Facts that Matter
Words that Matter
I. MULTIPLE CHOICE QUESTIONS
Choose the correct option:
1. A company that owns or controls production in more than one nation is called ......... .
(a) Foreign company (b) Multi National Company
(c) International company (d) Local company
2. What are the investments made by MNCs called?
(a) Foreign investments (b) International investments
(c) Multi National investments (d) None of these
3. It creates an opportunity for the producers to reach beyond the domestic markets. What does it refer to?
(a) Technology (b) Investments
(c) Trade barriers (d) Globalisation
4. Why did the government decide to remove barriers on foreign trade and foreign competitors?
(a) Because the government wanted to earn the foreign exchange.
(b) Because the government felt that the time had come for Indian producers to compete with producers in the world market.
(c) Because the government wanted to maintain good relations with other countries.
(d) All of the above.
5. How many countries are currently the members of the World Trade Organisations?
(a) 140 countries (b) 145 countries
(c) 159 countries (d) 149 countries
6. What was the idea behind developing Special Economic Zones (SEZs) in India?
(a) To attract foreign companies to invest in India (b) To earn foreign exchange
(c) To make India financially stable (d) To make India a developed country
7. What is the full form of WTO?
(a) World Transactions Organisation (b) Wealth Trade Organisation
(c) World Trade Organisation (d) None of the above
8. Which one of the following is not an MNC?
(a) Reebok Shoes (b) Tata Motors
(c) SAIL (d) Infosys
9. The international organisation formed for the liberalisation of trade is ......... .
(a) World Trade Organisation (b) United Nations Organisation
(c) World Trade Centre (d) Multi-national Corporation
10. The most important factor that has stimulated globalisation is ......... .
(a) population explosion (b) spread of education
(c) urbanisation (d) rapid improvement in technology
11. What is the term ‘investment’ mean?
(a) Money spent on buying clothes (b) Money spent on buying land, building, machines, etc.
(c) Money spent on buying a car (d) Money spent on buying furniture
12. WTO is dominated by countries like ......... .
(a) U.S. and U.K. (b) China and France
(c) India and Japan (d) Ireland and Germany
13. Ranbaxy is a multinational company which is associated with ......... .
(a) automobiles (b) nuts and bolts
(c) medicines (d) information technology
Ans. 1—(b) 2—(a) 3—(d) 4—(d) 5—(d) 6—(a)7—(c) 8—(c) 9—(a) 10—(d) 11—(b) 12—(a) 13—(c)
II. VERY SHORT ANSWER TYPE QUESTIONS
1. Why had the Indian Government put barrier to foreign trade and foreign investment after independence? State any one reason. (CBSE 2015)
2. Until the middle of the twentieth century, production was largely organised within countries. What crossed the boundaries of these countries?
3. What was the main channel connecting countries in the past?
4. What is an MNC?
5. Where do MNCs set up offices and factories for production?
6. Why do MNCs set up offices and factories in regions where they can get cheap labour and other resources?
7. In what way does China provide advantage to the MNCs?
8. How are Mexico and Eastern Europe useful for the MNCs?
9. Why are MNCs attracted to India?
10. What do you mean by foreign investment?
11. What is the most common route for MNC investments?
12. Give examples of industries where production is carried out by small producers around the world.
13. What do you know about Ford Motors?
14. How much did Ford Motors invest in India?
15. What is basic function of foreign trade?
16. Why are Chennai toys more popular in the Indian markets?
17. What has been the major factor that has stimulated the globalisation process?
18. For which purpose can government use trade barriers?
19. The Indian government removed barriers on foreign trade and foreign investment to a large extent. What does this mean?
20. How does liberalisation of trade benefit businesses?
21. Why is fair globalisation essential?
III. SHORT ANSWER TYPE QUESTIONS
1. In recent years how our markets have been transformed? Explain with examples. (CBSE 2015)
2. How is information technology connected with globalisation? (HOTS)
3. “Globalisation and competition among producers has been of advantage to the consumers.” Give arguments in support of this statement. (CBSE 2009)
4. Analyse one good and one bad effect of globalisation on India. (CBSE 2009)
5. How are local companies benefitted by joining hands with MNCs for production?
6. What is the impact of globalisation on the well-off sections in the urban areas of India?
7. What is WTO? Why it has been formed?
8. What is the impact of flexible labour laws on workers?
9. What is a tariff? Why is it imposed on goods? [V. Imp]
10. What role can the government play in order to ensure a fair globalisation?
11. Explain how globalisation can be made fairer. [CBSE 2010(F)]
12. How are MNCs spreading their production across countries? Explain with an example. (AI CBSE 2012)
13. What would happen of Government of India parts heavy tax on import of Chinese toys? Explain any three points. (AI CBSE 2012)
14. “Information and communication technology has played a major role in spreading out products and services across countries.” Support the statement. (CBSE 2012)
15. Explain any three steps taken by the Indian Government to attract foreign investment. [AICBSE 2013(C)]
16. How do Multinational companies (MNCs) control production? Explain any three points. [AI CBSE 2008(C), 2009, 2010, 2011]
17. What are the benefits of foreign trade?
18. Differentiate between foreign trade and foreign investment. (HOTS)
19. Explain how the developing countries which are members of the WTO suffer due to trade barriers. (HOTS)
IV. LONG ANSWER TYPE QUESTIONS
1. How are multinational corporations (MNCs) controlling and spreading their productions across the world? Explain. (CBSE 2015).
2. ‘Rapid improvement in technology has been one major factor that has stimulated the globalisation process. Explain. [CBSE 2008(F)]
Explain the role of technology in stimulating globalisation process. (CBSE 2010)
3. Why is ‘tax’ on imports known as trade barrier? Why did the Indian government impose barriers to foreign trade and foreign investments after independence? Give three reasons. (CBSE 2008)
4. Explain with examples how the opening up of foreign trade results in connecting the markets in different countries. (CBSE 2011)
How does foreign trade play an important role in integrating the markets across the countries? Explain. [CBSE 2009(F), 2010, AI CBSE 2011, 2012]
5. What is liberalisation? What steps were taken by the government to liberate the Indian economy? (CBSE 2012)
6. Explain the meaning of the term ‘globalisation’. State any two factors that have helped in the process of globalisation. (HOTS)
7. What are the factors that multinational companies take into account before setting up a factory in different countries?
8. Describe with an example the role of multinational corporations in the process of globalisation.(HOTS)
9. What is SEZ? The setting of SEZ has been opposed by some people in India. Why? Explain.
V. VALUE BASED QUESTIONS
1. Information and communication technology or IT has stimulated the globalisation process. How would it influence the country like India where people still depend on agriculture and believe in their customs and traditions?
2. What values worked behind the restrictions on foreign trade in India after independence?
TEST YOUR SKILLS
1. Why are the taxes called ‘trade barriers’? Why does the Government of India put barriers to foreign trade and foreign investment?
2. What is liberalisation? What are its features?
3. Name some Indian companies that emerged as MNCs?
4. What do you mean by fair globalisation?
5. How do the local companies start to gain by setting up production jointly with the MNCs? Why do MNCs sometimes buy up local companies?
6. How and why was trade barrier used? What changes took place in 1991?
7. What is the impact of the globalisation in India? What are the different factors which have facilitated globalisation?