Economics: Globalisation and the Indian Economy · Class 10 · CBSE Social Science
What was the primary motive of the Indian government when it removed trade barriers around 1991?
Practice question from Economics: Globalisation and the Indian Economy (Class 10 · CBSE Social Science), with the correct answer and a step-by-step solution.
medium · MCQ · Q-20C35C
What was the primary motive of the Indian government when it removed trade barriers around 1991?
- A.To protect domestic producers from foreign competition
- B.To restrict the entry of foreign goods into the Indian market
- C.To improve the performance and quality of domestic producers through competitionCorrect answer
- D.To nationalise all private sector industries
Solution
In 1991, the Indian government felt the time had come for Indian producers to compete with producers around the globe. It was presumed that competition would improve the quality of goods produced by Indian producers.
More from Economics: Globalisation and the Indian Economy
- What is the primary function of Multinational Corporations (MNCs)?
- Which of the following is a major factor that has stimulated the globalisation process across the world?
- Explain how the 'liberalisation of foreign trade and foreign investment policy' acts as a catalyst for globalisation.
- Which organisation monitors trade agreements and ensures that international trade rules are followed globally?
Practise more Social Science
Sign up free for adaptive practice on this chapter, with instant feedback and hints on every question.
Start practising freeFree to start · No credit card needed