Advantages of Globalization

Q. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Identify which of the following is not an advantage of globalization.

1. Globalization increases competition among firms.
2. Globalization increases prices of goods and services.
3. Globalization improves the quality of goods.
4. Globalization improves the standard of living of people.

Q.

What are MNCs? Explain.

Q. Nestlé is a Swiss food and beverage company. It entered the Indian market in 1961 and is currently one of the leading multinational companies in India. It has more than 100 factories in more than 80 countries.

How can Nestlé impact the countries in which it operates?

1. Nestlé will increase employment opportunities and thereby improve the standard of living.
2. Nestlé will help people in moving from one country to another for the purpose of tourism.
3. Nestlé will increase the production of goods and services in the country, thereby increasing the gross domestic product.
4. Nestlé will promote specialisation.

Q. Transportation of goods and services across the world releases greenhouse gases like carbon dioxide and nitrous oxide that lead to global warming. In order to reduce this, what step can be taken?

1. The countries can provide incentives and subsidies to local producers to produce in their country and for their country only.
2. The countries should ban exports and imports and rely on MNCs for production of goods and services.
3. Container ships can be used wherein more items can be transported in a single trip.
4. The countries can avoid international trade and only do trade within their own country.

Q. Due to globalization, India imports steel from China, engines from South Korea, tyres from France, and seats from the USA. All these products are then assembled to make cars.

Analyse the above statement, and choose the correct benefit of globalization.

1. Globalization gives options to consumers to purchase from a variety of goods and services.
2. Due to globalization, consumers can buy similar products all around the world.
3. Each country produces goods it specialises in and then exports it to another country where all the parts are assembled.
4. Due to globalization, products travel in container ships, which reduces the cost of transportation of goods.

Q. How does globalization benefit the people of a country?

1. Consumers get a variety of goods and services to choose from.
2. With increase in multinational companies, employment opportunities also increase.
3. Globalization increases gross domestic product of the country.
4. Consumers get better quality products at affordable prices due to competition between producers.

Q. For successful exchange of goods, services, capital, and technology between countries, which of the following is imperative?

1. Availability of US dollars
2. Similar language of communication
3. Membership of the World Trade Organization
4. Cordial political and social links between countries

Q. Due to globalization, the of countries increases because of an increase in the production of goods and services.

1. gross domestic product
2. infectious diseases
3. foreign currency reserves
4. travel and tourism

Q. Due to globalization, Indian consumers could buy foreign products and Indian producers could earn more by exporting their products.

1. False
2. True

Q. A multinational company headquartered in Canada will increase India’s GDP if it produces goods in India.

1. False
2. True

Q. Globalization helps in the flow and exchange of people through which of the following ways?

1. Exchange of currency
2. Travel and tourism
3. Multinational companies
4. Terrorists and criminals