Tag: concept and necessity of globalization

Questions Related to concept and necessity of globalization

State whether the following statement is True or False:
Pressures for structural adjustments are a reason for globalisation.

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

  1. True

  2. False

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Correct Option: B
Explanation:

Pressures for structural adjustments are a reason for globalization- this is a false statement.Globalization may be defined as "the growing economic interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services and the international capital flows and also through the more rapid and widespread diffusion of technology.Market, cost, competition and government policies are the key drivers of globalization from the following factor

State whether the following statement is True or False:
Privatisation and globalisation are components of economic liberalisation.

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

  1. True

  2. False

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Correct Option: A
Explanation:

A. True

There are three components of economic liberalization, viz. liberalization, privatization and globalization. Privatization refers to the increase in the dominating role of the private sector and decrease in the role of the government sector. The government companies can be converted into private company by way of disinvestment or by the withdrawal of government ownership and management in the public sector companies.
Globalization refers to the integration of the economy of one country with the global economy. Globalization focuses mainly on the foreign trade and private and institutional foreign investment.

State whether the following statement is True or False:
Denationalisation is a form of privatisation.

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

  1. True

  2. False

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Correct Option: A
Explanation:

A. TRUE

Denationalization refers to an act where the 100% government ownership of productive assets is transferred to the private sector enterprises. It is a form of privatization. It is also known as a strategic sale. Denationalization or privatization reduces the work load of the public sector companies and also provides better and iproved goods and services to the consumers.

The process of economic liberalization was implemented in India in the year __________.

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

  1. 1990

  2. 1991

  3. 1992

  4. 1993

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Correct Option: B
Explanation:

Liberalization refers to end of licence, quota and many more restrictions and control that were put on many industries. The term basically refers to opening of the economy to the world and providing freedom to the departmental and public sector undertakings to access capital market in order to achieve international competitiveness. 

The process of economic liberalization was implemented in India in the year 1991 when new economic reforms were introduced in order to protect the country from high debt to world bank. 

Integration of national economies into world economy is called _______________.

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

  1. Globalisation

  2. Privatization

  3. Liberalization

  4. None of the above

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Correct Option: A
Explanation:

Integration of national economies into world economy is called globalization.Globalization may be defined as "the growing economic interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services and the international capital flows and also through the more rapid and widespread diffusion of technology.

Integration of national economies into a world economy is known as _______.

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

  1. privatization

  2. globalization

  3. liberalization

  4. all of them

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Correct Option: B
Explanation:

Integration of national economies into a world economy is known as globalization.Globalization may be defined as "the growing economic interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services and the international capital flows and also through the more rapid and widespread diffusion of technology.

Sale of public enterprises to private sector is called __________.

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

  1. Globalisation

  2. Privatization

  3. Liberalization

  4. None of the above

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Correct Option: B

Partial or complete sale of a public sector enterprise is called _______.

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

  1. liberalization

  2. privatization

  3. globalization

  4. none of them

Show answer
Correct Option: B
Explanation:

B. privatization.

Partial or complete sale of a public sector enterprise is a form of privatization. Partial privatization refers to a situation where the private sector owns more than 50% but less than 100% ownership in a public sector company by way of transfer of shares. In this case, the private sectors own the majority of shares and thus has substantial control over the functioning of the company.

Liberalization includes _________________________.

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

  1. Adopting strict industrial licensing requirement in most of the industries

  2. Reducing the fiscal burden of the state by relieving it of the losses of the SOEs and reducing the size of the bureaucracy

  3. Simplified policies to attract foreign capital and technology to India

  4. All of the above

Show answer
Correct Option: C
Explanation:

Liberalization includes simplified policies to attract foreign capital and technology to India. Liberalization refers to end of licence, quota and many more restrictions and control that were put on many industries. Liberalization helped to achieve international competitiveness by attracting foreign capital and technology to India. 

The object of privatization is/are________________.

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

  1. To improve the performance of PSUs so as to lessen the financial burden on taxpayers

  2. To encourage and to facilitate private sector investments, from both domestic and foreign sources

  3. To generate revenues for the state

  4. All of above

Show answer
Correct Option: D
Explanation:

Privatization refers to giving greater role to private sector and reducing the role of public sector through disinvestment of public sector and dilution of stake of the government. The main objective of privatization is to improve the performance of private sector units, encourage investment in the private sector to raise the overall capital formation and to generate more revenue for the state.