Globalisation Today MCQs Quiz | Class 10

This quiz on ‘Globalisation Today’ from Class X History, Unit ‘The Making of a Global World’, focuses on economic integration. Test your understanding, then submit to see your score and download a detailed answer PDF for review.

Understanding Globalisation Today: Economic Integration

Globalisation is the process of increasing interconnectedness and interdependence among countries and people worldwide. While it encompasses cultural, political, and environmental aspects, its economic dimension, often referred to as economic integration, is particularly significant in the contemporary world. This integration involves the merging of national economies into a global economic system through increased trade, financial flows, technological exchange, and cross-border movement of people and information.

Key Aspects of Economic Integration:

  • Trade Liberalisation: Reduction of tariffs, quotas, and other barriers to the international exchange of goods and services. Organizations like the WTO play a crucial role in facilitating this.
  • Financial Flows: Increased movement of capital across borders, including foreign direct investment (FDI), portfolio investment, and remittances. Multinational Corporations (MNCs) are key drivers of FDI.
  • Technological Advancement: Innovations in transportation (e.g., container shipping, air cargo) and communication (e.g., internet, mobile technology) have drastically reduced the cost and time of international transactions, making global integration more feasible.
  • Multinational Corporations (MNCs): These large enterprises operate in multiple countries, fragmenting production processes across different locations to optimize costs and access new markets, leading to global value chains.
  • Migration: The movement of people across national borders, whether for work, study, or asylum, also contributes to economic integration through remittances and the exchange of skills and labor.

Benefits and Challenges:

Aspect Benefits Challenges
Economic Growth Increased trade, economic growth, technology transfer, consumer choice, job creation in some sectors Job displacement, income inequality, loss of domestic industries, environmental concerns, financial instability

Quick Revision:

  • Globalisation: Interconnectedness of economies, cultures, and societies.
  • Economic Integration: Merging of national economies into a global system.
  • Drivers: Technology, trade liberalization, MNCs, financial flows.
  • WTO: Promotes multilateral trade agreements.
  • MNCs: Operate globally, create global value chains.
  • Remittances: Money sent by migrants, a significant financial flow.

Practice Questions:

  1. Which institution is primarily responsible for establishing global rules of trade?

    • a) IMF
    • b) World Bank
    • c) WTO
    • d) UN

    Correct Answer: c) WTO

  2. What is a major criticism of economic globalization?

    • a) It promotes local industries.
    • b) It reduces consumer choice.
    • c) It can lead to job losses in developed countries.
    • d) It strengthens national borders.

    Correct Answer: c) It can lead to job losses in developed countries.

  3. Foreign Direct Investment (FDI) refers to:

    • a) Lending money to foreign governments.
    • b) Investing in shares of foreign companies without control.
    • c) Investment made by a company or individual in business interests in another country.
    • d) Donations to international charities.

    Correct Answer: c) Investment made by a company or individual in business interests in another country.

  4. The term ‘global value chain’ describes:

    • a) A single country producing all components of a product.
    • b) Different stages of production located across various countries.
    • c) The ethical sourcing of materials.
    • d) A chain of global financial institutions.

    Correct Answer: b) Different stages of production located across various countries.

  5. Which technological advancement has played the MOST significant role in the recent surge of globalization?

    • a) Steam engine
    • b) Printing press
    • c) Internet and digital communication
    • d) Electricity

    Correct Answer: c) Internet and digital communication