Tag: concept and necessity of globalization

Questions Related to concept and necessity of globalization

Liberalization has helped us in achieving_____________.

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

  1. High foreign exchange reserve

  2. Low inflation rate

  3. Strong rupee

  4. All of above

Show answer
Correct Option: D
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. 

 Liberalization has helped us high foreign exchange reserves, low inflation rate in the economy through high investment and strong rupee by making other currencies relatively cheaper. 

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 increase the administrative burden on the state

  2. To discourage private sector investments

  3. To decrease the size and dynamism of the private sector

  4. None 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 and increase its size and dynamism, to encourage investment in the private sector to raise the overall capital formation and to reduce administrative burden on state. 

Liberalization has helped us in achieving ___________.

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

  1. A high growth rate

  2. Easy availability of goods at competitive rates

  3. A healthy and flourishing stock market

  4. All of above

Show answer
Correct Option: D
Explanation:

Liberalization has helped us in achieving :-a) A high growth rate

b) Easy availability of goods at competitive rates

c) Easy availability of goods at competitive rates

Liberalization refers to end of license, quota and many more restrictions and control that were put on many industries. Liberalization has so far helped us in achieving high growth rate, easy availability of goods at a competitive rates and a healthy and flourishing stock market for the economy. 

Which of the following is NOT included in liberalization?

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

  1. Reducing in tax matters

  2. Abolition of licensing

  3. Simplification of policies

  4. Imposition of tariff barriers

Show answer
Correct Option: D
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. It includes removal of tariff barriers for better flow of goods and services between the countries. 

The benefits of privatization is/are as follows____________.

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

  1. It reduces the fiscal burden of the state by relieving it of the losses of the SOEs and reducing the size of the bureaucracy

  2. Privatization of SOEs enables the government to mop up funds

  3. Privatization helps the state to trim the size of the administrative machinery

  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 benefits of privatization are: 

1. Reducing fiscal burden of the state by adding to the capital formation of the economy and reducing the government's bureaucracy. 
2. It increases government's revenue and mop up the funds.
3. It reduces the administrative burden on the state. 

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 reduce the administrative burden on the state

  2. To encourage and to facilitate private sector investments

  3. To increase the size and dynamism of the private sector

  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 and increase its size and dynamism, to encourage investment in the private sector to raise the overall capital formation and to reduce administrative burden on state. 

The functions of privatization is/are as follows_____________.

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

  1. Privatization helps accelerate the pace of economic developments as it attracts more resources from the private sector for development

  2. It may result in better management of the enterprises

  3. Privatization may also encourage entrepreneurship

  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. Privatization results in better economic development due to more resources from private sector, better management due high competition in private sector and encouragement of entrepreneurial skills into the individual. 

The following factors are 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: D
Explanation:

Globalization refers to the integration of various economies of the world by removing of strict policies in regard to the import and export of goods and services and foreign direct investments. Globalization involves greater interaction and interdependence among the various nations of the global economy which makes the market very vast. The key drivers of globalization are market, cost, competition and government policies.  

Liberalization does not includes_______________.

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

  1. Abolishing industrial licensing requirement in most of the industries

  2. Freedom in deciding the scale of business activities

  3. Restriction in fixing prices of goods and services

  4. Simplifying the procedure for imports and exports.

Show answer
Correct Option: C
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. It does not provide restrictions in fixing prices of goods and services in the economy. 

______ refers to the process of eliminating unnecessary controls and restrictions on the smooth functioning of business enterprises.

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

  1. Globalization

  2. Privatization

  3. Liberalization

  4. All of above

Show answer
Correct Option: C
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.