Social Science · Economics

Globalization and its Impacts

2,254 Questions

Globalization and its impacts cover the increasing interconnectedness of countries through trade, technology, and cultural exchange. These questions explore key drivers, economic policies, and cultural shifts relevant to exams. The topic is frequently tested in UPSC, State PSC, and SSC general studies papers.

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Globalization and its Impacts Questions

Multiple choice organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

The term 'globalisation' is a synonym for the term __________.

  1. Nationalisation

  2. Liberalisation

  3. Privatisation

  4. Internationalisation
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The term 'globalization' is a synonym for the term internationalization. Globalization can be defined as the growing interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services and also through rapid diffusion of technology.

Multiple choice organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

Globalisation means______________.

  1. Several things to several people

  2. Foreign trade orientation

  3. Closed economy

  4. Liberal economy
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Globalization means several things to several people. Globalization can be defined as the growing interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services and also through rapid diffusion of technology.

Multiple choice organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

As there has been globalization of markets, the tastes and preferences of consumers world-wide are ________.

  1. converging upon a global warm

  2. so different that they can be ignored by internal organizations

  3. being encouraged by multinational organizations to become increasingly similar

  4. becoming similar to the tastes and preferences of American consumers
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Globalization has brought the world closer. It has made import and export of goods easier between all the countries. One can get access to the different goods available across the world due to globalization. Hence, as there has been globalization of markets, the tastes and preferences of consumers world-wide are converging upon a global warm.

Multiple choice organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

The importance of globalization for multinational firms is evident from which of the following?

  1. Home demand, home factor conditions and domestic rivalry are no longer important to multinational firms

  2. A multinational firm can gain a competitive advantage in a foreign country

  3. The geography is no longer limited to multinational firms

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The importance of globalization for multinational firms is home demand, home factor conditions and domestic rivalry are no longer important to multinational firms. A multinational firm can gain a competitive advantage in a foreign country and the home base is no longer important to multinational firms.

Multiple choice organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

Globalisation has brought _______.

  1. economic growth best growing inequalities wealth and

  2. resentment from low skilled workers who see their jobs go abroad

  3. both (a) and (b)

  4. real jobs in less developed countries and closed the poverty gap
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Globalization means the integration of people across the globe to facilitate trade in a smooth way. It has brought the world closer. Hence, globalization has brought economic growth best growing inequalities wealth and resentment from low skilled workers who see their jobs go abroad.

Multiple choice organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

Which among the following are the key drivers of globalization?

  1. Government action, exchange rates, competition and socio-demographic factors

  2. Market convergence, competition, exchange rates and cost advantages

  3. Cost advantages, government action, economic cycles and competition

  4. Market, cost, competition and government policies
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Reasons for Globalization:
- Domestic markets are not enough and other markets are required for the progress of industry.
- World is shrinking because of the development of the transportation, communication, technological changes etc.
- An organization named WTO (World Trade Organization) was established for the development of cross border trade.
-For the development of business a new technology is needed which could be taken from overseas.
- To cut down the manufacturing cost, industries may set up manufacturing units overseas where manufacturing cost is favourable.
- To set up a business in a place which is politically more stable.
-Adverse business environment in home country pushes the companies to look for global market.
-Most companies move their head quarters to overseas to avoid their respective home countries' high taxes and other costs associated in business operation in those countries.

Thus, we can say that, market convergence, competition, exchange rates and cost advantages are the key drivers of globalization.

Multiple choice organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

Out of the following which is NOT a business opportunity generated by globalization?

  1. A low cost labour

  2. Cheap international transport

  3. Currency crises

  4. Less stringent regulation of the business envirornment
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Currency crises is NOT a business opportunity generated by globalization since globalization can be defined as a process of integration of various economies of world. Globalization involves greater interaction and interdependence among the various nations of global economy.

Multiple choice organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

"Foreign Collaboration" is an outcome of ________.

  1. globalization

  2. increase in skilled labour

  3. reduction in export duty

  4. privatization
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

"Foreign Collaboration" is an outcome of privatization. It refers to  the process of transferring of ownership and management of an enterprise from public sector to the private sector.

Multiple choice organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

Macro level globalization means ________.

  1. globalization of the world economy

  2. globalization of the business and the form

  3. both a and b

  4. none of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Macro level globalization means globalization of the world economy.Globalization is defined as the process of growing interdependence of the economies through increasing volume and variety of cross border transactions in goods and services and of international capital flows, and also throug the more rapid and widespread diffusion of technology.

Multiple choice organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

The negative effects of globalization on Indian industry are _______.

  1. it increased competition in the Indian market between the foreign and domestic companies

  2. it reduced the amount of profit of the Indian Industry companies.

  3. both a and b

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
Globalization is defined as the process of growing interdependence of the economies through increasing volume and variety of cross border transactions in goods and services and of international capital flows, and also through the more rapid and widespread diffusion of technology.The negative effects of globalization on Indian industry are:a) it increased competition in the Indian market between the foreign and domestic companies
b) it reduced the amount of profit of the Indian Industry companies.

Multiple choice organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

Globalization of the economics and globalization of business are ___________.

  1. independent

  2. less Inter-dependent

  3. very much inter-dependent

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Globalization of the economics and globalization of business are very much inter-dependent.Globalization is defined as the process of growing interdependence of the economies through increasing volume and variety of cross border transactions in goods and services and of international capital flows, and also through the more rapid and widespread diffusion of technology.

Multiple choice organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

The importance of globalization for multinational firms is________________.

  1. home demand, home factor conditions and domestic rivalry are no longer important to multinational firms.

  2. a multinational firm can gain a competitive advantage in a foreign country.

  3. the home base is no longer important to multinational firms.

  4. all of the above.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Globalization refers to the process of increasing the interdependence among different nations of the world.The globalization process is boosted with technological advancement. The importance of globalization for multinational firms is:
a) home demand, home factor conditions and domestic rivalry are no longer important to multinational firms.b) a multinational firm can gain a competitive advantage in a foreign country
c) the home base is no longer important to multinational firms.
Multiple choice organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

The following factors are key drivers of globalisation________.

  1. government action, exchanges rates, competition and sociodemographic factors.

  2. market convergence, competition, exchange rates and cost advantage

  3. cost advantages, government action, economic cycles and competition.

  4. market, cost, competition and government policies.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Globalization is a process of increasing the interdependence among the different economies of the world. This process of globalization is greatly promoted by the advancement of technology. The following factors are key drivers of globalization: market, cost, competition and government policies.

Multiple choice organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

Globalisation has brought_________________.

  1. economic growth best growing inequalities wealth and

  2. resentment from low skilled workers who see there jobs go abroad

  3. a & b

  4. real jobs in less developed countries and closed the poverty gap.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
Globalization refers to the process of increasing the interdependence of the different countries of the world. This process of globalization is promoted by the advancement of the technology.Globalization has brought:a) economic growth best growing inequalities wealth
b) resentment from low skilled workers who see there jobs go abroad.
Multiple choice organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

The following factors are key drivers of globalization.


  1. Government action, exchange rates, competition and socio demographic factors

  2. Market convergence, competition, exchange rates and cost advantages

  3. Cost advantages, government action, economic cycles and competition

  4. Market, cost, competition and government policies
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Globalization refers to the integration of various economies of the world by removing of strict policies in regard to the import and export of goods and services and foreign direct investments. Globalization involves greater interaction and interdependence among the various nations of the global economy which makes the market very vast. The key drivers of globalization are market, cost, competition and government policies.