1. Which of the following is true about the improvement in living conditions due to globalization?

a) all the people

b) people in the developed countries
c) workers in the developing countries
d) none of the above

2. What has resulted in the growth of due to globalization?

a) Telecommunications services
b) Outsourcing by MNC’s
c) Transportation Services
d) Communication Services

3. What has resulted in inadequate investment in infrastructure and cheaper imports?

a) Slowdown of industrial sector
b) Slowdown of agriculture sector
c) Domestic production have slowed down
d) All of the above

4. What does Liberalization refer to?

a) Opening up the economy
b) Lesser restrictions
c) Lesser control over decision making
d) All of the above

5. What is a company that operates in more than one country?

a) Partnership Firm
b) Corporation
c) Foreign company
d) Multinational company

6. Which one of the following contributes to globalization?

a) Internal Trade
b) External Trade
c) Large scale Trade
d) Small scale Trade

7. Which one of the following is not true for world Trade organization (WTO)?
a) It aims at liberalization international trade
b) It allows free trade to all countries without any trade barriers
c) It Establishes rules regarding international trade
d) It forces developing countries to remove trade barriers

8. Entry of MNC’s are harmful for domestic market for ..?

a) All large scale producers
b) All domestic producers
c) All small scale producers
d) All substandard domestic producers

Section 2: Short answer questions:

9. Differentiate between Foreign trade and Foreign Investments.

Answer:
Foreign trade refers to the exchange of goods and services between countries, while foreign
investment refers to the investment made by foreign companies or individuals in the domestic
market of another country.

10. What are the benefits of globalization?

Answer:
Globalization has resulted in the growth of international trade, which has led to increased
economic growth, improved living conditions, and better access to goods and services. It has also
led to the transfer of technology and knowledge between countries, which has resulted in the
development of new industries and increased productivity.

11. Explain the role of MNC’S in globalization process.

Answer:
Multinational corporations (MNCs) play a significant role in the globalization process. They invest
in foreign countries, which results in the transfer of technology, knowledge, and capital. MNCs
also create jobs in the host country, which leads to increased economic growth. They also
contribute to the growth of international trade, which results in increased economic integration
between countries.

12. Why it is necessary to remove trade barriers for Economic Growth of an Economy?

Answer:
Trade barriers such as tariffs and quotas restrict the flow of goods and services between
countries. This results in reduced trade, which leads to decreased economic growth. Removing
trade barriers allows for increased international trade, which results in increased economic
growth and improved living conditions.