The New Economic Policy of was concerned with the policies of Globalisation, Privatisation and Liberalisation.
Important Questions on Globalisation and Indian Economy
Which of the following statements are true about globalisation?
I. Developed countries have always been more benefited from globalisation.
II. Globalisation has led to improvement in living condition of workers in the developing countries.
III. Globalisation is the process of rapid integration or interconnection between countries.
IV. Indian cement industries have been hit hard by globalisation.
V. To achieve the goal of fair globalisation, major roles can be played by MNCs.
We have given some effects of globalization on developing countries. Classify the positive effects.
(i) Consumers have more choice of commodities, as imports from other countries are easy to access.
(ii) Access to foreign direct investments increases economic activities in sectors wherein the investment flows.
(iii) The unrestricted exposure to western culture is a threat to maintain our cultural objects.
(iv) The native cultures and cuisines are taken to other parts of the world, so our culture spreads to other countries easily.
(v) We have easy access to foreign markets to market our products.
(vi) Cheap labour in developing countries attracts foreign companies to start production in developing countries.
(vii) Some domestic industries are adversely affected as they could not meet the competition from foreign companies and imported products.
Which of the following statements are correct?
Statement I: Integration of market in different countries is known as foreign trade.
Statement II: Investment made by MNCs is called foreign investment.
Statement III: Rapid improvement information and communication technology has been one of the major factor that has stimulated globalization process.
Statement IV: All above statements are correct.
Inexpensive Chinese locks are flooding the Indian markets, thus destroying the traditional lock industry of India. Which of the following methods can the Government of India take up to protect the Indian lock industry?
I. Revalue Indian Currency.
II. Give subsidy on the import of Chinese lock.
III. Impose import tax on the import of Chinese lock.
IV. Place limit on the number of goods that can be imported.
Globalisation was not stimulated by-
I Money
II Transport
III Population
IV Computer
Which of the following has/have occurred in India after its liberalization of economic policies in 1991?
- The share of agriculture in GDP increased enormously.
- The share of India's exports in world trade increased.
- The Foreign Direct Investment (FDI) inflows increased.
- India's foreign exchange reserves increased enormously.
Select the correct answer using the codes given below:
