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CBSE Questions for Class 10 Economics Globalisation And The Indian Economy Quiz 5 - MCQExams.com
CBSE
Class 10 Economics
Globalisation And The Indian Economy
Quiz 5
A business expansion cycle will tend to cause _________
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Increase in foreign capital
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Fall in unemployment
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Inflation
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All the three
Which of these is not a reason for dumping.
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to penetrate in new overseas market.
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to utilize surplus capacity
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to compete out rivals in foreign market.
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to encourage smuggling of goods
The multinational corporations provides lot of benefits as it ___________.
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increases the transfer of technology between nations
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they always produce the goods
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host countries progress is mostly dependent on them
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none of the above
Explanation
A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. Its main advantage is it increases the transfer of technology between the nations.
For multinational activity, internalization means __________.
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to undercut the prices of local producers in overseas markets as multinational have an approach and exposure to global market and their scale of production is large enough.
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to set up an overseas production operation because of the fear of franchising operations that has been given to local firms already in the market.
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exploiting a well-established global brand image to dominate overseas markets.
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all of the above
Explanation
Internalisation is the process of increasing the involvement of enterprises in international markets. Hence, for multinatinoal activity, internalisation means exploiting a well-established global brand image to dominate overseas markets.
The guiding principle of GATT agreement is
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Trade Discrimination
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Protection of domestic industry
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Most Favoured Nation (MFN)
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High tariff regime
Multinational Corporations can be defined as a firm which ________________.
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is having all the government benefits of the origin country
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is counted amongst the biggest industries in the host country
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owns companies in more than one country
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all of the above
Explanation
A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. Hence, MNCs can be defined as a firm which owns companies in more than one country.
What can be a disadvantage to the home country of the MNC's investing in other countries?
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Transfer of capital from home country to host country.
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No employment to the people.
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Both a and b
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None of the above
Explanation
MNC refers to those organisations who have their headquarters in the home country and subsidiaries in two or more country. When a MNC invests in other countries it directly increases employment in the countries where investment is done. Hence, it can be a disadvantage to the home country as employment decreases..
Home location for most of the world's MNC is at __________.
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America
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America and Asia
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Europe
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Singapore
Explanation
A MNC is an organisation which has its main headquarters in the home country but has its subsidiaries in two or more countries. Many MNCs are located mostly in America. Hence, home location for most of the world's MNC is at america.
The characteristics feature of a multinational enterprise (MNE) include __________.
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it owns its subsidiaries in other countries
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it may operate in another country
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these are established due to difference in the rate of return on capital between the two countries
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both (a) and (b)
Explanation
A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. Hence, the characteristic feature of a MNE include it owns its subsidiaries in other countries as well as it may operate in another country.
Which of the following is not a key advantage of an MNC?
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Technology movement
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Support enterprises in host countries
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Product duplication
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Provide services to professionals
Explanation
MNC is an organisation which has its head office in the home country and subsidiaries in two or more countries. The advantage of MNC are:
Technology movement.
Support enterprises in host countries.
Provide services to professionals.etc.
But it does not do product duplication.
A MNC is defined by an organisation ___________.
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carrying out production in more than one country
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having sales in more than one country
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having a multi-ethnic workforce
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having-suppliers in more than one country
Explanation
MNC refers to an organisation which has its headquarter in home country and operates in two or more countries through its subsidiaries being set up there. Hence, a MNC is defined by an organisation carrying out production in more than one country.
Which of the following is not the disadvantage of MNC?
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Strain on foreign exchange reserve of the host country.
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More employment opportunities.
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Creation of monopolies.
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May kill domestic industry.
Explanation
A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. As MNC operates in more than two or more countries it encourages employment opportunities in different countries. Hence, it is not the disadvantage of MNC.
Which of the following pairs of MNC and the countries where they are headquartered is/one correctly matched?
1.Mero-Germany
2.Walmart -USA
3.Tesco- UK
4.Carore four- France
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123 only
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1,2,3
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4,1,2
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1,2,3 and 4
Explanation
A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. All the pairs mentioned of the MNC and their base countries are absolutely correct.
Which of the following is an example of a multinational corporation?
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McDonalds
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Nirma
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World trade organization
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United Nations Organization
Explanation
A MNC is an organisation which has its main headquarters in the home country but has its subsidiaries in two or more countries. E.g. McDonalds have its main headquarters in USA but have its branches in many countries of the world.
Is the following statement is true or false?
Some MNC's, for instance Walmart have their economy as large as the economy of many developing countries.
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False
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True
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Not relevant
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None of the above
Explanation
MNC refers to those organisations who have their headquarters in the home country and subsidiaries in two or more country. Some MNCs have their economy as large as the economy of many developing countries. Walmart made a total profit of 16 billion dollars and that is as large as economy of any developing country.
Microsoft is a _________.
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Indian government company
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multinational company
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statutory corporation
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public limited company
Explanation
A multinational corporation is an organisation which has its main headquarter in home country and operates with its subsidiaries in two or more countries. Microsoft has its main headquarters in Washington but has its subsidiaries all over the world.
Which e-commerce company launched its global startup program "Launch pad" in India?
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Flipkart
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Amazon
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Alibaba
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eBay
The practice of selling goods in a foreign country at a price below their domestic selling price is called ____________.
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discrimination
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dumping
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double pricing
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predatory pricing
Explanation
In economics, "dumping" is a form of predatory pricing, especially in the context of international trade. It occurs when manufacturers export a product of another country at a price either below the price charged in its home market or below its cost of production.
Multinational corporations trade analysis differs from our conventional trade analysis because multinational corporation analyses ____________________.
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purely competitive markets rather than regular markets.
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the international movement of inputs as well as the movement of finished goods.
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absolute cost differentials rather than comparative cost differentials.
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none of the above
Explanation
MNC is an organisation which has its head office in the home country and subsidiaries in two or more countries. It helps to analyze the international movement of inputs as well as movement of finished goods. Hence, its trade analysis differs from our conventional trade analysis.
The advantage of multinational corporations is _____________.
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business gets management expertise from MNC
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always enjoy political harmony in host countries in which their subsidiaries operate
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enjoy subsidies from government in order to conduct worldwide operations
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both (a) and (b)
Explanation
MNC is an organisation which has its head office in the home country and subsidiaries in two or more countries. The advantage of MNC are:
Technology movement.
Support enterprises in host countries.
Provide services to professionals.
Business gets management expertise from the MNC etc.
Transfer pricing litigations are generally related to ________.
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domestic companies
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multinational companies
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public enterprises
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statutory authority
Explanation
Transfer price is the price at which divisions of the company transact with each other, such as the trade of supplies or labour between departments. It is used when individual entities of a larger multi entity firm are measured and treated as separate run entities. Hence, transfer price litigations are generally related to multinational companies.
The Global Competitiveness Report (GCR) $$2016-2017$$ was released in September $$2016$$. Consider the following statements in context to the project
I.The report assessed the competitiveness landscape of $$140$$ economies
II. It was released by World Bank
III. Switzwerland topped the list
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Only III
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Only I and II
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Only I and III
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Only I, II and III
Multinational corporations, sometimes provide benefits to their home countries, except which one?
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Boost the industrial development in home country
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Allow for production of cheaper components for their products
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Marketing opportunities for the products produced in home country
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Shift the home country's technology overseas via licensing
Explanation
MNC is an organisation which has its head office in the home country and subsidiaries in two or more countries. I t provides various benefits to the home countries:
Boost the industrial development in the home country.
Allow for production of cheaper components for their products.
Marketing opportunities for the products produced in the home country.
But it does not shift home country technology overseas via licensing.
Coca- Cola is an example of _________.
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MNC
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Indian Company
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Foreign Company
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None of the above
Explanation
A multinational corporation is an organisation which has its main headquarter in home country and operates with its subsidiaries in two or more countries. Coca-Cola has its main branch in Georgia but has many subsidiaries spread all over the world.
Liberalisation refers to ..
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Relaxation of previous government restrictions usually in the areas of social and economic policies
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Transferring the assets and service functions from public to private sectors
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Disposal of public sector units equity in the market
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None of these
Since adoption of economic liberalisation the share of agriculture in India's GDP is ..
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Constant
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Increasing
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Decreasing
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None of these
In the pre-liberalization period -
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Full support was given to Private Sector in all industries
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Industries were reserved exclusively for Public Sector
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Both (a) and (b)
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Neither (a) nor (b)
As part of the External Sector Reforms in 1991, foreign exchange control regulations were freed in respect of -
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Capital Account Transactions
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Current Account Transactions
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More in (a) and comparatively less in (b)
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More in (b) and comparatively less in (a)
. refers to relaxation of previous Government restrictions usually in areas of social and economic policies.
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Liberalisation
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Privatisation
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Globalisation
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Disinvestment
Quantitative Restrictions have been removed for all kinds of imported consumer goods, except ___________.
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Defence goods
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Sensitive goods
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Environmentally hazardous goods
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All of the above
Explanation
Quantitative Restrictions have been removed for all kinds of imported consumer goods, except:
a) defense goods
b) sensitive goods
c) environmentally hazardous goods
Defense goods and environmental hazardous goods could have harmed the Indian economy. Therefore, quantitative restrictions have been removed.
Hence, D is the correct option.
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