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Globalisation and the Indian Economy Class 10 MCQs with Answers • NCERT Class 10 Economics

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CBSE Class 10 Economics • Chapter 4

Globalisation and the Indian Economy Class 10 MCQs with Answers

Practise 120 NCERT-based multiple choice questions covering globalisation, MNCs, foreign investment, foreign trade, technology, liberalisation, WTO, impact on India, small producers, employment and fair globalisation.

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Topics covered: globalisation and its meaning; MNCs; production across countries; foreign investment; foreign trade; market integration; technology and IT; liberalisation; trade barriers; WTO; impact of globalisation in India; consumers; Indian companies; small producers; employment; SEZs; labour conditions; and fair globalisation.

How to use this page: Attempt each MCQ before checking the answer. Mark questions you miss, revise the related concept in the Q&A resource, and then retry the marked questions.

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MCQs 1–40MCQs 41–80 MCQs 81–100MCQs 101–120 Questions & AnswersQuick Revision

Globalisation MCQs — Core Concepts

1–40

Meaning, MNCs, investment, production networks, technology and foreign trade.

1. Which statement best describes globalisation?

A. Only movement of people within a country

B. Rapid integration and interconnection among countries

C. Complete isolation of national economies

D. Only growth of domestic trade

Correct answer: B. Rapid integration and interconnection among countries

2. What is a multinational corporation (MNC)?

A. A government department

B. A local cooperative

C. A company operating only within one village

D. A company that owns or controls production in more than one country

Correct answer: D. A company that owns or controls production in more than one country

3. What is foreign investment?

A. Money kept in a domestic savings account

B. Tax paid to a local authority

C. Government expenditure on schools

D. Investment made by an MNC in another country

Correct answer: D. Investment made by an MNC in another country

4. Which of the following is an important aim of an MNC when investing abroad?

A. To increase production and earn profits

B. To stop all international trade

C. To eliminate all competition

D. To reduce consumer choice

Correct answer: A. To increase production and earn profits

5. What is a production unit?

A. A transport ticket

B. A place where goods or services are produced

C. A bank account

D. A tax office

Correct answer: B. A place where goods or services are produced

6. Which factor has strongly enabled globalisation?

A. Decline of information technology

B. Ban on foreign trade

C. Improved transport and communication technology

D. Complete closure of markets

Correct answer: C. Improved transport and communication technology

7. Which technology has made communication across countries faster and cheaper?

A. Hand plough technology

B. Traditional barter

C. Manual record keeping

D. Information and communication technology

Correct answer: D. Information and communication technology

8. What does foreign trade mean?

A. Exchange of goods and services between countries

B. Exchange only between two villages

C. Sale of goods within one household

D. Government collection of taxes

Correct answer: A. Exchange of goods and services between countries

9. Foreign trade can lead to which outcome?

A. Elimination of consumer choice

B. Integration of markets across countries

C. Complete disappearance of markets

D. End of domestic production in every country

Correct answer: B. Integration of markets across countries

10. Why do MNCs spread production across countries?

A. To stop using technology

B. To eliminate all suppliers

C. To obtain advantages such as lower costs, markets, skills or resources

D. To avoid selling products

Correct answer: C. To obtain advantages such as lower costs, markets, skills or resources

11. Which is a common way in which MNCs organise production?

A. Stopping all local production

B. Using only government factories

C. Avoiding suppliers

D. Setting up factories or offices and forming partnerships with local producers

Correct answer: D. Setting up factories or offices and forming partnerships with local producers

12. When an MNC buys an existing local company, it is making:

A. An investment

B. A barter exchange

C. A government grant

D. A household purchase

Correct answer: A. An investment

13. When an MNC places an order with a local producer, the local producer may:

A. Avoid foreign markets completely

B. Produce goods for the MNC under specified conditions

C. Stop all production

D. Become a government department

Correct answer: B. Produce goods for the MNC under specified conditions

14. What is meant by investment in the context of production?

A. Paying school fees

B. Buying household groceries

C. Spending money on assets such as land, buildings and machinery

D. Spending money only on food

Correct answer: C. Spending money on assets such as land, buildings and machinery

15. Why are MNCs important in the process of globalisation?

A. They prevent all international connections

B. They work only for governments

C. They restrict technology transfer

D. They organise production and investment across countries

Correct answer: D. They organise production and investment across countries

16. Which of the following is a result of improved transport technology?

A. Faster movement of goods between countries

B. Slower international trade

C. Higher communication barriers

D. Complete end of exports

Correct answer: A. Faster movement of goods between countries

17. Which of the following is an example of an MNC's production network?

A. Production without suppliers

B. Design in one country, components from several countries and assembly elsewhere

C. All stages completed in one household

D. Only local barter

Correct answer: B. Design in one country, components from several countries and assembly elsewhere

18. What happens when markets in different countries become connected?

A. Consumers lose all choices

B. Prices can never change

C. Producers and consumers increasingly interact across national borders

D. Countries stop trading

Correct answer: C. Producers and consumers increasingly interact across national borders

19. Why do MNCs often choose locations with lower production costs?

A. To prevent production

B. To eliminate technology

C. To reduce output

D. To remain competitive and increase profitability

Correct answer: D. To remain competitive and increase profitability

20. Which factor can attract an MNC to a country?

A. Availability of skilled labour and infrastructure

B. Absence of transport

C. No access to markets

D. Complete ban on investment

Correct answer: A. Availability of skilled labour and infrastructure

21. What is liberalisation of foreign trade?

A. Closure of ports

B. Removal or reduction of trade barriers and restrictions

C. Complete ban on imports

D. Restriction of domestic production

Correct answer: B. Removal or reduction of trade barriers and restrictions

22. Before liberalisation, governments may use trade barriers mainly to:

A. Eliminate domestic industries

B. Promote isolation forever

C. Protect domestic producers from foreign competition

D. Increase unrestricted imports

Correct answer: C. Protect domestic producers from foreign competition

23. Which is an example of a trade barrier?

A. School uniform

B. Local festival

C. Household saving

D. Import duty

Correct answer: D. Import duty

24. What is an import tax or duty?

A. A tax imposed on goods brought into a country

B. A reward for exporters

C. A tax on domestic textbooks only

D. A payment made by consumers to banks

Correct answer: A. A tax imposed on goods brought into a country

25. Why might a government impose an import duty?

A. To eliminate consumers

B. To regulate imports and protect domestic producers

C. To prevent all domestic production

D. To remove every market

Correct answer: B. To regulate imports and protect domestic producers

26. What major change occurred with trade liberalisation in India?

A. All MNCs were expelled

B. Foreign investment was prohibited

C. Foreign trade and investment barriers were reduced

D. All imports were banned

Correct answer: C. Foreign trade and investment barriers were reduced

27. Which organisation is associated with international trade rules?

A. World Health Organization

B. International Labour Organization only

C. United Nations Children's Fund

D. World Trade Organization

Correct answer: D. World Trade Organization

28. What does WTO stand for?

A. World Trade Organization

B. World Transport Office

C. World Technology Organisation

D. Western Trade Office

Correct answer: A. World Trade Organization

29. One major function of the WTO is to:

A. Operate all private companies

B. Formulate and administer rules for international trade

C. Provide school examinations

D. Manage village elections

Correct answer: B. Formulate and administer rules for international trade

30. Which statement about WTO is most accurate?

A. It controls every domestic shop

B. It replaces all national governments

C. It aims to liberalise international trade through common rules

D. It bans international trade

Correct answer: C. It aims to liberalise international trade through common rules

31. Why can trade liberalisation increase competition?

A. Foreign goods disappear

B. Markets become completely closed

C. Only one producer remains

D. Domestic producers face greater competition from foreign producers

Correct answer: D. Domestic producers face greater competition from foreign producers

32. How can globalisation benefit consumers?

A. It can increase choice and provide access to new products

B. It always removes choice

C. It bans imported products

D. It prevents technological change

Correct answer: A. It can increase choice and provide access to new products

33. How can globalisation benefit producers?

A. It prevents exports

B. It can provide access to larger markets and new technology

C. It guarantees profits to every producer

D. It ends all competition

Correct answer: B. It can provide access to larger markets and new technology

34. How can globalisation create employment?

A. Imports always stop production

B. Technology can never create new activities

C. Expansion of production and services can create new jobs

D. All jobs disappear automatically

Correct answer: C. Expansion of production and services can create new jobs

35. Why are benefits of globalisation not equally shared?

A. All people have identical incomes

B. Every producer faces identical conditions

C. Markets are always perfectly equal

D. Firms and workers have different resources, skills and bargaining power

Correct answer: D. Firms and workers have different resources, skills and bargaining power

36. Which group may face strong competition from imported goods?

A. Small producers

B. Only foreign governments

C. Only banks

D. Only consumers

Correct answer: A. Small producers

37. Why may small producers find global competition difficult?

A. They face no competition

B. They may have higher costs, limited technology and weaker infrastructure

C. They always have unlimited finance

D. They always control global markets

Correct answer: B. They may have higher costs, limited technology and weaker infrastructure

38. How can small producers improve competitiveness?

A. By stopping production

B. By refusing to modernise

C. By improving technology, infrastructure, quality and access to credit

D. By avoiding all markets

Correct answer: C. By improving technology, infrastructure, quality and access to credit

39. What is meant by fair globalisation?

A. Globalisation benefiting only large corporations

B. Complete closure of national markets

C. A ban on foreign investment

D. Globalisation that creates opportunities and distributes benefits more widely

Correct answer: D. Globalisation that creates opportunities and distributes benefits more widely

40. Which change in technology has reduced the cost of communicating with buyers abroad?

A. Internet and telecommunications

B. Traditional letters only

C. Manual ledgers

D. Animal transport

Correct answer: A. Internet and telecommunications

Globalisation MCQs — Trade, Liberalisation & WTO

41–80

Trade barriers, liberalisation, WTO, competition, consumers, workers and production networks.

41. Why are production processes increasingly divided across countries?

A. Technology is no longer used

B. Different locations may offer cost, skill, market or resource advantages

C. Countries have stopped producing goods

D. Transport has disappeared

Correct answer: B. Different locations may offer cost, skill, market or resource advantages

42. Which of the following is an example of interdependence created by globalisation?

A. A country banning imports

B. A firm avoiding all suppliers

C. A producer in one country relying on components from another

D. A village producing everything without trade

Correct answer: C. A producer in one country relying on components from another

43. How does foreign trade affect markets?

A. It isolates domestic producers

B. It removes all competition

C. It stops consumers from comparing products

D. It connects domestic markets with markets in other countries

Correct answer: D. It connects domestic markets with markets in other countries

44. What can happen to prices when imported goods enter a domestic market?

A. Domestic producers may face pressure to reduce prices or improve quality

B. Prices can never change

C. All domestic goods become free

D. Competition necessarily disappears

Correct answer: A. Domestic producers may face pressure to reduce prices or improve quality

45. What can competition encourage firms to do?

A. Avoid efficient production

B. Improve quality, reduce costs and adopt better technology

C. Stop innovating

D. Reduce consumer choice deliberately

Correct answer: B. Improve quality, reduce costs and adopt better technology

46. What is one possible negative effect of intense competition on workers?

A. Automatic wage increases for all

B. No change in working conditions

C. Greater use of temporary employment and pressure on labour costs

D. Guaranteed permanent jobs for everyone

Correct answer: C. Greater use of temporary employment and pressure on labour costs

47. Why may companies prefer flexible labour arrangements?

A. They must employ every worker permanently

B. They cannot change production

C. They want to eliminate all production

D. They can adjust the workforce according to production needs

Correct answer: D. They can adjust the workforce according to production needs

48. What is a special economic zone (SEZ)?

A. A designated area with facilities and policy incentives intended to promote investment and production

B. A village market

C. A government school zone

D. A protected forest

Correct answer: A. A designated area with facilities and policy incentives intended to promote investment and production

49. Why do governments establish SEZs?

A. To reduce infrastructure

B. To attract investment and encourage production and exports

C. To stop industrial development

D. To ban foreign companies

Correct answer: B. To attract investment and encourage production and exports

50. Which facility is important for industrial investment in an SEZ?

A. No communication

B. No electricity

C. Reliable infrastructure such as electricity, roads and water

D. No transport

Correct answer: C. Reliable infrastructure such as electricity, roads and water

51. What is outsourcing?

A. Stopping production

B. Buying only from one's own household

C. Banning services

D. Obtaining goods or services from an outside producer or service provider

Correct answer: D. Obtaining goods or services from an outside producer or service provider

52. Why has India become important in some global service activities?

A. Skilled workers and improved communication technology support service exports

B. India has no skilled labour

C. Communication technology is absent

D. Foreign demand has disappeared

Correct answer: A. Skilled workers and improved communication technology support service exports

53. Which service can be performed remotely through modern communication networks?

A. Only road construction

B. Data entry and accounting services

C. Only farming

D. Only mining

Correct answer: B. Data entry and accounting services

54. How has IT supported globalisation?

A. It stops international business

B. It eliminates service trade

C. It allows information and services to move rapidly across borders

D. It prevents communication

Correct answer: C. It allows information and services to move rapidly across borders

55. What is a global market?

A. A market limited to one neighbourhood

B. A market without consumers

C. A market where trade is prohibited

D. A market in which producers and consumers from different countries interact

Correct answer: D. A market in which producers and consumers from different countries interact

56. Why do MNCs sometimes collaborate with local companies?

A. Local firms may provide knowledge, production capacity, suppliers or market access

B. Local firms always have no role

C. Collaboration prevents production

D. It eliminates all technology

Correct answer: A. Local firms may provide knowledge, production capacity, suppliers or market access

57. What may happen when an MNC invests in a local company?

A. Foreign trade stops

B. The company may gain access to capital, technology or wider markets

C. All workers must leave

D. The company becomes a bank

Correct answer: B. The company may gain access to capital, technology or wider markets

58. How can technology transfer affect domestic producers?

A. It prevents innovation

B. It stops production

C. It can improve productivity, quality and production methods

D. It always lowers productivity

Correct answer: C. It can improve productivity, quality and production methods

59. What is a major source of globalisation besides trade?

A. Local taxation only

B. Village fairs only

C. Household consumption only

D. Foreign investment

Correct answer: D. Foreign investment

60. Why did India begin major trade and investment liberalisation in the early 1990s?

A. To integrate more with the world economy and encourage trade and investment

B. To close the economy completely

C. To ban imports permanently

D. To stop all private investment

Correct answer: A. To integrate more with the world economy and encourage trade and investment

61. What was a major consequence of reducing trade barriers?

A. Consumers lost access to imported goods

B. Imports and foreign competition increased

C. International trade ended

D. MNCs disappeared

Correct answer: B. Imports and foreign competition increased

62. Why can imported goods challenge domestic producers?

A. They are always more expensive

B. They cannot be sold domestically

C. They increase competition in the domestic market

D. They eliminate all competition

Correct answer: C. They increase competition in the domestic market

63. Which domestic producer is generally more vulnerable to sudden global competition?

A. A highly competitive large producer

B. A firm with advanced technology and strong finance

C. A firm with access to global markets

D. A small producer with outdated technology and limited finance

Correct answer: D. A small producer with outdated technology and limited finance

64. What can governments do to support small producers?

A. Improve infrastructure, provide credit and encourage technological upgrading

B. Ban all competition permanently

C. Stop training workers

D. Remove access to markets

Correct answer: A. Improve infrastructure, provide credit and encourage technological upgrading

65. Why is consumer choice often wider under globalisation?

A. Markets disappear

B. Products from more producers and countries may become available

C. All products become identical

D. Imports are banned

Correct answer: B. Products from more producers and countries may become available

66. How can globalisation help Indian companies that become competitive?

A. They lose all technology

B. They can sell only locally

C. They may expand into foreign markets and become global producers

D. They must stop exporting

Correct answer: C. They may expand into foreign markets and become global producers

67. Which is a possible benefit of globalisation for Indian consumers?

A. Complete disappearance of domestic products

B. No technological improvement

C. Permanent shortage of goods

D. Access to a wider range of products and improved quality

Correct answer: D. Access to a wider range of products and improved quality

68. Which statement best describes the impact of globalisation on India?

A. It has created opportunities and increased competition, but benefits are uneven

B. It has affected nobody

C. It has only created losses

D. It has completely ended domestic production

Correct answer: A. It has created opportunities and increased competition, but benefits are uneven

69. Why can workers in export-oriented industries benefit from globalisation?

A. Workers cannot be employed in export industries

B. Growing exports can increase demand for labour

C. Exports always destroy jobs

D. Foreign markets cannot create demand

Correct answer: B. Growing exports can increase demand for labour

70. Why may workers not receive equal benefits from globalisation?

A. All workers own MNCs

B. Labour markets are always equal

C. Workers differ in skills, job security and bargaining power

D. All workers have identical jobs

Correct answer: C. Workers differ in skills, job security and bargaining power

71. What can happen to working conditions when firms face intense global competition?

A. All workers automatically receive permanent contracts

B. Working hours always fall

C. Job security always increases

D. Firms may seek lower labour costs and more flexible employment

Correct answer: D. Firms may seek lower labour costs and more flexible employment

72. What is meant by job security?

A. Assurance that employment is relatively stable and protected

B. A higher import duty

C. A foreign exchange account

D. A market tax

Correct answer: A. Assurance that employment is relatively stable and protected

73. Why can temporary employment be less secure?

A. Temporary work guarantees lifetime employment

B. Workers may have shorter contracts and fewer employment benefits

C. Temporary workers always own the company

D. Temporary workers cannot be paid

Correct answer: B. Workers may have shorter contracts and fewer employment benefits

74. What does consumer competition among brands generally encourage?

A. Firms to eliminate all choices

B. Firms to avoid markets

C. Firms to improve products and compete on price and quality

D. Firms to stop improving products

Correct answer: C. Firms to improve products and compete on price and quality

75. Which group often has greater capacity to benefit quickly from globalisation?

A. Only the smallest firms with no finance

B. Firms with no infrastructure

C. Firms that never trade

D. Large firms with technology, capital and market access

Correct answer: D. Large firms with technology, capital and market access

76. Why is access to credit important for small producers?

A. It helps them invest in machinery, inputs and modernisation

B. It prevents investment

C. It reduces production capacity

D. It removes access to technology

Correct answer: A. It helps them invest in machinery, inputs and modernisation

77. Which policy can make globalisation more inclusive?

A. Banning domestic enterprises

B. Support for workers and small producers along with investment in infrastructure and skills

C. Removing all worker protections

D. Ending skill development

Correct answer: B. Support for workers and small producers along with investment in infrastructure and skills

78. Which Indian sector has gained major opportunities from global service demand?

A. Only traditional fishing

B. Only local handicrafts

C. Information technology and related services

D. Only subsistence farming

Correct answer: C. Information technology and related services

79. Why can IT-enabled services be delivered from India to clients abroad?

A. Services must always be performed physically at the client's location

B. Internet connections prevent service exports

C. International communication is impossible

D. Digital communication can transmit information quickly across borders

Correct answer: D. Digital communication can transmit information quickly across borders

80. Which of the following is a service that may be outsourced?

A. Call-centre support

B. Crop harvesting only

C. Mining coal only

D. Road paving only

Correct answer: A. Call-centre support

Globalisation MCQs — Impact on India

81–100

Indian producers, consumers, IT-enabled services, SEZs, small producers, employment and fair globalisation.

81. What is the role of foreign investment in an economy?

A. It closes markets

B. It can provide capital for production, technology and expansion

C. It always reduces capital

D. It prevents new production

Correct answer: B. It can provide capital for production, technology and expansion

82. Why may an MNC purchase a domestic company instead of building a new one?

A. It wants to stop production

B. It wants to avoid markets

C. It can quickly obtain an existing production network, skills or market presence

D. It cannot invest in existing companies

Correct answer: C. It can quickly obtain an existing production network, skills or market presence

83. What may happen when an Indian company invests abroad?

A. It must stop domestic production

B. It becomes a government agency

C. It cannot sell abroad

D. It can become part of an international production or market network

Correct answer: D. It can become part of an international production or market network

84. Why are developing countries interested in attracting MNC investment?

A. MNCs can bring capital, technology, production and market links

B. MNCs always reduce production

C. Foreign investment cannot create jobs

D. MNCs never bring technology

Correct answer: A. MNCs can bring capital, technology, production and market links

85. What concern can arise from excessive pressure to lower production costs?

A. Labour costs always rise

B. Workers may face insecure employment or weaker bargaining power

C. Workers always receive higher benefits

D. Job security always increases

Correct answer: B. Workers may face insecure employment or weaker bargaining power

86. Which statement about globalisation and employment is most balanced?

A. Every worker loses a job

B. Employment never changes

C. Some sectors gain jobs while others may face pressure from competition and restructuring

D. Every worker benefits equally

Correct answer: C. Some sectors gain jobs while others may face pressure from competition and restructuring

87. Why are skilled workers valuable in a globalised economy?

A. Skills reduce productivity

B. Skilled workers cannot work internationally

C. Skills prevent technology use

D. Their skills can help firms compete and provide specialised goods or services

Correct answer: D. Their skills can help firms compete and provide specialised goods or services

88. Which measure can help workers adapt to globalisation?

A. Skill development and training

B. Ending education

C. Reducing access to technology

D. Banning new industries

Correct answer: A. Skill development and training

89. Why can infrastructure influence a country's ability to attract investment?

A. Transport prevents production

B. Good transport, electricity and communication reduce production and transaction difficulties

C. Poor infrastructure always attracts investment

D. Infrastructure has no economic role

Correct answer: B. Good transport, electricity and communication reduce production and transaction difficulties

90. Which is an example of a trade restriction?

A. A local bus route

B. A savings account

C. A quota limiting the quantity of imports

D. A school examination

Correct answer: C. A quota limiting the quantity of imports

91. What is an import quota?

A. A tax on domestic wages

B. A subsidy to all consumers

C. A bank deposit

D. A limit on the quantity of a product that may be imported

Correct answer: D. A limit on the quantity of a product that may be imported

92. How do trade barriers affect international competition?

A. They can restrict foreign goods and give domestic producers some protection

B. They always increase imports without limits

C. They eliminate domestic producers

D. They have no effect on trade

Correct answer: A. They can restrict foreign goods and give domestic producers some protection

93. What does removal of trade barriers generally mean?

A. A ban on exports

B. Greater freedom for goods and services to move across borders

C. A complete ban on trade

D. A ban on foreign investment

Correct answer: B. Greater freedom for goods and services to move across borders

94. Why may governments still regulate trade after liberalisation?

A. To eliminate every market

B. To stop all production

C. To address economic, social or strategic concerns and manage trade

D. Because liberalisation means no government can ever regulate trade

Correct answer: C. To address economic, social or strategic concerns and manage trade

95. Which institution became a major part of the global trade framework in 1995?

A. ILO

B. WHO

C. UNICEF

D. WTO

Correct answer: D. WTO

96. Why can common trade rules be important?

A. They provide a framework for countries to conduct international trade

B. They eliminate all national policies

C. They stop exports

D. They ban competition

Correct answer: A. They provide a framework for countries to conduct international trade

97. Which criticism is sometimes made about global trade rules?

A. Trade rules prohibit exports

B. Benefits and negotiating power may not be equally distributed among countries

C. All countries always gain equally

D. Trade rules end all competition

Correct answer: B. Benefits and negotiating power may not be equally distributed among countries

98. What is one way globalisation can change consumer behaviour?

A. Consumers can buy only local goods

B. Consumers lose information

C. Consumers may compare products and brands from different sources

D. Consumers stop making choices

Correct answer: C. Consumers may compare products and brands from different sources

99. Why can foreign brands enter domestic markets after liberalisation?

A. Trade barriers increase automatically

B. Imports are prohibited

C. Foreign firms cannot sell goods

D. Reduced restrictions make international trade and investment easier

Correct answer: D. Reduced restrictions make international trade and investment easier

100. How can domestic firms respond to foreign competition?

A. Improve quality, reduce costs, innovate and expand markets

B. Stop production immediately

C. Avoid technology

D. Reduce all efficiency

Correct answer: A. Improve quality, reduce costs, innovate and expand markets

Globalisation MCQs — Competency & Application

101–120

Case-based and application-oriented questions linking chapter concepts to practical situations.

101. Which strategy can help a small producer survive global competition?

A. Stop accessing credit

B. Improve product quality and adopt better technology

C. Ignore changing consumer demand

D. Avoid all investment

Correct answer: B. Improve product quality and adopt better technology

102. Why is government support important for vulnerable producers?

A. It eliminates every foreign firm

B. It ends consumer choice

C. It can help them improve productivity and compete more effectively

D. It guarantees profits regardless of performance

Correct answer: C. It can help them improve productivity and compete more effectively

103. What is meant by the uneven distribution of globalisation's benefits?

A. Everyone receives the same benefit

B. Nobody benefits

C. Only governments benefit

D. Different firms, workers and regions gain or lose to different degrees

Correct answer: D. Different firms, workers and regions gain or lose to different degrees

104. Which statement about MNCs and local producers is correct?

A. MNCs may place orders with local producers, forming links in global production networks

B. MNCs never work with local producers

C. Local producers cannot export

D. MNCs operate without production networks

Correct answer: A. MNCs may place orders with local producers, forming links in global production networks

105. Why can local suppliers gain from MNC linkages?

A. They cannot learn new methods

B. They may receive orders, technology or access to wider markets

C. They must stop producing

D. They lose every market

Correct answer: B. They may receive orders, technology or access to wider markets

106. Which factor can make a country attractive for global service activities?

A. Poor communication

B. Absence of skilled labour

C. Skilled workers, communication infrastructure and suitable technology

D. No internet access

Correct answer: C. Skilled workers, communication infrastructure and suitable technology

107. What is the relationship between globalisation and technology?

A. Technology has prevented international connections

B. Technology has no effect on communication

C. Technology has ended foreign trade

D. Technological improvements have helped make globalisation faster and easier

Correct answer: D. Technological improvements have helped make globalisation faster and easier

108. Which statement best explains the role of transportation in globalisation?

A. Faster and cheaper transport facilitates international movement of goods

B. Transport prevents exports

C. Transport makes international trade impossible

D. Transport eliminates markets

Correct answer: A. Faster and cheaper transport facilitates international movement of goods

109. Which statement best explains the role of communication in globalisation?

A. Communication stops foreign investment

B. Faster communication helps firms coordinate production and services across countries

C. Communication slows business coordination

D. Communication prevents outsourcing

Correct answer: B. Faster communication helps firms coordinate production and services across countries

110. What can happen when an MNC enters a market with advanced technology?

A. Competition necessarily ends

B. Consumers lose all information

C. It may introduce new products, production methods or standards

D. Technology always disappears

Correct answer: C. It may introduce new products, production methods or standards

111. Why can some large Indian companies become MNCs themselves?

A. They are prohibited from investing abroad

B. They can operate only in one village

C. They must stop exporting

D. They may invest abroad and build international production or service networks

Correct answer: D. They may invest abroad and build international production or service networks

112. What does 'global production network' imply?

A. Different stages of production may be located in different countries

B. All production occurs in one household

C. Production is limited to one market

D. Countries cannot specialise

Correct answer: A. Different stages of production may be located in different countries

113. Which outcome is most likely when a firm becomes more productive through technology?

A. Consumers lose choices

B. It may become more competitive in domestic and international markets

C. It must stop exporting

D. It becomes less efficient automatically

Correct answer: B. It may become more competitive in domestic and international markets

114. Why can globalisation create both winners and losers?

A. Only consumers are affected

B. Only governments are affected

C. Opportunities and competitive pressures affect industries and workers differently

D. Globalisation affects everyone identically

Correct answer: C. Opportunities and competitive pressures affect industries and workers differently

115. Which is a key concern of fair globalisation?

A. Ensuring only MNC profits rise

B. Ending all trade

C. Reducing consumer choice

D. Ensuring that benefits reach workers, small producers and disadvantaged groups more widely

Correct answer: D. Ensuring that benefits reach workers, small producers and disadvantaged groups more widely

116. Which policy combination best supports fair globalisation?

A. Education, skill development, infrastructure, credit and appropriate worker protection

B. No training and no infrastructure

C. Ending all domestic investment

D. Banning all competition

Correct answer: A. Education, skill development, infrastructure, credit and appropriate worker protection

117. A small Indian toy producer loses customers after cheaper imported toys enter the market. What is the most appropriate long-term response?

A. Avoid modern machinery

B. Improve quality, technology and efficiency while seeking better market access

C. Stop producing immediately

D. Ban all consumers from buying imports

Correct answer: B. Improve quality, technology and efficiency while seeking better market access

118. An MNC designs a product in one country, obtains components from several countries and assembles it elsewhere. What does this illustrate?

A. Complete economic isolation

B. Only domestic production

C. Global production network

D. Local barter

Correct answer: C. Global production network

119. A company uses an internet platform in India to provide accounting services to clients in another country. Which development makes this possible?

A. Trade barriers

B. Import quotas

C. Local taxation

D. Information and communication technology

Correct answer: D. Information and communication technology

120. A government reduces import duties so domestic firms face more foreign competition. Which policy is illustrated?

A. Trade liberalisation

B. Trade isolation

C. Import prohibition

D. Economic closure

Correct answer: A. Trade liberalisation

Quick Revision — Globalisation & the Indian Economy

GlobalisationRapid integration and interconnection of countries through trade, investment, technology and production.

MNCsCompanies that own or control production in more than one country.

Foreign InvestmentInvestment by an MNC in another country to build or acquire productive assets.

TechnologyImproved transport and communication have accelerated globalisation.

LiberalisationReduction or removal of trade and investment restrictions.

WTOInternational organisation associated with rules governing international trade.

Impact on IndiaGlobalisation has created opportunities and competition, with benefits distributed unevenly.

Small ProducersMay need technology, infrastructure, quality improvement and affordable credit to compete.

Fair GlobalisationGlobalisation in which opportunities and benefits are shared more widely.

Revise, Practise & Continue

For complete Chapter 4 preparation, combine these MCQs with the detailed questions and answers.

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Globalisation and the Indian Economy MCQ Practice Complete
Use these 120 questions for Class 10 Economics concept testing and revision.
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