Economics: Globalisation and the Indian Economy

Topics in this chapter

• Globalisation Concepts and Drivers
• MNCs and Global Production
• Trade Liberalisation and 1991 Reforms
• WTO and International Trade
• Impact of Globalisation on India
• Fair Globalisation and Workers’ Rights

Cheat sheet

Practice questions

1. Question 1Q-8CF80B

   What is the primary function of Multinational Corporations (MNCs)?

   1. A.To control the government policies of developing nations
   2. B.To produce goods and services globally to minimize costs and maximize profits
   3. C.To provide free financial aid to underdeveloped countries
   4. D.To completely eliminate local businesses in host countries
   See the answer and solution
2. Question 2Q-594AF4

   Which of the following is a major factor that has stimulated the globalisation process across the world?

   1. A.Imposition of heavy trade barriers by governments
   2. B.Rapid improvements in information and communication technology
   3. C.Strict regulations on foreign direct investment
   4. D.Decline in international transport networks
   See the answer and solution
3. Question 3Q-3BD337

   Explain how the 'liberalisation of foreign trade and foreign investment policy' acts as a catalyst for globalisation.

   See the answer and solution
4. Question 4Q-20C35C

   What was the primary motive of the Indian government when it removed trade barriers around 1991?

   1. A.To protect domestic producers from foreign competition
   2. B.To restrict the entry of foreign goods into the Indian market
   3. C.To improve the performance and quality of domestic producers through competition
   4. D.To nationalise all private sector industries
   See the answer and solution
5. Question 5Q-5DB93D

   Which organisation monitors trade agreements and ensures that international trade rules are followed globally?

   1. A.International Monetary Fund (IMF)
   2. B.World Health Organisation (WHO)
   3. C.World Trade Organisation (WTO)
   4. D.United Nations Educational, Scientific and Cultural Organisation (UNESCO)
   See the answer and solution