TOPIC 1: Production Across Countries
Q1.
A company wants to sell shoes globally but finds that producing every component in one country is expensive. It therefore considers producing different components in different countries.
Match Column I with Column II:
| Column I | Column II |
| 1. Producing different components in different countries | a. Division of production |
| 2. Selecting a country based on lower production cost | b. Global production decision |
| 3. Selling products in several national markets | c. Wider market access |
| 4. Using production facilities outside the home country | d. Internationalisation of production |
Options:
A. 1-a, 2-b, 3-c, 4-d
B. 1-b, 2-a, 3-d, 4-c
C. 1-d, 2-c, 3-a, 4-b
D. 1-c, 2-d, 3-b, 4-a
Q2.
An electronics company keeps research in one country, assembles products in another and sells them worldwide. Which relationships best explain this arrangement?
| Column I | Column II |
| 1. Research located separately | a. Specialisation of activities |
| 2. Assembly in another country | b. International production network |
| 3. Worldwide sales | c. Access to global markets |
| 4. Different countries performing different tasks | d. Fragmentation of production |
A. 1-d, 2-a, 3-b, 4-c
B. 1-a, 2-d, 3-c, 4-b
C. 1-b, 2-c, 3-a, 4-d
D. 1-c, 2-b, 3-d, 4-a
Q3.
A multinational firm compares labour costs, availability of skilled workers, infrastructure and access to markets before locating production.
| Column I | Column II |
| 1. Lower labour cost | a. Cost consideration |
| 2. Skilled workers | b. Human resource consideration |
| 3. Good transport facilities | c. Infrastructure consideration |
| 4. Proximity to customers | d. Market consideration |
A. 1-b, 2-a, 3-d, 4-c
B. 1-c, 2-d, 3-a, 4-b
C. 1-a, 2-b, 3-c, 4-d
D. 1-d, 2-c, 3-b, 4-a
Q4.
A garment producer shifts part of its production from one country to another because the second country provides cheaper labour and suitable facilities.
| Column I | Column II |
| 1. Shifting production | a. Locational decision |
| 2. Cheaper labour | b. Cost advantage |
| 3. Suitable facilities | c. Production support |
| 4. Production in another country | d. Internationalisation |
A. 1-a, 2-b, 3-c, 4-d
B. 1-d, 2-c, 3-b, 4-a
C. 1-b, 2-a, 3-d, 4-c
D. 1-c, 2-d, 3-a, 4-b
Q5.
A company decides not to produce an entire product itself. Instead, different suppliers in different countries manufacture individual parts.
| Column I | Column II |
| 1. Individual suppliers | a. Distribution of production |
| 2. Different countries | b. Geographical spread |
| 3. Separate components | c. Fragmentation |
| 4. Coordinated production | d. Production network |
A. 1-b, 2-d, 3-a, 4-c
B. 1-c, 2-a, 3-d, 4-b
C. 1-d, 2-b, 3-c, 4-a
D. 1-a, 2-b, 3-c, 4-d
Q6.
A firm chooses a country where it can combine low costs with access to skilled labour and large markets.
| Column I | Column II |
| 1. Low production cost | a. Economic incentive |
| 2. Skilled labour | b. Labour advantage |
| 3. Large market | c. Demand advantage |
| 4. Combined considerations | d. Location decision |
A. 1-b, 2-c, 3-d, 4-a
B. 1-a, 2-b, 3-c, 4-d
C. 1-c, 2-d, 3-a, 4-b
D. 1-d, 2-a, 3-b, 4-c
TOPIC 2: Interlinking Production Across Countries
Q7.
A mobile phone sold in India contains components manufactured in several countries. Which concepts best explain this situation?
| Column I | Column II |
| 1. Components from several countries | a. International production |
| 2. One final product | b. Interdependence |
| 3. Different stages in different countries | c. Production fragmentation |
| 4. Coordination among producers | d. Production network |
A. 1-c, 2-a, 3-d, 4-b
B. 1-a, 2-b, 3-c, 4-d
C. 1-d, 2-c, 3-b, 4-a
D. 1-b, 2-d, 3-a, 4-c
Q8.
A multinational company places its manufacturing units in countries where production conditions are favourable and connects them through a common supply chain.
| Column I | Column II |
| 1. Different manufacturing locations | a. Geographical distribution |
| 2. Common supply chain | b. Interconnection |
| 3. Favourable production conditions | c. Locational advantage |
| 4. Multinational coordination | d. Global production system |
A. 1-a, 2-b, 3-c, 4-d
B. 1-c, 2-d, 3-a, 4-b
C. 1-d, 2-c, 3-b, 4-a
D. 1-b, 2-a, 3-d, 4-c
Q9.
Suppose a disruption in one country’s component production delays final production in another country.
| Column I | Column II |
| 1. Component shortage | a. Supply-chain disruption |
| 2. Delay in final production | b. Interdependence |
| 3. Production occurring across borders | c. International linkage |
| 4. Dependence on suppliers | d. Production network relationship |
A. 1-b, 2-d, 3-a, 4-c
B. 1-c, 2-a, 3-d, 4-b
C. 1-a, 2-b, 3-c, 4-d
D. 1-d, 2-c, 3-b, 4-a
Q10.
A company gives production contracts to local producers while controlling product design and quality standards.
| Column I | Column II |
| 1. Production contract | a. Outsourcing arrangement |
| 2. Company-designed product | b. Control over specifications |
| 3. Local producer | c. External production partner |
| 4. Quality standards | d. Production coordination |
A. 1-a, 2-b, 3-c, 4-d
B. 1-d, 2-c, 3-b, 4-a
C. 1-b, 2-d, 3-a, 4-c
D. 1-c, 2-a, 3-d, 4-b
Q11.
A firm contracts suppliers from different countries instead of maintaining all production facilities itself.
| Column I | Column II |
| 1. Contracting suppliers | a. Outsourcing |
| 2. Different countries | b. International sourcing |
| 3. Reduced direct production | c. Externalisation |
| 4. Coordinated suppliers | d. Production linkage |
A. 1-c, 2-a, 3-d, 4-b
B. 1-a, 2-b, 3-c, 4-d
C. 1-d, 2-c, 3-b, 4-a
D. 1-b, 2-d, 3-a, 4-c
Q12.
A multinational company coordinates suppliers, production units and distributors across several countries.
| Column I | Column II |
| 1. Suppliers | a. Input source |
| 2. Production units | b. Manufacturing stage |
| 3. Distributors | c. Market linkage |
| 4. Coordination across countries | d. Global network |
A. 1-b, 2-a, 3-d, 4-c
B. 1-d, 2-c, 3-b, 4-a
C. 1-a, 2-b, 3-c, 4-d
D. 1-c, 2-d, 3-a, 4-b
TOPIC 3: Foreign Trade and Integration of Markets
Q13.
An Indian consumer can buy a product previously unavailable in the domestic market because imports have increased.
| Column I | Column II |
| 1. Imports increase | a. Availability of foreign goods |
| 2. Consumers get more choices | b. Consumer choice |
| 3. Foreign products enter domestic markets | c. Market integration |
| 4. Domestic and foreign sellers interact | d. Competition |
A. 1-a, 2-b, 3-c, 4-d
B. 1-c, 2-d, 3-a, 4-b
C. 1-d, 2-a, 3-b, 4-c
D. 1-b, 2-c, 3-d, 4-a
Q14.
A domestic producer faces competition after foreign goods become available in the Indian market.
| Column I | Column II |
| 1. Entry of imports | a. Increased competition |
| 2. Domestic producer | b. Local supplier |
| 3. Foreign producer | c. External competitor |
| 4. Consumer choice | d. Market outcome |
A. 1-b, 2-c, 3-d, 4-a
B. 1-d, 2-a, 3-b, 4-c
C. 1-a, 2-b, 3-c, 4-d
D. 1-c, 2-d, 3-a, 4-b
Q15.
A foreign company begins selling in India, while Indian companies sell products abroad.
| Column I | Column II |
| 1. Foreign company selling in India | a. Import-related market competition |
| 2. Indian company selling abroad | b. Export activity |
| 3. Buyers choosing among suppliers | c. Competition |
| 4. Domestic and foreign markets becoming connected | d. Market integration |
A. 1-d, 2-c, 3-b, 4-a
B. 1-a, 2-b, 3-c, 4-d
C. 1-b, 2-d, 3-a, 4-c
D. 1-c, 2-a, 3-d, 4-b
Q16.
Suppose imported toys become cheaper and domestic consumers shift towards them.
| Column I | Column II |
| 1. Cheaper imported toys | a. Price competition |
| 2. Consumers shifting purchases | b. Change in demand |
| 3. Domestic producers facing pressure | c. Competitive impact |
| 4. Availability of foreign products | d. Import expansion |
A. 1-a, 2-b, 3-c, 4-d
B. 1-d, 2-c, 3-b, 4-a
C. 1-c, 2-d, 3-a, 4-b
D. 1-b, 2-a, 3-d, 4-c
Q17.
A domestic market that earlier had only local producers now contains products from many countries.
| Column I | Column II |
| 1. Local producers | a. Domestic supply |
| 2. Foreign products | b. Imported supply |
| 3. Multiple suppliers | c. Wider competition |
| 4. Connected markets | d. Market integration |
A. 1-c, 2-d, 3-a, 4-b
B. 1-a, 2-b, 3-c, 4-d
C. 1-b, 2-a, 3-d, 4-c
D. 1-d, 2-c, 3-b, 4-a
Q18.
A rise in exports creates opportunities for producers to sell beyond the domestic market.
| Column I | Column II |
| 1. Export market | a. Wider market |
| 2. Domestic producer | b. Supplier |
| 3. International buyers | c. External demand |
| 4. Increased trade | d. Market connection |
A. 1-b, 2-d, 3-c, 4-a
B. 1-c, 2-a, 3-d, 4-b
C. 1-a, 2-b, 3-c, 4-d
D. 1-d, 2-c, 3-b, 4-a
TOPIC 4: What is Globalisation?
Q19.
A product is designed in one country, manufactured in another and sold across several countries.
| Column I | Column II |
| 1. Design across borders | a. International production |
| 2. Manufacturing abroad | b. Geographical distribution |
| 3. Sale in several countries | c. International markets |
| 4. Overall process | d. Globalisation |
A. 1-d, 2-b, 3-c, 4-a
B. 1-a, 2-c, 3-b, 4-d
C. 1-b, 2-a, 3-d, 4-c
D. 1-c, 2-d, 3-a, 4-b
Q20.
A consumer in India purchases a product of a multinational company whose production involves several countries.
| Column I | Column II |
| 1. Multinational company | a. Organisation across countries |
| 2. International production | b. Cross-border production |
| 3. Indian consumer | c. Domestic market participant |
| 4. Globalisation | d. Integration of production and markets |
A. 1-a, 2-b, 3-c, 4-d
B. 1-d, 2-c, 3-b, 4-a
C. 1-b, 2-a, 3-d, 4-c
D. 1-c, 2-d, 3-a, 4-b
Q21.
A firm connects production, investment and trade activities across countries.
| Column I | Column II |
| 1. Production across borders | a. International production |
| 2. Investment across countries | b. International investment |
| 3. Trade across countries | c. Foreign trade |
| 4. Overall interconnected process | d. Globalisation |
A. 1-b, 2-c, 3-d, 4-a
B. 1-c, 2-a, 3-b, 4-d
C. 1-a, 2-b, 3-c, 4-d
D. 1-d, 2-b, 3-a, 4-c
Q22.
A business uses global suppliers, international finance and foreign markets simultaneously.
| Column I | Column II |
| 1. Global suppliers | a. International sourcing |
| 2. Foreign finance | b. Cross-border financial linkage |
| 3. Foreign markets | c. International demand |
| 4. Combined interaction | d. Global economic integration |
A. 1-a, 2-b, 3-c, 4-d
B. 1-c, 2-d, 3-a, 4-b
C. 1-d, 2-a, 3-b, 4-c
D. 1-b, 2-c, 3-d, 4-a
Q23.
Two countries become increasingly connected because firms invest, trade and produce in both.
| Column I | Column II |
| 1. Investment | a. Capital linkage |
| 2. Trade | b. Market linkage |
| 3. Production | c. Production linkage |
| 4. Increasing overall connection | d. Globalisation |
A. 1-c, 2-a, 3-d, 4-b
B. 1-a, 2-b, 3-c, 4-d
C. 1-d, 2-c, 3-b, 4-a
D. 1-b, 2-d, 3-a, 4-c
Q24.
A small Indian producer begins supplying components to a foreign company.
| Column I | Column II |
| 1. Indian producer | a. Domestic supplier |
| 2. Foreign company | b. International buyer |
| 3. Component supply | c. Production linkage |
| 4. Cross-border business relationship | d. Globalisation linkage |
A. 1-b, 2-c, 3-d, 4-a
B. 1-d, 2-a, 3-c, 4-b
C. 1-a, 2-b, 3-c, 4-d
D. 1-c, 2-d, 3-a, 4-b
TOPIC 5: Factors that Have Enabled Globalisation
Q25.
A dramatic fall in transport costs enables firms to move goods between countries more easily.
| Column I | Column II |
| 1. Lower transport costs | a. Easier movement of goods |
| 2. Faster transport | b. Reduced time |
| 3. International trade | c. Wider trade possibilities |
| 4. Globalisation | d. Greater economic connection |
A. 1-a, 2-b, 3-c, 4-d
B. 1-d, 2-c, 3-b, 4-a
C. 1-b, 2-a, 3-d, 4-c
D. 1-c, 2-d, 3-a, 4-b
Q26.
A company manages production units in three countries using real-time digital communication.
| Column I | Column II |
| 1. Digital communication | a. Faster information exchange |
| 2. Real-time coordination | b. Easier management |
| 3. Production across countries | c. International production |
| 4. Technological development | d. Enabling factor |
A. 1-c, 2-d, 3-a, 4-b
B. 1-a, 2-b, 3-c, 4-d
C. 1-d, 2-c, 3-b, 4-a
D. 1-b, 2-a, 3-d, 4-c
Q27.
Improved information technology allows a company in India to communicate quickly with a buyer in another country.
| Column I | Column II |
| 1. Internet communication | a. Faster information flow |
| 2. International buyer | b. Global market connection |
| 3. Quick exchange of information | c. Reduced communication barrier |
| 4. Technological progress | d. Support for globalisation |
A. 1-b, 2-a, 3-d, 4-c
B. 1-c, 2-d, 3-a, 4-b
C. 1-a, 2-b, 3-c, 4-d
D. 1-d, 2-c, 3-b, 4-a
Q28.
A reduction in trade barriers makes it easier for companies to buy and sell internationally.
| Column I | Column II |
| 1. Reduction in trade barriers | a. Easier international trade |
| 2. Foreign suppliers | b. Expanded sourcing |
| 3. Foreign markets | c. Expanded selling opportunities |
| 4. Globalisation | d. Greater international integration |
A. 1-a, 2-b, 3-c, 4-d
B. 1-c, 2-a, 3-d, 4-b
C. 1-d, 2-c, 3-b, 4-a
D. 1-b, 2-d, 3-a, 4-c
Q29.
A firm uses improved technology to coordinate production and transport across continents.
| Column I | Column II |
| 1. Improved technology | a. Better coordination |
| 2. International transport | b. Movement across borders |
| 3. Production coordination | c. Integrated production |
| 4. Global operations | d. International business activity |
A. 1-b, 2-c, 3-a, 4-d
B. 1-d, 2-a, 3-c, 4-b
C. 1-a, 2-b, 3-c, 4-d
D. 1-c, 2-d, 3-b, 4-a
Q30.
A company can instantly compare suppliers in different countries through digital platforms.
| Column I | Column II |
| 1. Digital platform | a. Information access |
| 2. International suppliers | b. Wider sourcing choices |
| 3. Quick comparison | c. Reduced information barrier |
| 4. Global sourcing | d. International production linkage |
A. 1-c, 2-d, 3-b, 4-a
B. 1-a, 2-b, 3-c, 4-d
C. 1-d, 2-a, 3-b, 4-c
D. 1-b, 2-c, 3-d, 4-a
TOPIC 6: Liberalisation of Foreign Trade and Investment Policy
Q31.
The government removes some restrictions on imports, allowing foreign goods to enter more easily.
| Column I | Column II |
| 1. Removal of import restrictions | a. Liberalisation |
| 2. Greater entry of foreign goods | b. Increased import competition |
| 3. Domestic producers facing foreign competition | c. Competitive pressure |
| 4. Reduced government barriers | d. Trade-policy change |
A. 1-a, 2-b, 3-c, 4-d
B. 1-c, 2-d, 3-a, 4-b
C. 1-d, 2-a, 3-b, 4-c
D. 1-b, 2-c, 3-d, 4-a
Q32.
A country reduces restrictions on foreign investment.
| Column I | Column II |
| 1. Foreign investment | a. Capital entering from abroad |
| 2. Reduced restrictions | b. Investment liberalisation |
| 3. Foreign companies | c. Potential investors |
| 4. Greater investment opportunities | d. Increased international economic linkage |
A. 1-b, 2-c, 3-d, 4-a
B. 1-d, 2-a, 3-b, 4-c
C. 1-a, 2-b, 3-c, 4-d
D. 1-c, 2-d, 3-a, 4-b
Q33.
Earlier, a government protected domestic producers through high import duties. Later, it reduces these duties.
| Column I | Column II |
| 1. High import duty | a. Protection from imports |
| 2. Reduction in duty | b. Trade liberalisation |
| 3. Cheaper imports becoming possible | c. Greater import competition |
| 4. Domestic firms | d. Firms affected by policy change |
A. 1-c, 2-a, 3-d, 4-b
B. 1-a, 2-b, 3-c, 4-d
C. 1-d, 2-c, 3-b, 4-a
D. 1-b, 2-d, 3-a, 4-c
Q34.
A domestic industry previously protected from foreign competition now has to compete with imports.
| Column I | Column II |
| 1. Earlier protection | a. Trade barrier |
| 2. Removal of protection | b. Liberalisation |
| 3. Foreign competition | c. Competitive challenge |
| 4. Domestic firms | d. Local producers |
A. 1-a, 2-b, 3-c, 4-d
B. 1-d, 2-c, 3-b, 4-a
C. 1-b, 2-a, 3-d, 4-c
D. 1-c, 2-d, 3-a, 4-b
Q35.
A government reduces barriers to foreign trade as part of a wider policy of integrating its economy with the world economy.
| Column I | Column II |
| 1. Reduced trade barriers | a. Liberalisation |
| 2. Greater foreign trade | b. International integration |
| 3. Domestic market exposed to imports | c. Increased competition |
| 4. Wider economic integration | d. Globalisation-related policy |
A. 1-b, 2-c, 3-a, 4-d
B. 1-a, 2-b, 3-c, 4-d
C. 1-d, 2-a, 3-b, 4-c
D. 1-c, 2-d, 3-a, 4-b
Q36.
A foreign company can invest more easily after restrictions on foreign investment are reduced.
| Column I | Column II |
| 1. Reduced restrictions | a. Liberalisation |
| 2. Foreign investor | b. International capital provider |
| 3. Easier investment | c. Greater investment access |
| 4. Economic opening | d. Greater integration with world economy |
A. 1-a, 2-b, 3-c, 4-d
B. 1-d, 2-c, 3-b, 4-a
C. 1-c, 2-a, 3-d, 4-b
D. 1-b, 2-d, 3-a, 4-c
TOPIC 7: World Trade Organisation (WTO)
Q37.
A country participates in the WTO framework to facilitate international trade according to agreed rules.
| Column I | Column II |
| 1. WTO | a. International trade organisation |
| 2. Trade rules | b. Framework for international trade |
| 3. Member countries | c. Participants in the trading system |
| 4. Trade liberalisation | d. Reduction of trade barriers |
A. 1-a, 2-b, 3-c, 4-d
B. 1-d, 2-c, 3-b, 4-a
C. 1-b, 2-a, 3-d, 4-c
D. 1-c, 2-d, 3-a, 4-b
Q38.
A developing country argues that developed countries should reduce trade barriers and subsidies that affect competition.
| Column I | Column II |
| 1. Trade barriers | a. Restrictions on trade |
| 2. Subsidies | b. Government support |
| 3. Developing country | c. Participant raising concerns |
| 4. WTO negotiations | d. International trade discussions |
A. 1-c, 2-d, 3-a, 4-b
B. 1-a, 2-b, 3-c, 4-d
C. 1-d, 2-c, 3-b, 4-a
D. 1-b, 2-a, 3-d, 4-c
Q39.
Countries negotiate within the WTO over rules governing international trade.
| Column I | Column II |
| 1. Countries | a. WTO members |
| 2. Negotiation | b. Process of reaching agreements |
| 3. Trade rules | c. Rules governing international commerce |
| 4. WTO | d. Multilateral trade institution |
A. 1-b, 2-c, 3-d, 4-a
B. 1-c, 2-a, 3-b, 4-d
C. 1-a, 2-b, 3-c, 4-d
D. 1-d, 2-b, 3-a, 4-c
Q40.
A farmer’s organisation argues that international trade rules should consider the interests of developing-country producers.
| Column I | Column II |
| 1. Farmer organisation | a. Interest group |
| 2. Developing-country producers | b. Affected economic group |
| 3. International trade rules | c. WTO-related rules |
| 4. Demand for fair rules | d. Policy concern |
A. 1-a, 2-b, 3-c, 4-d
B. 1-c, 2-d, 3-a, 4-b
C. 1-d, 2-a, 3-b, 4-c
D. 1-b, 2-c, 3-d, 4-a
Q41.
A dispute arises when countries disagree over whether trade practices comply with agreed international rules.
| Column I | Column II |
| 1. Trade disagreement | a. International trade dispute |
| 2. WTO rules | b. Agreed framework |
| 3. Member countries | c. Parties to the trading system |
| 4. Dispute-related process | d. Institutional mechanism |
A. 1-c, 2-a, 3-d, 4-b
B. 1-a, 2-b, 3-c, 4-d
C. 1-d, 2-c, 3-b, 4-a
D. 1-b, 2-d, 3-a, 4-c
Q42.
A country argues that the benefits of trade liberalisation should not depend on whether a country is rich or poor.
| Column I | Column II |
| 1. Rich countries | a. Developed economies |
| 2. Poor countries | b. Developing economies |
| 3. Trade liberalisation | c. Reduction of trade barriers |
| 4. WTO-related concern | d. Fairness in international trade |
A. 1-b, 2-c, 3-d, 4-a
B. 1-a, 2-b, 3-c, 4-d
C. 1-d, 2-a, 3-b, 4-c
D. 1-c, 2-d, 3-a, 4-b
TOPIC 8: Impact of Globalisation in India
Q43.
A multinational company enters India and establishes production facilities, creating new opportunities for some suppliers and workers.
| Column I | Column II |
| 1. MNC investment | a. Foreign investment |
| 2. Production facility | b. Manufacturing activity |
| 3. Local suppliers | c. Linkages with domestic producers |
| 4. Workers | d. Employment opportunity |
A. 1-a, 2-b, 3-c, 4-d
B. 1-c, 2-d, 3-a, 4-b
C. 1-d, 2-a, 3-b, 4-c
D. 1-b, 2-c, 3-d, 4-a
Q44.
Indian consumers find a wider variety of goods after greater integration with the global economy.
| Column I | Column II |
| 1. Wider product variety | a. Greater consumer choice |
| 2. Foreign brands | b. International products |
| 3. Competition | c. Market pressure |
| 4. Globalisation | d. Increased international market connection |
A. 1-b, 2-c, 3-d, 4-a
B. 1-d, 2-a, 3-b, 4-c
C. 1-a, 2-b, 3-c, 4-d
D. 1-c, 2-d, 3-a, 4-b
Q45.
An Indian company becomes a supplier to a multinational corporation and gains access to new markets.
| Column I | Column II |
| 1. Indian supplier | a. Domestic producer |
| 2. MNC | b. International enterprise |
| 3. New markets | c. Expanded market opportunity |
| 4. Supplier relationship | d. Production linkage |
A. 1-d, 2-c, 3-b, 4-a
B. 1-a, 2-b, 3-c, 4-d
C. 1-b, 2-a, 3-d, 4-c
D. 1-c, 2-d, 3-a, 4-b
Q46.
Some Indian producers modernise their technology to compete with foreign producers.
| Column I | Column II |
| 1. Foreign competition | a. Competitive pressure |
| 2. Technology upgrade | b. Modernisation response |
| 3. Indian producer | c. Domestic firm |
| 4. Globalisation | d. Greater market integration |
A. 1-a, 2-b, 3-c, 4-d
B. 1-d, 2-c, 3-b, 4-a
C. 1-c, 2-a, 3-d, 4-b
D. 1-b, 2-d, 3-a, 4-c
Q47.
A large Indian company expands abroad while a small producer struggles to compete with cheaper imports.
| Column I | Column II |
| 1. Large Indian company | a. Producer with expansion capacity |
| 2. Foreign market | b. International market |
| 3. Small producer | c. Vulnerable domestic producer |
| 4. Cheaper imports | d. Competitive pressure |
A. 1-b, 2-d, 3-a, 4-c
B. 1-c, 2-a, 3-d, 4-b
C. 1-a, 2-b, 3-c, 4-d
D. 1-d, 2-c, 3-b, 4-a
Q48.
The growth of MNC production in India connects Indian producers more closely with international production networks.
| Column I | Column II |
| 1. MNC production | a. Foreign-linked production |
| 2. Indian suppliers | b. Domestic production partners |
| 3. International network | c. Cross-border production linkage |
| 4. Globalisation | d. Increasing economic integration |
A. 1-a, 2-b, 3-c, 4-d
B. 1-c, 2-d, 3-a, 4-b
C. 1-d, 2-a, 3-b, 4-c
D. 1-b, 2-c, 3-d, 4-a
TOPIC 9: Challenges and Unequal Effects of Globalisation
Q49.
A small producer loses market share after cheaper imported goods become widely available.
| Column I | Column II |
| 1. Cheaper imports | a. Foreign competition |
| 2. Small producer | b. Vulnerable producer |
| 3. Loss of market share | c. Negative competitive effect |
| 4. Unequal impact | d. Different outcomes among producers |
A. 1-a, 2-b, 3-c, 4-d
B. 1-c, 2-d, 3-a, 4-b
C. 1-d, 2-a, 3-b, 4-c
D. 1-b, 2-c, 3-d, 4-a
Q50.
A large company with modern technology expands rapidly, while a small traditional producer finds adjustment difficult.
| Column I | Column II |
| 1. Modern technology | a. Competitive advantage |
| 2. Large company | b. Greater capacity to adjust |
| 3. Traditional producer | c. Adjustment challenge |
| 4. Unequal effect | d. Different impact across producers |
A. 1-b, 2-c, 3-d, 4-a
B. 1-a, 2-b, 3-c, 4-d
C. 1-d, 2-a, 3-b, 4-c
D. 1-c, 2-d, 3-a, 4-b
Q51.
A worker receives employment in an expanding export industry, while another worker loses employment in a declining traditional industry.
| Column I | Column II |
| 1. Export industry expansion | a. Employment opportunity |
| 2. Traditional industry decline | b. Employment loss |
| 3. Different workers | c. Unequal effects |
| 4. Globalisation | d. Structural economic change |
A. 1-c, 2-d, 3-a, 4-b
B. 1-a, 2-b, 3-c, 4-d
C. 1-d, 2-c, 3-b, 4-a
D. 1-b, 2-a, 3-d, 4-c
Q52.
A company benefits from access to global markets but workers face pressure to maintain low costs and high productivity.
| Column I | Column II |
| 1. Global markets | a. Wider demand |
| 2. Cost pressure | b. Competitive pressure |
| 3. Productivity requirement | c. Efficiency expectation |
| 4. Workers | d. Participants affected by production decisions |
A. 1-a, 2-b, 3-c, 4-d
B. 1-d, 2-c, 3-b, 4-a
C. 1-b, 2-a, 3-d, 4-c
D. 1-c, 2-d, 3-a, 4-b
Q53.
Some producers gain from globalisation because they have resources to modernise, while others cannot make similar investments.
| Column I | Column II |
| 1. Investment capacity | a. Ability to modernise |
| 2. Modernisation | b. Competitive adaptation |
| 3. Limited resources | c. Adjustment constraint |
| 4. Unequal gains | d. Different producer outcomes |
A. 1-b, 2-d, 3-a, 4-c
B. 1-a, 2-b, 3-c, 4-d
C. 1-c, 2-a, 3-d, 4-b
D. 1-d, 2-c, 3-b, 4-a
Q54.
A policy aimed at helping vulnerable producers becomes important when market integration creates uneven competitive pressures.
| Column I | Column II |
| 1. Vulnerable producers | a. Producers needing support |
| 2. Competitive pressure | b. Market challenge |
| 3. Government support | c. Policy response |
| 4. Unequal globalisation effects | d. Uneven economic outcomes |
A. 1-a, 2-b, 3-c, 4-d
B. 1-c, 2-d, 3-a, 4-b
C. 1-d, 2-c, 3-b, 4-a
D. 1-b, 2-a, 3-d, 4-c
TOPIC 10: Struggle for a Fair Globalisation
Q55.
Workers demand that the benefits of increased international trade should not come at the cost of unfair working conditions.
| Column I | Column II |
| 1. Workers | a. Affected stakeholders |
| 2. Working conditions | b. Labour concern |
| 3. International trade | c. Global economic activity |
| 4. Fair globalisation | d. More equitable distribution of benefits |
A. 1-a, 2-b, 3-c, 4-d
B. 1-c, 2-d, 3-a, 4-b
C. 1-d, 2-a, 3-b, 4-c
D. 1-b, 2-c, 3-d, 4-a
Q56.
An organisation demands that developing countries should have a greater voice in decisions affecting international trade.
| Column I | Column II |
| 1. Developing countries | a. Countries seeking greater participation |
| 2. International trade decisions | b. Global policy decisions |
| 3. Greater voice | c. Participation in decision-making |
| 4. Fair globalisation | d. More equitable international system |
A. 1-b, 2-c, 3-d, 4-a
B. 1-a, 2-b, 3-c, 4-d
C. 1-d, 2-a, 3-b, 4-c
D. 1-c, 2-d, 3-a, 4-b
Q57.
A group of small producers asks the government for policies that help them compete in an increasingly integrated market.
| Column I | Column II |
| 1. Small producers | a. Vulnerable economic group |
| 2. Integrated market | b. Competitive environment |
| 3. Government policies | c. Policy support |
| 4. Fair globalisation | d. Wider participation in benefits |
A. 1-c, 2-d, 3-a, 4-b
B. 1-a, 2-b, 3-c, 4-d
C. 1-d, 2-c, 3-b, 4-a
D. 1-b, 2-a, 3-d, 4-c
Q58.
People demand that international trade rules should take the interests of poorer countries into account.
| Column I | Column II |
| 1. Poorer countries | a. Developing economies |
| 2. International trade rules | b. Global trade framework |
| 3. Interests of poorer countries | c. Development concern |
| 4. Fair globalisation | d. Equitable participation |
A. 1-a, 2-b, 3-c, 4-d
B. 1-d, 2-c, 3-b, 4-a
C. 1-b, 2-a, 3-d, 4-c
D. 1-c, 2-d, 3-a, 4-b
Q59.
A workers’ organisation, farmers’ groups and other citizens jointly demand changes in policies affecting globalisation.
| Column I | Column II |
| 1. Workers’ organisation | a. Labour interest group |
| 2. Farmers’ groups | b. Producer interest group |
| 3. Joint demand | c. Collective action |
| 4. Policy change | d. Attempt to influence policy |
A. 1-b, 2-c, 3-d, 4-a
B. 1-a, 2-b, 3-c, 4-d
C. 1-d, 2-a, 3-b, 4-c
D. 1-c, 2-d, 3-a, 4-b
Q60.
A campaign calls for globalisation policies that provide opportunities to weaker sections while maintaining the benefits of international economic integration.
| Column I | Column II |
| 1. Weaker sections | a. Groups with fewer economic advantages |
| 2. Policy intervention | b. Government action |
| 3. International integration | c. Cross-border economic connection |
| 4. Fair globalisation | d. Broader sharing of benefits |
A. 1-a, 2-b, 3-c, 4-d
B. 1-c, 2-d, 3-a, 4-b
C. 1-d, 2-a, 3-b, 4-c
D. 1-b, 2-c, 3-d, 4-a
DETAILED ANSWER KEY
Topic 1 — Production Across Countries
| Q | Correct Option | Correct Matching | Explanation |
| 1 | A | 1-a, 2-b, 3-c, 4-d | Production may be divided among countries according to their advantages, while firms seek suitable locations and markets internationally. |
| 2 | B | 1-a, 2-d, 3-c, 4-b | Separate research, assembly and other activities show specialisation and fragmentation within an international production network. |
| 3 | C | 1-a, 2-b, 3-c, 4-d | Labour cost, skills, infrastructure and market access are different considerations in locating production. |
| 4 | A | 1-a, 2-b, 3-c, 4-d | Moving production is a location decision; lower labour cost and suitable facilities can influence it. |
| 5 | D | 1-a, 2-b, 3-c, 4-d | Suppliers may be distributed geographically, with separate components representing fragmented production within a coordinated network. |
| 6 | B | 1-a, 2-b, 3-c, 4-d | Low cost, skilled labour and market size are separate advantages considered in an overall location decision. |
Topic 2 — Interlinking Production Across Countries
| Q | Correct Option | Correct Matching | Explanation |
| 7 | B | 1-a, 2-b, 3-c, 4-d | Components from different countries and coordinated stages show international production and interdependence. |
| 8 | A | 1-a, 2-b, 3-c, 4-d | Geographically distributed production becomes interconnected through common supply chains and multinational coordination. |
| 9 | C | 1-a, 2-b, 3-c, 4-d | A disruption in one part of an international supply chain can affect another part because production is interconnected. |
| 10 | A | 1-a, 2-b, 3-c, 4-d | Contract production is an outsourcing arrangement, while specifications and quality standards allow the main company to coordinate production. |
| 11 | B | 1-a, 2-b, 3-c, 4-d | Using suppliers in other countries represents outsourcing and international sourcing within a wider production linkage. |
| 12 | C | 1-a, 2-b, 3-c, 4-d | Suppliers provide inputs, production units manufacture goods, distributors connect production to markets, and their coordination forms a global network. |
Topic 3 — Foreign Trade and Integration of Markets
| Q | Correct Option | Correct Matching | Explanation |
| 13 | A | 1-a, 2-b, 3-c, 4-d | Imports increase availability and choice and connect domestic producers and consumers with foreign markets. |
| 14 | C | 1-a, 2-b, 3-c, 4-d | Imported goods can increase competition for domestic producers while consumers gain additional choices. |
| 15 | B | 1-a, 2-b, 3-c, 4-d | Foreign firms entering India and Indian firms selling abroad represent international trade and market integration. |
| 16 | A | 1-a, 2-b, 3-c, 4-d | Lower-priced imports may change consumer demand and create competitive pressure for domestic producers. |
| 17 | B | 1-a, 2-b, 3-c, 4-d | Combining domestic and imported supply creates a market with wider competition and greater integration. |
| 18 | C | 1-a, 2-b, 3-c, 4-d | Export markets widen the market available to producers and connect domestic supply with international demand. |
Topic 4 — What is Globalisation?
| Q | Correct Option | Correct Matching | Explanation |
| 19 | D | 1-a, 2-b, 3-c, 4-d | Production and markets becoming increasingly connected across countries is central to globalisation. |
| 20 | A | 1-a, 2-b, 3-c, 4-d | MNCs organise activities across countries, while consumers participate in increasingly interconnected markets. |
| 21 | C | 1-a, 2-b, 3-c, 4-d | International production, investment and trade together create broader economic interconnection. |
| 22 | A | 1-a, 2-b, 3-c, 4-d | Global suppliers, foreign finance and international markets are components of wider economic integration. |
| 23 | B | 1-a, 2-b, 3-c, 4-d | Investment, trade and production link economies through different channels. |
| 24 | C | 1-a, 2-b, 3-c, 4-d | A domestic producer supplying an international company creates a cross-border production relationship. |
Topic 5 — Factors that Have Enabled Globalisation
| Q | Correct Option | Correct Matching | Explanation |
| 25 | A | 1-a, 2-b, 3-c, 4-d | Lower transport costs and faster movement of goods make international trade easier and support globalisation. |
| 26 | B | 1-a, 2-b, 3-c, 4-d | Information technology enables real-time coordination of internationally distributed production. |
| 27 | C | 1-a, 2-b, 3-c, 4-d | Improved communication reduces information barriers and makes international business relationships easier. |
| 28 | A | 1-a, 2-b, 3-c, 4-d | Reduced trade barriers allow firms to source and sell internationally more easily. |
| 29 | C | 1-a, 2-b, 3-c, 4-d | Technology improves coordination while transport connects production and markets across countries. |
| 30 | B | 1-a, 2-b, 3-c, 4-d | Digital platforms increase access to information about foreign suppliers and facilitate global sourcing. |
Topic 6 — Liberalisation of Foreign Trade and Investment Policy
| Q | Correct Option | Correct Matching | Explanation |
| 31 | A | 1-a, 2-b, 3-c, 4-d | Removing restrictions on imports is a form of trade liberalisation and can increase competition. |
| 32 | C | 1-a, 2-b, 3-c, 4-d | Reducing restrictions on foreign investment makes it easier for foreign capital to enter the economy. |
| 33 | B | 1-a, 2-b, 3-c, 4-d | Import duties can protect domestic producers; reducing them represents liberalisation and can increase import competition. |
| 34 | A | 1-a, 2-b, 3-c, 4-d | Removal of protection exposes domestic firms to greater competition from foreign producers. |
| 35 | B | 1-a, 2-b, 3-c, 4-d | Reduced trade barriers are part of liberalisation and can increase integration with the world economy. |
| 36 | A | 1-a, 2-b, 3-c, 4-d | Reducing restrictions makes foreign investment easier and increases economic links with other countries. |
Topic 7 — WTO
| Q | Correct Option | Correct Matching | Explanation |
| 37 | A | 1-a, 2-b, 3-c, 4-d | WTO provides an institutional framework for international trade rules among member countries. |
| 38 | B | 1-a, 2-b, 3-c, 4-d | Developing countries may raise concerns about trade barriers and subsidies during international negotiations. |
| 39 | C | 1-a, 2-b, 3-c, 4-d | WTO members negotiate rules governing international commerce through multilateral processes. |
| 40 | A | 1-a, 2-b, 3-c, 4-d | Farmers and other groups can be affected by international trade rules and may demand consideration of their interests. |
| 41 | B | 1-a, 2-b, 3-c, 4-d | Trade disputes involve countries interpreting or applying agreed international trade rules. |
| 42 | B | 1-a, 2-b, 3-c, 4-d | The question concerns differences between developed and developing economies and the fairness of international trade arrangements. |
Topic 8 — Impact of Globalisation in India
| Q | Correct Option | Correct Matching | Explanation |
| 43 | A | 1-a, 2-b, 3-c, 4-d | MNC investment can create production facilities, link with local suppliers and generate employment opportunities. |
| 44 | C | 1-a, 2-b, 3-c, 4-d | Greater integration can increase product variety and competition in the domestic market. |
| 45 | B | 1-a, 2-b, 3-c, 4-d | Indian suppliers may become connected with MNCs and gain access to wider markets. |
| 46 | A | 1-a, 2-b, 3-c, 4-d | Competition can encourage domestic firms to modernise technology and improve their ability to compete. |
| 47 | C | 1-a, 2-b, 3-c, 4-d | Globalisation can provide expansion opportunities to capable firms while exposing some smaller producers to greater competition. |
| 48 | A | 1-a, 2-b, 3-c, 4-d | MNC production connects domestic suppliers with international production networks. |
Topic 9 — Challenges and Unequal Effects of Globalisation
| Q | Correct Option | Correct Matching | Explanation |
| 49 | A | 1-a, 2-b, 3-c, 4-d | Cheaper imports can create strong competitive pressure, particularly for smaller producers. |
| 50 | B | 1-a, 2-b, 3-c, 4-d | Firms with modern technology and greater resources may adjust more easily than traditional producers. |
| 51 | B | 1-a, 2-b, 3-c, 4-d | Globalisation can create employment opportunities in expanding industries while employment may decline in other industries. |
| 52 | A | 1-a, 2-b, 3-c, 4-d | Access to global markets can increase demand but may also create cost and productivity pressures. |
| 53 | B | 1-a, 2-b, 3-c, 4-d | Unequal investment capacity can result in different abilities to modernise and compete. |
| 54 | A | 1-a, 2-b, 3-c, 4-d | Government policies may be used to address difficulties faced by vulnerable producers when competitive pressures become stronger. |
Topic 10 — Struggle for a Fair Globalisation
| Q | Correct Option | Correct Matching | Explanation |
| 55 | A | 1-a, 2-b, 3-c, 4-d | Workers may demand that international economic integration also protect labour interests and improve fairness. |
| 56 | B | 1-a, 2-b, 3-c, 4-d | Developing countries may seek greater participation in international trade decision-making. |
| 57 | B | 1-a, 2-b, 3-c, 4-d | Small producers may seek government policies that help them participate in an increasingly integrated market. |
| 58 | A | 1-a, 2-b, 3-c, 4-d | Fair globalisation involves considering the interests and development concerns of poorer countries. |
| 59 | B | 1-a, 2-b, 3-c, 4-d | Workers’ and farmers’ organisations can undertake collective action to seek policy changes. |
| 60 | A | 1-a, 2-b, 3-c, 4-d | Fair globalisation focuses on wider participation in the benefits of international economic integration. |
SHORT ANSWER KEY — TABULAR FORM
| Q | Ans | Q | Ans | Q | Ans | Q | Ans |
| 1 | A | 16 | A | 31 | A | 46 | A |
| 2 | B | 17 | B | 32 | C | 47 | C |
| 3 | C | 18 | C | 33 | B | 48 | A |
| 4 | A | 19 | D | 34 | A | 49 | A |
| 5 | D | 20 | A | 35 | B | 50 | B |
| 6 | B | 21 | C | 36 | A | 51 | B |
| 7 | B | 22 | A | 37 | A | 52 | A |
| 8 | A | 23 | B | 38 | B | 53 | B |
| 9 | C | 24 | C | 39 | C | 54 | A |
| 10 | A | 25 | A | 40 | A | 55 | A |
| 11 | B | 26 | B | 41 | B | 56 | B |
| 12 | C | 27 | C | 42 | B | 57 | B |
| 13 | A | 28 | A | 43 | A | 58 | A |
| 14 | C | 29 | C | 44 | C | 59 | B |
| 15 | B | 30 | B | 45 | B | 60 | A |