Class 10 Globalisation and the Indian Economy Mock Test (CBSE)

Topics in Globalisation and the Indian Economy

• Production across countries
• Multinational corporations
• Foreign trade and integration of markets
• What globalisation is
• Factors enabling globalisation
• World Trade Organisation
• Impact of globalisation in India
• Fair globalisation

Globalisation and the Indian Economy practice questions with answers

1. Q1Assertion and reason·1 mark
   Assertion (A): Multinational corporations (MNCs) control and spread their production across different countries through various means. Reason (R): MNCs set up production jointly with local companies, buy local companies, and place orders with small producers to expand their operations.

   1. (a)Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
   2. (b)Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A).
   3. (c)Assertion (A) is true but Reason (R) is false.
   4. (d)Assertion (A) is false but Reason (R) is true.
   Show answer and step marks

   1. Correct option: (a). Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A) because the specific methods listed in the reason explain how MNCs control and spread their production globally.+1

   Answer: (a)
2. Q2Multiple choice·1 mark
   What is the primary effect of foreign trade on markets across different countries?

   1. (a)It completely eliminates price differences across the globe.
   2. (b)It restricts the choice of goods available to general consumers.
   3. (c)It integrates markets, allowing goods to travel easily between countries.
   4. (d)It isolates domestic markets from global economic trends.
   Show answer and step marks

   1. Correct option: (c) It integrates markets, allowing goods to travel easily between countries.+1

   Answer: (c)
3. Q3Multiple choice·1 mark
   Which of the following best describes the primary objective of a Multinational Corporation (MNC) when setting up production units in different countries?

   1. (a)To create jobs for workers in less developed countries
   2. (b)To share their latest technology with local producers
   3. (c)To minimize production costs and maximize profits
   4. (d)To help host governments earn more foreign exchange
   Show answer and step marks

   1. Correct option: (c) To minimize production costs and maximize profits. MNCs set up production where it is close to markets and where labour and other resources are cheap; jobs and technology in the host country are side effects, not the aim.+1

   Answer: (c)
4. Q4Short answer·3 marks
   Explain any three major objectives or functions of the World Trade Organisation (WTO).
   Show answer and step marks

   1. First objective or function, any one of: to liberalise international trade by reducing trade barriers; to establish rules regarding international trade; to see that these rules are obeyed by member countries; to provide a forum for member countries to negotiate trade agreements; to settle trade disputes between member countries; or any other valid objective or function.+1
   2. Second objective or function, a different one from the same list.+1
   3. Third objective or function, a different one from the same list.+1

   Answer: Any three of: it aims to liberalise international trade; it sets rules for international trade; it sees that member countries obey these rules; it provides a forum to negotiate trade agreements; it settles trade disputes between members.
5. Q5Short answer·3 marks
   Explain any three factors that have played a major role in enabling globalisation across the world.
   Show answer and step marks

   1. First factor, any one of, with its explanation: improvement in transport technology (e.g. containers), which made delivery of goods across long distances faster and cheaper; information and communication technology (telecommunications, computers, the internet), which allows instant contact and coordination worldwide; liberalisation of foreign trade and investment policies, which removed barriers and let foreign companies set up production; pressure from international organisations such as the WTO to liberalise trade; or any other valid factor.+1
   2. Second factor, a different one from the same list, with its explanation.+1
   3. Third factor, a different one from the same list, with its explanation.+1

   Answer: Any three of: better transport technology (e.g. containers) made moving goods over long distances faster and cheaper; information and communication technology lets firms communicate and coordinate instantly across the world; liberalisation removed barriers on foreign trade and investment; pressure from the WTO pushed countries to liberalise trade.

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