Explore topic-wise InterviewSolutions in Current Affairs.

Multinational companies first started their activities in the extractive industries and controlled raw materials in the host countries during 1920s and then entered the manufacturing and service sectors after 1950s. Most of the MNCs at present belong to the four major exporting countries i.e., USA, UK, France and Germany. However, the largest is America. In 1971, the American Corporations held 52% of the total world stock of foreign direct inverstment. Great Britain held 14.5% followed by France 5% and Federal Republic of Germany 4.4% and Japan 2.7%.

Advantages of MNCs:

• MNCs produce the same quality of goods at lower cost and without transaction cost.
• They reduce prices and increase the purchasing power of consumers world wide.
• They are able to take advantage of tax variation. 
• They spur job growth in the local economy.

Disadvantages of MNCs:

• They have led to the downfall of smaller, local business.
• With more companies transferring offices and centering operations in other countries, jobs for the people living in developed countries are threatened.
• MNCs often invest in developing countries where they can take advantage of cheaper labour. Some MNCs prefer to put up branches in these parts of the world where there are no stringent policies in labour and where people need jobs because these MNCs can demand for cheaper labour and lesser healthcare benefits.

1. South India trade guilds were formed by merchants inorder to organise and expand their trading activities. 

2. South India trade was dominated by the Cholas and it w’as replaced by the Pallavas. 

3. Several trade guilds operated in medieval southern India such as the Gatrigas, Nakaras, Mummuridandas, Settis, Birudas, Gavaras etc. 

4. In the early trade, the Kalinga traders brought red coloured stone decorative objects for trade and also cotton textile to south east Asia. 

5. The discovery of a new all sea route from Europe to India via Cape of Good Hope by Vasco-do-Gama helped to flourish trade in India. 

6. India’s coastal and maritime trade was monopolized by the Europeans. 

7. Therefore it was due to the trading activities European companies came to India.

1. Globalization means the integration of the home economy with the world Economy 

2. There is a general belief that the benefits of globalization extends to all countries. But that will not happen automatically. 

3. There is a constant fear the globalization leads to instability in the developing world.

4. Due to globalization, the industrial world has increased global competition. 

5. This leads to race in low level, labour right and employment practices among the industrial world. 

6. It may led to global imbalance. 

7. It may result to activities like child labour, slavery.

8. It may also affect health as consumers are tempted to use more attractive junk foods. 

9. It may affect environment .Because more of use and throw products and packed items may affect nature and our surviva

(d) All the above

There are three sectors in an economy.

(d) (a) and (c)

(a) Excludes

GNP is also called as National Dividend.

(a) currency

Correct Answer is: (d) 5^th

(d) (i), (iv) are correct

USA country has the largest multinational companies in the world.

The World Trade Organisation or WTO is the only global international organisation dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trending nations and satisfied in their Parliaments. The WTO began operations on January 1, 1995 after the completion of the Uruguay Round (1986-94) of Multi lateral trade negotiations.

WTO has six key objectives:

1. To set and enforce for international trade.

2. To provide a forum for negotiating and monitoring further trade liberalisation. 

3. To resolve trade disputes. 

4. To increase the transparency of decision making. 

5. To corporate with other major international economic institutions involved in global economic management. 

6. To help developing countries benefit fully from the global trading system

(d) (i), (iii), (iv) are correct

A. (iii) 

B. (iv) 

C. (v) 

D. (i) 

E. (ii)

Archaic Globalization is the one stage of Globalization.

GNP minus depreciation gives NNP.

GDP helps in the estimation of purchasing power.

GDP measures only the quantity but not quality.

NDP is the value of depreciation excluded from GDP.

PI represents all sources of income excluding direct taxes.

(c) (i), (ii), (iii) and (iv) are correct

1. GDP 

2. Services 

3. Intangible 

4. Market 

5. Market value

6. Rupee 

7. Tyler Cowen and Alex Tabarrok 

8. Intermediate 

9. Double counting 

10. Gross National Product 

11. National Dividend 

12. Included 

13. GDP 

14. Depreciation 

15. Personal income 

16. Disposable income 

17. Dadabhai Navroji 

18. Poverty and Unemployment 

19. NDP 

20. NNP

Factors supporting to develop the Indian economy :

• A fast growing population of working age.
• India has a strong legal system and many English language speakers
• Wage costs are low here.
• India’s economy has successfully developed highly advanced and attractive clusters of business in the technology space.

(c) Globalization

(b) Multinational Company

PCI denotes the standard of living of the people.

(b) Expenditure

(b) 3 Approach

India lies in Medium Human Development Index Category.

Agricultural Policy, Industrial Policy, New Economic Policy, Domestic Trade Policy, International Trade Policy, Employment Policy, Currency and Banking Policy, Fiscal and Monetary policy, Wage Policy, Population policy.

(c) Globalization

(b) Theodore Levitt

Correct Answer is: (c) 1990

1. Per Capital Income 

2. N.I. / population 

3. Excluded 

4. GNP 

5. Quarterly 

6. Four

7. Fourth 

8. First 

9. Service 

10. Low 

11. Bhutan 

12. Demographic transition 

13. Medium 

14. 1991 

15. Continuous 

16. Bangalore 

17. LPG 

18. 7.3% 

19. Fifth 

20. Bangladesh

1) Gross National Happiness or GNH is a global indicator of progress, which measures both sustainable economy and social developments, while protecting the environment and culture:

2) The Human Development Index or HDI is a statistic composite index of life expectancy, education and per capita income indicators, which are used to rank countries into four tiers of human development. A country scores a higher HDI when the lifespan is higher, the education level is higher and the gross national income or GNI per capital is higher

The following reforms were made-to adapt globalization in India.

1. Abolition of industrial licensing, except for a few industries. 

2. Reduction in the number of industries reserved for public sector. 

3. Fixation of a realistic exchange rate of rupee to exchange exports of Indian goods.

4. Foreign exchange regulations were suitably amended. 

5. The Statutory Liquidity Ratio (SLR) was reduced to increase lending by RBI.

India’s HDI value for 2017 is 0.640.

To attract foreign companies to invest in India.

(d) All the above

(c) New Economic Policy

The composition of GDP in India include three sectors which are listed as 

(i) Agricultural Sector 

(ii) Industrial Sector 

(iii) Service Sector.

(i) Agricultural Sector: It is also known as primary sector. Agricultural activities, Agricultural based allied activities, cattle farm, fishing, mining, forestry, mining are all included in this sector. Their total production is the pirimary sector contribution to India’s GDP.

(ii) Industrial Sector: It is also known as secondary sector. Production of goods using raw materials in the form of either Small Scale Industries, or Large Scale Industries like Iron and steel, Automobiles etc., are included in this sector. Their total production is the secondary sector contribution to India’s GDP.

(iii) Service Sector: It is also known as Tertiary sector. It includes Government, transport and communications, Scientific Research, Post and telegraph, trade, Banking, Education, Entertainment, Health care and Information Technology’ in this sector. Their total production is the service sector contribution to India’s GDP.

Sector-wise contribution of GDP (2018 – 19) 

Agricultural Sector – 14.39 % 

Industrial Sector – 31.46% 

Sen/ice Sector – 54.15%

The GDP is one of primary indicators used to measure the health of a country’s economy. It represents the total dollar value of all goods and services produced over a specific time period, often referred to as the size of the economy.

The Gross Domestic product is the market value of all the goods and services produced in the country during a time period.

When a country’s HDI increases, it removes the country from Poverty.

Fair trade is a way of doing business that ultimately aims to keep small farmers an active part of the world market and aims to empower consumer to make purchases that support their values.

The supporting pillars of NEP, 1991 of India is LPG.

(c) July-Aug-1991

For producers fair trade is unique in offering four important benefits.

• Stable prices that cover the costs of sustainable production.
• Market access That enables buyers to trade with producers who would otherwise be excluded from market.
• Partnerships (producers are involved) in decisions that affect their future.

SEZ means Special Economic Zones . Recently the Government of India has set up special Economic Zones in southern states of especially in Tamil Nadu, Andhra Pradesh, Karnataka and Kerala with a view to boost exports. Few SEZ in Tamil Nadu are Nanguneri SEZ, Ennore SEZ, Coimbatore SEZ.