Tag: concept and necessity of globalization

Questions Related to concept and necessity of globalization

Industrial licensing is confined to ________.

organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

  1. 5 industries

  2. 8 industries

  3. 10 industries

  4. 15 industries

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Correct Option: A

An essential pre-requisite for a successful privatisation is _______.

organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

  1. globalisation

  2. nationalisation

  3. liberalisation

  4. All the above

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Correct Option: C
Explanation:

An essential pre-requisite for a successful privatization is liberalization. Liberalization refers to end of license, quota and many more restrictions and controls which were put on industries before 1991. Liberalization is of utmost importance in order to give greater role to private sector of the economy.

At present (2018) _______ industries are reserved for the public sector.

organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

  1. 5

  2. 2

  3. 8

  4. 12

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Correct Option: B
Explanation:

At present (2018) 2 industries are reserved for the public sector. Atomic energy and Railways are the only two government monopolies in India. Only public sector undertaking has the authority to run the activities of these industries.

Which of the following restrictions were removed by the liberalization policy?

organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

  1. Industrial licensing

  2. Clearance from the MRTP act

  3. Foreign Exchange restrictions

  4. All the above

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Correct Option: D
Explanation:
Liberalization policy helped to end of license, quota and many more restrictions and controls which were put on industries before 1991. Following restrictions were removed by the liberalization policy:
a) Industrial licensing
b) Clearance from the MRTP act
c) Foreign Exchange restrictions.

Reason(s) for Privatization __________________.

organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

  1. Revenue for Government

  2. Increasing the role of Public Sector

  3. Inefficiency of foreign sector

  4. Inefficiency, indifference, irresponsibility and corruption

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Correct Option: D
Explanation:

Reason for privatization is inefficiency, indifference, irresponsibility and corruption. Privatization is a global trend. Privatization can be defined as a process of transferring of ownership or management of an enterprise from public sector to private sector. It helps to increase the size and dynamism of private sector. It also helps to reduce administrative burdens on the public sector.

Globalisation means______________.

organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

  1. Several things to several people

  2. Foreign trade orientation

  3. Closed economy

  4. Liberal economy

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Correct Option: A
Explanation:

Globalization means several things to several people. Globalization can be defined as the growing interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services and also through rapid diffusion of technology.

External sector liberalisation means _______.

organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

  1. relaxing restrictions on international flow of goods, services, technology and capital

  2. relaxing restrictions on internal flow of capital

  3. relaxing the role of market

  4. all the above

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Correct Option: A
Explanation:

External sector liberalization means relaxing restrictions on international flow of goods, services, technology and capital.  External sector liberalization has helped bringing down the volatility as well as the instability of our economy. It helps to create a more free and competitive economy.

Privatization means _______________________.

organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

  1. The transfer of ownership or management of an enterprise from the public sector to the private sector.

  2. The transfer of ownership of an enterprise from the private sector to the public sector.

  3. The withdrawal of the state from an industry, partially or fully.

  4. Both (A) and (C)

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Correct Option: D
Explanation:
Privatization means:a) The transfer of ownership or management of an enterprise from the public sector to the private sector.
b) The transfer of ownership of an enterprise from the private sector to the public sector.Privatization helps to increase the size and dynamism of private sector. It also helps to reduce administrative burdens on the public sector.

The following are the ways of privatisation:
1. Disinvestment  2. Denationalization
3. Franchising    4. Contracting
Which is correct?

organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

  1. 1, 2 and 4

  2. 2 and 4

  3. 1 and 2

  4. All the above

Show answer
Correct Option: D
Explanation:

The following are the ways of privatization:

1. Disinvestment 
2. Denationalization
3. Franchising   
4. Contracting Privatization is a global trend. Privatization can be defined as a process of transferring of ownership or management of an enterprise from public sector to private sector. It helps to increase the size and dynamism of private sector. It also helps to reduce administrative burdens on the public sector.

Peter F. Drucker used the term 'Privatisation' in his famous book, ________.

organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

  1. What is Privatisation?

  2. The Age of Discontinuity

  3. Quality and Competition

  4. Global Economy

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Correct Option: B
Explanation:

Peter F. Drucker used the term 'Privatization' in his famous book, 'The Age of Discontinuity'. Privatization can be defined as a process of transferring of ownership or management of an enterprise from public sector to private sector. It helps to increase the size and dynamism of private sector. It also helps to reduce administrative burdens on the public sector.