Unit 6: Globalisation - Impact on India (JAIIB Module A)
1. What is the primary objective of globalisation?
A. Limiting international trade
B. Promoting local isolation
C. Increasing economic integration among countries
D. Reducing foreign investments
Globalisation aims to integrate economies through free trade, foreign investments, and cross-border economic activities.
2. Which of the following is a key advocate of globalisation in India?
A. Ministry of Commerce and Industry
B. State Governments only
C. RBI in isolation
D. Local Panchayats
The Ministry of Commerce and Industry, along with government policies, actively advocates globalisation to promote trade and investments.
3. Which of the following has been a positive impact of globalisation on India?
A. Decrease in foreign investment
B. Increased access to foreign technology and capital
C. Reduced export opportunities
D. Isolation from world markets
Globalisation has enabled India to access advanced technology, attract foreign investment, and expand exports.
4. Which sector in India has benefited the most from globalisation?
A. Agriculture only
B. Handicrafts
C. Traditional retail
D. IT and services sector
The IT and services sector in India experienced rapid growth due to foreign investments, outsourcing, and global market access.
5. A potential negative impact of globalisation on India is:
A. Increased domestic employment in traditional sectors
B. Unequal growth leading to income disparities
C. Reduced access to foreign technology
D. Strengthened local industries uniformly
While globalisation boosts overall growth, it can increase income inequality and benefit some sectors more than others.
6. What is meant by 'Fair Globalisation'?
A. Globalisation benefiting only developed countries
B. Limiting trade to local markets
C. Globalisation that ensures equitable benefits across all countries and social groups
D. Promoting only foreign investments without domestic policies
Fair Globalisation refers to a system where the gains from global economic integration are shared equitably and do not disproportionately favor certain countries or groups.
7. Why is a policy framework necessary in the context of globalisation for India?
A. To completely isolate India from global trade
B. To maximize benefits of globalisation while minimizing social and economic inequalities
C. To promote foreign control over domestic markets
D. To eliminate domestic regulations entirely
A policy framework ensures that India can harness globalisation for economic growth while protecting vulnerable sectors and maintaining social equity.
8. Which of the following is a key element of a fair globalisation policy?
A. Promoting inclusive growth and reducing income disparities
B. Encouraging monopolies in international trade
C. Restricting technology transfer
D. Eliminating domestic subsidies completely
Fair globalisation policies promote inclusive growth, ensure equitable access to opportunities, and reduce economic disparities across society.
9. A challenge India faces in implementing fair globalisation policies is:
A. Excessive domestic capital accumulation
B. Lack of international trade agreements
C. Over-reliance on traditional agriculture
D. Balancing global competitiveness with social equity
India needs to maintain competitiveness in global markets while ensuring that growth benefits all sections of society fairly.
10. Which policy initiative supports fair globalisation in India?
A. Promoting only foreign-owned enterprises
B. Encouraging both FDI and domestic sector development
C. Removing all domestic labor protections
D. Reducing education and skill development initiatives
India’s fair globalisation approach includes attracting foreign investments while simultaneously supporting domestic industries and skill development.
11. What does the term 'Protectionism' refer to in global trade?
A. Economic policies that restrict imports to protect domestic industries
B. Free trade among all countries without restrictions
C. Encouraging foreign direct investment without regulations
D. Promoting only service sector exports
Protectionism involves measures like tariffs, quotas, and import restrictions to shield domestic industries from foreign competition.
12. Which of the following is a potential effect of rising protectionism globally?
A. Increased global trade and investments
B. Enhanced technology transfer
C. Reduced trade flows and higher costs for consumers
D. Uniform growth for all countries
Protectionist measures can reduce imports and exports, leading to higher prices for goods and slowed economic growth.
13. Which global trend is contributing to the reverse of globalisation?
A. Increasing liberalisation and free trade agreements
B. Nationalistic policies and trade wars
C. Expansion of outsourcing and offshoring
D. Rising foreign investment in developing countries
Nationalistic policies, tariffs, and trade wars are key drivers behind the slowing or reversal of globalisation in recent years.
14. How can protectionism negatively impact India?
A. By increasing foreign investment inflows
B. By promoting IT and service exports
C. By strengthening domestic manufacturing uniformly
D. By limiting export opportunities and raising import costs
Protectionist measures in other countries can reduce demand for Indian exports and increase the cost of imported goods.
15. Which of the following policies can India adopt to mitigate risks of global protectionism?
A. Avoid diversification in export markets
B. Promote trade agreements with multiple countries and strengthen domestic competitiveness
C. Depend solely on imports from a single country
D. Restrict domestic industries from exporting
India can reduce exposure to protectionism by diversifying export markets, strengthening domestic industries, and negotiating trade agreements.
16. How has Foreign Direct Investment (FDI) impacted India’s economy?
A. It has brought capital, technology, and created employment opportunities
B. It has only increased domestic debt
C. It led to complete dependence on foreign governments
17. Trade liberalisation in India primarily means:
A. Increasing tariffs and import quotas
B. Restricting exports to selected countries
C. Reducing trade barriers to promote free flow of goods and services
D. Closing domestic markets to international competition
Trade liberalisation reduces tariffs, quotas, and other barriers, encouraging exports and imports for better economic integration.
18. A major concern of globalisation for employment in India is:
A. Only increasing government jobs
B. Job losses in traditional and unskilled sectors due to competition
C. Overstaffing in IT sector only
D. Elimination of all private sector jobs
While globalisation generates high-skill jobs, traditional sectors may face unemployment due to foreign competition and efficiency pressures.
19. Technology transfer under globalisation has benefited India by:
A. Limiting domestic R&D
B. Discouraging foreign collaborations
C. Reducing productivity
D. Introducing modern methods and improving industrial productivity
Foreign technology and know-how have helped India modernise industries, enhance productivity, and compete in global markets.
20. Which of the following is a challenge of globalisation for India?
A. Increased access to global capital
B. Expansion of export markets
C. Vulnerability to global economic shocks
D. Technology inflows
Globalisation exposes India to international market fluctuations, making the economy vulnerable to global recessions and financial crises.
21. Case scenario: A domestic company in India faces stiff competition from cheaper foreign imports. What can the government do without violating fair trade norms?
A. Offer temporary subsidies or support to improve competitiveness
B. Impose permanent bans on all imports
C. Nationalise all foreign companies
D. Restrict exports completely
Governments can provide temporary support or incentives to domestic firms to help them compete without violating international trade agreements.
22. How does globalisation affect income inequality in India?
A. Reduces inequality uniformly
B. May increase disparities between skilled and unskilled workers
C. Eliminates poverty completely
D. Only benefits rural households
While globalisation boosts high-skill sectors, low-skill and traditional sectors may lag, increasing income inequality if not addressed by policy.
23. Which of the following policies can ensure inclusive benefits of globalisation in India?
A. Limiting all FDI
B. Removing labor protections
C. Focusing only on urban IT sector
D. Promoting skill development, social protection, and equitable industrial growth
Inclusive policies like skill development, social safety nets, and support for traditional industries ensure all sections benefit from globalisation.
24. Case scenario: India liberalises imports in a sector. Which of the following is a likely immediate impact?
A. Increased competition leading to efficiency improvements
B. Complete collapse of domestic firms immediately
C. Isolation from global markets
D. No change in market dynamics
Opening markets increases competition, prompting domestic firms to improve efficiency and quality to remain competitive.
25. Overall, what is the key takeaway about globalisation’s impact on India?
A. It only harms domestic industries
B. It eliminates the need for domestic policy frameworks
C. It brings opportunities and challenges; careful policies are needed for equitable growth
D. It benefits only foreign investors
Globalisation offers growth opportunities but can increase inequalities; strategic policy frameworks are essential to ensure fair and sustainable development.
