Objective Questions:
Questions asked in Pre-boards and previous years boards
Q.1 Which of the following international agencies allow free trade and work on mutual trade between countries?
a. WTO
b. IMF
c. UPU
d. FAO
Answer: a. WTO
Q.2 Identify the correct statements about globalization.
i. Removal of barriers by the government
ii. Foreign companies are allowed to set up factories.
iii. Has enabled all companies to increase their investments.
iv. Has lessened foreign investment and foreign trade.
OPTIONS:
a. i and ii
b. ii and iii
c. i and iii
d. ii and iv
Answer: a. i and ii
Q.3 W.T.O. was set up at the initiative of__________ countries.
a. Developed
b. ASEAN
c. SAARC
d. Developing
Answer: a. Developed
Q.4 Multi- National Companies manage to keep the cost of production low by setting up units in a region where_______________.
a. raw materials, skilled labor, safety, regular power supply and nearness to market is available in abundance.
b. raw materials, skilled labor, safety, regular power supply and market is available in abundance.
c. raw materials, unskilled and skilled labor, safety, regular power supply and market is available in abundance.
d. raw materials, cheap skilled and unskilled labor, safety, regular power supply and nearness to market is available in abundance.
Answer: d. raw materials, cheap skilled and unskilled labor, safety, regular power supply and nearness to market is available in abundance.
Q.5 What do you understand by liberalization in trade?
a. Free movements for traders internationally.
b. Removal of custom duties and taxes.
c. To allow MNCs to trade under no terms and conditions
d. Allowing only liberal people to trade.
Answer: b. Removal of custom duties and taxes.
Q.6 Find the incorrect option from the following:
a. Fair globalization would create opportunities for all.
b. Globalization has led to improvement in living conditions of all the people.
c. MNCs are playing a major role in the globalization process.
d. All of the above.
Answer: b. Globalization has led to improvement in living conditions of all the people.
Q.7 Identify the correct statements about globalization.
(i) Removal of barriers by the government
(ii) Foreign companies are allowed to set up factories
(iii) Has enabled all companies to increase their investments
(iv) Has lessened foreign investment and foreign trade
(A) i & ii
(B) ii & iii
(C) i & iii
(D) ii & iv
Answer: (A) i & ii
Q.8 Which of the following refers to investment?
a. Money spent on religious ceremonies
b. Money spent on social customs
c. Money spent to buy assets such as land
d. Money spent on household goods
Answer: c. Money spent to buy assets such as land
Q.9 Tax on imports is an example of –
a. Investment
b. Disinvestment
c. Trade barriers
d. Privatization
Answer: c. Trade barriers
Q.10 Ford Motors can be termed as Multi-National Company based on which of the following options?
a. Production of different types of automobiles
b. Largest automobile manufacturer in the world.
c. Because of large scale exports of cars across globe
d. Industrial and commercial venture across globe
Answer: c. Because of large scale exports of cars across globe
Q.11 Removing barriers or restrictions set by the government is known as:
a. Privatization
b. Liberalization
c. Globalization
d. Industrialization
Answer: b. Liberalization
Q.12 Read the given statement in context of globalization and choose the correct option
a. It is the only way for economic development of the country.
b. It links only production based activities in dispersed locations in the world.
c. It has always given only positive results in all the countries.
d. Leads to spread of technology, cultures and diseases from a region to other.
Answer: d. Leads to spread of technology, cultures and diseases from a region to other.
Q.13 Globalization and greater competition among producers has been of advantage to –
a. consumers of the well-off section
b. poor people
c. underdeveloped countries
d. developing countries
Answer: a. consumers of the well-off section
Q.14 Which of the following organizations lay stress on liberalization of foreign trade and foreign investment?
a. International labor organization
b. International Monetary Fund
c. World Health Organization
d. World Trade Organization
Answer: d. World Trade Organization
Q.15 _________________ is the process of rapid integration or interconnection between countries.
a. Privatization
b. Globalization
c. Liberalization
d. Urbanization
Answer: b. Globalization