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Q1. India's automobile market saw a dramatic transformation after liberalisation, with brands like Toyota, Hyundai, and Maruti replacing only Ambassador and Fiat. Which of the following BEST explains why MNCs like these entered India during this period?
Answer: A — Liberalisation opened India's markets and reduced barriers to FDI; MNCs were attracted by both market size and cost advantages, not government force (B), export-only motives (C), or tech superiority (D).
Q2. Assertion (A): Multinational corporations locate their production facilities in multiple countries to reduce the overall cost of manufacturing. Reason (R): Different countries offer varying levels of labour costs, raw materials availability, and infrastructure, allowing MNCs to optimise their profit margins. Choose the correct option:
Answer: A — R directly explains why MNCs pursue the strategy described in A; cost reduction through location optimization is the primary driver of global production spread.
Q3. Read the passage: 'A large MNC, producing industrial equipment, designs its products in research centres in the United States, and then has the components manufactured in China. These are then shipped to Mexico and Eastern Europe where the products are assembled and the finished products are sold all over the world. Meanwhile, the company's customer care is carried out through call centres located in India.' Based on this example, which process is being demonstrated?
Answer: A — The passage exemplifies how MNCs integrate production globally—design in US, components in China, assembly in Mexico/Eastern Europe, services in India—showing specialisation and cost optimisation, not autarky (B), simple export (C), or domestic closure (D).
Q4. A farmer in Punjab observes that agricultural imports from countries with lower production costs are now freely entering Indian markets after trade liberalisation. How would this development MOST LIKELY affect his farming decisions?
Answer: A — Trade liberalisation exposes domestic farmers to competition, forcing adaptation (A); automatic yield increase (B) doesn't follow from imports, tariff protection is reduced post-liberalisation (C), and subsidies alone don't eliminate competitive pressure (D).
Q5. Assertion (A): The WTO has facilitated globalisation by pressuring member nations to liberalise their trade and investment policies. Reason (R): The WTO is an international organisation that negotiates trade agreements and enforces rules that reduce barriers between countries. Choose the correct option:
Answer: A — R accurately explains the mechanism by which A occurs; WTO's role in negotiating and enforcing reduced trade barriers directly drives liberalisation and globalisation.
Q6. Read the extract: 'Technology has revolutionised communication and transportation. Container ships, express delivery networks, and the Internet now allow companies to coordinate production across continents in real time.' How has this technological advancement SPECIFICALLY enabled the MNC production model described in Chapter 4?
Answer: A — Modern technology enables the complex global integration of production shown in the chapter—design-manufacture-assemble-service across borders; it doesn't eliminate workers (B), equalise costs (C), or prevent MNC involvement (D).
Q7. Assertion (A): Before the emergence of MNCs in the mid-20th century, India's colonial economy was primarily based on exporting raw materials and importing finished goods. Reason (R): Colonial powers structured their economies to extract resources from colonies and sell manufactured goods back to them, creating a dependent trade relationship. Choose the correct option:
Answer: A — R provides the economic logic underlying A; the colonial structure explicitly created this raw-material-export, finished-goods-import pattern of dependency.
Q8. A government considers whether to liberalise its foreign investment policies. Based on Chapter 4's discussion of globalisation, which outcome would MOST LIKELY occur if it removes restrictions on MNC entry?
Answer: A — Liberalisation attracts MNC investment and creates jobs (A), but this also generates competition for local businesses—the chapter's key trade-off; complete closures (B), price increases from MNC entry (C), and one-way tech drain (D) are not necessary outcomes.
Q9. Read the scenario: 'After India's liberalisation, a global consumer electronics MNC opened a manufacturing facility in Noida, employing 5,000 workers. The facility imports components from Japan and China, assembles them into finished products, and sells 60% domestically and 40% for export.' What does this example BEST illustrate about integration in globalised production?
Answer: A — The scenario demonstrates both production integration (importing components from multiple countries) and market integration (selling in India and globally)—two key concepts in Chapter 4 explaining globalisation; it doesn't show self-sufficiency (B), colonial-era patterns (C), or industry elimination (D).
Q10. Assertion (A): Rapid technological improvements are listed in Chapter 4 as a major facilitating factor of globalisation. Reason (R): Improvements in telecommunications and transportation reduce the time and cost of coordinating production across different countries and markets. Choose the correct option:
Answer: A — R directly explains why technology (A) is a facilitating factor—reduced coordination time and cost make global production networks feasible and profitable.
What is a Multinational Corporation (MNC)?
A company that owns or controls production in more than one nation.
Why do MNCs spread production to different countries?
To find cheap labour and resources, reduce production costs, and earn higher profits.
What was the main channel connecting distant countries before 1950?
Trade in raw materials, foodstuff, and finished products between nations.
Name one technological factor that has facilitated globalisation.
Rapid improvements in technology (transportation, communication, internet) have made global production easier.
What does 'integration of production' mean in the context of globalisation?
Production is divided into small parts and spread across different countries based on cost advantages.
Give an example of how MNCs use India's advantage in globalisation.
India's call centres provide customer care services to MNCs globally due to availability of skilled, cheap labour.
What role does the WTO play in globalisation?
The WTO pressurises countries to liberalise their trade and investment policies, facilitating MNC entry.
How has the Indian market for consumer goods changed in the last 20 years?
Wide variety of foreign brands and products are now available in Indian markets due to globalisation and MNC presence.
What is meant by 'liberalisation of trade and investment policies'?
Removal of government restrictions on foreign trade and investment, allowing MNCs easier entry into a country.
Why is the example of garment production important in understanding globalisation?
It shows how a single product involves multiple countries (cotton from Korea, stitching in Thailand, etc.), illustrating global production fragmentation.
Define Multinational Corporation (MNC) and explain with one example how MNCs contribute to globalisation. [2 marks]
Define MNC as company owning/controlling production in multiple nations. Example: Call centres in India serving global customers, OR garment production using resources from multiple countries (Korea cotton → Thailand stitching). Focus on how it spreads production across borders.
Explain the difference between trade before 1950 and globalisation after 1950 in terms of how countries are connected. Why is this difference important? [3 marks]
Before 1950: Countries connected only through trade in raw materials and finished goods (colonies exported raw materials, imported finished goods). After 1950: MNCs spread actual production across multiple countries—components made in different nations, assembled elsewhere. This is important because it creates deeper economic integration, not just exchange of goods, and changes how labour and profits are distributed globally.
Analyse how technology, liberalisation of trade policies, and WTO pressure have together facilitated the growth of MNCs in the last 30 years. Use examples from India to support your answer. [5 marks]
Technology: Internet and telecom enabled call centres in India to serve global customers; improved transport connected supply chains. Liberalisation: Removed govt restrictions allowing foreign companies to set up factories and offices in India; enabled companies like Hyundai, Toyota to manufacture cars in India. WTO pressure: Pushed countries to open markets, reducing tariffs on foreign goods (visible in variety of consumer products in Indian shops). India example: Call centres in Bengaluru leverage cheap skilled labour; automotive factories attract MNCs; Indian consumers access global brands. Together these factors created conditions where production could be fragmented globally with India as a key node.
Q1. Assertion (A):
Multinational Corporations have been a major force in the globalisation process over the last thirty years.
Reason (R):
MNCs own or control production facilities in multiple countries and spread their operations to regions with cheap labour and resources.
Answer: A — Both A and R are true, and R is the correct explanation of A — Both the assertion and reason are true, and the reason correctly explains why MNCs have been a major force in globalisation - their business model of establishing production across countries has fundamentally connected distant regions through integrated supply chains and markets.
Q2. Assertion (A):
The transformation of Indian consumer markets in the last two decades is primarily due to globalisation.
Reason (R):
Indian government policies have completely restricted the import of all foreign goods.
Answer: C — A is true but R is false — The assertion is true as the chapter clearly demonstrates the transformation of markets through the availability of new brands. However, the reason is false because the government has actually liberalised policies to allow foreign goods and investments, not restricted them. Liberalisation, not restriction, has enabled this transformation.
Q3. Assertion (A):
In modern globalisation, products labeled 'Made in Thailand' may actually contain components from multiple countries.
Reason (R):
MNCs divide the production process into small parts and spread them across the globe to reduce costs and maximize efficiency.
Answer: A — Both A and R are true, and R is the correct explanation of A — Both the assertion and reason are true and directly related. The garment industry example proves the assertion by showing components from Korea used in Thai-labeled products, and the reason correctly explains why this happens - MNCs optimize each production step by location.
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Case Study:
Nike, a major sportswear MNC, designs its shoes in design centres located in Portland, USA. The raw materials like rubber and leather are sourced from suppliers in Indonesia and Vietnam. The shoe components are manufactured in factories across China and Thailand, where labour costs are significantly lower. Final assembly takes place in Mexico and Brazil. The finished products are then shipped to retail stores across the world, including India. Distribution centres in India handle the warehousing and supply of Nike products to Indian retailers. This entire process involves coordination across multiple countries and time zones, made possible by advanced logistics technology and liberalised trade policies.
Q1. Why does Nike choose to manufacture components in China and Thailand rather than in the USA?
Answer: B
Q2. Which aspect of Nike's operations best demonstrates the integration of production across countries?
Answer: B
Q3. What role do liberalised trade policies play in Nike's global production network?
Answer: A
Q4. How does the availability of Nike products in Indian retail stores reflect the impact of globalisation?
Answer: D
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Real CBSE board exam questions from past papers — free to attempt.
CBSE 2026 · Set 31/4/1 · 1 mark
The removal of barriers on foreign trade and investment by the Indian government has been called as:
CBSE 2026 · Set 31/4/1 · 3 marks
New technology has helped to connect the world. Justify the statement with suitable arguments.
CBSE 2026 · Set 31/5/1 · 1 mark
Look at the given cartoon carefully and answer the question that follow: Which of the following concepts is best illustrated in the cartoon? [Diagram/Map-based question — skipped]
CBSE 2026 · Set 31/5/1 · 1 mark
Which of the following is the main purpose of a trade barrier in global trade? Choose the correct option.
CBSE 2026 · Set 31/5/1 · 3 marks
Advancement in technology has stimulated the globalization process. Justify the statement with suitable arguments.
CBSE 2025 · Set 31/1/1 · 1 mark
Two statements I and II are given below. Read both the statements carefully and choose the correct option: Statement I: Rapid improvement in technology has been one major factor to stimulate the globalisation process. Statement II: This has made much faster delivery of goods across long distances possible at lower costs.
CBSE 2025 · Set 31/1/1 · 2 marks
How did the process of liberalisation initiated in India in the 1990s, promote globalisation? Explain.
CBSE 2025 · Set 31/1/2 · 2 marks
How did the process of liberalisation initiated in India in the 1990s, promote globalisation ? Explain.
CBSE 2025 · Set 31/1/3 · 2 marks
How did improvement in transportation technology stimulate the globalisation process? Explain.
CBSE 2025 · Set 31/2/1 · 1 mark
Which one of the following organisations has its headquarter in Brussels?
CBSE 2025 · Set 31/2/1 · 1 mark
Two statements I and II are given below. Read both the statements carefully and choose the correct option: Statement I: Information and communication technology stimulate the process of globalisation. Statement II: It is used to contact each other, receive information instantly and communicate with remote areas.
CBSE 2025 · Set 31/2/2 · 2 marks
[Question text not clearly visible - appears to be about trade between countries]
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