Globalization and Trade 10th Social Science Lesson 11 Questions in English

10th Social Science Lesson 11 Questions in English

11] Globalization and Trade

1. When does the Government of India erected the pillar of Liberalization, Privatization and Globalization (LPG)?

1. 1990
2. 1991
3. 1976
4. 1978

Explanation

Liberalization, Privatization and Globalization (LPG) have become a much talked of subjects among politicians, economists and businessmen in modern days. These three expressions are the supporting pillars of which the edifice of new economic policy of our Government has been erected and implemented since 1991.

2. Which of the following statement about Globalization is correct?

1. Under globalization, the international markets for goods and services are integrated
2. Globalization is the integration of a country with the world economy
3. Basically, globalization signifies a process of internationalization plus liberalization
4. 1, 2
5. 1, 3
6. 2, 3
7. 1, 2, 3

Explanation

Globalization is the process of integrating various economies of the world without creating any barriers in the free flow of goods and services, technology, capital and even labour or human capital. Under globalization, the international markets for goods and services are integrated. Globalization is the integration of a country with the world economy. Basically, globalization signifies a process of internationalization plus liberalization.

3. The term of ‘Globalization’ was introduced by__________

1. Pro. Theodore Roosvelt
2. Pro. Theodore Lewis
3. Pro. Theodore Levitt
4. Pro. Theodore Lenoard

Explanation

4. Which of the following statement about Archaic Globalization is correct?

1. Andre Gunder Frank argued that a form of globalization has been in existence since the rise of trade links between Sumer and Indus valley civilization in the third millennium BC (BCE).
2. An early form of globalization in the trade link between the Roman Empire, Parthian Empire and the Han Dynasty made the commercial links between these powers inspired the development of the Silk Road.
3. 1 alone
4. 2 alone
5. 1, 2
6. None

Explanation

Andre Gunder Frank argued that a form of globalization has been in existence since the rise of trade links between Sumer and Indus valley civilization in the third millennium BC (BCE). An early form of globalized economics and culture, known as Archaic globalization existed during the Hellenistic Age. When commercialized urban centers were focused around the axis of Greek culture over a wide range that stretched from India to Spain with such cities as Alexandria, Athens, and Anthioch, as its center. An early form of globalization in the trade link between the Roman Empire, Parthian Empire and the Han Dynasty made the commercial links between these powers inspired the development of the Silk Road.

5. Match the following

1. Dutch East India Company 1. 16^th century
2. British East India Company 2. 1602
3. Portuguese factories from Africa to Asia and Brazil 3. 1600
4. 2, 1, 3
5. 2, 3, 1
6. 1, 3, 2
7. 3, 2, 1

Explanation

The next phase is known as proto – globalization. It was characterized by the rise of maritime European empires, in the 16th and 17th centuries, first the Portuguese and Spanish Empires, and Dutch and British empires. In the 17th century, globalization became private business phenomenon like British East India Company [founded in 1600] described as the first multinational company, and the first Dutch East India Company [found in 1602] were established. In 16th century, Portuguese started establishing trading posts [factories] from Africa to Asia and Brazil.

6. Which century witnessed the advent of globalization approaching its modern form?

1. 17^th
2. 19^th
3. 20^th
4. 18^th

Explanation

The 19th century witnessed the advent of globalization approaching its modern form. Between the globalization in the 19th and in the 20th century there are significant differences. There are two main points one is the global trade in this centuries as well as the capital, investment and the economy and another one is the global trade in the 20th century shows a higher share of trade in merchant production, a growth of the trade in services and the rise of production and trade by multinational firms.

7. GATT stands for_______

1. General Agreement on Tariffs and Trade
2. Global Agreement on Tariffs and Trade
3. General Agreement on Trade and Tariffs
4. Global Agreement on Trade and Tariffs

Explanation

Multinational trade contracts and agreements have been signed, like the General Agreement on Tariffs and Trade [GATT] and World Trade Organization [WTO]. From 1890 and up to World War 1 instability trade was a problem, but in the post war period there has mostly been economic expansion which leads to stability. Technological changes have caused lower transporting costs, it takes just a few hours to transport goods between continents today.

8. Who among the following dominated South Indian trade?

1. Pallava
2. Chera
3. Chola
4. Pandya
5. 1, 3
6. 2, 4
7. 1, 4
8. 2, 3

Explanation

Southern Indian trade guilds were formed by merchants in order to organize and expand their trading activities. Trade guilds become channels through which Indian culture was exported to other lands. South India trade was dominated by the Cholas, and it replaced the Pallavas

9. In which year Kalinga traders brought red colored stone decorative objects for trade and

also cotton textile to Southeast Asia?

1. 1024 AD
2. 1053 AD
3. 1093 AD
4. 1010 AD

Explanation

In the year 1053 AD (CE) the Kalinga traders (Modern Orissa) brought red colored stone decorative objects for trade and also cotton textile to Southeast Asia at an early date. Several trade guilds operated in medieval Southern India such as the Gatrigas, Nakaras, Mummuridandas, Ayyavole -500 Settis, Birudas, Gavaras, etc. Some trade guilds, such as the Nakaras and Gavares, met only in the temple premises.

10. Through which part Vasco do Gama found a new all-sea route from Europe to India?

1. Gulf of Kuttch
2. Palk Strait
3. Cape of Good Hope
4. Panama Canal

Explanation

The discovery of a new all-sea route from Europe to India Via cape of Good Hope by Vasco do Gama had for reaching repercussions on the civilized world. India’s coastal and maritime trade was monopolized by the Europeans..

11. When did Vasco Da Gama landed at Calicut?

1. 17th June, 1498
2. 17th May, 1498
3. 17th July, 1498
4. 17th April, 1498

Explanation

The Portuguese under the leadership of Vasco da Gama landed at Calicut on the 17th May, 1498. Profits of goods brought by Vasco do Gama to Portugal were to 60 times cost of the entire expedition to India.

12. Which among the following was the early capital of Portuguese in India?

1. Cannanore
2. Calicut
3. Goa
4. Salsette

Explanation

The arrival of Pedro Alvarez cabral in India in 1500AD (CE) and the second trip of Vasco da Gama in 1502 led to the establishment of trading station at Calicut Cochin and Cannanore. Cochin was the early capital of the Portuguese in India.

13. Match the Dutch factories with their respective years

1. Masulipatnam 1. 1610
2. Pulicut 2. 1659
3. Nagapatnam 3. 1605
4. 3, 2, 1
5. 1, 2, 3
6. 2, 1, 3
7. 3, 1, 2

Explanation

Dutch undertook several voyages from 1596 and formed the Dutch East India company (VOC) I 1602. In 1605, Admiral van der Hagen established Dutch Factory at Masulipatnam and Pettapoli (Nizamapatanam), Devanampatinam. In 1610, upon negotiating with the king of Chandragiri, found another facatory at Pulicut. Other commodities exported by the Dutch were indigo, saltpeter and Bengal raw silk. Pulicut was the headquarters of the Dutch in India. Nagapatnam on the Tanjore coast acquired from the Portuguese in 1659.

14. When did Queen Elizabeth granted charter to The East India Company?

1. 31st December, 1608
2. 31st December, 1600
3. 31st December, 1599
4. 31st December, 1602

Explanation

On 31st December, 1600, Queen Elizabeth granted charter to The East India Company. On the south-eastern coast, the English established at Masulipatnam in 1611 and near Pulical in 1626.

15. Who granted the English the “Golden Fireman”?

1. Shivaji
2. Sultan of Golkonda
3. Jahangir
4. Zamorin

Explanation

The Sultan of Golconda granted the English the “Golden Fireman” in 1632 by which they were allowed to trade freely in their “Kingdom Ports”

16. In which year Fort St. George was built?

1. 1609
2. 1632
3. 1639
4. 1664

Explanation

In 1639, English built a fortified factory in Madras which known as Fort St.George, which soon displaced Masulipatnam as headquarters of the English settlement on the coromandel coast.

17. In which year Danes were forced to sell all their India settlements to the British?

1. 1884
2. 1845
3. 1757
4. 1764

Explanation

The Danes formed an East India company and arrive in India in 1616. The Danish settlements were established at Tranquebar (in Tamil Nadu) in 1620 which was the headquarters of Danes in India. They failed to strengthen themselves, in India and in 1845 were forced to sell all their India settlements to the British.

18. Who granted permission for French to build their 1^st factory in India?

1. Sultan of Golconda
2. Aurangazeb
3. Akbar
4. Shah Jahan

Explanation

The first French factory in India was established in 1668 by obtaining permission from the Sultan of Golconda. In 1693, the Dutch captured Pondicherry but was handed back to the French.

19. When was Pondicherry made the headquarters of French East India company?

1. 1701
2. 1693
3. 1771
4. 1742

Explanation

In 1701, Pondicherry was the headquarters of the French. Settlements in the East after 1742 Political motives began to overshadow the desire for commercial gain.

20. Which among the following southern state cities have Special Economic Zones?

1. Nanguneri
2. Ennore
3. Coimbatore
4. 1, 2
5. 1, 3
6. 2, 3
7. 1, 2, 3

Explanation

Recently, the Government of India has set up Special Economic Zones in Southern States especially in Tamilnadu, Andhra, Karnataka and Kerala with a view to boost exports Nanguneri Sez, Ennore Sez, Coimbatore Sez are some in Tamilnadu.

21. Which among the following are causes resulted in severe balance of payment difficulties

for India after 1980-81?

1. hike in oil price
2. Gulf war
3. hostilities in West Asia
4. 1, 2
5. 1, 3
6. 2, 3
7. 1, 2, 3

Explanation

In India the period after 1980-81 was marked by severe balance of payment difficulties mainly due to hike in oil price and Gulf war in 1990-91 and hostilities in West Asia.

22. Which of the following statement is correct?

1. During June 1991, the finances of the central, and state Government had reached a situation of near bankruptcy
2. With the downgrading of India’s credit rating by some international agencies, there was heavy flight of capital out of India
3. Since India lost its credit worthiness in the international market, the government mortgaged 40 tons of gold to the Bank of England
4. 1, 2
5. 1, 3
6. 2, 3
7. 1, 2, 3

Explanation

When the new government took over in June 1991, India had unprecedented balance of payment crisis. The finances of the central, and state Government had reached a situation of near bankruptcy. With the downgrading of India’s credit rating by some international agencies, there was heavy flight of capital out of India. Since India lost its credit worthiness in the international market, the government mortgaged 40 tons of gold to the Bank of England.

23. India’s New economy policy strengthened in which year?

1. 1991
2. 1994
3. 1999
4. 2001

Explanation

Under economic crisis circumstances, the Government for 1991-92 presented its budget in July 1991 with a series of policy changes which underlined globalization, liberalization and privatization. This has come to be called as India’s new economic policy. This policy was strengthened when India signed the Dunkel Draft in 1994.

24. Which of the following is incorrect about Reforms made to adopt Globalization?

1. Abolition of Industrial licensing, except for a few industries
2. The Statutory Liquidity Ratio (SLR) was increased to increase lending by RBI
3. Reduction in the number of industries reserved for public sector
4. Fixation of a realistic exchange rate of rupee to exchange exports of Indian goods

Explanation

Reforms made to adopt Globalization: –

(New Economic policy in India)

1. Abolition of Industrial licensing, except for a few industries.

2. Reduction in the number of industries reserved for public sector.

3. Fixation of a realistic exchange rate of rupee to exchange exports of Indian goods.

4. Foreign private sector by making rupee convertible on trade, on current account and by reducing import duties.

5. Foreign exchanges regulations were suitably amended

6. The Statutory Liquidity Ratio (SLR) was reduced to increase lending by RBI.

25. Which among the following is other name for MNC?

1. Transnational Corporation
2. Foreign Company
3. Multinational Enterprise
4. Both a and c

Explanation

Multi National Corporation is a Corporate organization which owns or controls production of goods or services in at least one country other than its home country. Otherwise called Multinational Corporations (MNCs) or Transnational Corporation (TNC) or Multinational Enterprise (MNE).

26. Most of the MNC now present in India belongs to which countries?

1. USA
2. UK
3. France
4. Sri Lanka
5. 1, 2, 3
6. 2, 3, 4
7. 1, 3, 4
8. 1, 2, 3, 4

Explanation

Like, the East India Company, which came to India as a trading company and then its net throughout the country to become politically dominant, these multinationals first start their activities in extractive industries or control raw materials in the host countries during 1920s and then slowly entered. The manufacturing and service sectors after 1950s. Most of the MNC’s at present belong to the four major exporting countries viz., USA, UK, France, Germany. However, the largest is American.

27. Which of the following statement is correct?

1. A common form of MNC Participation in Indian industry is through entering into cooperation with Indian industrialist
2. As a result of liberalized foreign investment policy (FIP) announced in July-Aug 1991 there has a further spurt of foreign collaborations and increase flow of foreign direct investment.
3. 1 alone
4. 2 alone
5. 1, 2
6. None

Explanation

A common form of MNC Participation in Indian industry is through entering into cooperation with Indian industrialist. Trends of liberalization in the 1980s gave a substantial spurt to foreign collaborations. This would be clear from the fact that of the total 12,760 foreign collaboration agreements in 40 years between 1948-1988. As a result of liberalized foreign investment policy (FIP) announced in July-Aug 1991 there has a further spurt of foreign collaborations and increase flow of foreign direct investment.

28. Which of the following are advantages of MNC?

1. Producing the same quality of goods at lower cost and without transaction cost
2. Spurring job growth in the local economies
3. They are a way for the corporations to develop a monopoly
4. 1, 2
5. 1, 3
6. 2, 3
7. 1, 2, 3

Explanation

Advantages of MNC

1. Producing the same quality of goods at lower cost and without transaction cost 2. MNC reduce prices and increase the Purchasing power of consumers world wide.3. A MNCs is able to take advantage of tax variation. 4. Spurring job growth in the local economies

Disadvantages of MNC

1. They are a way for the corporations to develop a monopoly (for certain products) 2. They are also a detrimental effect on the environment. 3. The introduction of MNC in to a host country’s economy may also lead to the downfall of smaller, local business. 4. MNC breach ethical standards, accusing them of evading ethical laws and leveraging their business agenda with capital

29. Match the following with their respective headquarters

1. ONGC 1. Pune
2. Infosys 2. Chennai
3. TVS 3. Delhi
4. Bajaj 4. Bengaluru
5. 2, 3, 4, 1
6. 2, 4, 1, 3
7. 3, 4, 2, 1
8. 4, 3, 1, 2

Explanation

30. Which Act refers directly to the operations of MNCs in India?

1. FERA
2. FEMA
3. Foreign Contribution (regulation) Act, 2010
4. Foreign Contribution (Regulation) Rules, 2011

Explanation

FERA Act referred directly to the operations of MNCs in India.

FEMA: Under FEMA the emphasis is on ‘Management’ rather than ‘regulation’

31. Match the following correctly

1. FERA 1. 2010
2. Foreign Contribution (regulation) Act 2. 2011
3. Foreign Contribution (Regulation) Rules 3. 1999
4. FEMA 4. 1974
5. 3, 2, 1, 4
6. 3, 4, 1, 2
7. 4, 1, 2, 3
8. 4, 2, 1, 3

Explanation

1. FERA (Foreign Exchange Regulation Act 1974)
2. FEMA (Foreign Exchange Management Act 1999)

The flow of foreign contribution to India is regulated under

1. Foreign Contribution (regulation) Act, 2010
2. Foreign Contribution (Regulation) Rules, 2011

32. Which among the following are the objectives in Fair Trade Practices?

1. Raising and stabilizing the incomes of small-scale farmers, farm workers and artisans
2. Increasing the organizational and commercial capacities of producer groups.
3. Promoting labor rights and the right workers to organize.
4. 1, 2
5. 2, 3
6. 1, 3
7. 1, 2, 3

Explanation

Fair Trade is a way of doing business that ultimately aims to keep small farmers an active part of the world Market place, and aims to empower consumer to make purchases that support their values. Fair Trade is a set of business practices voluntarily adopted by the producers and buyers of agricultural commodities and hand-made crafts that are designed to advance many economic, social and environmental goals, including,

• Raising and stabilizing the incomes of small-scale farmers, farm workers and artisans.

• More equitably distributing the economic gains, opportunities and risks associated with the production and sale of these goods.

• Increasing the organizational and commercial capacities of producer groups.

• Promoting labor rights and the right workers to organize.

• Promoting safe and sustainable farming Methods and working conditions

33. Which among the following are fair trade products?

1. Coffee
2. Cocoa
3. Textile
4. Flowers
5. 1, 2
6. 2, 3
7. 3, 4
8. 1, 2, 3, 4

Explanation

Fair trade food product such as coffee, tea, cocoa, honey and bananas. Non-food commodities include crafts, textile and flowers.

34. Which among the following are principles of fair-trade policy?

1. Ensuring no child Labour and Forced Labour
2. Transparency and Accountability
3. Respect for the Environment
4. 1, 2
5. 2, 3
6. 1, 2, 3
7. None

Explanation

Principles of Fair-trade Organization

• Creating Opportunities for Economically Disadvantaged producers. • Transparency and Accountability. • Fair Trading Practices and Payment of a Fair Price. • Ensuring no child Labour and Forced Labour. • Commitment to Non-Discrimination, Gender Equity and freedom of association. • Providing Capacity Building and Promoting Fair Building. • Respect for the Environment.

35. Which of the following statement about GATT is correct?

1. GATT was signed by 23 countries in 1947.
2. India was one of the founder members of GATT
3. In the seventh Round 117 countries participated.
4. 1, 2
5. 2, 3
6. 1, 3
7. 1, 2, 3

Explanation

GATT was signed by 23 countries in 1947. India was one of the founder members of GATT. In the seventh Round 99 countries participated. In the Eighth Round of 1986, (Uruguay Round), 117 countries participated.

36. Who among the following came up with the Dunked Draft?

1. Arthur Dunkel
2. Arthur Wellesley
3. Dunkel Wellesley
4. Simon Atlee

Explanation

The Director General of GATT Arthur Dunkel came up with a Drafft Final Act, known as Dunked Draft and on April 15, 1994 the Final Act was ultimately approved and signed. GATT’s primary purpose was to increase International Trade by reducing various tariffs, quotas and subsidies while maintaining meaningful regulations.

37. Match the respective rounds of GATT with the places it held

1. First 1. Annecy
2. Third 2. Punta del Este
3. Eighth 3. Torquay
4. Second 4. Geneva
5. 4, 2, 3, 1
6. 4, 3, 2, 1
7. 4, 1, 3, 2
8. 3, 4, 2, 1

Explanation

Rounds of GATT

• First in Geneva (Switzerland) (1947) • Second in Annecy (France) in 1949 • Third in Torquay (UK) in 1950 – 51 • Fourth, fifth, and Sixth in Geneva (Switzerland) in 1956, 1960-61, 1964 -67. • Seventh in Tokyo (Japan) in 1973 – 79 • Eighth and final round at Punta del Este (Uruguay) in 1986 – 1994, known as ‘Uruguay Round’.

38. From which year WTO Agreement came into force?

1. 1992
2. 1994
3. 1995
4. 1999

Explanation

The signing of the Final Act of the Uruguay Round by member nations of GATT in April 1994 paved the way for setting up of the WTO. An agreement to this effect was signed by 104 members. The WTO Agreement came into force from January 1, 1995 ( the present membership of WTO is 164 countries)

39. What is the full form of GATT

1. General Agreement of Trade and Tariff
2. General Agreement of Trade and Tariffs
3. General Agreement of Trade and Transport
4. General Agreement of Trade Timings

Explanation

GATT – General Agreement of Trade and Tariffs

WTO – World Trade Organization

G7 – Group of Seven

40. The head quarter of WTO is situated in_____

1. New York
2. Washington DC
3. Geneva
4. Paris

Explanation

World Trade Organization (WTO):

Head Quarter: Geneva, Switzerland

Purpose: Regulation, International trade

Members of WTO: Director General, Four Deputy Director General, and other 600 Official Staff from around 80 member countries

41. How many types of Subsidies are mentioned by WTO?

1. 9
2. 5
3. 2
4. 7

Explanation

The WTO mentions five types of subsidies:

• Cash subsidies, such as the grants mentioned above.

• Tax concessions, such as exemptions, credits, or deferrals.

• Assumption of risk, such as loan guarantees.

• Government procurement policies that pay more than the free-market price.

• Stock purchases that keep a company’s stock price higher than market levels.

These are all considered subsidies because they reduce the cost of doing business

42. Which among the following country is not a member of G7?

1. Italy
2. France
3. UK
4. China

Explanation

43. Which among the following are Objectives of W.T.O?

1. To resolve trade disputes
2. Introduction sustainable development the development and environment can go together.
3. To set and enforce rules for international trade.
4. 1, 2
5. 1, 3
6. 2, 3
7. 1, 2, 3

Explanation

Objectives of W.T.O

• To set and enforce rules for international trade. • To provide a forum for negotiating and monitoring further trade liberalization. • To resolve trade disputes. • Introduction the sustainable development and environment can go together. • To ensure that developing countries, secure a better share of growth in world Trade. • To increase the transparency of decision-making processes. • Introduction sustainable development the development and environment can go together. • To ensure full employment and broad increase in effective demand.

44. How many areas are covered by Trips agreement of intellectual’s property rights?

1. 9
2. 7
3. 11
4. 10

Explanation

Intellectual Property Right may be defined as “Information with a commercial Value” Under TRIPs Patent shall be available for any invention whether product or process in all fields of industrial technologies. Trips agreement covers seven areas of intellectual’s property rights i.e. Copy rights, Trade Market, Trade Secrets, Industrial Design, Geographical appellations Integrated circuits and Patents.

45. What are the positive impacts created by Globalization?

1. Globalization increasing the GDP of a country
2. Environmental standards and regulations have been relaxed
3. Standard of living has increased
4. 1, 2
5. 1, 3
6. 2, 3
7. 1, 2, 3

Explanation

Positive Impact

• A better economy introduces rapid development of the capital market. • Standard of living has increased. • Globalization rapidly increase better trade so that more people are employed. • Introduced new technologies and new scientific research patterns. • Globalization increasing the GDP of a country. • It helps to increase in free flow of goods and also to increase Foreign Direct Investment.

Negative Impact

• Too much flow of capital amongst countries, Introduces unfair and immoral distributors of Income. • Another fear is losing national integrity. Because of too much exchange of trade, independent domestic policies are lost. • Rapid growth of the economy has required a major infrastructure and resource extraction. This increase negative ecological and Social costs. • Rapid increases in exploitation of natural resources to earn foreign exchange. • Environmental standards and regulations have been relaxed.

46. What are the Challenges of Globalization?

1. Globalization has led to environmental degradation.
2. It leads to global Imbalance.
3. The fear that globalization creates instability in the developing world.
4. 1, 2
5. 1, 3
6. 2, 3
7. 1, 2, 3

Explanation

Challenges of Globalization

• The benefits of globalization extend to all countries that will not happen automatically. • The fear that globalization leads to instability in the developing world. • The industrial world that increased global competition will lead in race to the bottom in wages, labour right, and employment practice. • It leads to global imbalance. • Globalization has resulted with the embarrassment. • Globalization has led to an increase in activities such as child labor and slavery. • People started consuming more junk food. This caused, the degradation of health and spread of diseases. • Globalization has led to environmental degradation.’