Question 1

One major factor that has stimulated the globalisation process is………………

Accepted Answer

A)  effective utilisation of resources
B)  increase in income and wealth
C)  willingness to cooperate
D)  rapid improvement in technology D

Question 2

Which out of the following is an example of a trade barrier?

Accepted Answer

A)  foreign investment
B)  delay or damage of goods
C)  tax on imports
D)  none of these C

Question 3

Which country has highest quota in the IMF?

Accepted Answer

A)  usa
B)  india
C)  china
D)  russia A

Question 4

The most common route for investments by MNCs in countries around the world is to………………………

Accepted Answer

A)  set up new factories
B)  buy existing local companies
C)  form partnerships with local companies
D)  both (a)  and (b)

Question 5

One major government initiative to attract foreign companies to invest in India is…………………………

Accepted Answer

A)  to raise the standard of education
B)  to promote unemployment in the public sector
C)  to build special economic zones
D)  both (a)  and (c)

Question 6

If the Balance of Payment of a country is adverse, then which institution will help that country?

Accepted Answer

A)  world bank
B)  world trade organization
C)  international monetary fund
D)  asian development bank

Question 7

Globalisation has led to higher standards of living of…………………….

Accepted Answer

A)  well-off consumers
B)  poor consumers
C)  big producers
D)  small producers

Question 8

Globalisation has created new opportunities of…………………………

Accepted Answer

A)  employment
B)  emerging multinationals
C)  providing services
D)  all of the above

Question 9

The past two decades of globalisation has seen rapid movements in……………………

Accepted Answer

A)  goods, services and people between countries
B)  goods, services and investments between countries
C)  goods, investments and people between countries
D)  none of these

Question 10

Globalisation by connecting countries leads to……………………

Accepted Answer

A)  lesser competition among producers
B)  greater competition among producers
C)  no competition between producers
D)  none of these

Question 11

Globalisation has posed major challenges for………………………

Accepted Answer

A)  big producers
B)  small producers
C)  rural poor
D)  none of these

Question 12

Special Drawing Right (SDR) was introduced in the……………….by the IMF to solve the problem of International liquidity.

Accepted Answer

A)  1969
B)  1970
C)  1971
D)  1972

Question 13

Removing barriers or restrictions set by the government is called:

Accepted Answer

A)  liberalisation
B)  investment
C)  favourable trade
D)  free trade

Question 14

Which of the following is known as the Paper Gold?

Accepted Answer

A)  us dollar
B)  pound
C)  demand draft
D)  special drawing right

Question 15

Which of the following is not the objective of the WTO?

Accepted Answer

A)  to improve the standard of living of peoples of the member countries
B)  to enlarge production and trade of goods
C)  to protect environment
D)  to improve the balance of payment situation of the member countries

Question 16

Fair globalisation would mean…………………………

Accepted Answer

A)  fair opportunities for all
B)  fair benefits for all
C)  more support to small producers
D)  all of the above

Question 17

Which of the following currency is not included in the calculation of Special Drawing Right (SDR) value?

Accepted Answer

A)  yen
B)  yuan
C)  rupee
D)  pound sterling

Question 18

Where do MNCs choose to set up production?

Accepted Answer

A)  cheap goods
B)  cheap labour resources
C)  economic sustainability
D)  none of these

Question 19

………………….has third highest quota in the IMF.

Accepted Answer

A)  china
B)  russia
C)  india
D)  japan

Question 20

Which of the following body is not related to the WTO?

Accepted Answer

A)  dispute settlement body
B)  trade policy review body
C)  exchange rate management body
D)  council of trade in goods

Exam 5: IMF, Globalisation and WTO