Question Bank on Globalization and Economy

Question Bank on Globalization and Economy

[Answers are given in bold]

1.       The salient features of the Indian economy are :

(a)    Predominance of agriculture

(b)   Rapid population growth and unemployment

(c)    Low per capita GDP & capital scarcity

(d)   None of the above

(e)   a, b, and c

2.       The increasing trade deficit in India was neutralized by a surplus due to:

(a)    Invisibles in the form of services exports and private transfers

(b)   Expansionary Trade policy

(c)    Fiscal Policy

(d)   Devaluation of Rupee

3.       Which of the following was not a stabilization measure implemented by the government in 1999, to correct the imbalances in the Indian economy:

(a)    Devaluation of currency and convertibility in current account

(b)   Liberalization of domestic markets

(c)    Cut in government expenditure

(d)   All of the above

(e)   None of the above

4.       The Principal objectives of India’s trade policy defined in the Export-Import Policy are:

(a)    Accelerate country’s transition to globally oriented economy and stimulate sustained economic growth

(b)   Incase exports to a maximum and decrease imports to a minimum

(c)    Cuts in Exports and Imports duties

(d)   None of the above

5.       The major threat (s) to India’s trade prospects in the coming years are:

(a)    Global oil prices

(b)   Interest rates hike in developed countries

(c)    Volatility of major currencies

(d)   All of the above

6.        What is the full form of MRTP?

(a)    Monopoly and restrictive Trade Practices Act

(b)    Market Research Techniques and Practices

(c)     Monopoly in Rare Items Trade and Practice

(d)   Market Retail Tariffs and Prices

7.       Which of the following are the main areas of weakness of the Indian agricultural sector?

(a)    Low level of income in the hands of farmers

(b)   Improper irrigation

(c)    Low level of Mechanization

(d)   All of these

8.       Co –ordination and cooperation between the center and the states in the field of education is rough-about through____________

(a)    Central Advisory Board of Education

(b)   Central Board of Secondary Education

(c)    National Council of Education Research & Training

(d)   University Grants Commission

9.       Before being moved to the list of freely importable goods, products in the system of Restrictive import licensing were shifted to a______________

(a)    Duty free goods List

(b)   Watched Imports List

(c)    Tax free list

(d)   Special Import License (SIL) List

10.   Which of the following is not an area of concern for the Indian Economy?

(a)    Poor infrastructure

(b)   Fiscal deficit

(c)    Forex Reserves

(d)     Large amount of Non-Performing Assets in banks

11.   A strong Balance of Payment (BOP) position in recent years has resulted in:

(a)    Steady accumulation of Foreign Exchange Reserves

(b)   Low Trade and fiscal deficits

(c)    Increasing exports

(d)   Increasing FDIs

12.   The serve crisis faced by the Indian Economy in the late eighties was evident was evident from the

(a)    Macro-economic imbalances

(b)   High illiteracy

(c)    High infant mortality rate

(d)   None of these

13.   The Foreign Investment Promotion Board (FIPB) revamps rules & regulations pertaining to

(a)    Foreign Currency Exchange

(b)   Accounting Rules for Investment

(c)    Investments by NRIs

(d)   Foreign Investments

14.   India abolished the quantitative restrictions on imports of 1429 items in 2000 and 2001 as per commitment to

(a)    General Agreement on Tariff and Trade (GATT)

(b)   World Trade Organization (WTO)

(c)    South Asian Free Trade Association (SAFTA)

(d)   Non-Aligned Movement (NAM)

15.   An increase in FDI would bring with it:

(a)    Better technology

(b)   Capital formation and increased productivity

(c)    More imports

(d)   All of the above

(e)   A and b

1.       Globalization is the term used to describe the process of removal of restrictions on:

(a)       Foreign trade

(b)      Investment

(c)       None of these

(d)      A and B

2.       The interrelated factors that have driven globalization in the recent past are:

(a)    Increased international trade.

(b)   The growth of multinational corporations

(c)    The internationalization of finance

(d)   All of the above

3.       globalization drivers during the first the first wave of globalization (1870-1914) were (more than one option may be ticked)

(a)    Falling transportation costs

(b)   Removal of subsides for agricultural inputs

(c)    Lowering of tariffs

(d)   None of the above

4.       Impact of the first wave of globalization was reflected on:

(a)Export, as share of World income was almost doubled

(b)Total labor flows nearly 10% of the world population

(c) Growth in World per capita income increased

(d) All of the above

(e) None of the above

5.       globalization drivers during the second wave of globalization (1945-1980) were:

(a)    Lack of growth with protective polices in nationalization

(b)    Reduction in transport costs

(c)    Reduction in trade barriers and tariffs

(d)   All of the above

(e)   None of the above

6.       Which of the following is a World Bank & IMF procedure to attain globalization:

(a)    Reduction of budgetary subsidies

(b)   Fall in transport costs

(c)    Pursuance of free trade

(d)   Removal of restrictions on MNCs

7.       Which of the following is a WTO procedure to attain globalization:

(a)    Pursuance of free trade

(b)   Reduction of budgetary subsidies

(c)    Fail in transport costs

(d)   Promotion of foreign portfolio investment

8.       Investment in real assets like factories sales officers, etc. by foreign firms falls under the category of:

(a)FDI

(b) FII

(c) None of the above

(d) All of the above

9.       The salient features steps were taken in the direction of financial deregulation:

(a)    Liberalisation

(b)   Privatisation

(c)    Globalisation Measures

(d)   All of the above

10.   Two major steps were taken in the direction of financial deregulation:

(a)    Permitting FIIIs

(b)   Allow domestic companies raise capital from abroad

(c)    None of the above

(d)   A and b

11.   ____________________is the second largest employment provider in India after agriculture

(a)    Transport industry

(b)   Textile Industry

(c)    Chemical Industry

(d)   Fireworks industry

12.   __________________ is a factor for global governance by international organization like WTO

(a)    Deepening economic integration

(b)   Reduction of import duty rates

(c)    None of the above

(d)   All of the Above

13.   Lifting of Quantitative Restrictions and de-reservations of items from the restricted list will adversely affect the Indian_____________________

(a)    Automobile industry

(b)   Medium scale manufacturing Plants

(c)    Textile Industry

(d)   Small scale Industries