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Role of Globalization in India's Services Sector and Outsourcing

Description: This quiz is designed to assess your understanding of the role of globalization in India's services sector and outsourcing. It covers topics such as the impact of globalization on India's economy, the growth of the services sector in India, and the role of outsourcing in India's economic development.
Number of Questions: 15
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Tags: globalization india services sector outsourcing
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Globalization has led to a significant increase in the contribution of the services sector to India's GDP. What is the primary reason for this growth?

  1. Increased demand for Indian services in global markets

  2. Expansion of the domestic services sector due to rising incomes

  3. Government policies promoting the growth of the services sector

  4. All of the above


Correct Option: D
Explanation:

Globalization has led to an increase in demand for Indian services in global markets, such as IT, software, and financial services. Additionally, rising incomes in India have led to an expansion of the domestic services sector, as more people can afford services such as healthcare, education, and entertainment. Government policies promoting the growth of the services sector have also contributed to its expansion.

Which of the following is not a major sub-sector of India's services sector?

  1. IT and software services

  2. Financial services

  3. Manufacturing

  4. Tourism and hospitality


Correct Option: C
Explanation:

Manufacturing is not a sub-sector of India's services sector. It is a part of the industrial sector.

What is the primary reason for the growth of outsourcing in India?

  1. Availability of skilled labor at a lower cost

  2. Favorable government policies

  3. Advanced infrastructure

  4. All of the above


Correct Option: D
Explanation:

The growth of outsourcing in India can be attributed to a combination of factors, including the availability of skilled labor at a lower cost, favorable government policies, and advanced infrastructure.

Which of the following is not a benefit of outsourcing for Indian companies?

  1. Cost reduction

  2. Access to skilled labor

  3. Improved quality of services

  4. Increased risk of data breaches


Correct Option: D
Explanation:

Increased risk of data breaches is not a benefit of outsourcing for Indian companies. It is a potential risk associated with outsourcing.

What is the primary challenge faced by India's services sector in the context of globalization?

  1. Competition from other developing countries

  2. Lack of skilled labor

  3. Unfavorable government policies

  4. All of the above


Correct Option: A
Explanation:

Competition from other developing countries is the primary challenge faced by India's services sector in the context of globalization. Other developing countries, such as China and the Philippines, are also offering competitive services at a lower cost.

What is the impact of globalization on employment in India's services sector?

  1. Increased employment opportunities

  2. Decreased employment opportunities

  3. No significant impact on employment

  4. It depends on the specific sub-sector


Correct Option: D
Explanation:

The impact of globalization on employment in India's services sector depends on the specific sub-sector. Some sub-sectors, such as IT and software services, have experienced increased employment opportunities due to globalization. However, other sub-sectors, such as manufacturing, have experienced decreased employment opportunities due to outsourcing.

What is the role of government policies in promoting the growth of India's services sector?

  1. Providing subsidies to services companies

  2. Investing in infrastructure development

  3. Promoting foreign direct investment

  4. All of the above


Correct Option: D
Explanation:

Government policies can promote the growth of India's services sector by providing subsidies to services companies, investing in infrastructure development, and promoting foreign direct investment.

What is the impact of globalization on the quality of services in India?

  1. Improved quality of services

  2. Decreased quality of services

  3. No significant impact on quality

  4. It depends on the specific sub-sector


Correct Option: D
Explanation:

The impact of globalization on the quality of services in India depends on the specific sub-sector. Some sub-sectors, such as IT and software services, have experienced improved quality of services due to globalization. However, other sub-sectors, such as manufacturing, have experienced decreased quality of services due to outsourcing.

What are the key challenges that India's services sector needs to address in order to remain competitive in the global market?

  1. Improving the quality of services

  2. Reducing costs

  3. Investing in innovation

  4. All of the above


Correct Option: D
Explanation:

In order to remain competitive in the global market, India's services sector needs to address key challenges such as improving the quality of services, reducing costs, and investing in innovation.

What is the potential impact of globalization on India's economic growth in the long term?

  1. Increased economic growth

  2. Decreased economic growth

  3. No significant impact on economic growth

  4. It depends on the specific policies adopted by the government


Correct Option: D
Explanation:

The potential impact of globalization on India's economic growth in the long term depends on the specific policies adopted by the government. If the government adopts policies that promote the growth of the services sector and address the challenges faced by the sector, then globalization can lead to increased economic growth. However, if the government adopts policies that hinder the growth of the services sector, then globalization can lead to decreased economic growth.

What are some of the ethical concerns associated with outsourcing?

  1. Exploitation of workers in developing countries

  2. Loss of jobs in developed countries

  3. Data security and privacy concerns

  4. All of the above


Correct Option: D
Explanation:

Outsourcing can raise ethical concerns such as the exploitation of workers in developing countries, loss of jobs in developed countries, and data security and privacy concerns.

What is the role of technology in the growth of India's services sector?

  1. Technology has enabled the growth of new services

  2. Technology has improved the efficiency of service delivery

  3. Technology has reduced the cost of services

  4. All of the above


Correct Option: D
Explanation:

Technology has played a crucial role in the growth of India's services sector by enabling the growth of new services, improving the efficiency of service delivery, and reducing the cost of services.

What are some of the key sub-sectors of India's services sector that have experienced significant growth in recent years?

  1. IT and software services

  2. Financial services

  3. Tourism and hospitality

  4. All of the above


Correct Option: D
Explanation:

IT and software services, financial services, and tourism and hospitality are some of the key sub-sectors of India's services sector that have experienced significant growth in recent years.

What is the impact of globalization on the demand for skilled labor in India's services sector?

  1. Increased demand for skilled labor

  2. Decreased demand for skilled labor

  3. No significant impact on demand for skilled labor

  4. It depends on the specific sub-sector


Correct Option: A
Explanation:

Globalization has led to an increased demand for skilled labor in India's services sector, as companies seek to hire skilled workers to meet the growing demand for services.

What are some of the challenges that India's services sector faces in the context of globalization?

  1. Competition from other developing countries

  2. Lack of skilled labor

  3. Unfavorable government policies

  4. All of the above


Correct Option: D
Explanation:

India's services sector faces challenges such as competition from other developing countries, lack of skilled labor, and unfavorable government policies in the context of globalization.

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