Q.1 What does globalization primarily refer to?
Integration of world economies
Isolation of countries
Decline of trade
Only cultural exchange
Explanation - Globalization refers to the increasing interconnectedness and interdependence of world economies through trade, investment, technology, and culture.
Correct answer is: Integration of world economies
Q.2 Which international organization promotes free trade among nations?
IMF
World Bank
WTO
UNESCO
Explanation - The World Trade Organization (WTO) is responsible for regulating and facilitating international trade between nations.
Correct answer is: WTO
Q.3 One major benefit of globalization is:
Increased isolation
More trade opportunities
Reduced employment
Decline in technology
Explanation - Globalization increases access to international markets, encouraging more trade opportunities for countries.
Correct answer is: More trade opportunities
Q.4 Which of the following is a negative impact of globalization?
Technology transfer
Increased cultural exchange
Job outsourcing
Larger markets
Explanation - Globalization can cause companies to move jobs to countries with cheaper labor, leading to unemployment in higher-cost economies.
Correct answer is: Job outsourcing
Q.5 FDI stands for:
Foreign Domestic Input
Foreign Direct Investment
Federal Development Institution
Financial Development Index
Explanation - FDI refers to investment made by a company or individual from one country into business interests in another country.
Correct answer is: Foreign Direct Investment
Q.6 Globalization leads to:
Closed economies
Increased protectionism
Interconnected economies
Decline in communication
Explanation - Globalization reduces barriers to trade, communication, and investment, making economies interconnected.
Correct answer is: Interconnected economies
Q.7 Which sector benefits most from globalization?
Agriculture
Manufacturing
International trade and services
Local street markets
Explanation - The trade and services sector expands significantly due to globalization, enabling cross-border exchanges.
Correct answer is: International trade and services
Q.8 Which is a feature of globalization?
High tariffs
Trade barriers
Free flow of goods and services
Economic isolation
Explanation - Globalization aims to remove restrictions to enable free movement of goods and services across borders.
Correct answer is: Free flow of goods and services
Q.9 Which economist is famous for supporting free trade as part of globalization?
Adam Smith
Karl Marx
John Maynard Keynes
Amartya Sen
Explanation - Adam Smith’s theory of absolute advantage laid the foundation for free trade principles in globalization.
Correct answer is: Adam Smith
Q.10 Outsourcing is a result of globalization because:
Companies want to expand production costs
Firms move jobs to cheaper markets
Local economies prefer isolation
Trade barriers increase
Explanation - Globalization allows companies to outsource jobs to countries with lower labor costs to reduce expenses.
Correct answer is: Firms move jobs to cheaper markets
Q.11 Globalization has made communication:
Slower
Expensive
Faster and cheaper
Nonexistent
Explanation - Technological advancements and globalization have reduced communication costs and increased speed worldwide.
Correct answer is: Faster and cheaper
Q.12 A global supply chain means:
Products are made entirely in one country
Countries stop trading goods
Production is spread across countries
Only services are traded
Explanation - Global supply chains involve production processes divided across different countries to maximize efficiency.
Correct answer is: Production is spread across countries
Q.13 Which country has been a major beneficiary of globalization in recent decades?
USA
China
Brazil
South Africa
Explanation - China has leveraged globalization to become a leading global manufacturing hub and exporter.
Correct answer is: China
Q.14 The process of cultural homogenization due to globalization refers to:
Cultural exchange
Loss of local identity
Global competition
Economic diversification
Explanation - Globalization can lead to cultural homogenization, where local traditions are overshadowed by dominant global cultures.
Correct answer is: Loss of local identity
Q.15 Which global institution provides loans for development projects?
IMF
WTO
World Bank
ILO
Explanation - The World Bank funds infrastructure and development projects in developing nations to promote growth.
Correct answer is: World Bank
Q.16 A key criticism of globalization is:
Rising inequality
Increased technology
Higher trade volumes
Better investments
Explanation - Critics argue globalization benefits rich countries and elites more, often widening the inequality gap.
Correct answer is: Rising inequality
Q.17 Which of these is NOT a driver of globalization?
Technological advancements
Liberalized trade policies
Restricted capital flows
Improved transport systems
Explanation - Globalization requires free movement of capital; restricted capital flows hinder it rather than drive it.
Correct answer is: Restricted capital flows
Q.18 Which of the following best describes 'glocalization'?
Global trade only
Adapting global products to local markets
Decline in local businesses
Isolation from globalization
Explanation - Glocalization refers to customizing global products and ideas to suit local needs and cultures.
Correct answer is: Adapting global products to local markets
Q.19 Which of these industries has been most transformed by globalization?
Automobile
IT and software
Mining
Fishing
Explanation - The IT and software industry has seen massive global outsourcing and international collaborations due to globalization.
Correct answer is: IT and software
Q.20 A major environmental challenge linked with globalization is:
Global warming
Reduced pollution
Decline in industrialization
Sustainable growth
Explanation - Increased industrial activity and trade due to globalization contribute significantly to climate change.
Correct answer is: Global warming
Q.21 Trade liberalization means:
Reducing trade barriers
Increasing tariffs
Restricting imports
Promoting isolation
Explanation - Trade liberalization under globalization reduces tariffs and quotas to encourage international trade.
Correct answer is: Reducing trade barriers
Q.22 Which of the following is an example of cultural globalization?
McDonald's in India
Taxation policies
Import quotas
Domestic savings
Explanation - Cultural globalization involves the spread of global brands, ideas, and lifestyles across borders.
Correct answer is: McDonald's in India
Q.23 Which region has benefited most from outsourcing due to globalization?
South Asia
North America
Europe
Middle East
Explanation - Countries like India in South Asia have become global outsourcing hubs, especially in IT and services.
Correct answer is: South Asia
Q.24 The 'race to the bottom' in globalization refers to:
Countries improving technology
Nations competing to lower wages and standards
Economic growth races
Decline in transport costs
Explanation - The 'race to the bottom' describes how countries may lower labor and environmental standards to attract investment.
Correct answer is: Nations competing to lower wages and standards
Q.25 Which of the following best represents economic globalization?
World Cup Football
Hollywood movies
Cross-border trade and investment
Local community markets
Explanation - Economic globalization refers to the integration of national economies through trade and investment.
Correct answer is: Cross-border trade and investment