Instructions: Match the items in Column I with the correct items in Column II. Choose the correct combination from options (A), (B), (C) or (D).
Topic A: Rapid Improvement in Transportation Technology
Question 1
Match the items in Column I with Column II.
| Column I | Column II |
| 1. Reduced transportation costs | A. Connects production centres with international markets |
| 2. Modern container ships | B. Helps companies transport goods economically |
| 3. Efficient transportation networks | C. Enable the movement of large quantities of goods |
| 4. High transportation costs | D. Can reduce the profitability of exports |
Options:
(A) 1–B, 2–C, 3–A, 4–D
(B) 1–A, 2–B, 3–D, 4–C
(C) 1–C, 2–D, 3–B, 4–A
(D) 1–D, 2–A, 3–C, 4–B
Question 2
| Column I | Column II |
| 1. Exporting manufactured goods | A. Can increase the time and cost of delivery |
| 2. Improved transport infrastructure | B. Makes it easier to reach foreign customers |
| 3. Inefficient transportation systems | C. Can improve the movement of goods |
| 4. Efficient logistics | D. Helps coordinate the delivery of products |
Options:
(A) 1–C, 2–A, 3–D, 4–B
(B) 1–D, 2–B, 3–C, 4–A
(C) 1–B, 2–C, 3–A, 4–D
(D) 1–A, 2–D, 3–B, 4–C
Question 3
| Column I | Column II |
| 1. An Indian company exports furniture | A. Transportation connects production with consumers |
| 2. A manufacturer imports machine parts | B. International transportation supports access to inputs |
| 3. A company uses container shipping | C. Large quantities of goods can be moved efficiently |
| 4. An exporter faces high freight charges | D. Export competitiveness may decline |
Options:
(A) 1–B, 2–A, 3–D, 4–C
(B) 1–A, 2–B, 3–C, 4–D
(C) 1–C, 2–D, 3–A, 4–B
(D) 1–D, 2–C, 3–B, 4–A
Question 4
| Column I | Column II |
| 1. Raw materials sourced abroad | A. International sourcing |
| 2. Components transported between countries | B. Geographically separated production stages |
| 3. Finished goods shipped overseas | C. Access to foreign markets |
| 4. Poor transport connectivity | D. Possible disruption of supply chains |
Options:
(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
Question 5
| Column I | Column II |
| 1. Transportation technology improves | A. International goods movement may become easier |
| 2. Freight costs rise sharply | B. Export profitability may fall |
| 3. A port handles cargo more efficiently | C. Cargo movement may become faster |
| 4. A country has poor transport infrastructure | D. International trade may face additional difficulties |
Options:
(A) 1–B, 2–A, 3–D, 4–C
(B) 1–C, 2–D, 3–A, 4–B
(C) 1–D, 2–C, 3–B, 4–A
(D) 1–A, 2–B, 3–C, 4–D
Topic B: Improvement in Communication Technology
Question 6
| Column I | Column II |
| 1. Email | A. Enables remote business discussions |
| 2. Video conferencing | B. Allows rapid written communication |
| 3. Internet-based platforms | C. Help businesses promote products internationally |
| 4. Slow communication | D. Can delay international business decisions |
Options:
(A) 1–A, 2–B, 3–D, 4–C
(B) 1–B, 2–A, 3–C, 4–D
(C) 1–C, 2–D, 3–A, 4–B
(D) 1–D, 2–C, 3–B, 4–A
Question 7
| Column I | Column II |
| 1. Design team in India | A. Can coordinate with overseas teams digitally |
| 2. Marketing team in the USA | B. Can share market information with other offices |
| 3. Online meetings | C. Reduce the need for some physical business trips |
| 4. Communication failure | D. May disrupt coordination between business locations |
Options:
(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
Question 8
| Column I | Column II |
| 1. A small seller creates a website | A. Can display products to international customers |
| 2. A manager attends an online meeting | B. Can communicate without travelling abroad |
| 3. A company shares digital designs | C. Can coordinate product development across countries |
| 4. A company experiences a network failure | D. Its international communication may be interrupted |
Options:
(A) 1–B, 2–A, 3–D, 4–C
(B) 1–C, 2–D, 3–A, 4–B
(C) 1–D, 2–C, 3–B, 4–A
(D) 1–A, 2–B, 3–C, 4–D
Question 9
| Column I | Column II |
| 1. Rapid communication | A. Faster exchange of business information |
| 2. Digital collaboration tools | B. Coordination among geographically separated teams |
| 3. Online customer support | C. Communication with customers in other countries |
| 4. Delayed business information | D. Potential delays in decision-making |
Options:
(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
Question 10
| Column I | Column II |
| 1. A company communicates instantly with overseas suppliers | A. Digital communication facilitates coordination |
| 2. A small firm sells through an online marketplace | B. Physical offices abroad are not always necessary |
| 3. A company has excellent internet access but poor products | C. Technology alone does not guarantee success |
| 4. A company cannot communicate with its foreign supplier | D. Production and delivery may be disrupted |
Options:
(A) 1–B, 2–A, 3–D, 4–C
(B) 1–A, 2–B, 3–C, 4–D
(C) 1–C, 2–D, 3–A, 4–B
(D) 1–D, 2–C, 3–B, 4–A
Topic C: Improvement in Production Technology
Question 11
| Column I | Column II |
| 1. Modern machinery | A. Can increase productivity |
| 2. Standardised production processes | B. Help maintain consistent quality |
| 3. Automation | C. Can improve production efficiency |
| 4. Specialised production stages | D. Allow different countries to perform different tasks |
Options:
(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
Question 12
| Column I | Column II |
| 1. Component manufacturing in one country | A. A specialised stage of production |
| 2. Assembly in another country | B. Combining components into a finished product |
| 3. Shared technical specifications | C. Help coordinate production across locations |
| 4. Incompatible production systems | D. May create coordination difficulties |
Options:
(A) 1–B, 2–A, 3–D, 4–C
(B) 1–A, 2–B, 3–C, 4–D
(C) 1–C, 2–D, 3–A, 4–B
(D) 1–D, 2–C, 3–B, 4–A
Question 13
| Column I | Column II |
| 1. A factory installs efficient machinery | A. Production time may decrease |
| 2. A company standardises manufacturing | B. Consistent product quality becomes easier to maintain |
| 3. A company divides production between countries | C. Specialisation across locations |
| 4. A factory lacks trained workers | D. Advanced machinery may not be used effectively |
Options:
(A) 1–B, 2–A, 3–D, 4–C
(B) 1–C, 2–D, 3–A, 4–B
(C) 1–D, 2–C, 3–B, 4–A
(D) 1–A, 2–B, 3–C, 4–D
Question 14
| Column I | Column II |
| 1. Higher productivity | A. More output from a given amount of resources |
| 2. Lower unit production costs | B. Potentially improved price competitiveness |
| 3. Better product quality | C. Greater ability to satisfy customer requirements |
| 4. Skilled workers | D. Help operate and maintain advanced machinery |
Options:
(A) 1–B, 2–A, 3–D, 4–C
(B) 1–A, 2–B, 3–C, 4–D
(C) 1–C, 2–D, 3–A, 4–B
(D) 1–D, 2–C, 3–B, 4–A
Question 15
| Column I | Column II |
| 1. A manufacturer adopts advanced machinery | A. Production efficiency may improve |
| 2. A company maintains common quality standards worldwide | B. Standardisation supports consistency |
| 3. A company produces components in different countries | C. Production is organised across geographical locations |
| 4. A business improves production quality and efficiency | D. Its ability to compete internationally may strengthen |
Options:
(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
Topic D: Liberalisation of Trade
Question 16
| Column I | Column II |
| 1. Trade liberalisation | A. Reduction of certain restrictions on international trade |
| 2. Lower import tariffs | B. Reduction in a tax imposed on imports |
| 3. Reduced import restrictions | C. Can make it easier for foreign goods to enter domestic markets |
| 4. Increased foreign competition | D. Can put pressure on domestic producers |
Options:
(A) 1–B, 2–A, 3–D, 4–C
(B) 1–A, 2–B, 3–C, 4–D
(C) 1–C, 2–D, 3–A, 4–B
(D) 1–D, 2–C, 3–B, 4–A
Question 17
| Column I | Column II |
| 1. Lower barriers to imports | A. Foreign products may enter more easily |
| 2. Greater competition | B. Producers may need to improve efficiency |
| 3. Wider product choice | C. Consumers may access more varieties |
| 4. Inefficient domestic production | D. May face competitive pressure |
Options:
(A) 1–B, 2–A, 3–D, 4–C
(B) 1–C, 2–D, 3–A, 4–B
(C) 1–D, 2–C, 3–B, 4–A
(D) 1–A, 2–B, 3–C, 4–D
Question 18
| Column I | Column II |
| 1. Import tariffs are reduced | A. Imported products may become more price-competitive |
| 2. Foreign brands enter the domestic market | B. Domestic consumers have additional choices |
| 3. Domestic producers improve product quality | C. They respond to competitive pressure |
| 4. Domestic firms cannot match competitors’ costs | D. They may lose market share |
Options:
(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
Question 19
| Column I | Column II |
| 1. Import quota | A. A limit on the quantity of a product that may be imported |
| 2. Import tariff | B. A tax imposed on imported goods |
| 3. Trade liberalisation | C. Reduction of certain trade restrictions |
| 4. Foreign competition | D. Competition from producers in other countries |
Options:
(A) 1–B, 2–A, 3–D, 4–C
(B) 1–A, 2–B, 3–C, 4–D
(C) 1–C, 2–D, 3–A, 4–B
(D) 1–D, 2–C, 3–B, 4–A
Question 20
| Column I | Column II |
| 1. A country reduces import barriers | A. Foreign products may gain easier market access |
| 2. Consumers gain access to more brands | B. Product variety may increase |
| 3. Domestic firms face imported alternatives | C. Competitive pressure may increase |
| 4. A less competitive firm loses customers | D. Trade liberalisation may create adjustment challenges |
Options:
(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
Topic E: Liberalisation of Investment
Question 21
| Column I | Column II |
| 1. Foreign investment | A. Investment by an investor from another country |
| 2. Investment liberalisation | B. Reduction of certain restrictions on investment |
| 3. Multinational company | C. A company operating in more than one country |
| 4. Foreign production facility | D. A production unit established in another country |
Options:
(A) 1–B, 2–A, 3–D, 4–C
(B) 1–A, 2–B, 3–C, 4–D
(C) 1–C, 2–D, 3–A, 4–B
(D) 1–D, 2–C, 3–B, 4–A
Question 22
| Column I | Column II |
| 1. A multinational company invests in India | A. Foreign investment enters the domestic economy |
| 2. A foreign company buys components locally | B. Domestic suppliers may gain business opportunities |
| 3. A multinational company establishes a factory | C. Production takes place in the host country |
| 4. A company sells products in several countries | D. Its operations connect multiple markets |
Options:
(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
Question 23
| Column I | Column II |
| 1. Certain investment restrictions are reduced | A. Foreign companies may find investing easier |
| 2. A multinational company establishes a production unit | B. International investment supports domestic production |
| 3. A local firm supplies components to the multinational | C. A domestic business joins a wider supply network |
| 4. The government retains sector-specific investment rules | D. Liberalisation does not mean removal of all regulations |
Options:
(A) 1–B, 2–A, 3–D, 4–C
(B) 1–A, 2–B, 3–C, 4–D
(C) 1–C, 2–D, 3–A, 4–B
(D) 1–D, 2–C, 3–B, 4–A
Question 24
| Column I | Column II |
| 1. Foreign direct investment | A. Investment that can establish a lasting business interest in another country |
| 2. Multinational production network | B. Connected production activities across countries |
| 3. Domestic component supplier | C. A potential participant in an international supply chain |
| 4. Sector-specific regulation | D. Rules that may continue to apply to investment in a particular sector |
Options:
(A) 1–B, 2–A, 3–D, 4–C
(B) 1–A, 2–B, 3–C, 4–D
(C) 1–C, 2–D, 3–A, 4–B
(D) 1–D, 2–C, 3–B, 4–A
Question 25
| Column I | Column II |
| 1. Investment restrictions are reduced | A. Foreign investment may become easier |
| 2. A multinational company sources locally | B. Domestic suppliers may receive orders |
| 3. A foreign company invests in production facilities | C. Production capacity in the host country may increase |
| 4. A business expects guaranteed profits from foreign investment | D. The expectation is unjustified because profits are not guaranteed |
Options:
(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
Topic F: Overall Effect of Technology and Liberalisation on Globalisation
Question 26
| Column I | Column II |
| 1. Improved transportation technology | A. Makes the movement of goods easier |
| 2. Improved communication technology | B. Enables rapid exchange of information |
| 3. Improved production technology | C. Can increase production efficiency |
| 4. Trade liberalisation | D. Reduces certain barriers to international trade |
Options:
(A) 1–B, 2–A, 3–D, 4–C
(B) 1–A, 2–B, 3–C, 4–D
(C) 1–C, 2–D, 3–A, 4–B
(D) 1–D, 2–C, 3–B, 4–A
Question 27
| Column I | Column II |
| 1. Technology | A. Facilitates international economic activities |
| 2. Trade liberalisation | B. Reduces certain restrictions on imports and exports |
| 3. Investment liberalisation | C. Can make cross-border investment easier |
| 4. Combined effect of these factors | D. Promotes economic connections between countries |
Options:
(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
Question 28
| Column I | Column II |
| 1. International trade | A. Exchange of goods and services across borders |
| 2. Foreign investment | B. Investment across national boundaries |
| 3. Economic interdependence | C. Countries’ economies becoming more connected and mutually reliant |
| 4. Dependence on imported components | D. Domestic production may be affected by international supply disruptions |
Options:
(A) 1–B, 2–A, 3–D, 4–C
(B) 1–A, 2–B, 3–C, 4–D
(C) 1–C, 2–D, 3–A, 4–B
(D) 1–D, 2–C, 3–B, 4–A
Question 29
| Column I | Column II |
| 1. A country improves its ports | A. International transportation may become more efficient |
| 2. Businesses adopt digital communication | B. International coordination may improve |
| 3. A company modernises its machinery | C. Production efficiency may increase |
| 4. A country reduces certain import restrictions | D. Foreign products may enter its market more easily |
Options:
(A) 1–B, 2–A, 3–D, 4–C
(B) 1–C, 2–D, 3–A, 4–B
(C) 1–D, 2–C, 3–B, 4–A
(D) 1–A, 2–B, 3–C, 4–D
Question 30
| Column I | Column II |
| 1. Technology improves but trade barriers remain high | A. Technological progress alone may not remove policy restrictions |
| 2. Trade barriers fall but transport remains inefficient | B. High transportation costs may continue to limit trade |
| 3. Technology improves and trade restrictions are reduced | C. International economic activities may become easier |
| 4. Countries rely on one another for goods and investment | D. Economic interdependence increases |
Options:
(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
Tabular Answer Key
| Question | Correct Option | Question | Correct Option | Question | Correct Option |
| 1 | A | 11 | C | 21 | B |
| 2 | C | 12 | B | 22 | C |
| 3 | B | 13 | D | 23 | B |
| 4 | C | 14 | B | 24 | B |
| 5 | D | 15 | C | 25 | C |
| 6 | B | 16 | B | 26 | B |
| 7 | C | 17 | D | 27 | C |
| 8 | D | 18 | C | 28 | B |
| 9 | C | 19 | B | 29 | D |
| 10 | B | 20 | C | 30 | C |