GLOBALISATION AND THE INDIAN ECONOMY

Investment means spending on ....

• land

• building

• machines

• all of the above

Removing barriers or restrictions set by the government is known as

• globalisation

• nationalism

• liberalisation

• privatisation

“MNCs keep in mind certain factors before setting up production”. Identify the incorrect option from the choices given below

• Proximity to markets

• Availability of cheap skilled and unskilled labour

• Favourable government policies

• Presence of a large number of local competitors

Integration of markets means

• wider choice of goods

• operating beyond the domestic markets

• price of the product tend to become equal

• all the above

The most common way to control production by MNCs is

• set up production with the local company

• buy the local company

• place order for production with small producers

• compete with the local company

Why do MNCs set up offices and factories in more than one nation ?

• The cost of production is high and the MNCs can earn profit.

• The cost of production is low and the MNCs undergoes a loss.

• The cost of production is low and the MNCS can earn greater profit.

• The MNCs want to make their presence felt globally.

Which one of the following is not true regarding the World Trade Organisation?

• Its aim is to liberalise international trade

• WTO rules have forced the developing countries to remove trade barriers.

• It establishes rules regarding international trade.

• It allows free trade to all countries without any trade barriers.