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Mncs and impact of globalization - class-XII

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Globalisation by connecting countries, shall result in ______________.

  1. lesser competition among producers

  2. greater competition among producers

  3. no change in competition among producers

  4. none of the above


Correct Option: B
Explanation:
 Producers in the two countries now closely compete against each other even though they are separated by thousands of miles! Foreign trade thus results in connecting the markets or integration of markets in  different countries.

Which of these branded products are produced by MNCs and sold in the Indian market?
(i) Coca-Cola
(ii) Honda automobiles
(iii) Nokia cell-phone handsets
(iv) Cotton and silk handloom textiles

  1. (i), (ii), (iii), (iv)

  2. (i),(ii),(iv)

  3. (i), (ii), (iii)

  4. (i), (iii), (iv)


Correct Option: C
Explanation:

The Coca-Cola Company, which is headquartered in Atlanta, Georgia, is an American multinational beverage corporation, and manufacturer, retailer, and marketer of nonalcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia.

Honda Motor Co., Ltd. is a Japanese public multinational conglomerate corporation primarily known as a manufacturer of automobiles, aircraft, motorcycles, and power equipment.

Nokia Corporation, stylised as NOKIA, is a Finnish multinational communications and information technology company, founded in 1865. Nokia is headquartered in Espoo, Uusimaa, in the greater Helsinki metropolitan area.

What is the the full form of SEBI?

  1. Securities and Exchange Board of India

  2. South Eastern Board of India

  3. Secondary Education Board of India

  4. None of these


Correct Option: A
Explanation:

The Securities and Exchange Board of India (SEBI) ) is the regulator for the securities market in India. It was established in the year 1988 and given statutory powers on 12 April 1992 through the SEBI Act, 1992. It was established by The Government of India on 12 April 1988 and given statutory powers in 1992 with SEBI Act 1992 being passed by the Indian Parliament.  SEBI has its headquarters at the business district of in Mumbai, and has Northern, Eastern, Southern and Western Regional Offices in New Delhi, Kolkata, Chennai and Ahmedabad respectively. 

We import a few items which are must for our economic development. They are __________.

  1. Copper

  2. Zinc

  3. Fertilizers

  4. All of these


Correct Option: D

Which sector has benefited least because of globalization in India?

  1. Agriculture

  2. Industrial

  3. Service

  4. None of these


Correct Option: A
Explanation:

It should be noted that under the cumbersome provisions of GATT (General Agreement for Tariff and Trade) India could not open up its agriculture sector for international trade. India’s exports were mainly confined to traditional items like spices, tea, coffee etc., which were having very low demand elasticity in the international market.

Chinese toys have become popular in India because ___________.

  1. they are imported items

  2. they are easily available in the indian market

  3. they are innovative and  cheap

  4. none of these


Correct Option: C
Explanation:

 Because of the cheaper prices and new designs, Chinese toys become more popular in the Indian markets.

Which of the following is the major item of imports in India?

  1. Iron and steel products

  2. Chemical products

  3. Petroleum

  4. None of these


Correct Option: C
Explanation:

India imports 35% of its petroleum requirements from foreign. Petroleum comes from Iran, Kuwait, Iraq and Saudi Arabia. In 2004-05, petroleum worth Rs. 134095 crore were imported.

When did Ford Motors company re-enter Indian market?

  1. 1990

  2. 1995

  3. 1996

  4. 1998


Correct Option: B
Explanation:

Ford Motors re-entered Indian markets in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks. 

Before independence, India's foreign trade was confined to _____.

  1. Britain

  2. Commonwealth countries

  3. OPEC

  4. None of these


Correct Option: A
Explanation:

Prior to Independence, India's foreign trade was mainly confined to Britain. But now the table have turned. At present, India has maximum imports from and exports to European Union, Role of Japan, U.S.S.R., USA and Organisation of Petroleum Exporting Countries (OPEC) in  India's foreign trade has increased substantially.

How many District consumer courts/councils are there in India?

  1. 800

  2. 569

  3. 400

  4. 425


Correct Option: B
Explanation:

Consumer Protection Act, 1986 is an Act of the Parliament of India enacted in 1986 to protect the interests of consumers in India. It makes provision for the establishment of consumer councils and other authorities for the settlement of consumers' disputes and for matters connected therewith. 

Which one of the following is a positive impact of globalisation?

  1. Workers are facing insecurity

  2. Small-scale industries are perishing

  3. Production of goods in the economy has expanded

  4. Gap between rich and poor has widened


Correct Option: C
Explanation:

Positive impact of globalisation:-

  • Greater competition among producers resulting from Globalisation is a great advantage to consumers as there is greater choice before them.
  • Due to globalisation many MNCs have increased their investments in India.
  • Local companies supplying raw materials, to these industries have prospered.

Which of the following is India's largest trading partner in the world?

  1. UAE

  2. China

  3. USA

  4. France


Correct Option: B
Explanation:

India's largest trading partner in the world is China as India exports approximately 16.34 % of its total exports to China and import approximately 68.08 % of its total imports from China. Therefore the total trade that takes place between China and India comprises of approximately 84.4 % of India's overall trade which in highest with China. 

Globalization has affected ______ and ______. 

  1. Employment opportunities in developing countries

  2. Local industries

  3. Both A and B

  4. None


Correct Option: C
Explanation:
In a globalised world, cheaper imports have replaced the demand for domestic goods. Domestic manufacturers are facing competition from imports. Globalisation is, thus, often seen as creating conditions for the free movement of goods and services from foreign countries that adversely affect the local industries and employment opportunities in developing countries.

Which of the following is not the disadvantage of MNC?

  1. Strain on foreign exchange reserve of the host country.

  2. More employment opportunities.

  3. Creation of monopolies.

  4. May kill domestic industry.


Correct Option: B
Explanation:

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. As MNC operates in more than two or more countries it encourages employment opportunities in different countries. Hence, it is not the disadvantage of MNC.

Multinational Corporations can be defined as a firm which ________________.

  1. is having all the government benefits of the origin country

  2. is counted amongst the biggest industries in the host country

  3. owns companies in more than one country

  4. all of the above


Correct Option: C
Explanation:

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. Hence, MNCs can be defined as a firm which owns companies in more than one country.

For multinational activity, internalization means __________.

  1. to undercut the prices of local producers in overseas markets as multinational have an approach and exposure to global market and their scale of production is large enough.

  2. to set up an overseas production operation because of the fear of franchising operations that has been given to local firms already in the market.

  3. exploiting a well-established global brand image to dominate overseas markets.

  4. all of the above


Correct Option: C
Explanation:

Internalisation  is the process of increasing the involvement of enterprises in international markets. Hence, for multinatinoal activity, internalisation means exploiting a well-established global brand image to dominate overseas markets.

The multinational corporations provides lot of benefits as it ___________.

  1. increases the transfer of technology between nations

  2. they always produce the goods

  3. host countries progress is mostly dependent on them

  4. none of the above


Correct Option: A
Explanation:

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. Its main advantage is it increases the transfer of technology between the nations.

An MNC is defined by an organisation __________.

  1. carrying out production in more than one country

  2. having sales in more than one country

  3. having a multi-ethnic workforce

  4. having-suppliers in more than one country


Correct Option: A
Explanation:

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. Hence, a MNC is defined by an organisation carrying out production in more than one country.

The characteristics feature of a multinational enterprise (MNE) include __________.

  1. it owns its subsidiaries in other countries

  2. it may operate in another country

  3. these are established due to difference in the rate of return on capital between the two countries

  4. both (a) and (b)


Correct Option: D
Explanation:

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. Hence, the characteristic feature of a MNE include it owns its subsidiaries in other countries as well as it may operate in another country.

What can be a disadvantage to the home country of the  MNC's investing in other countries?

  1. Transfer of capital from home country to host country.

  2. No employment to the people.

  3. Both a and b

  4. None of the above


Correct Option: B
Explanation:

MNC refers to those organisations who have their headquarters in the home country and subsidiaries in two or more country. When a MNC invests in other countries it directly increases employment in the countries where investment is done. Hence, it can be a disadvantage to the home country as employment decreases..

Multinational corporations, sometimes provide benefits to their home countries, except which one?

  1. Boost the industrial development in home country

  2. Allow for production of cheaper components for their products

  3. Marketing opportunities for the products produced in home country

  4. Shift the home country's technology overseas via licensing


Correct Option: D
Explanation:

MNC is an organisation which has its head office in the home country and subsidiaries in two or more countries. I t provides various benefits to the home countries:

  1. Boost the industrial development in the home country.
  2. Allow for production of cheaper components for their products.
  3. Marketing opportunities for the products produced in the home country.
But it does not shift home country technology overseas via licensing.

Is the following statement is true or false?

Some MNC's,  for instance Walmart have their economy as large as the economy of many developing countries. 

  1. False

  2. True

  3. Not relevant

  4. None of the above


Correct Option: B
Explanation:

MNC refers to those organisations who have their headquarters in the home country and subsidiaries in two or more country. Some MNCs have their economy as large as the economy of many developing countries. Walmart made a total profit of 16 billion dollars and that is as large as economy of any developing country.

A MNC is defined by an organisation ___________.

  1. carrying out production in more than one country

  2. having sales in more than one country

  3. having a multi-ethnic workforce

  4. having-suppliers in more than one country


Correct Option: A
Explanation:

MNC refers to an organisation which has its headquarter in home country and operates in two or more countries through its subsidiaries being set up there. Hence, a MNC is defined by an organisation carrying out production in more than one country.

Home location for most of the world's MNC is at __________.

  1. America

  2. America and Asia

  3. Europe

  4. Singapore


Correct Option: A
Explanation:

A MNC is an organisation which has its main headquarters in the home country but has its subsidiaries in two or more countries. Many MNCs are located mostly in America. Hence, home location for most of the world's MNC is at america.

Which of the following is not a key advantage of an MNC?

  1. Technology movement

  2. Support enterprises in host countries

  3. Product duplication

  4. Provide services to professionals


Correct Option: C
Explanation:

MNC is an organisation which has its head office in the home country and subsidiaries in two or more countries. The advantage of MNC are:

  1. Technology movement.
  2. Support enterprises in host countries.
  3. Provide services to professionals.etc.
But it does not do product duplication.

Which of the following pairs of MNC and the countries where they are headquartered is/one correctly matched?
1.Mero-Germany
2.Walmart -USA
3.Tesco- UK
4.Carore four- France

  1. 123 only

  2. 1,2,3

  3. 4,1,2

  4. 1,2,3 and 4


Correct Option: D
Explanation:

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. All the pairs mentioned of the MNC and their base countries are absolutely correct.

The advantage of multinational corporations is _____________.

  1. business gets management expertise from MNC

  2. always enjoy political harmony in host countries in which their subsidiaries operate

  3. enjoy subsidies from government in order to conduct worldwide operations

  4. both (a) and (b)


Correct Option: A
Explanation:

MNC is an organisation which has its head office in the home country and subsidiaries in two or more countries. The advantage of MNC are:

  1. Technology movement.
  2. Support enterprises in host countries.
  3. Provide services to professionals.
  4. Business gets management expertise from the MNC etc.

Which of the following is an example of a multinational corporation?

  1. McDonalds

  2. Nirma

  3. World trade organization

  4. United Nations Organization


Correct Option: A
Explanation:

A MNC is an organisation which has its main headquarters in the home country but has its subsidiaries in two or more countries. E.g. McDonalds have its main headquarters in USA but have its branches in many countries of the world.

Microsoft is a _________.

  1. Indian government company

  2. multinational company

  3. statutory corporation

  4. public limited company


Correct Option: B
Explanation:

A multinational corporation is an organisation which has its main headquarter in home country and operates with its subsidiaries in two or more countries. Microsoft has its main headquarters in Washington but has its subsidiaries all over the world.

Coca- Cola is an example of _________.

  1. MNC

  2. Indian Company

  3. Foreign Company

  4. None of the above


Correct Option: A
Explanation:

A multinational corporation is an organisation which has its main headquarter in home country and operates with its subsidiaries in two or more countries. Coca-Cola has its main branch in Georgia but has many subsidiaries spread all over the world.

In India, Overall Economic Planning in the form of targets is laid down by the _____________.

  1. government of india

  2. planning authority of India

  3. planning commission

  4. state governments.


Correct Option: C

When a country enters into international trade, what record is maintained on the basis of double entry book-keeping?

  1. Balance of Payment

  2. Balance Sheet

  3. International Trade

  4. Profit and Loss Account


Correct Option: A

Choose the correct statement about factors regarding globalization in India :
I. Improvement in transportation technology.
II. Liberalization of foreign trade and foreign investment.
III. Favourable rules of WTO towards India in comparison to developed countries.
Choose the correct options from the codes given below:

  1. Only I and II

  2. Only I and III

  3. Only II and III

  4. Only III


Correct Option: A
Explanation:

Option II and III are correct; option C is the correct answer.

Reason:- Improvement in the transport sector facilitates globalization, it is not an outcome of globalization. 

Whereas Liberalization of foreign trade and Favorable rules under the developing countries category helped India to improve trade in the world. 

Globalisation means -

  1. Integrating the domestic economy with the world economy

  2. A process which draws countries out of their isolation and makes them join rest of the world in its march towards a new world economic order

  3. Integrating the world into one global village

  4. All of the above


Correct Option: D

Globalization has mostly affected ________.

  1. Developed countries

  2. MNC's

  3. Large producers

  4. Small producers


Correct Option: D
Explanation:

For a large number of small producers and workers globalisation has posed major challenges. MNC's sell their products at cheaper prices in other countries which affects Indian producers because people would prefer buying the same thing at a cheaper price which is sold by MNC's.

Ford motors came to India in the year  _____.

  1. 1994

  2. 1995

  3. 1996

  4. 1997


Correct Option: B
Explanation:

 Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. 

In the last decade, which one among the following sectors has attracted highest foreign direct investment inflows into India?

  1. Chemicals (excluding fertilizers)

  2. Services

  3. Food processing

  4. Telecommunication


Correct Option: D
Explanation:

India is currently the world’s second-largest telecommunications market and has registered strong growth in the past decade and half. The Indian mobile economy is growing rapidly and is expected to contribute substantially to India’s Gross Domestic Product (GDP).

Looking at the past, we find that MNCs have been a major force in the process of Globalization since last ____________.

  1. forty years

  2. thirty years

  3. fifty years

  4. sixty years


Correct Option: B
Explanation:

If we look at the past thirty years or so, we find that MNC's have been a major force in the globalisation process connecting distant regions of the world.

Globalisation of the Indian economy has not adversely impacted ____ .

  1. workers in the unorganised sector

  2. workers in call centres

  3. workers in small scale manufacturing units

  4. small traders


Correct Option: B
Explanation:

Due to new communication technologies, one of the biggest trends is to move call centres offshore to the global south to countries such as India where labour is cheap and the employees speak English. 80% of call centres in India cater to the international market. This industry in India is the result of globalisation since there were no domestic call centres in India prior to the international call centres. It is estimated that the Indian call centre industry now employs 1.2 million people for both inbound and outbound customer service.

Agriculture accounts for about _____of the total value of the country's exports.

  1. 10%

  2. 20%

  3. 15%

  4. 25%


Correct Option: A
Explanation:

Agriculture is the bedrock of Indian economy where farm rather than factories have been the mainstay of masses. In addition, it accounts for 10 per cent of the country’s exports lending a helping hand in earning valuable foreign exchange. The impressive achievements of this sector have been the joint efforts of the farming community and agricultural scientists, marketing professionals and the public and cooperative sectors. 

The functions of  Multinational corporations are ___________.

  1. they always do the marketing of the primary goods

  2. they always produce manufactured goods

  3. they always do the marketing of the manufactured goods

  4. none of the above


Correct Option: D
Explanation:

MNC is an organisation which has its head office in the home country and subsidiaries in two or more countries. The various functions of MNC are:

  1. Promotion of foreign investment
  2. Technology transfer
  3. Promotion of exports
  4. Investment in infrastructure
But it do not always do the marketing of primary goods, manufactured goods or produce manufactured goods.

Advantages of multinationals to home countries are __________.

  1. ensure optimum utilisation of resources

  2. promote bilateral trade relations

  3. promote global Co-operations

  4. all of the above


Correct Option: D
Explanation:

A multinational corporation is an organisation which has its main headquarter in home country and operates with its subsidiaries in two or more countries. The main advantages of MNC to home countries are as follows:

  1. It ensure optimum utilisation of resources.
  2. It promote bilateral trade relations.
  3. It promote global co-operations.etc.

How many approved stock exchanges are present in India?

  1. $19$

  2. $20$

  3. $21$

  4. $23$


Correct Option: D
Explanation:

India has 23 approved stock exchanges, of which NSE and BSE have the major share in market capitalisation. The approved stock exchanges of India are listed as below:
$1$. Meerut Stock Exchange, Meerut(UP)
$2$. UP Stock Exchange, Kanpur(UP)
$3$. Mumbai Stock Exchange, Mumbai(Maharashtra)
$4$. Over the Counter Exchange of India, Mumbai(Maharashtra)
$5$. National Stock Exchange, Mumbai(Maharashtra)
$6$. Pune Stock Exchange, Pune(Maharashtra)
$7$. Ahmedabad Stock Exchange, Ahmedabad(Gujarat)
$8$. Vadodara Stock Exchange, Vadodara(Gujarat)
$9$. Bangalore Stock Exchange, Bangalore(Karnataka)
$10$. Canara Stock Exchange, Mangalore(Karnataka)
$11$. Bhubaneswar Stock Exchange, Bhubaneswar(Odisha)
$12$. Kolkata Stock Exchange, Kolkata(West Bengal)
$13$. Delhi Stock Exchange, Delhi
$14$. Guwahati Stock Exchange, Guwahati(Assam)
$15$. Hyderabad Stock Exchange, Hyderabad (Andhra Pradesh)
$16$. Jaipur Stock Exchange, Jaipur (Rajasthan)
$17$. Ludhiana Stock Exchange, Ludhiana(Punjab)
$18$. Chennai Stock Exchange, Chennai(Tamil Nadu)
$19$. Coimbatore Stock Exchange, Coimbatore(Tamil Nadu)
$20$. MP Stock Exchange, Indore(Madhya Pradesh)
$21$. Magadh Stock Exchange, Patna(Bihar)
$22$. Capital Stock Exchange, Kerala Ltd Tiruvananthapuram, (Kerala)
$23$. Cochin Stock Exchange, Cochin(Kerala).

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