Globalisation and the Indian Economy: CBSE Class 10 Economics practice questions
Practise 50 questions on Globalisation and the Indian Economy, free, with an explanation for each answer.
Sample questions
Which description fits a multinational corporation (MNC)?
- A company that sells goods in many countries but produces in only one
- A company that owns or controls production in more than one nation
- A company owned jointly by the governments of several nations
- Any company that exports even a small part of its goods
Show the answer
B. A company that owns or controls production in more than one nation
The chapter defines an MNC as a company that owns or controls production in more than one nation. Selling abroad alone (option a) or exporting a little (option d) is just trade. Ownership by governments (option c) is not part of the definition.
A large MNC would spend ₹2,000 crore to produce a batch of goods in one country. The chapter says that spreading production across countries can give 50-60 per cent cost-savings. Between which amounts would the savings be?
- ₹800 crore to ₹1,000 crore
- ₹100 crore to ₹120 crore
- ₹1,000 crore to ₹1,200 crore
- ₹50 crore to ₹60 crore
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C. ₹1,000 crore to ₹1,200 crore
50 per cent of ₹2,000 crore is ₹1,000 crore and 60 per cent is ₹1,200 crore, so the saving is ₹1,000 to ₹1,200 crore. The traps: ₹800 to ₹1000 crore is what the MNC would still pay (cost after saving); ₹100 to ₹120 crore uses 5 and 6 per cent; ₹50 to ₹60 crore treats the percentages as crores.
By 2017, Ford Motors was selling 88,000 cars in the Indian market. Also, 1,81,000 cars were exported from India. Out of all these cars (sold in India plus exported), what percentage was exported?
- 32.7%
- 205.7%
- 48.6%
- 67.3%
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D. 67.3%
Total = 88,000 + 1,81,000 = 2,69,000 cars. Exported share = 1,81,000 / 2,69,000 × 100 = 67.3%. Traps: 32.7% is the share sold in India; 205.7% divides exports by home sales only; 48.6% divides home sales by exports. This also shows MNC plants produce for the Indian market and for export.
Topics covered
- Multinational corporations
- Production across countries
- Cost savings
- Foreign investment
- Ways MNCs produce abroad
- Ford Motors
- Integration of markets
- Globalisation
- Trade barriers
- Liberalisation
- World Trade Organisation
- Impact of globalisation
- Labour laws
- Impact on small producers
- Competition and workers
- Spreading production
- Technology and transport
- Foreign trade
- Special Economic Zones
- Information technology
- Why MNCs choose locations
- Fair globalisation
- Technology
- Indian MNCs
- Impact and examples
- Key terms
- Factors enabling globalisation