Tag: concept and necessity of globalization

Questions Related to concept and necessity of globalization

Which among the following have not been opened for private sector participation?

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

  1. Power Sector

  2. Telecommunication Sector

  3. Education Sector

  4. Railways

Show answer
Correct Option: D
Explanation:

Railways has not been opened for private sector participation. Railway sector is owned and managed by the Government of India. It is a public sector undertaking. Railways is still referred as a Government monopoly.

As there has been globalization of markets, the tastes and preferences of consumers world-wide are ________.

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

  1. converging upon a global warm

  2. so different that they can be ignored by internal organizations

  3. being encouraged by multinational organizations to become increasingly similar

  4. becoming similar to the tastes and preferences of American consumers

Show answer
Correct Option: A
Explanation:

Globalization has brought the world closer. It has made import and export of goods easier between all the countries. One can get access to the different goods available across the world due to globalization. Hence, as there has been globalization of markets, the tastes and preferences of consumers world-wide are converging upon a global warm.

The importance of globalization for multinational firms is evident from which of the following?

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

  1. Home demand, home factor conditions and domestic rivalry are no longer important to multinational firms

  2. A multinational firm can gain a competitive advantage in a foreign country

  3. The geography is no longer limited to multinational firms

  4. All of the above

Show answer
Correct Option: D
Explanation:

The importance of globalization for multinational firms is home demand, home factor conditions and domestic rivalry are no longer important to multinational firms. A multinational firm can gain a competitive advantage in a foreign country and the home base is no longer important to multinational firms.

Globalisation has brought _______.

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

  1. economic growth best growing inequalities wealth and

  2. resentment from low skilled workers who see their jobs go abroad

  3. both (a) and (b)

  4. real jobs in less developed countries and closed the poverty gap

Show answer
Correct Option: C
Explanation:

Globalization means the integration of people across the globe to facilitate trade in a smooth way. It has brought the world closer. Hence, globalization has brought economic growth best growing inequalities wealth and resentment from low skilled workers who see their jobs go abroad.

Which among the following are the key drivers of globalization?

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

  1. Government action, exchange rates, competition and socio-demographic factors

  2. Market convergence, competition, exchange rates and cost advantages

  3. Cost advantages, government action, economic cycles and competition

  4. Market, cost, competition and government policies

Show answer
Correct Option: B
Explanation:

Reasons for Globalization:
- Domestic markets are not enough and other markets are required for the progress of industry.
- World is shrinking because of the development of the transportation, communication, technological changes etc.
- An organization named WTO (World Trade Organization) was established for the development of cross border trade.
-For the development of business a new technology is needed which could be taken from overseas.
- To cut down the manufacturing cost, industries may set up manufacturing units overseas where manufacturing cost is favourable.
- To set up a business in a place which is politically more stable.
-Adverse business environment in home country pushes the companies to look for global market.
-Most companies move their head quarters to overseas to avoid their respective home countries' high taxes and other costs associated in business operation in those countries.

Thus, we can say that, market convergence, competition, exchange rates and cost advantages are the key drivers of globalization.

When a state owned enterprise is given in private hands, it is known as _____.

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

  1. liberalisation

  2. globalisation

  3. privatisation

  4. transformation

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Correct Option: C

Opening up of an industry that has been reserved for the public sector to the private sector is an example of ______.

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

  1. modernisation

  2. liberalisation

  3. globalisation

  4. privatisation

Show answer
Correct Option: D
Explanation:

Privatization can refer to the act of transferring ownership of specified property or business operations from a government organization to a privately owned entity, as well as the transition of ownership from a publicly traded, or owned, company to a privately owned company.

The process of privatisation is where _______.

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

  1. services that were previously supplied internally are outsourced

  2. a company is transferred from public limited by closure of an enterprise

  3. a state-owned or nationalised corporation is sold to the private sector through sale of equity

  4. all of the above

Show answer
Correct Option: D
Explanation:
The process of privatization is where:a) services that were previously supplied internally are outsourced
b) a company is transferred from public limited by closure of an enterprise
c) a state-owned or nationalized corporation is sold to the private sector through sale of equity
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.

Out of the following which is NOT a business opportunity generated by globalization?

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

  1. A low cost labour

  2. Cheap international transport

  3. Currency crises

  4. Less stringent regulation of the business envirornment

Show answer
Correct Option: C
Explanation:

Currency crises is NOT a business opportunity generated by globalization since globalization can be defined as a process of integration of various economies of world. Globalization involves greater interaction and interdependence among the various nations of global economy.

The objective of privatization is _________.

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

  1. to increase the size of government investment

  2. getting investment from only select strata of the society

  3. to generate revenues for the state

  4. all of the above

Show answer
Correct Option: C
Explanation:

Privatization refers to  the process of transferring of ownership and management of an enterprise from public sector to the private sector. Another dimension of privatization is opening up of an industry that has been reserved for the public sector to the private sector.The objective of privatization is to generate revenues for the state.