Pre and Post Liberalisation

Q.

What was the reasons for putting barriers to foreign trade and foreign investment by the Indian government? Why did it wish to remove these barriers? -

Q. Prior to 1991, the Government of India used as a tool to support the domestic producers and protect them from foreign competition.

1. trade incentives
2. trade barriers
3. foreign investment
4. domestic investment

Q. Under which of the following policies does the government reduce restrictions and loosen control over the private sector?

1. Liberalisation
2. Privatisation
3. Globalisation
4. Nationalisation

Q. The liberalisation of 1991 had a positive impact on which of the following?

1. Production
2. Foreign trade
3. Exports
4. Micro industries
5. Price of goods
6. Quality of goods
7. Agriculture
8. Environment

Q. Prior to the economic reform, which of the following strategies was used by India to restrict international trade with other countries?

1. Trade barriers
2. Trade ban
3. Exporting ban
4. Protection trade

Q. How is starting a new business in 1970 different from starting a business in 1995 in India?

1. New businesses are no longer required to get a licence from the government.
2. There are no trade barriers to foreign trade.
3. There is tough competition between domestic and foreign businesses.
4. Businesses can utilise developed telecommunication infrastructure.

Q. How did India protect its domestic producers from international competition till 1991?

1. By imposing heavy taxes on foreign goods
2. By restricting the quantity of imports
3. By abolishing trade barriers
4. By providing more working capital

Q. made it difficult for private producers to start new companies and run them independently as it required the government's approval.

1. Trade barriers
2. Quotas
3. Heavy taxes
4. License system