Topic A: Rapid Improvement in Transportation Technology
Q1. An Indian manufacturer can sell its products more competitively in foreign markets when improvements in transportation technology reduce the __________ and __________ of moving goods.
Q2. A multinational company manufactures a product in one country and sells it in several others. Efficient __________ networks help the company connect its production centres with international markets.
Q3. The development of modern container ships has made it possible to transport large quantities of goods more __________ and economically across countries.
Q4. Even when transportation technology improves, a company may find exporting unprofitable if transportation costs are too high compared with the product’s __________ price.
Q5. When a company obtains raw materials from one country, manufactures goods in another and sells them worldwide, improvements in __________ technology help connect these geographically separated activities.
Topic B: Improvement in Communication Technology
Q6. A multinational company with offices in India, the USA and Japan can coordinate its business activities rapidly through modern __________ technology.
Q7. Small businesses can use websites and online marketplaces to promote their products internationally without establishing a __________ office in every foreign country.
Q8. Email and video conferencing have reduced the need for physical __________ for many international business meetings.
Q9. When a company’s design team works in India and its marketing team works in the USA, digital communication helps them exchange information across __________ boundaries.
Q10. Although modern communication technology helps businesses reach international customers, success also depends on product quality, pricing and __________ preferences.
Topic C: Improvement in Production Technology
Q11. Modern machinery and improved production methods can increase __________, enabling companies to manufacture goods more efficiently.
Q12. When a multinational company manufactures different components of the same product in different countries, it divides production into specialised __________.
Q13. Standardised machinery and production processes can help multinational companies maintain consistent __________ standards across factories located in different countries.
Q14. An Indian manufacturer adopting advanced production technology may improve its international competitiveness by reducing costs or improving product __________.
Q15. Modern production technology may require additional investment in machinery, maintenance and the training of __________ workers.
Topic D: Liberalisation of Trade
Q16. The reduction of certain government restrictions on imports and exports is known as trade __________.
Q17. When import restrictions are reduced, foreign producers can find it easier to enter the Indian market, thereby increasing __________ between domestic and foreign producers.
Q18. If Indian consumers gain access to a wider variety of imported goods following a reduction in trade barriers, this may be a result of trade __________.
Q19. When a country reduces tariffs and certain other restrictions on imports, foreign products may become more competitive in the domestic __________.
Q20. Trade liberalisation may create opportunities for efficient domestic producers, but less competitive businesses may struggle because of increased __________.
Topic E: Liberalisation of Investment
Q21. The reduction of certain restrictions on investment by foreign companies can encourage greater __________ investment in India.
Q22. A multinational company investing in India may establish production facilities and connect domestic production with __________ markets.
Q23. When a multinational company purchases components from Indian suppliers, it can connect domestic businesses with international __________ networks.
Q24. Liberalisation of investment does not necessarily mean that the government removes __________ restrictions on foreign investment in every sector.
Q25. Although foreign investment can create business opportunities, it does not __________ that every domestic business will receive investment or earn higher profits.
Topic F: Overall Effect of Technology and Liberalisation on Globalisation
Q26. Improvements in transportation, communication and production technology, together with liberalisation of trade and investment, have contributed to the growth of __________.
Q27. Technology makes international business activities easier, while liberalisation reduces certain __________ to cross-border trade and investment.
Q28. As countries become increasingly connected through trade, investment and production networks, their economic __________ may increase.
Q29. Removing trade restrictions alone may not guarantee successful international trade if transportation and communication systems remain __________.
Q30. Technology and liberalisation play __________ roles in promoting globalisation because they facilitate international economic activities in different but complementary ways.
Answer Key
A. Tabular Answer Key
| Question | Answer | Question | Answer | Question | Answer |
| 1 | Time; cost | 11 | Productivity | 21 | Foreign |
| 2 | Transportation | 12 | Stages | 22 | International |
| 3 | Efficiently | 13 | Quality | 23 | Production |
| 4 | Selling | 14 | Quality | 24 | All |
| 5 | Transportation | 15 | Skilled | 25 | Guarantee |
| 6 | Communication | 16 | Liberalisation | 26 | Globalisation |
| 7 | Physical | 17 | Competition | 27 | Barriers |
| 8 | Travel | 18 | Liberalisation | 28 | Interdependence |
| 9 | National | 19 | Market | 29 | Inefficient |
| 10 | Consumer | 20 | Competition | 30 | Complementary |
B. Detailed Answer Key with Explanations
Topic A: Rapid Improvement in Transportation Technology
1. Time; cost. Improvements in transportation reduce delivery time and transportation expenses, helping businesses sell products more competitively in international markets.
2. Transportation. Efficient transportation networks connect production centres, suppliers and consumers across different countries.
3. Efficiently. Container ships enable large quantities of goods to be transported efficiently and economically across national borders.
4. Selling. Exporting becomes difficult when transportation costs are too high relative to the product’s selling price.
5. Transportation. Transportation connects geographically separated suppliers, production facilities and markets, making international production networks more practical.
Topic B: Improvement in Communication Technology
6. Communication. Modern communication technology enables multinational companies to exchange information and coordinate activities across countries.
7. Physical. Online platforms enable businesses to reach foreign customers without necessarily establishing physical offices in each country.
8. Travel. Email and video conferencing allow many international business discussions to take place without physical travel.
9. National. Digital communication enables information to be exchanged across national boundaries, facilitating international coordination.
10. Consumer. Understanding consumer preferences is important because international customers may have different needs, tastes and expectations.
Topic C: Improvement in Production Technology
11. Productivity. Modern machinery and improved production methods can increase output relative to the resources used.
12. Stages. Companies may divide production into specialised stages and locate different activities in different countries.
13. Quality. Standardised processes help multinational companies maintain consistent product quality across different factories.
14. Quality. Better production technology can improve product quality and help domestic manufacturers compete with foreign producers.
15. Skilled. Advanced machinery often requires trained workers who can operate, maintain and manage modern production systems.
Topic D: Liberalisation of Trade
16. Liberalisation. Trade liberalisation means reducing certain government restrictions on imports and exports.
17. Competition. Reduced import restrictions can increase competition between domestic and foreign producers.
18. Liberalisation. Reducing trade barriers can increase the variety of imported products available to consumers.
19. Market. Lower tariffs and other import restrictions can make foreign products more competitive in the domestic market.
20. Competition. Businesses that cannot compete effectively on price, quality or efficiency may face difficulties when foreign competition increases.
Topic E: Liberalisation of Investment
21. Foreign. Reducing certain restrictions can encourage foreign companies to invest in domestic businesses or establish production facilities.
22. International. Multinational companies can connect domestic production with international markets through investment and cross-border sales.
23. Production. Domestic suppliers may become part of international production networks by supplying components, materials or services to multinational companies.
24. All. Investment liberalisation does not necessarily eliminate every restriction; governments may continue regulating investment in particular sectors.
25. Guarantee. Foreign investment may create opportunities, but its benefits are not automatic or equally distributed among all businesses.
Topic F: Overall Effect of Technology and Liberalisation on Globalisation
26. Globalisation. Technological improvements and liberalisation of trade and investment have helped connect economies across national borders.
27. Barriers. Liberalisation reduces certain restrictions that can otherwise limit international trade and investment.
28. Interdependence. Countries become more economically interdependent when they increasingly rely on international markets, investment and production networks.
29. Inefficient. Poor transportation and communication systems can make international trade costly or difficult, even when trade restrictions are reduced.
30. Complementary. Technology and liberalisation support globalisation in different but mutually reinforcing ways: technology facilitates international activities, while liberalisation reduces certain barriers to those activities.