InterviewSolution
This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Globalisation has created new opportunities of A) employmentB) emerging multinationals C) providing services D) all of the above |
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Answer» D) all of the above |
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| 2. |
How has globalisation impacted on India and how is India in turn impacting on globalisation? |
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Answer» Impact of Globalisation on India: 1. More new jobs have been created in the MNCs like cell phones, fast food etc. 2. India is playing a crucial role among developing countries in trade and commerce by making some companies multinational themselves i. e. Tata Motors, Ranbaxy etc. 3. Foreign Direct Investments have also been increased. 4. It has invited inflow of private foreign capital and export-oriented activities. India in turn impacting: 1. Through responding to the 1991 financial crisis, Indian economy was liberalized to attract foreign direct investment. 2. India introduced new trade policy reforms to remove tariffs and restrictions imposed on imports. 3. Under industries, it abolished the licensing system exempting few specified industries only. 4. Banking operations by private sectors were permitted to expand in the country. 5. To promote globalization, India has adopted an open economy. |
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| 3. |
‘Globalisation’ has NOT badly impacted the lives of A) MNCs B) Tribal people C) Landless workersD) Unorganised sector workers |
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Answer» C) Landless workers |
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| 4. |
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 |
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Answer» (a) To attract foreign companies to invest in India |
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| 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 |
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Answer» (d) 149 countries |
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| 6. |
How has foreign trade been integrating markets of different countries in the world? Explain with examples. |
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Answer» Foreign trade integrates the markets of different countries as:
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| 7. |
How has globalisation been advantageous to both the producers as well as the consumers in India? Explain. |
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Answer» Advantages of globalisation for consumers:
Advantages of globalisation to producers:
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| 8. |
What is the most common route for MNC investments? |
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Answer» The most common route for MNC investments is to buy up local companies and then to expand production. |
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| 9. |
What is the full form of WTO? (a) World Transactions Organisation (b) Wealth Trade Organisation (c) World Trade Organisation (d) None of the above |
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Answer» (c) World Trade Organisation |
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| 10. |
WTO is dominated by countries like ......... . (a) U.S. and U.K. (b) China and France (c) India and Japan (d) Ireland and Germany |
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Answer» (a) U.S. and U.K. |
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| 11. |
Differentiate between foreign trade and foreign investment. |
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Answer»
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| 12. |
What is the main aim of World Trade Organisation? Explain its functions. |
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Answer» The main aim of World Trade Organisation is to liberalise international trade. It says that all barriers to foreign trade and investment are harmful. There should be no barriers. The main functions of World Trade Organisation are:
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| 13. |
Explain four ways in which globalisation and pressure of competition has changed the lives of workers substantially. |
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Answer» Globalisation and pressure of competition has affected the workers in following ways:
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| 14. |
How do large companies often manipulate the markets? Explain with an example. |
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Answer» The large companies manipulate the market in the following ways:
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| 15. |
Why did the Indian government remove barriers to a large extent on foreign trade and foreign investment? |
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Answer» The Indian government realised that its domestic industries had established themselves and it was the proper time to face competition and improve the quality of production. So, barriers on foreign trade and investment were removed. |
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| 16. |
Which one of the following is not an MNC? (a) Reebok Shoes (b) Tata Motors (c) SAIL (d) Infosys |
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Answer» SAIL is not an MNC. |
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| 17. |
The most important factor that has stimulated globalisation is ......... . (a) population explosion (b) spread of education (c) urbanisation (d) rapid improvement in technology |
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Answer» (d) rapid improvement in technology |
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| 18. |
How are the MNCs spreading their production across the globe? |
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Answer» MNCs are spreading their production across the globe by setting up partnerships with local companies, by using the local companies for supplies and by closely competing with local companies or buying them up. |
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| 19. |
Explain how the developing countries which are members of the WTO suffer due to trade barriers. |
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Answer» The developing countries suffer due to trade barriers. WTO is supposed to allow free trade for all in practice. But the developed countries have unfairly retained trade barriers. (i) WTO rules have forced the developing countries to remove trade barriers. (ii) Farmers in most developed countries receive money from their respective government for production. Due to this massive money, they are able to sell their farm products at abnormally low prices. (iii) Developed countries are asking governments of developing countries to stop supporting their farmers, but they are doing it themselves. |
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| 20. |
What values worked behind the restrictions on foreign trade in India after independence? |
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Answer» After India became independent, the Indian government put barriers to foreign trade and foreign investment. The values that worked behind this are: (i) It was essential at that time to protect the producers within the country from foreign competition. Industries were just coming up in the 1950s and 1960s, and competition from imports at that stage would not have allowed these industries to emerge. (ii) Since industries were newly born during that period, it was necessary to make their foundation strong by providing them opportunities to flourish first within the country, then across the country. (iii) The restrictions on foreign trade for a certain period proved to be a boon for domestic producers in the sense that they became self-sufficient. This self sufficiency made them able to face competitions. |
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| 21. |
How is information technology connected with globalisation? |
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Answer» Information and communication technology is closely connected with globalisation. In recent times, technology in the areas of telecommunications, computers, internet has been changing rapidly. (i) Telecommunications facilities such as telegraph, telephone including mobiles, fax have brought the world closer. Now people can contact around the world easily. These developments are used to access the information instantly and communicate in the remote areas. (ii) Computer and internet have entered in almost all the fields. Internet allows one to share information on almost everything. We can send instant e-mail and talk through voice-mail across the world at almost negligible cost. |
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| 22. |
Explain any three conditions that determine MNCs setting up production in other countries. |
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Answer» The factors that MNCs take into consideration to set up their production units in a particular place are:
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| 23. |
What is globalisation? Describe the role of Multinational Corporatiops (MNCs) in promoting globalisation process. |
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Answer» Globalisation: integrating the economy of a country with the economies of other countries under conditions of free flow of trade and capital and movement of persons across borders. MNCs play an important role in promoting globalisation process in the following ways:
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| 24. |
Why have the barriers on foreign trade and foreign investment been removed to a large extent by the Indian government? Explain. |
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Answer» In 1991, the Indian government decided that the time has come for Indian producers to compete with producers around the world. It felt that foreign competition would improve the quality of goods produced by Indian producers within the country. Thus, barriers on foreign trade and foreign investment were removed to a large extent. It meant goods could be imported or exported easily and foreign companies could set up factories and offices in India. |
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| 25. |
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 |
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Answer» (a) World Trade Organisation |
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| 26. |
Explain any three steps taken by the Indian Government to attract foreign investment. |
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Answer» In the recent years, the Indian Government has taken special steps to attract foreign companies to invest in India: (i) The government has set up industrial zones called special Economic Zones (SEZs). SEZs provide world class facilities – electricity, water, roads, transport, storage recreational and educational facilities. (ii) Companies who set up production units in the SEZs do not have to pay taxes for an initial period of five years. (iii) The government has also allowed flexibility in the labour laws to attract foreign investment. The companies can now lower workers ‘flexibly’ for short period when there is intense pressure of work. This is done to reduce the cost of labour for the companies. |
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| 27. |
Explain any three ways in which multinational companies are spreading their production. |
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Answer» Multinational Corporations (MNCs) are spreading their production in different ways. Some of them are:
1. A MNC can provide money for additional investments. 2. A MNC can bring latest technology for production.
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| 28. |
How do multinational companies manage to keep the cost of production of their goods low? Explain with examples. |
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Answer» The multinational companies manage to keep the cost of production of their goods low in the following ways:
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| 29. |
How does liberalisation of trade benefit businesses? |
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Answer» With liberalisation of trade, business are allowed to make decisions freely about what they wish to import or export. |
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| 30. |
Describe the impact of globalisation on Indian economy with examples. |
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Answer» The impact of globalisation on Indian economy is as follows:
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| 31. |
How are multinational corporations (MNCs) controlling and spreading their productions across the world? Explain. |
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Answer» Multinational Corporations (MNCs) usually set up production where it is close to the markets, where there is skilled and unskilled labour available at low costs and where the availability of other factors of production is assured. MNCs also might look for government policies that look after their interests. Having assured themselves of these conditions, MNCs set up factories and offices for production. At times they set up production jointly with some of the local companies of these countries. They provide money to these local companies for additional investments like buying new machines for faster production. They also buy up local companies and then expand production. MNCs with huge wealth can quite easily do so. There is another way in which MNCs control production. Large MNCs in developed countries place orders for production with small producers. The products are supplied to MNCs, which then, sell these under their own brand names to the customers. Thus, we see that there are a variety of ways in which the MNCs are spreading their production and interacting with local producers in various countries across the globe. |
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| 32. |
Explain the role of technology in stimulating globalisation process. |
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Answer» Rapid improvement in technology has been one major factor that has stimulated the globalisation process. For instance, the past fifty years have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs. Even more remarkable have been the developments in information and communication technology. In the recent times, technology in the areas of telecommunication, computers, Internet has been changing rapidly. Telecommunication facilities (Telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. Computers have now entered almost every field of activity. Internet allows us to send instant electronic mail (e-mail) and talk (voicemail) across the world at negligible costs. |
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| 33. |
What is globalisation? How does globalisation help in interconnection among different countries? Explain with examples. |
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Answer» Globalisation: integrating the economy of a country with the economies of other countries under conditions of free flow of trade, capital and movement of persons across borders. Globalisation interconnect different countries by:
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| 34. |
How has globalisation benefited India? Explain with five examples. |
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Answer» The impact of globalisation on India are:
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| 35. |
“Technology has stimulated the globalisation process.” Support the statement with examples. |
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Answer» Technology has stimulated the process of globalisation in the following ways:
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| 36. |
Explain the role of information technology in globalisation. |
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Answer» Information and communication technology has stimulated the globalisation process as:
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| 37. |
Give the meaning of globalisation. |
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Answer» Globalisation means integrating the economy of a country with the economies of other countries under conditions of free flow of trade, capital and movement of persons across borders. |
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| 38. |
How has transportation technology stimulated the globalisation process? Explain with suitable examples. |
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Answer» Transportation technology has stimulated the globalisation process in the following ways:
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| 39. |
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? |
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Answer» Rapid improvement in technology has been one major factor that has stimulated the globalisation process. For instances, the past fifty years have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs. Even more remarkable have been the developments in information and communica-tion technology. In the recent times, technology in the areas of telecommunication, computers, Internet has been changing rapidly. Telecommunication facilities (Telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. Computers have now entered almost every field of activity. Internet allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs. |
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| 40. |
What is liberalisation? What steps were taken by the government to liberate the Indian economy? |
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Answer» Removing barriers or restrictions set by the government is known as liberalisation: (i) The Indian government, after Independence, had put barriers to foreign trade and foreign investment. This was considered necessary to protect the producers within the country from foreign competition. Industries were just coming up in the 1950s and 1960s and competition from imports at that stage would not have allowed these industries to come up. Thus, India allowed imports of only essential items. (ii) In 1991, the government decided that the time had come for Indian producers to compete with producers around the globe. It felt that competition would improve the performance of producers within the country. Since they would have to improve their quality. (iii) Barriers on foreign trade and foreign investment were removed to a large extent. Now, goods could be imported and exported easily and also foreign companies could set up factories and officers here. (iv) With libralisations of trade, businesses are allowed to make decisions freely about what they wish to import or export. |
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| 41. |
What are the factors that multinational companies take into account before setting up a factory in different countries? |
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Answer» Before setting up a company or a factory an MNC takes into account the following things. (i) Availability of cheap labour and other resources: MNC’s set up offices and factories for production in various regions of the world where cheap labour and other resources are available in order to earn greater profit. For example: MNC may spread its production activities to the following countries – USA for designing a product, China for manufacturing components etc. By doing so it is able to reduce the cost of production. (ii) Favourable government policy: If the government policies are favourable it helps MNCs. For example: Flexibility of labour laws will reduce cost of production. MNCs are able to hire worker on casual and contractual wages for a short period instead of a regular basis. This reduces the cost of labour for the company and increases its margin of profit. |
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| 42. |
How has improvement in technology stimulated the globalisation process? Explain. |
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Answer» The improvement in technology has stimulated the globalisation process as:
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| 43. |
‘Rapid improvement in technology has been one major factor that has stimulated the globalisation process. Explain. |
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Answer» Rapid improvement in technology has been one major factor that has stimulated the globalisation process. For instance, the past fifty years have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs. Even more remarkable have been the developments in information and communication technology. In the recent times, technology in the areas of telecommunication, computers, Internet has been changing rapidly. Telecommunication facilities (Telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. Computers have now entered almost every field of activity. Internet allows us to send instant electronic mail (e-mail) and talk (voicemail) across the world at negligible costs. |
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| 44. |
Which factors have contributed to the process of globalisation? |
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Answer» The process of globalization is the result of: 1. Historical factors. 2. Role of international organizations like JMF and WTO. 3. Liberalisation and privatization. 4. Technological innovations. |
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| 45. |
Explain the role of technology in stimulating globalisation process. |
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Answer» The improvement in technology has stimulated the globalisation process as:
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| 46. |
…………. have played a crucial role in the Arab spring. A) Leaders B) Media C) Students D) Farmers |
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Answer» Correct option is B) Media |
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| 47. |
The Arab spring in Egypt is sometimes called the ‘Facebook revolution’ in Egypt. |
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Answer» The Arab Spring refers to a series of anti- government protests and uprisings that spread across much of the Arab world in the early 2010s. It began in Tunisia and spread to Libya, Egypt, Yemen, Syria and to a smaller extent to Iraq, Lebanon, Sudan, Morocco, etc. It’s main goals were regime change, economic progress and human rights. In Egypt, it began on 25th January 2011 when millions of protestors all over Egypt protested against President Hosni Mubarak’s regime. This was in response to a ‘Day of Revolution’ organized on Facebook on 25th January. It lasted till 11th February 2020. |
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| 48. |
Find out what the Arab Spring movement was and how social networking was used during that movement. |
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Answer» Arab Spring was a series of protests and uprisings against the governments that spread across large parts of the Arab world in the early 2010s. (i.e. December 2010 to December 2012). It began with protests in Tunisia and spread quickly to other countries like Libya, Egypt, Yemen, Syria and Bahrain. There were riots, civil wars and the main slogan of protestors was "the people want to bring down the regime". There were sustained street demonstrations in Iraq, Algeria, Morocco, Jordan, Lebanon, etc. The social media i.e. facebook, etc. was the driving force behind the swift spread of the revolutions. The results of these movements were that regimes of Tunisia (Abidine Ben Ali), Egypt (Hosni Mubarak) Libya (Gaddafi), Yemen (Abdullah Saleh) were ousted while in Syria, Iraq, etc., a full scale civil war resulted. Only in Tunisia, there was a transition to constitutional democratic government. |
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| 49. |
Explain the meaning of the term ‘globalisation’. State any two factors that have helped in the process of globalisation. |
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Answer» Globalisation refers to the integration between countries through foreign trade and foreign investments by multinational companies. • It means integrating our economy with world economy. • Under globalisation a country becomes economically interdependent at the global or international level. • This happens at various levels. • Producers from other countries can come and sell their goods and services in India. • Similarly, Indian goods and services can be sold in other countries. Two factors that have enabled Globalisation: (i) Information Technology — Telecommunication facilities like mobile, internet fax have helped us at negligible cost. Now a new magazine published for London readers can be designed and printed in Delhi. (ii) Liberalisation of foreign trade and foreign investment – In India, trade barriers that were imposed after independence to protect producers’ interests in the country from foreign competition were removed after 1991. Businessmen were allowed to import or export freely. |
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| 50. |
Globalisation has led to improvement in living conditions (a) of all the people (b) of people in the developed countries (c) of workers in the developing countries (d) None of the above |
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Answer» (d) None of the above |
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