Tag: concept and necessity of globalization

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

Liberalisation means:

  1. Integration among economies

  2. Reduced government controls and restrictions

  3. Policy of planned disinvestment

  4. None of them
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Liberalization means relaxation of various government restrictions in the areas of social and economic policies. Liberalizing trade policy by the government that is removal of tariff, subsidies and other restrictions on the flow of goods and services between countries is also termed as liberalization. 

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

Privatisation is a ____________.

  1. Global phenomenon

  2. Internal phenomenon

  3. New phenomenon

  4. Traditional phenomenon
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Privatization is a global trend. Privatization can be defined as a process of transferring of ownership or management of an enterprise from public sector to private sector. It helps to increase the size and dynamism of private sector. It also helps to reduce administrative burdens on the public sector.

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

The integration of the country with the world economy is called ______.

  1. International trade

  2. European Community Market

  3. Free trade zones

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

The integration of the country with the world economy is called globalization. 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

An important factor which has facilitated the globalisation process is ________.

  1. Foreign capital

  2. Foreign investment

  3. Foreign Aid

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

An important factor which has facilitated the globalization process is technology. 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

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

Privatization is a/an ________.

  1. Social policy

  2. Economic policy

  3. Political policy

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

Privatization is an international policy. Privatization can be defined as a process of transferring of ownership or management of an enterprise from public sector to private sector. It helps to increase the size and dynamism of private sector. It also helps to reduce administrative burdens on the public sector.

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

Closure of small scale firms is a positive effect of economic liberalisation.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

B. False

Liberalization aims at ending those restrictions which cause hindrances in the development and growth of the country. Under liberalization the government control over the economy is loosened and the private players are encouraged by imposing fewer restrictions on them. However, in this case the small scale business firms tend to suffer losses and thus end up closing. Due to the closure of these firms workers become unemployed and thus, this causes a negative effect.

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

The actual economic liberalization process began during _________.

  1. 1970's

  2. 1980's

  3. 1990's

  4. 1960's
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

India initiated its major economic liberalization program in 1991, following a balance of payments crisis, which opened the economy to global trade and reduced government control.

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

Prior to liberalisation ___________ of the most important industries were exclusively reserved for the public sector.

  1. 7

  2. 10

  3. 12

  4. 17
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Prior to liberalization 7 of the most important industries were exclusively reserved for the public sector. It was educed to 8 industries under the New Economic Policy, 1991. Liberalization refers to end of license, quota and many more restrictions and controls which were put on industries before 1991.

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

Economic and industrial liberalization was announced in the _________.

  1. Industrial policy resolution, 1948

  2. Industrial policy resolution, 1956

  3. Industrial policy statement, 1977

  4. Industrial policy, 1991
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Economic and industrial liberalization was announced in the Industrial policy, 1991. It helped to create a more free and competitive environment in the market. It also enhanced the interaction and interdependence among the various nations of the global economy.