MCQs on Globalization and The Indian Economy | Class 10 SST

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Welcome to MCQ Assam School. This post contains 30 MCQs (Multiple Choice Questions) on Class 10 Social Science (Economics) Chapter 4. The name of the chapter is “Globalization and The Indian Economy”. So, basically, this post contains 30 MCQs on Globalization and The Indian Economy. These MCQs will help you to understand the chapter better and will also help you prepare for your exam.

MCQs on Class 10 SST Economics Chapter 4 Globalization and The Indian Economy

The Chapter deals with the following topics:

Production Across Countries
Interlinking Production Across Countries
Foreign Trade and Integration of Markets
What is Globalisation
Factors that have enabled Globalisation
World Trade Organisation
Impact of Globalisation in India
The Struggle for a Fair Globalisation, etc.

These MCQs can also act as a Mock Test. There are 30 MCQs. There are four options for each question. Out of the four options, only one option is correct. Choose the correct options for each question and click on the submit button to see the results. You can also, review your answers. For each right option, you will see a green check mark and for each wrong option, you will see a red cross mark. If the chosen option is wrong then a green check mark will appear near the right option. This way you will know the right answer.

Let’s begin.

30 MCQs on Globalization and The Indian Economy Class 10 SST Economics Chapter 4

1. What is the primary focus of the chapter’s definition of globalization?

A. Cultural exchange between countries B. Integration through foreign trade and investment C. Political alliances between nations D. Social interconnectedness across borders

2. Which entities are identified as major drivers of globalization in the past three decades?

A. Small and medium enterprises (SMEs) B. Multinational corporations (MNCs) C. Government organizations D. Non-profit organizations

3. What is the primary motivation for MNCs to spread their production to other countries?

A. Access to new technologies B. Lower production costs C. Increased brand visibility D. Cultural exchange

4. What is the term used for the money spent by MNCs to acquire assets like land, buildings, and machinery?

A. Capital expenditure B. Operational expenditure C. Foreign investment D. Domestic investment

5. Which of the following is NOT a way in which MNCs control production?

A. Setting up partnerships with local companies B. Using local companies for supplies C. Competing with local companies D. Restricting technology transfer to local companies

6. What is the primary function of foreign trade?

A. Cultural exchange B. Expanding market reach for producers C. Increasing government revenue D. Promoting domestic industries

7. How does foreign trade impact consumer choices?

A. Reduces the variety of goods available B. Expands the choice of goods beyond domestic production C. Limits choices to only imported goods D. Has no impact on consumer choices

8. What is the outcome of foreign trade on prices of similar goods in two different markets?

A. Prices become significantly different B. Prices tend to become equal C. Prices in one market rise sharply D. Prices in both markets decline

9. What is the primary effect of globalization on production and markets?

A. Greater integration across countries B. Isolation of national economies C. Reduced foreign trade D. Decreased foreign investment

10. Which of the following is NOT a factor that has enabled globalization?

A. Rapid improvement in technology B. Increased restrictions on foreign trade C. Liberalization of trade and investment policies D. Pressure from international organizations like the WTO

11. How has improvement in transportation technology impacted globalization?

A. Enabled faster and cheaper delivery of goods B. Increased the cost of transportation C. Limited the movement of goods to nearby regions D. Restricted trade to only high-value products

12. What has been the role of information and communication technology (IT) in globalization?

A. Hindered communication between countries B. Increased the cost of communication C. Facilitated the spread of production of services across countries D. Limited access to information

13. What is the purpose of imposing a tax on imports?

A. To encourage imports B. To promote free trade C. To protect domestic producers D. To increase consumer choices

14. What policy change did India implement around 1991?

A. Liberalization of trade and investment policies B. Increased restrictions on foreign trade C. Nationalization of major industries D. Stricter control over foreign investment

15. What is the primary aim of the World Trade Organization (WTO)?

A. To promote protectionism B. To liberalize international trade C. To restrict foreign investment D. To regulate domestic industries

16. Which sector in India provides the bulk of employment and a significant portion of the GDP?

A. Manufacturing B. Agriculture C. Services D. Information Technology

17. What has been a major advantage of globalization for consumers, particularly the well-off sections in urban areas?

A. Increased job security B. More government support C. Improved quality and lower prices for several products D. Reduced competition in the market

18. In which areas have MNCs increased their investments in India over the past 20 years?

A. Cell phones, automobiles, electronics, soft drinks, banking B. Agriculture, textiles, handicrafts C. Small-scale industries, rural development D. Defense, aerospace, heavy machinery

19. How has globalization impacted top Indian companies?

A. They have faced severe losses and closures B. They have benefited from increased competition and collaborations C. They have remained unaffected by globalization D. They have shifted their focus to only domestic markets

20. What are Special Economic Zones (SEZs)?

A. Areas reserved for agricultural activities B. Zones with strict labor laws C. Regions promoting traditional industries D. Industrial zones with world-class facilities and tax benefits

21. How has the government tried to attract foreign investment in recent years?

A. By increasing taxes on foreign companies B. By allowing flexibility in labor laws C. By restricting imports D. By promoting domestic industries only

22. What is the impact of globalization on employment practices?

A. Increased permanent employment B. Rise in flexible employment practices C. More worker benefits and protections D. Stronger labor unions

23. Which industries in India have been negatively affected by competition due to globalization?

A. IT and services B. Automobiles and electronics C. Batteries, toys, tyres, dairy products D. Banking and finance

24. What are the three things that small producers in India need to compete better in the market?

A. Tax breaks, subsidies, and export incentives B. Relaxed labor laws, lower wages, and longer working hours C. Better infrastructure, technology upgrades, and access to credit D. Protection from imports, government contracts, and monopoly rights

25. How has globalization affected the lives of workers in industries like garment exports?

A. Increased job security and higher wages B. Reduced benefits and job insecurity C. More opportunities for skill development D. Stronger labor unions and collective bargaining power

26. What is the main argument for making globalization ‘fair’?

A. To benefit only the rich and powerful B. To create opportunities for all and ensure benefits are shared better C. To prioritize the interests of MNCs D. To restrict foreign trade and investment

27. What role can the government play in making globalization fairer?

A. Reduce labor laws and worker protections B. Favor large corporations over small producers C. Ensure proper implementation of labor laws and support small producers D. Completely remove all trade barriers

28. How can people contribute to the struggle for fair globalization?

A. By supporting policies that favor MNCs B. By remaining passive and uninvolved C. Through campaigns and representations to influence trade and investment decisions D. By opposing all forms of international trade

29. What has been the overall impact of globalization on the Indian economy in the past two decades?

A. Significant integration with the global economy B. Isolation from the global market C. Decline in foreign trade and investment D. Stagnation of domestic industries

30. Which of the following statements best summarizes the chapter’s perspective on globalization?

A. Globalization is universally beneficial and requires no further action B. Globalization is harmful and should be completely reversed C. Globalization only benefits developed countries D. Globalization presents both opportunities and challenges, and efforts should be made to ensure it is fair

Review Your Answers Above.

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The Bottom Line

I hope these 30 Multiple-choice questions have helped you learn more about the Class 10 Social Science (Economics) Chapter 4 (Globalization and The Indian Economy) in detail. You can retake the test anytime you want by refreshing the page and review your results.

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Abdur Rohman

Abdur Rohman is an Electrical Engineer from Charaideo, Assam, who wears multiple hats as a part-time teacher, blogger, entrepreneur, and digital marketer. Passionate about education, he founded The Assam School blog to provide free, comprehensive textbook solutions, MCQs (Multiple Choice Questions), and other academic content for students from Class V to XII.

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