removing barriers or restrictions set by the government.

Investment by MNCs is called Foreign Investment

Foreign investment refers to the investment made by multinational corporations (MNCs) in a country other than their home country. MNCs are companies that operate in multiple countries and have subsidiaries, branches, or affiliates in different parts of the world. When these companies invest their capital in a foreign country, it is known as foreign investment.

Key Points:
- Foreign investment is a crucial component of global economic integration and plays a significant role in driving economic growth and development.
- MNCs invest in foreign countries to expand their market reach, access resources, reduce costs, and take advantage of favorable business environments.
- Foreign investment can take various forms, including the establishment of new subsidiaries or branches, mergers and acquisitions, joint ventures, or portfolio investments.
- Portfolio investment refers to the purchase of stocks, bonds, or other financial assets in a foreign country without actively participating in the management or control of the investee company.
- Foreign investment brings several benefits to both the host country and the investing MNCs, such as job creation, technology transfer, knowledge sharing, and increased tax revenues.
- However, foreign investment can also pose challenges and risks, including the potential for exploitation, loss of domestic control, and adverse effects on local industries and the environment.
- Governments often regulate foreign investment through policies, laws, and regulations to ensure that it aligns with national interests and does not harm the domestic economy.
- Overall, foreign investment by MNCs plays a crucial role in fostering global economic integration and driving economic development.

Challenges posed by globalization:
1. Big producers:
- Increased competition: Globalization has led to increased competition among big producers as they have to compete with companies from all over the world.
- Pressure to lower costs: Big producers may face pressure to lower their costs in order to remain competitive in the global market.
- Need for innovation: Globalization requires big producers to constantly innovate in order to stay ahead in the global market.
2. Small producers:
- Limited resources: Small producers may lack the resources and capabilities to compete with larger multinational companies.
- Market access: Globalization can make it difficult for small producers to access international markets due to trade barriers and competition.
- Vulnerability to economic fluctuations: Small producers may be more vulnerable to economic fluctuations and market uncertainties brought about by globalization.
3. Rural poor:
- Displacement of traditional livelihoods: Globalization can lead to the displacement of traditional livelihoods in rural areas as agriculture and local industries face competition from imported goods.
- Inequality: Globalization can exacerbate economic inequality, with the rural poor being left behind in terms of accessing opportunities and resources.
4. Urban poor:
- Job insecurity: Globalization can result in job insecurity for the urban poor as companies may relocate or outsource their operations to countries with lower labor costs.
- Rising cost of living: Globalization can lead to an increase in the cost of living, making it harder for the urban poor to afford basic necessities.
- Informal employment: Globalization may result in a rise in informal employment, with the urban poor being more likely to engage in low-paying and unstable jobs.
In conclusion, globalization poses challenges for various stakeholders, including big producers, small producers, rural poor, and urban poor. Each group faces unique difficulties and impacts due to the globalized economy.

Trade Barriers:
Trade barriers are government-imposed restrictions on international trade that aim to protect domestic industries and markets. These barriers can take various forms, such as tariffs, quotas, and taxes. Among the given options, the example of a trade barrier is:

• Tax on imports (Option B): This refers to a tax imposed on goods and services imported into a country. It increases the cost of imported goods, making them less competitive compared to domestic products. By levying a tax on imports, the government aims to protect domestic industries, generate revenue, or correct trade imbalances.

Other options provided do not directly relate to trade barriers:

• Tax on export (Option A): This refers to a tax imposed on goods and services exported from a country. While it can affect the competitiveness of exported goods, it does not restrict imports or protect domestic industries.


• Tax on local trade (Option C): This refers to a tax imposed on domestic trade within a country. It does not directly affect international trade or impose barriers on imports or exports.


• High income tax (Option D): While high income tax may impact consumer purchasing power and overall economic conditions, it is not a specific trade barrier that restricts international trade.

Therefore, the correct answer is Option B: Tax on imports as it exemplifies a trade barrier.

The organization that lays stress on liberalization of foreign trade and foreign investment is the World Trade Organization (WTO).
- World Trade Organization (WTO):
The WTO is an international organization that deals with the global rules of trade between nations. It aims to create a level playing field for trade and promote economic growth by reducing barriers to international trade and investment. The WTO encourages its member countries to liberalize their trade policies and remove restrictions on foreign trade and investment.
- International Labour Organization (ILO):
The ILO is a specialized agency of the United Nations that focuses on labor issues. While the ILO promotes social justice and decent work, it does not directly lay stress on liberalization of foreign trade and foreign investment.
- World Health Organization (WHO):
The WHO is a specialized agency of the United Nations that is responsible for international public health. It works to improve the health of people worldwide and does not primarily focus on liberalization of foreign trade and foreign investment.
- International Monetary Fund (IMF):
The IMF is an international organization that aims to promote global monetary cooperation, secure financial stability, and facilitate international trade. While the IMF addresses economic and financial issues, it does not specifically emphasize liberalization of foreign trade and foreign investment.
In conclusion, the organization that lays stress on liberalization of foreign trade and foreign investment is the World Trade Organization (WTO).

Introduction

When multinational companies (MNCs) enter a domestic market, there can be both positive and negative effects on various stakeholders. In this case, we will discuss the potential harmful effects for certain groups.

Effects on Small Scale Producers

• Loss of market share: MNCs often have significant resources, economies of scale, and established brand recognition, which can make it difficult for small scale producers to compete.


• Decreased profitability: Increased competition from MNCs can lead to lower prices and reduced profit margins for small scale producers.


• Limited access to resources: MNCs may have better access to capital, technology, and distribution networks, giving them a competitive advantage over small scale producers.


• Difficulty in innovation: MNCs may have more resources for research and development, making it challenging for small scale producers to keep up with technological advancements and product innovation.

Conclusion

Overall, the entry of MNCs in a domestic market can prove harmful for small scale producers. However, it is essential to consider the broader economic impact and potential benefits for consumers and the overall market efficiency. Government policies and support can play a crucial role in mitigating the negative effects and creating a level playing field for all producers.

Foreign investment refers to the investment made by individuals, companies, or governments from one country in another country. This investment can take various forms, such as direct investment in the form of establishing a subsidiary or acquiring a stake in a foreign company, or portfolio investment in the form of buying stocks or bonds issued by foreign companies or governments.
Foreign investment plays a crucial role in the global economy and can have significant impacts on both the host country and the investing country. Some key points to understand about foreign investment include:
1. Types of investors: Foreign investment can be made by various entities, including:
- Foreign governments: Governments can invest in other countries to promote economic and political interests.
- Foreign companies: Companies can invest in other countries to expand their operations, access new markets, or gain strategic advantages.
- Multinational corporations (MNCs): MNCs, which operate in multiple countries, often make foreign investments to establish subsidiaries or acquire existing companies in foreign markets.
- International financial institutions: Organizations like the IMF and the World Bank may also make investments in foreign countries to support development projects or provide financial assistance.
2. Motivations for foreign investment: Foreign investors are driven by various motives, including:
- Market access: Investing in a foreign country allows companies to access new markets and customer bases.
- Resource acquisition: Foreign investment can provide access to essential resources, such as raw materials or skilled labor.
- Cost advantages: Investors may seek lower production costs or favorable tax and regulatory environments in foreign countries.
- Technology transfer: Investing in foreign markets can facilitate the transfer of technology and know-how between countries.
- Diversification: Foreign investment helps spread risk by diversifying a company's operations across different countries.
3. Benefits of foreign investment:
- Economic growth: Foreign investment can contribute to economic growth in the host country by creating jobs, boosting productivity, and attracting capital.
- Technology transfer: Foreign investors often bring advanced technologies, management practices, and expertise to the host country.
- Infrastructure development: Foreign investment can help improve infrastructure, such as transportation, communication, and energy systems.
- Increased trade: Foreign investment can stimulate trade between the host country and the investing country.
- Knowledge and skills transfer: Foreign investment can enhance the skills and knowledge of the local workforce through training and education programs.
4. Risks and challenges of foreign investment:
- Political and regulatory risks: Changes in government policies, regulations, or political stability can affect the profitability and operations of foreign investors.
- Exchange rate risks: Fluctuations in exchange rates can impact the value of foreign investments and the repatriation of profits.
- Cultural and social challenges: Differences in culture, language, and business practices can pose challenges for foreign investors.
- Legal and contractual risks: Foreign investors must navigate the legal and contractual frameworks of the host country, which may vary from their home country.
In conclusion, foreign investment involves the investment made by individuals, companies, or governments from one country in another country. It serves as a catalyst for economic growth, technology transfer, and infrastructure development, but also poses risks and challenges.

The Answer is C: Trade Barriers
Explanation:

Taxes on imports are a form of trade barrier, which refers to any policy or measure that restricts or impedes international trade. Trade barriers are implemented by governments to protect domestic industries and businesses from foreign competition. They can take various forms, such as tariffs, quotas, subsidies, and import licensing requirements.

Here's a breakdown of the answer:

Trade Barriers:
- Taxes on imports are a type of trade barrier.
- Trade barriers are policies or measures that restrict or impede international trade.
- They are implemented by governments to protect domestic industries and businesses.
Types of Trade Barriers:
- Tariffs: Taxes or duties imposed on imported goods.
- Quotas: Limits on the quantity or value of goods that can be imported.
- Subsidies: Financial support given by the government to domestic industries, making their products more competitive.
- Import Licensing Requirements: Regulations that require importers to obtain licenses or permits before importing certain goods.
Purpose of Trade Barriers:
- Protect domestic industries and businesses from foreign competition.
- Promote local production and employment.
- Safeguard national security and strategic industries.
- Correct trade imbalances and protect trade surplus.
In summary, taxes on imports are a specific type of trade barrier that governments use to protect domestic industries and businesses from foreign competition. They are implemented to regulate and control international trade for various economic and strategic reasons.

The most common route for investments by MNCs in countries around the world is to:
There are several common routes that MNCs take when investing in countries around the world. These include:
1. Setting up new factories: MNCs often choose to establish their own manufacturing facilities in the target country. This allows them to have full control over the production process and the quality of their products.
2. Buying existing local companies: Another common route is for MNCs to acquire existing local companies in the target country. This allows them to quickly enter the market and gain access to established customer bases, distribution networks, and local expertise.
3. Forming partnerships with local companies: MNCs may also choose to form joint ventures or strategic partnerships with local companies. This allows them to leverage the local company's knowledge, resources, and market presence while sharing the risks and rewards of the investment.
4. Other routes: While the above three options are the most common, MNCs may also explore other routes such as licensing agreements, franchising, or subcontracting.
Conclusion:
In conclusion, the most common route for investments by MNCs in countries around the world is to either set up new factories or acquire existing local companies. Forming partnerships with local companies is also a popular option. The choice of route depends on various factors such as the MNC's business objectives, market conditions, and available resources.

Globalisation
Globalisation refers to the rapid integration and interconnection between countries in terms of economic, political, and cultural aspects. It is characterized by the increasing flow of goods, services, capital, information, and people across national borders.
Here are some key points about globalisation:
1. Definition: Globalisation is the process of interaction and integration among people, companies, and governments of different nations.
2. Economic Integration: Globalisation involves the liberalization of trade policies, removal of barriers to cross-border investment, and the establishment of global supply chains.
3. Technological Advancements: Technological advancements, particularly in communication and transportation, have significantly accelerated globalisation.
4. Increased Interconnectivity: Globalisation has led to the development of global networks that connect individuals, businesses, and governments across the world.
5. Cultural Exchange: Globalisation has facilitated the exchange of ideas, beliefs, and cultural practices among different societies.
6. Impact on Economies: Globalisation has both positive and negative effects on economies. It can lead to increased economic growth, job creation, and access to global markets. However, it can also create economic inequalities and vulnerability to global shocks.
7. Political Implications: Globalisation has influenced the political dynamics of nations, as governments need to navigate global challenges and collaborate with other countries.
8. Challenges and Criticisms: Globalisation has faced criticism for its impact on local industries, income inequality, and environmental degradation.
In conclusion, globalisation refers to the rapid integration and interconnection between countries. It has transformed the world economy, politics, and culture, bringing both opportunities and challenges.

Answer:
To determine the number of countries that were members of the World Trade Organisation (WTO) by 2006, we need to refer to the information provided in the question.
By 2006, the number of WTO member countries was:
A: 139

B: 149

C: 159

D: 169
Since the correct answer is option B, we can conclude that by 2006, there were 149 countries that were members of the World Trade Organisation.

Explanation:

The process of globalization, which involves the integration and interdependence of economies, is likely to result in greater competition among producers. Here is a detailed explanation:

Reasons:

• Market Expansion: Globalization opens up new markets and increases access to a larger customer base. This leads to more producers entering the market, resulting in increased competition.


• Access to Resources: Globalization allows producers to access resources from different countries. This leads to increased efficiency and cost-effectiveness, attracting more producers to compete in the market.


• Technological Advancements: Globalization promotes the flow of technology across borders. This enables producers to adopt new and advanced production methods, leading to better quality products and increased competition.


• Comparative Advantage: Globalization encourages countries to specialize in producing goods and services in which they have a comparative advantage. This specialization leads to increased competition as producers strive to excel in their specialized areas.


• Innovation and Product Development: Globalization fosters innovation and encourages producers to develop new products and services to meet the diverse needs of consumers worldwide. This results in increased competition as producers compete for market share.

Therefore, considering these reasons, it can be concluded that globalization would result in greater competition among producers.

Major Benefits of Joint Production between a Local Company and a Multi-National Company:

A: MNC can bring the latest technology in production:

- By partnering with a local company, the MNC can introduce advanced technology and production techniques, which may not be readily available to the local company.
- This can lead to increased efficiency, productivity, and quality of the products manufactured.
- The local company can benefit from the knowledge transfer and technological advancements brought by the MNC, which can help them stay competitive in the market.

B: MNC can control the increase in price:

- Joint production can allow the local company to benefit from economies of scale, resulting in cost savings.
- The MNC's expertise in supply chain management, procurement, and distribution can help streamline operations and reduce costs.
- By controlling costs, the MNC can prevent price increases, making the products more affordable and competitive in the market.

C: MNC can buy the local company:

- Joint production can be a stepping stone for the MNC to acquire the local company in the future.
- If the partnership proves successful and mutually beneficial, the MNC may choose to acquire the local company to expand its market presence and gain access to local resources, distribution networks, and customer base.
- This can provide financial stability and growth opportunities for the local company and open doors to new markets for the MNC.

D: MNC can sell the products under their brand name:

- Collaborating with an MNC can help the local company leverage the MNC's brand reputation and global reach.
- The MNC's established brand name and marketing capabilities can enhance the visibility and market acceptance of the products produced by the joint venture.
- This can lead to increased sales, market share, and profitability for both the MNC and the local company.
Overall, joint production between a local company and an MNC offers several benefits, including access to advanced technology, cost control, potential for acquisition, and brand enhancement.

Explanation:

• A: This statement is not true. The World Trade Organisation (WTO) does not allow free trade to all countries without any trade barriers. Instead, it aims to reduce trade barriers and promote free trade, but it does not eliminate all trade barriers.


• B: This statement is true. The primary aim of the WTO is to liberalize international trade by reducing trade barriers, such as tariffs and quotas.


• C: This statement is true. The WTO establishes rules and regulations regarding international trade to ensure fairness and transparency in trade relations between member countries.


• D: This statement is true. The rules set by the WTO have led to the removal of trade barriers in many developing countries, although the extent and impact of this removal may vary.

Therefore, the correct answer is A: It allows free trade to all countries without any trade barriers.

Explanation:

The statement that is not true regarding the impact of globalization on India is option D: Labor laws are not implemented properly and workers are denied their rights. The other options are true and can be explained as follows:
A: Globalization has created jobs in the service sector. With the expansion of multinational companies and the growth of industries such as IT, BPO, and hospitality, there has been an increase in employment opportunities in the service sector.
B: People with education, skill, and wealth have not been benefited. This statement is true as globalization has led to a significant increase in income inequality in India. While certain individuals and sectors have benefitted from globalization, there is a large section of the population that has not experienced the same level of benefits.
C: Benefits of globalization are not shared equally. This statement is also true as the benefits of globalization have primarily been concentrated in urban areas and among certain sections of society, while rural areas and marginalized communities have been left behind.
In conclusion, option D is the statement that is not true regarding the impact of globalization on India. Labor laws in India are implemented, and workers have legal rights, although challenges and violations may exist in certain cases.

The far-reaching change in policy made in India in 1991 was:

Removing barriers or restrictions set by the government which is known as liberalisation.

Explanation:

The policy changes implemented in India in 1991, commonly referred to as the "New Economic Policy" or "Economic Liberalization," marked a significant shift in the country's economic approach. The key change was the removal of barriers or restrictions set by the government, which is known as liberalization. This change had far-reaching implications for India's economy and paved the way for several subsequent reforms.

The liberalization policy included measures such as:

• Relaxation of industrial licensing and the dismantling of the permit raj system.


• Opening up various sectors of the economy to foreign direct investment (FDI).


• Trade liberalization and reduction of tariff barriers.


• Privatization of state-owned enterprises.


• Encouragement of foreign trade and investments.


• Introduction of economic reforms to attract foreign capital and technology.


• Liberalization of the financial sector, including the relaxation of capital controls.


• Streamlining of the taxation system.

These policy changes aimed to boost economic growth, attract foreign investments, increase competition, and integrate India into the global economy. The liberalization measures played a crucial role in transforming India from a predominantly closed and regulated economy to a more open and market-oriented one.

Overall, the far-reaching change in policy made in India in 1991 was the removal of barriers or restrictions set by the government, which is known as liberalization.

Globalisation is called fair globalisation when it benefits:
- Labour: Fair globalisation ensures that workers and laborers across the world benefit from the process. This includes fair wages, safe working conditions, and protection of workers' rights. It promotes equal opportunities for workers regardless of their geographical location.
- Investors: Fair globalisation provides a favorable environment for investors. It encourages investment in different countries and allows investors to access global markets. This promotes economic growth, job creation, and sustainable development.
- Consumers: Fair globalisation benefits consumers by offering a wider range of products and services at competitive prices. It allows consumers to access goods and services from different parts of the world, enhancing their choices and quality of life.
- All the above: Fair globalisation is characterized by its ability to benefit all stakeholders involved, including labor, investors, and consumers. It aims to create a balanced and inclusive global economic system that promotes social welfare, economic development, and sustainable growth.
In conclusion, fair globalisation is achieved when it benefits labor, investors, and consumers alike. It ensures equitable opportunities for all stakeholders and promotes a balanced global economic system.

Benefits of setting up production units in SEZs:
1. Tax exemptions: Companies that establish production units in SEZs are eligible for tax exemptions. They do not have to pay taxes for a certain number of years, which helps them save a significant amount of money.
2. Reduction in excise duty: SEZs provide a reduction in excise duty, which is a tax on goods produced within the country. This reduction in excise duty further reduces the production costs for companies operating in SEZs.
3. Reduced tariffs and barriers: SEZs often have special provisions for reduced tariffs and barriers on imports and exports. This allows companies to import raw materials and equipment at lower costs and export their finished products with fewer restrictions, enhancing their competitiveness in the global market.
Overall, setting up production units in SEZs offers several benefits to companies, including tax exemptions, reduced excise duty, and reduced tariffs and barriers. These advantages contribute to cost savings, improved profitability, and enhanced competitiveness for businesses operating in SEZs.

Special Economic Zones (SEZ) developed by the Government of India aim:
- To attract foreign companies to invest in India: SEZs offer various incentives and benefits to foreign companies, such as tax exemptions, streamlined procedures, and infrastructure support, to attract their investments in India. This helps in boosting foreign direct investment (FDI) and promoting economic growth.
- To encourage small investors: SEZs also aim to encourage small investors by providing them with a conducive environment for business operations. They offer simplified procedures, infrastructure facilities, and incentives like tax benefits to attract small and medium enterprises (SMEs) to set up their businesses in these zones.
- To encourage regional development: The establishment of SEZs is also aimed at promoting regional development in India. By setting up these zones in different parts of the country, the government aims to attract investments and create employment opportunities in less developed regions. This helps in reducing regional imbalances and promoting overall economic development.
- None of the above: This option is incorrect as the correct answer is a combination of the first three options. SEZs aim to attract foreign companies, encourage small investors, and promote regional development simultaneously.
In conclusion, Special Economic Zones (SEZs) developed by the Government of India aim to attract foreign companies, encourage small investors, and promote regional development in the country. These zones provide various incentives and benefits to achieve these objectives and contribute to the overall economic growth of India.

Globalisation leads to more competition.
There are several reasons why globalisation leads to more competition:
1. Increased market access: Globalisation allows companies to expand their operations and reach customers in different countries. This leads to an increase in market access and creates more opportunities for companies to compete.
2. Lower trade barriers: Globalisation has led to the reduction of trade barriers such as tariffs and quotas. This means that companies can trade more freely across borders, leading to increased competition as more players enter the market.
3. Technological advancements: Globalisation is often accompanied by advancements in technology, which enable companies to operate more efficiently and effectively. This allows smaller companies to compete with larger ones and creates a more level playing field.
4. Access to resources: Globalisation allows companies to access resources from different parts of the world. This includes raw materials, labor, and expertise. Having access to a wider range of resources enables companies to innovate and compete more effectively.
5. Increased consumer choice: Globalisation has resulted in a wider variety of products and services being available to consumers. This increased choice leads to greater competition among companies as they strive to attract customers with unique offerings.
In conclusion, globalisation leads to more competition by increasing market access, lowering trade barriers, facilitating technological advancements, providing access to resources, and offering consumers a wider choice of products and services.