Extra 40 multiple-choice questions (MCQs) with answers from the chapter "Globalisation and the Indian Economy" for Class 10 CBSE Economics:
---
1-10: Basic Concepts of Globalisation
1. What is globalisation?
a) Process of increasing local trade
b) Integration of economies worldwide
c) Reducing foreign trade
d) Isolating economies from the world
Answer: b) Integration of economies worldwide
2. Which of the following is a major factor enabling globalisation?
a) High tariffs on imports
b) Advances in transportation and communication
c) Increased local production
d) Strict government policies
Answer: b) Advances in transportation and communication
3. Which international organisation aims to liberalise international trade?
a) WTO
b) IMF
c) UNESCO
d) WHO
Answer: a) WTO
4. Which sector has benefited the most from globalisation in India?
a) Agriculture
b) Service sector
c) Handicrafts
d) Cottage industry
Answer: b) Service sector
5. Which of the following is a negative impact of globalisation?
a) More job opportunities
b) Increased competition for local industries
c) Improved technology
d) Economic growth
Answer: b) Increased competition for local industries
6. Which of these organisations played a key role in bringing globalisation to India?
a) RBI
b) SEBI
c) WTO
d) UNESCO
Answer: c) WTO
7. Which of the following is an example of a multinational corporation (MNC)?
a) Amul
b) Reliance
c) Coca-Cola
d) Patanjali
Answer: c) Coca-Cola
8. What is the main motive of MNCs?
a) To provide employment
b) To earn profit
c) To help developing countries
d) To promote local businesses
Answer: b) To earn profit
9. Which Indian industry has gained the most from globalisation?
a) Handloom
b) IT and software services
c) Agriculture
d) Toy manufacturing
Answer: b) IT and software services
10. Which policy change led to globalisation in India?
a) Green Revolution
b) Economic liberalisation of 1991
c) Nationalisation of banks
d) Five-Year Plans
Answer: b) Economic liberalisation of 1991
---
11-20: Role of MNCs and Foreign Trade
11. What is an MNC?
a) Company operating only in its home country
b) Company operating in multiple countries
c) Government-owned company
d) Local business expanding within a state
Answer: b) Company operating in multiple countries
12. Foreign trade leads to __________.
a) Increase in domestic trade only
b) A wider choice for consumers
c) A decrease in product variety
d) Complete dependence on foreign goods
Answer: b) A wider choice for consumers
13. How do MNCs usually expand in a country?
a) Buying local companies
b) Setting up factories and offices
c) Collaborating with local businesses
d) All of the above
Answer: d) All of the above
14. What is the impact of foreign trade?
a) Decreases competition
b) Limits economic growth
c) Connects markets worldwide
d) Reduces employment opportunities
Answer: c) Connects markets worldwide
15. What is the role of WTO?
a) Regulates local businesses
b) Encourages trade restrictions
c) Promotes free trade globally
d) Provides loans to farmers
Answer: c) Promotes free trade globally
16. Which sector attracts the most FDI in India?
a) IT and telecom
b) Banking
c) Coal mining
d) Agriculture
Answer: a) IT and telecom
17. Why do companies set up factories in developing countries?
a) High wages for workers
b) Strict environmental regulations
c) Low production costs
d) Limited resources
Answer: c) Low production costs
18. Which of the following is NOT an impact of globalisation?
a) Expansion of markets
b) Increase in protectionist policies
c) Growth of multinational corporations
d) Wider availability of products
Answer: b) Increase in protectionist policies
19. Which country is NOT a member of WTO?
a) India
b) USA
c) China
d) North Korea
Answer: d) North Korea
20. How does FDI benefit the host country?
a) Provides jobs
b) Brings new technology
c) Improves infrastructure
d) All of the above
Answer: d) All of the above
21-30: Effects of Globalisation on India
21. When did India adopt economic liberalisation?
a) 1980
b) 1991
c) 2000
d) 2010
Answer: b) 1991
22. Which sector benefited the most from globalisation in India?
a) Agriculture
b) Manufacturing
c) Service sector
d) Handicrafts
Answer: c) Service sector
23. Which organisation controls foreign trade policies in India?
a) RBI
b) SEBI
c) Ministry of Commerce and Industry
d) NITI Aayog
Answer: c) Ministry of Commerce and Industry
24. A major negative impact of globalisation on Indian farmers is:
a) Higher subsidies
b) Increased competition from cheaper foreign agricultural products
c) Higher profits
d) Less dependence on monsoons
Answer: b) Increased competition from cheaper foreign agricultural products
25. What is outsourcing?
a) Hiring services from another country
b) Selling goods in foreign countries
c) Buying raw materials from local markets
d) Restricting trade with foreign nations
Answer: a) Hiring services from another country
26. Which Indian industry has grown due to globalisation?
a) Textile
b) Agriculture
c) IT and BPO services
d) Leather industry
Answer: c) IT and BPO services
27. Which of the following is NOT a benefit of globalisation?
a) Access to advanced technology
b) Loss of local industries
c) Foreign investment
d) Increased job opportunities
Answer: b) Loss of local industries
28. Which Indian company has expanded globally?
a) Tata Group
b) Amul
c) Patanjali
d) D-Mart
Answer: a) Tata Group
29. Which is NOT an impact of globalisation?
a) Increase in foreign trade
b) Increase in government monopoly
c) Expansion of multinational companies
d) Growth in service industries
Answer: b) Increase in government monopoly
30. Which sector faces challenges due to globalisation?
a) IT sector
b) Large industries
c) Small-scale industries
d) Banking sector
Answer: c) Small-scale industries
---
31-40: Miscellaneous Questions
31. Which of the following is NOT an MNC?
a) McDonald's
b) Mother Dairy
c) Coca-Cola
d) Samsung
Answer: b) Mother Dairy
32. Which of these industries suffered due to globalisation?
a) IT industry
b) Handloom industry
c) Automobile industry
d) Telecom industry
Answer: b) Handloom industry
33. What is foreign direct investment (FDI)?
a) Money sent by foreign workers to their home country
b) Investment by foreign companies in another country
c) Selling goods to foreign customers
d) Export of domestic products
Answer: b) Investment by foreign companies in another country
34. Which policy encouraged globalisation in India?
a) Green Revolution
b) New Economic Policy, 1991
c) Nationalisation Policy
d) Five-Year Plans
Answer: b) New Economic Policy, 1991
35. What is liberalisation?
a) Removal of trade restrictions
b) Increasing import duties
c) Nationalising industries
d) Strengthening government control over the economy
Answer: a) Removal of trade restrictions
36. Which of the following is a global brand?
a) Tata Motors
b) Reliance Jio
c) Nike
d) Parle-G
Answer: c) Nike
37. What is the main aim of WTO?
a) Promote free trade
b) Encourage trade restrictions
c) Support only developed countries
d) Ban foreign investment
Answer: a) Promote free trade
38. Which is NOT a characteristic of globalisation?
a) Integration of markets
b) Expansion of MNCs
c) Increasing trade barriers
d) Foreign investments
Answer: c) Increasing trade barriers
39. Which sector employs the most due to globalisation?
a) IT and Services
b) Agriculture
c) Mining
d) Fishing
Answer: a) IT and Services
40. Which industry gained from foreign investment in India?
a) Textile industry
b) Automobile industry
c) Handicrafts industry
d) Cottage industry
Answer: b) Automobile industry
