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

Industrial licensing is confined to ________.

  1. 5 industries

  2. 8 industries

  3. 10 industries

  4. 15 industries
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Following the 1991 reforms, the number of industries requiring compulsory government licensing was drastically reduced to a very small number (currently 5).

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

An essential pre-requisite for a successful privatisation is _______.

  1. globalisation

  2. nationalisation

  3. liberalisation

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

An essential pre-requisite for a successful privatization is liberalization. Liberalization refers to end of license, quota and many more restrictions and controls which were put on industries before 1991. Liberalization is of utmost importance in order to give greater role to private sector of the economy.

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

At present (2018) _______ industries are reserved for the public sector.

  1. 5

  2. 2

  3. 8

  4. 12
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

At present (2018) 2 industries are reserved for the public sector. Atomic energy and Railways are the only two government monopolies in India. Only public sector undertaking has the authority to run the activities of these industries.

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

Which of the following restrictions were removed by the liberalization policy?

  1. Industrial licensing

  2. Clearance from the MRTP act

  3. Foreign Exchange restrictions

  4. All the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Liberalization policy helped to end of license, quota and many more restrictions and controls which were put on industries before 1991. Following restrictions were removed by the liberalization policy:
a) Industrial licensing
b) Clearance from the MRTP act
c) Foreign Exchange restrictions.
Multiple choice organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

Reason(s) for Privatization __________________.

  1. Revenue for Government

  2. Increasing the role of Public Sector

  3. Inefficiency of foreign sector

  4. Inefficiency, indifference, irresponsibility and corruption
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Reason for privatization is inefficiency, indifference, irresponsibility and corruption. 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

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

External sector liberalisation means _______.

  1. relaxing restrictions on international flow of goods, services, technology and capital

  2. relaxing restrictions on internal flow of capital

  3. relaxing the role of market

  4. all the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

External sector liberalization means relaxing restrictions on international flow of goods, services, technology and capital.  External sector liberalization has helped bringing down the volatility as well as the instability of our economy. It helps to create a more free and competitive economy.

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

Privatization means _______________________.

  1. The transfer of ownership or management of an enterprise from the public sector to the private sector.

  2. The transfer of ownership of an enterprise from the private sector to the public sector.

  3. The withdrawal of the state from an industry, partially or fully.

  4. Both (A) and (C)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Privatization means:a) The transfer of ownership or management of an enterprise from the public sector to the private sector.
b) The transfer of ownership of an enterprise from the private sector to the public sector.Privatization 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 following are the ways of privatisation:
1. Disinvestment  2. Denationalization
3. Franchising    4. Contracting
Which is correct?

  1. 1, 2 and 4

  2. 2 and 4

  3. 1 and 2

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

The following are the ways of privatization:

1. Disinvestment 
2. Denationalization
3. Franchising   
4. Contracting 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

Peter F. Drucker used the term 'Privatisation' in his famous book, ________.

  1. What is Privatisation?

  2. The Age of Discontinuity

  3. Quality and Competition

  4. Global Economy
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Peter F. Drucker used the term 'Privatization' in his famous book, 'The Age of Discontinuity'. 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.