Topic 1: Production Across Countries
Q1.
A footwear company obtains leather from one country, designs shoes in another, manufactures them in a third country and sells them internationally. This is an example of production being organised across different countries.
True / False
Q2.
If a company divides different stages of production among several countries, all stages of production must necessarily be completed in the country where the company has its headquarters.
True / False
Q3.
A company chooses a particular country for producing a component because skilled workers and suitable infrastructure are available there. This illustrates how production decisions can be influenced by the advantages offered by different locations.
True / False
Q4.
International production becomes impossible when a company uses resources, workers or production facilities located in more than one country.
True / False
Q5.
An MNC may locate different stages of production in different countries in order to take advantage of differences in costs, skills and availability of resources.
True / False
Q6.
A product can be considered internationally produced only when every single component of it is manufactured outside the country where it is finally sold.
True / False
Topic 2: Interlinking Production Across Countries
Q7.
An MNC places orders with Indian manufacturers for components that will later be used in products sold in several countries. This creates a link between Indian producers and international production networks.
True / False
Q8.
When an MNC works with a local company to produce a particular component, the local company necessarily becomes completely owned by the MNC.
True / False
Q9.
A local supplier improves its machinery after receiving an order from an MNC that requires higher production standards. This shows that links with MNCs can sometimes influence production methods of local companies.
True / False
Q10.
An MNC can organise production through partnerships with local companies without necessarily owning the entire local company.
True / False
Q11.
If an Indian company supplies components to an MNC, its production becomes completely independent of international markets.
True / False
Q12.
MNCs can connect producers in different countries by coordinating various stages of production and distribution.
True / False
Topic 3: Foreign Trade and Integration of Markets
Q13.
An Indian consumer can buy a product manufactured abroad, while an Indian producer can sell a product to consumers in another country. Such transactions connect markets across countries.
True / False
Q14.
Foreign trade affects consumers but has no effect on producers because producers operate only within their domestic markets.
True / False
Q15.
When imported products enter the domestic market, domestic producers may face increased competition.
True / False
Q16.
If foreign trade increases, consumers necessarily lose access to products manufactured within their own country.
True / False
Q17.
A reduction in trade barriers can enable producers to access foreign markets and can also make imported products more easily available in the domestic market.
True / False
Q18.
Market integration means that goods from different countries become available in connected markets; it does not require every product to have exactly the same price everywhere.
True / False
Topic 4: What Is Globalisation?
Q19.
An Indian company purchases inputs from several countries, manufactures its product in India and sells part of its output abroad. Such activities reflect the increasing integration of production and markets.
True / False
Q20.
Globalisation refers only to the movement of people from one country to another and does not involve production or markets.
True / False
Q21.
The presence of MNCs in several countries can contribute to the integration of production across countries.
True / False
Q22.
A product containing components manufactured in several countries can illustrate the international interconnection associated with globalisation.
True / False
Q23.
If a foreign company enters the Indian market, it automatically means that all Indian companies producing similar goods will disappear.
True / False
Q24.
Globalisation can provide consumers with access to products and brands from different countries.
True / False
Topic 5: Factors That Have Enabled Globalisation
Q25.
Improved communication technology allows an MNC to exchange production information rapidly with factories located in different countries, making international coordination easier.
True / False
Q26.
Improvements in transportation have made it more difficult for companies to move components and finished goods between countries.
True / False
Q27.
Modern information and communication technology can help firms coordinate production activities that are geographically separated.
True / False
Q28.
The reduction of restrictions on foreign investment can encourage MNCs to establish or expand business activities in a country.
True / False
Q29.
Technological improvements in transportation and communication have contributed to the expansion of international production networks.
True / False
Q30.
Liberalisation means that governments completely stop regulating all economic activities within their countries.
True / False
Topic 6: Liberalisation of Foreign Trade and Investment Policy
Q31.
The reduction of trade barriers in India made it easier for foreign goods to enter the Indian market.
True / False
Q32.
Liberalisation protects domestic producers from all forms of competition from foreign producers.
True / False
Q33.
A reduction in restrictions on foreign investment can make a country more attractive to MNCs seeking locations for production.
True / False
Q34.
When import restrictions are reduced, domestic producers may need to respond to greater competition from imported goods.
True / False
Q35.
Liberalisation necessarily means that the government must completely withdraw from economic decision-making.
True / False
Q36.
Changes in government policies concerning foreign trade and investment can influence the extent to which an economy becomes integrated with the world economy.
True / False
Topic 7: World Trade Organisation (WTO)
Q37.
The WTO is an international organisation concerned with rules governing international trade among countries.
True / False
Q38.
A country joining the WTO is automatically guaranteed exactly the same economic benefits as every other member country.
True / False
Q39.
Developing countries have raised concerns about trade rules and practices that they believe may disadvantage their producers.
True / False
Q40.
International trade rules can have effects on producers in countries other than the country that introduces a particular trade policy.
True / False
Q41.
Because countries participate in the WTO, all countries necessarily have identical interests regarding international trade.
True / False
Q42.
Discussions within the WTO can involve differences in the interests of developed and developing countries.
True / False
Topic 8: Impact of Globalisation in India
Q43.
Some Indian companies have benefited from globalisation by becoming suppliers to MNCs or by gaining access to international markets.
True / False
Q44.
The benefits of globalisation have been exactly the same for every Indian company, regardless of its size, technology or financial resources.
True / False
Q45.
Greater competition from international companies has encouraged some Indian companies to invest in technology and improve the quality of their products.
True / False
Q46.
The growth of international markets has created opportunities only for Indian manufacturing companies and has had no relevance for service-sector companies.
True / False
Q47.
The establishment of Special Economic Zones was intended, among other purposes, to attract investment and promote export-oriented production.
True / False
Q48.
An Indian company entering an international production network necessarily means that the company must be completely foreign-owned.
True / False
Topic 9: Challenges and Unequal Effects of Globalisation
Q49.
A small producer with limited financial resources may face greater difficulty competing with large companies in an increasingly competitive market.
True / False
Q50.
Since globalisation creates new markets, every worker and every producer automatically receives the same benefits from it.
True / False
Q51.
Globalisation can create new employment opportunities in some sectors while also creating difficulties or insecurity for some workers.
True / False
Q52.
A technological improvement associated with global competition necessarily increases employment for every type of worker.
True / False
Q53.
Differences in financial resources, technology and production capacity can cause different firms to experience the effects of globalisation differently.
True / False
Q54.
If some groups face difficulties because of globalisation, it proves that globalisation cannot provide benefits to any group.
True / False
Topic 10: The Struggle for a Fair Globalisation
Q55.
Fair globalisation involves efforts to ensure that the benefits of globalisation are more widely shared and that vulnerable groups are not ignored.
True / False
Q56.
Government policies can play a role in addressing difficulties faced by workers and small producers in an increasingly globalised economy.
True / False
Q57.
Developing countries can participate in international discussions and demand trade rules that take their interests into account.
True / False
Q58.
Making globalisation fairer requires ending all international trade between countries.
True / False
Q59.
Different groups, including workers and producers, can raise concerns about how globalisation affects them.
True / False
Q60.
Fair globalisation means that the concerns of weaker producers and workers should be ignored in favour of unrestricted competition.
True / False
Short Answer Key
| Q. No. | Answer | Q. No. | Answer | Q. No. | Answer | Q. No. | Answer |
| 1 | True | 16 | False | 31 | True | 46 | False |
| 2 | False | 17 | True | 32 | False | 47 | True |
| 3 | True | 18 | True | 33 | True | 48 | False |
| 4 | False | 19 | True | 34 | True | 49 | True |
| 5 | True | 20 | False | 35 | False | 50 | False |
| 6 | False | 21 | True | 36 | True | 51 | True |
| 7 | True | 22 | True | 37 | True | 52 | False |
| 8 | False | 23 | False | 38 | False | 53 | True |
| 9 | True | 24 | True | 39 | True | 54 | False |
| 10 | True | 25 | True | 40 | True | 55 | True |
| 11 | False | 26 | False | 41 | False | 56 | True |
| 12 | True | 27 | True | 42 | True | 57 | True |
| 13 | True | 28 | True | 43 | True | 58 | False |
| 14 | False | 29 | True | 44 | False | 59 | True |
| 15 | True | 30 | False | 45 | True | 60 | False |