The chapter Globalisation and the Indian Economy is an important part of Class 10 Economics. It explains how countries are connected through trade, investment, and technology, and how globalisation has impacted India’s economy.
Globalisation and the Indian Economy Class 10 MCQ
1. Which of the following factors significantly contribute to the process of globalisation?
Select the correct options.
- Expansion of Multinational Corporations (MNCs).
- Advancements in information and communication technology.
- Nationalisation and trade barriers.
- Cross-border movement of people for jobs and education.
a. Statements 1 and 2 are appropriate.
b. Statements 1, 2 and 3 are appropriate.
c. Statements 2, 3 and 4 are appropriate
d. Only statement 3 is appropriate
2. The North-eastern States of India like Nagaland, Mizoram, Arunachal Pradesh enjoys special status in the Constitution of India because:
a. The area has lush green forests.
b. Literacy rates are very high.
c. Due to their social and historical circumstances.
d. As the people speak lot of different languages
3. The result of greater foreign investment and greater foreign trade has been __________across countries. Find the correct option from below.
a. greater bifurcation of production and markets
b. greater segregation of production and markets
c. greater differentiation of production and markets
d. greater integration of production and markets
4. Which of the following international agencies allow free trade and work on mutual trade between countries?
A. WTO
B. IMF
C. UPU
D. FAO
5. Identify the correct statements about globalization.
I. Removal of barriers by the government
II. Foreign companies are allowed to set up factories
III. Has enabled all companies to increase their investments
IV. Has lessened foreign investment and foreign trade
OPTIONS:
A. I &II
B. II & III
C. I & III
D. II & IV
6. Evaluate the impacts of opening foreign trade on the global economy by identifying the appropriate statements among the following options:
- I. The choice of goods in the markets increase.
- ii. Producers from two countries closely compete against each other despite the distance between their locations.
- iii. Foreign trade thus results in connecting the markets or integration of markets in different countries.
- iv. The quality of the product is always good.
a. Statements i and ii are appropriate.
b. Statements i, ii and iii are appropriate.
c. All the statements are appropriate.
d. Only statement iv is appropriate.
7. The process of integration between different countries is called as________.
a. Privatization
b. Globalization
c. Liberalization
d. Competition
8. Two statements I and II are given below. Read both the statements carefully and choose the correct option:
Statement I: Rapid improvement in technology has been one major factor to stimulate the globalisation process.
Statement II: This has made much faster delivery of goods across long distances possible at lower costs.
(A) Both statements I and II are correct and statement II is the correct explanation of statement I.
(B) Both statements I and II are correct, but statement II is not the correct explanation of statement I.
(C) Statement I is correct, but statement II is incorrect.
(D) Statement I is incorrect, but statement II is correct.
9. Choose the correct option to fill the blank.
Removing barriers or restrictions on business and trade set by the government is called as __.
(a) Disinvestment
(b) Special Economic Zones
(c) Liberalisation
(d) Foreign Direct Investment
10. Choose the correct option to fill in the blank.
World Trade Organisation was started at the initiative of the __ countries.
(A) Developed
(B) Developing
(C) Non-aligned
(D) Communist
11. Which of the following is not a feature of a Multinational Company?
(a) It controls production in more than one nation.
(b) It sets up factories where it is close to the market.
(c) It organises production in complex ways.
(d) It employs labour only from its own country.
12. Which one among the following is a far-reaching change in the Economic Policy of India in 1991?
(a) Removing barriers on trade
(b) Putting barriers on foreign trade
(c) Restrictions on foreign competition
(d) Protection to domestic and foreign producers
13. Which one of the following is a major benefit to an MNC when it works on joint production with a local company?
(A) MNC shares its latest technology with the local company.
(B) MNC decides all parameters and prices of the product.
(C) MNC shares its institutional policy with local company.
(D) MNC built good and familial relations with the local company.
14. Which one of the following is a challenge of Globalisation?
(a) Access to New Markets
(b) Access to New Talent
(c) International Recruitment
(d) Disproportionate Growth
15. What is the feature of a multinational corporation (MNC)?
a. It produces only in its home country.
b. It trades only raw materials.
c. It owns or controls production in more than one nation.
d. It avoids foreign investment.
Explanation: An MNC company controls production in multiple countries and spreads production to the global market to reduce the cost and increase the profit.
16. What do you mean by foreign investment?
a. Money spent by MNCs to buy assets like land, machines, and factories in another country
b. Money spent by local traders to buy goods
c. Loans given by banks to farmers
d. Government subsidies to industries
Explanation: When an MNC company invests in factories, land, or euipment in another company, it is known as foreign investment.
17. Which is the example of interlinking of production across countries?
a. A farmer selling crops in a local market
b. A trader selling goods in a weekly bazaar
c. A local shopkeeper selling Indian toys
d. A call center in India providing customer care for a US company
18. In developing countries, how do MNC companies expand their production?
a. By setting up small shops
b. By buying local companies or partnering with them
c. By avoiding investment in technology
d. By restricting exports
Explanation: Most of the time the MNC companies buy the local companies, or they collaborate with the other companies and bring money and technology.
19. What is the basic function of foreign trade?
a. To connect producers and consumers across countries
b. To restrict imports
c. To reduce competition
d. To eliminate export
20. What was the impact of Chinese toys entering Indian markets?
a. Indian toys became more popular
b. Prices of toys increased.
c. Indian toy makers faced losses due to cheaper Chinese toys.
d. No effect on Indian markets
Explanation: The Chinese product price is lower than the Indian product’s due to the fact that the Indian toy market faces losses.
21. What do you mean by integration of markets?
a. Producers only sell in domestic markets.
b. Prices of similar goods in different countries tend to eualize due to trade.
c. Consumers have fewer choices.
d. MNCs stop investing abroad.
22. Why are most of the MNC companies in America, Japan, or Europe?
a. Because these countries have large markets and advanced technology
b. Because they avoid global production
c. Because they depend only on raw materials
d. Because they do not invest abroad
Explanation: Developed countries have advanced technology and skilled labor, which dominate global production.
23. How will you define globalization?
a. Expansion of domestic trade only
b. Rapid integration and interconnection between countries through trade, investment, and technology
c. Restriction of foreign trade to protect local industries
d. Movement of people only across countries
24. Which of the following plays the major role in globalization?
a. Local traders
b. Farmers
c. Multinational Corporations (MNCs)
d. Government employees
Explanation: MNC companies spread their production across the country, invest in assets, and control a large share of global trade; because of this, MNC companies are central to globalization.
25. Which factor has enabled globalization the most in recent decades?
a. High transport costs
b. Restriction of foreign investment
c. Decline in international trade
d. Rapid improvements in technology, transport, and communication
Explanation: The improvements in transport and in IT have made globalization faster and cheaper.
26. What do you mean by liberalization of trade?
a. Increasing taxes on imports
b. Removing barriers and restrictions on foreign trade and investment
c. Banning foreign companies from investing
d. Limiting exports to developed countries
27. Which of the following organizations promotes free trade globally?
a. Reserve Bank of India
b. International Monetary Fund (IMF)
c. World Trade Organization (WTO)
d. United Nations
Explanation: The WTO was started at the initiative of developed countries to liberalize international trade. It sets rules and monitors compliance.
28. Why do developing countries criticize the WTO?
a. Developed countries retain trade barriers and continue supporting their farmers while forcing developing countries to remove barriers.
b. The WTO bans foreign trade completely.
c. The WTO only supports poor countries.
d. The WTO reduces competition among producers.
29. How does globalization give benefits to Indian consumers?
a. Reduced choice of goods
b. Higher prices for products
c. Greater choice, better uality, and lower prices
d. No change in living standards
Explanation: Globalization increases the competition in the market, which gives the consumer more choice and helps to improve the uality and decrease the price, especially in urban areas.
30. What do you mean by fair globalization?
a. Benefits shared only by MNCs
b. Opportunities created for all, with benefits shared more eually
c. Restricting foreign trade completely
d. Allowing only developed countries to trade
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