Tag: globalization and trade

Questions Related to globalization and trade

Which one of the following is a positive impact of globalisation?

geography globalization and trade mncs and impact of globalization effects of globalisation in india globalisation and the indian economy

  1. Workers are facing insecurity

  2. Small-scale industries are perishing

  3. Production of goods in the economy has expanded

  4. Gap between rich and poor has widened

Show answer
Correct Option: C
Explanation:

Positive impact of globalisation:-

  • Greater competition among producers resulting from Globalisation is a great advantage to consumers as there is greater choice before them.
  • Due to globalisation many MNCs have increased their investments in India.
  • Local companies supplying raw materials, to these industries have prospered.

Which of the following is India's largest trading partner in the world?

geography globalization and trade mncs and impact of globalization effects of globalisation in india globalisation and the indian economy

  1. UAE

  2. China

  3. USA

  4. France

Show answer
Correct Option: B
Explanation:

India's largest trading partner in the world is China as India exports approximately 16.34 % of its total exports to China and import approximately 68.08 % of its total imports from China. Therefore the total trade that takes place between China and India comprises of approximately 84.4 % of India's overall trade which in highest with China. 

Globalization has affected ______ and ______. 

geography globalization and trade mncs and impact of globalization effects of globalisation in india globalisation and the indian economy

  1. Employment opportunities in developing countries

  2. Local industries

  3. Both A and B

  4. None

Show answer
Correct Option: C
Explanation:
In a globalised world, cheaper imports have replaced the demand for domestic goods. Domestic manufacturers are facing competition from imports. Globalisation is, thus, often seen as creating conditions for the free movement of goods and services from foreign countries that adversely affect the local industries and employment opportunities in developing countries.

Which of the following is not the disadvantage of MNC?

geography globalization and trade mncs and impact of globalization effects of globalisation in india globalisation and the indian economy

  1. Strain on foreign exchange reserve of the host country.

  2. More employment opportunities.

  3. Creation of monopolies.

  4. May kill domestic industry.

Show answer
Correct Option: B
Explanation:

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. As MNC operates in more than two or more countries it encourages employment opportunities in different countries. Hence, it is not the disadvantage of MNC.

Multinational Corporations can be defined as a firm which ________________.

geography globalization and trade mncs and impact of globalization effects of globalisation in india globalisation and the indian economy

  1. is having all the government benefits of the origin country

  2. is counted amongst the biggest industries in the host country

  3. owns companies in more than one country

  4. all of the above

Show answer
Correct Option: C
Explanation:

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. Hence, MNCs can be defined as a firm which owns companies in more than one country.

For multinational activity, internalization means __________.

geography globalization and trade mncs and impact of globalization effects of globalisation in india globalisation and the indian economy

  1. to undercut the prices of local producers in overseas markets as multinational have an approach and exposure to global market and their scale of production is large enough.

  2. to set up an overseas production operation because of the fear of franchising operations that has been given to local firms already in the market.

  3. exploiting a well-established global brand image to dominate overseas markets.

  4. all of the above

Show answer
Correct Option: C
Explanation:

Internalisation  is the process of increasing the involvement of enterprises in international markets. Hence, for multinatinoal activity, internalisation means exploiting a well-established global brand image to dominate overseas markets.

The multinational corporations provides lot of benefits as it ___________.

geography globalization and trade mncs and impact of globalization effects of globalisation in india globalisation and the indian economy

  1. increases the transfer of technology between nations

  2. they always produce the goods

  3. host countries progress is mostly dependent on them

  4. none of the above

Show answer
Correct Option: A
Explanation:

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. Its main advantage is it increases the transfer of technology between the nations.

An MNC is defined by an organisation __________.

geography globalization and trade mncs and impact of globalization effects of globalisation in india globalisation and the indian economy

  1. carrying out production in more than one country

  2. having sales in more than one country

  3. having a multi-ethnic workforce

  4. having-suppliers in more than one country

Show answer
Correct Option: A
Explanation:

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. Hence, a MNC is defined by an organisation carrying out production in more than one country.

The characteristics feature of a multinational enterprise (MNE) include __________.

geography globalization and trade mncs and impact of globalization effects of globalisation in india globalisation and the indian economy

  1. it owns its subsidiaries in other countries

  2. it may operate in another country

  3. these are established due to difference in the rate of return on capital between the two countries

  4. both (a) and (b)

Show answer
Correct Option: D
Explanation:

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. Hence, the characteristic feature of a MNE include it owns its subsidiaries in other countries as well as it may operate in another country.

What can be a disadvantage to the home country of the  MNC's investing in other countries?

geography globalization and trade mncs and impact of globalization effects of globalisation in india globalisation and the indian economy

  1. Transfer of capital from home country to host country.

  2. No employment to the people.

  3. Both a and b

  4. None of the above

Show answer
Correct Option: B
Explanation:

MNC refers to those organisations who have their headquarters in the home country and subsidiaries in two or more country. When a MNC invests in other countries it directly increases employment in the countries where investment is done. Hence, it can be a disadvantage to the home country as employment decreases..