NCERT Class 10 Chapter 4 Globalisation and the Indian Economy MCQs for UPSC

1. What is the defining operational characteristic of a Multinational Corporation (MNC) in the global economy?

1. A.It owns or controls production of goods and services across multiple nations, dispersing different stages of production globally to minimize costs and maximize profits.
2. B.It operates strictly within domestic political borders and exports only agricultural raw materials.
3. C.It is owned and managed entirely by international inter-governmental bodies like the United Nations.
4. D.It is legally prohibited from investing in foreign joint ventures or technology transfers.

2. In a modern globally fragmented production network, which strategic advantage does India primarily offer to multinational corporations?

1. A.Low-cost deep-sea container ship manufacturing facilities.
2. B.Highly skilled engineers for technical production aspects and an educated English-speaking workforce for customer care and IT services offering 50 to 60 percent cost savings.
3. C.Unrestricted duty-free consumer goods retail monopolies across all states.
4. D.Exemption from international maritime navigation and environmental laws.

3. How is 'Foreign Investment' distinguished from domestic investment in economic terminology?

1. A.It refers exclusively to loans granted by the World Bank to sovereign central banks.
2. B.It refers to domestic government expenditures on rural road construction.
3. C.It is investment made by multinational corporations in foreign countries to acquire physical productive assets like land, buildings, and machines with the expectation of earning profits.
4. D.It is the statutory reserve kept by commercial banks with the central monetary authority.