Class 10 Social Science (Economics)

1. What is the process of rapid integration or interconnection between countries called?

• A. Globalization
• B. Urbanization
• C. Industrialization
• D. Privatization

2. A company that owns or controls production in more than one nation is called a:

• A. Multinational Corporation (MNC)
• B. National Enterprise
• C. Public Sector Undertaking
• D. Joint Venture

3. Why do MNCs set up offices and factories in developing countries like India and China?

• A. To get cheap labor and lower costs of production
• B. To pay higher taxes to host countries
• C. To avoid modern technology
• D. To sell goods only in foreign countries

4. Money spent by MNCs to buy assets such as land, building, machines, and other equipment in foreign countries is called:

• A. Foreign Investment
• B. Public Expenditure
• C. Domestic Investment
• D. Sovereign Debt

5. What is the most common route for MNCs to expand production in developing countries?

• A. To buy up local companies
• B. To set up government agencies
• C. To build non-profit schools
• D. To close domestic markets

6. Cargill Foods, a large American MNC, bought over which famous Indian food company?

• A. Parakh Foods
• B. Amul Foods
• C. Britannia Industries
• D. Dabur India

7. Foreign trade results in connecting the markets of different countries by facilitating:

• A. Integration of markets
• B. Complete isolation of domestic producers
• C. Total control by local governments
• D. Reduction of international competition

8. Which factor has played a major role in stimulating the process of globalization?

• A. Rapid improvements in Information and Communication Technology (ICT)
• B. Increase in trade tariffs
• C. Strict travel bans between nations
• D. Discontinuation of internet services

9. Containerization in transportation technology has led to:

• A. Huge reduction in port handling costs and faster delivery of goods
• B. Increase in shipping costs
• C. Destruction of goods during transit
• D. Slow delivery times for international trade

10. Tax on imports is a classic example of a:

• A. Trade Barrier
• B. Export Subsidy
• C. Free Trade Agreement
• D. Foreign Exchange Rate

11. Why did the Indian government impose barriers on foreign trade and foreign investment after independence?

• A. To protect domestic producers from foreign competition
• B. To promote foreign MNCs in India
• C. To stop agricultural production
• D. To decrease local employment opportunities

12. Around which year did India bring about major policy changes by removing trade barriers and introducing New Economic Policy?

• A. 1991
• B. 1947
• C. 2001
• D. 1975

13. Removing restrictions or barriers set by the government on foreign trade and foreign investment is called:

• A. Liberalisation
• B. Socialisation
• C. Nationalisation
• D. Urbanisation

14. Which international organisation aims to liberalise international trade and establish rules for global trade?

• A. World Trade Organisation (WTO)
• B. International Monetary Fund (IMF)
• C. World Health Organisation (WHO)
• D. UNESCO

15. Where are the headquarters of the World Trade Organisation (WTO) located?

• A. Geneva, Switzerland
• B. New York, USA
• C. London, UK
• D. Paris, France

16. What is a common criticism against the World Trade Organisation (WTO)?

• A. Developed countries unfairly maintain trade barriers while forcing developing nations to remove theirs
• B. It only supports developing nations
• C. It forces all countries to ban imports
• D. It operates only in Asian countries

17. Special industrial zones set up with world-class infrastructure facilities to attract foreign investments are called:

• A. Special Economic Zones (SEZs)
• B. Free Agriculture Zones
• C. Rural Industrial Estates
• D. Public Sector Parks

18. Companies setting up production units in Special Economic Zones (SEZs) do not have to pay taxes for an initial period of:

• A. 5 years
• B. 10 years
• C. 1 year
• D. 15 years

19. How have governments amended labour laws to attract foreign investment in recent years?

• A. Made labor laws flexible so companies can hire workers temporarily
• B. Made jobs mandatory permanent for all workers
• C. Banned overtime work in all factories
• D. Raised minimum wage rates drastically

20. Which section of consumers has benefited the most from globalization in India?

• A. Well-off urban consumers with greater choice and lower prices
• B. Poor rural laborers
• C. Small traditional artisans
• D. Subsistence farmers

21. Which sector in India faced harsh competition and severe losses due to globalization?

• A. Small-scale manufacturing industries (e.g. capacitors, batteries, plastic toys)
• B. Large IT service companies
• C. Automobile manufacturing MNCs
• D. Petrochemical refineries

22. Which Indian MNC emerged as a global leader in the IT and software industry?

• A. Infosys
• B. Ranbaxy
• C. Asian Paints
• D. Sundaram Fasteners

23. Which Indian automobile company became a multinational corporation by acquiring foreign automotive brands like Jaguar and Land Rover?

• A. Tata Motors
• B. Maruti Suzuki
• C. Bajaj Auto
• D. Mahindra & Mahindra

24. What does 'Fair Globalization' mean?

• A. Globalization that creates equal opportunities for all and shares benefits fairly
• B. Globalization that benefits only multinational corporations
• C. Complete ban on international trade
• D. Providing subsidies exclusively to foreign companies

25. How can the government play a crucial role in bringing about Fair Globalization?

• A. By enforcing labor laws and negotiating for fairer WTO rules
• B. By removing all minimum wage laws
• C. By shutting down all public sector industries
• D. By banning local small businesses

26. An entry quota or quantitative limit imposed by a country on imported items is called a:

• A. Import Quota
• B. Export Tariff
• C. Special Economic Grant
• D. Trade Exemption

27. Contracting out business activities or services to third-party vendors in foreign countries is known as:

• A. Outsourcing
• B. Internalization
• C. Nationalization
• D. Import Substitution

28. Which sector has grown rapidly in India due to outsourcing by foreign MNCs?

• A. Information Technology and Call Center Services
• B. Jute Textiles
• C. Handloom Weaving
• D. Heavy Mining

29. What effect has globalization had on job security for factory workers in unorganized sectors?

• A. Employment has become highly flexible and insecure
• B. Life-long government job guarantees were created
• C. Pension benefits doubled for all workers
• D. Work hours were reduced to 4 hours per day

30. Besides movement of goods, services, and investments, globalization also involves the movement of:

• A. People between countries for education, employment, and better living
• B. Land and rivers across borders
• C. Sovereign territories
• D. Permanent physical geographic boundaries