Security in Contemporary World Class 12 MCQs Questions with Answers
Question 1.
Globalization leads to each culture becoming
(A) more different
(B) more transparent
(C) more distinctive
(D) more different and distinctive
Answer:
(D) more different and distinctive
Explanation:
Globalization of culture contributes to the exchange of cultural values of different countries, the convergence of traditions. For cultural globalization characterized convergence of business and consumer culture between the different countries of the world and the growth of international communication.
Question 2.
The main agenda of the World Social Forum is:
(A) opposition to terrorism
(B) opposition to neo- liberal globalization
(C) opposition to colonialism
(D) opposition to communism.
Answer:
(B) opposition to neo- liberal globalization
Explanation:
Neo-liberalism is a policy that encloses both politics and economics and seeks to transfer the control of economic factors from the public sector to the private sector.
Question 3.
Globalization has …………. dimensions.
(A) political and social
(B) social and economic
(C) political and economic
(D) political, social and economic
Answer:
(D) political, social and economic
Question 4.
Choose the correct option that has significantly contributed to the process of ‘Globalization’.
(A) Fear of war
(B) Security threats
(C) Advancement of technology
(D) Achievements of the United Nations
Answer:
(C) Advancement of technology
Explanation:
Technological advancements reduce costs of transportation and communication across nations and thereby facilitate global sourcing of raw materials and other inputs. Patented technology encourages globalization as the firm owning the patent can exploit foreign markets without much competition.
Question 5.
Which one of the following is a right cause of globalization?
(A) The U.S. people initiated globalization
(B) Technology led to globalization
(C) The Cold War led to globalization
(D) The policy of Non-alignment led to globalization
Answer:
(B) Technology led to globalization
Explanation:
Technology is the vital force in the modem form of business globalization. Technology has helped us in overcoming the major hurdles of globalization and international trade such as trade barrier, lack of common ethical standard, transportation cost and delay in information exchange, thereby changing the market place.
Question 6.
Which of the following statements is true about the causes of Globalisation?
(A) Growth of multinational companies with a global presence in many different economies.
(B) Globalisation is caused by a particular community of people.
(C) Globalisation originated in the US.
(D) Economic interdependence alone causes globalisation.
Answer:
(A) Growth of multinational companies with a global presence in many different economies.
Explanation:
MNC’s play an important role in the globalisation process. They compete with the local producers directly even after being miles apart, thus integrating the markets. Their working leads to exchange of investments and products which leads to interconnection
Question 7.
Globalisation has allowed the of customs, language and products.
(A) restriction
(B) spread
(C) devaluing
(D) escalation
Answer:
(B) spread
Question 8.
India has felt the impact of globalization through increased prosperity, partly triggered by increasing trade volumes, investment, and:
(A) weapons
(B) growth
(C) hatred
(D) terrorism
Answer:
(B) growth
Explanation:
The high growth in GDP is perhaps the most popularly cited benefit of globalization in India. This increase is possible through a favourable balance of trade in contemporary times due to inflows of foreign trade and foreign investment into India.
Question 9.
The wake of globalization was first felt in the 1990s in India when the finance minister, initiated the economic liberalization plan.
(A) Dr. Manmohan Singh
(B) VP Singh
(C) Atal Bihari Vajpayee
(D) Rajiv Gandhi
Answer:
(A) Dr. Manmohan Singh
Explanation:
The Indian economy was liberalised in the year 1991. In India, the concept of economic liberalisation was introduced to attain several objectives – industrialisation, expansion in the role of private and foreign investment, and introducing a free market system.
Question 10.
Which one of the following is the disadvantage of globalization?
(A) It creates global opportunities
(B) It paves the way for global market
(C) It fails to generate sufficient employment
(D) None of the above
Answer:
(C) It fails to generate sufficient employment
Explanation:
Trade liberalization raises the skilled wage rate and the successful probability of matching, which encourages unskilled workers to learn skill but increase the number of the skilled workers after trade liberalization. Therefore, the unemployment rate of skilled workers may increase after globalization.
Question 11.
How India became an exporter of primary goods and raw materials and a consumer of finished goods?
(A) Because of its riches in agriculture
(B) During the Mughal period this exports increased
(C) As a consequence of Britain’s imperial ambitions this exports started
(D) None of the above
Answer:
(C) As a consequence of Britain’s imperial ambitions this exports started
Explanation:
Opium, indigo, sugar, and raw cotton were the major commodities exported by India in 1849. By 1920 exports remained overwhelmingly basic, unfinished commodities: raw cotton, jute manufactures, raw jute, raw skins and hides, and tea.
Question 12.
Why India decided to deregulate various sectors including trade and foreign investment?
(A) Because Indian economy was not in balance
(B) It was a response to a financial crisis and to the desire for higher rates of economic growth
(C) Because government needed money
(D) All of the above (A)
Answer:
(B) It was a response to a financial crisis and to the desire for higher rates of economic growth
Explanation:
India carried out wide-ranging deregulation policies in 1991. Significant sectors of the economy were opened up for private participation through de-licensing and allowing entry to industries previously reserved exclusively for the state-owned sector.
Question13.
What is one of the universal criticism given by the critics to globalization?
(A) The rich get richer and the poor get poorer.
(B) The economic depression would start in 21st century.
(C) It would lead the concentration of the global wealth to one country.
(D) None of the above
Answer:
(A) The rich get richer and the poor get poorer.
Explanation:
According to critics, rich are people who have a high income in society. Globalization leads to an increase in income inequality within the globe. This is because the poor do not ripe the benefits of trade since they have to give up more resources to get less of the rich resources, based on most terms of trade.
Question 14.
What was the protest at World Trade Organization Ministerial Meeting, 19991
(A) The decreasing job opportunities by developed nations
(B) The threat of pandemic
(C) Unfair trade practices by the economically powerful states
(D) Deteriorating cultural practices
Answer:
(C) Unfair trade practices by the economically powerful states
Explanation:
Ministers from developing countries demanded that developed economies such as the US and the stop controversial agricultural subsidies, which hindered globalization. Japan said abusive use of anti-dumping measures should be regarded as a disguised form of protectionism that nullifies tariff reductions overnight.
Assertion and Reason Based MCQs
Directions: In the following questions, a statement of
Assertion (A) is followed by a statement of Reason (R).
Mark the correct choice as:
(A) Both (A) and (R) are true, but (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Question 1.
Assertion: Globalization need not always be positive; it can have negative consequences for the people.
Reason: Globalization is a multidimensional concept. It has political, economic and cultural manifestations, and these must be adequately distinguished.
Answer:
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
Explanation:
Globalization may have some negative consequences too. It may not be able to generate sufficient income for all; illiterate people have less knowledgea bout globalization. Moreover, it is a multidimensional concept and we must be acquainted about each of them and differentiate them accordingly.
Question 2.
Assertion: While globalization is not caused by any single factor, technology remains a critical element.
Reason: The ability of ideas, capital, commodities and people to move more easily from one part of the world to another has been made possible largely by technological advances.
Answer:
(A) Both (A) and (R) are true, but (R) is the correct explanation of (A).
Explanation:
Technological globalization is speeded in large part by technological diffusion, the spread of technology across borders. In addition, technological advances in areas like mobile phones can lead to competition, lowered prices, and concurrent improvements in related areas such as mobile banking and information sharing.
Question 3.
Assertion: Globalization results in an erosion of state capacity, that is, the ability of government to do what they do.
Reason: Globalization also gives freedom to governments to act in an arbitrary manner as far as the global issues are concerned.
Answer:
(C) (A) is true, but (R) is false.
Explanation:
Globalization restrains governments by inducing increased budgetary pressure. As a consequence, governments shift their expenditures in favor of transfers and subsidies and away from capital expenditures. Powerful nations curb the freedom of decision making of the weaker nations by putting indirect pressures, such as, withdrawing economic aid or using veto against them.
Question 4.
Assertion: Economic globalization involves many actors other than the international institutions.
Reason: What is often called economic globalization usually involves greater economic flows among different countries of the world.
Answer:
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
Explanation:
Economic globalization is the development of trade systems within transnational actors such as corporations or NGOs; Financial globalization: can be linked with the rise of a global financial system with international financial exchanges and monetary exchanges.
Question 5.
Assertion: In 1991, responding to a financial crisis and to the desire for higher rates of economic growth, India embarked on a programme of economic reforms that has sought increasingly to de-regulate various sectors including trade and foreign investment.
Reason: This deregulation opened up the new opportunities of local as well as foreign trade. Hence, the hope of creating new employment opportunities.
Answer:
(A) Both (A) and (R) are true, but (R) is the correct explanation of (A).
Explanation:
The main purpose of liberalization of trade and investment in 1991 was to increase the international competitiveness of industrial production and to motivate foreign investment and technology so as to reduce the burden of debt. Also, they aimed to promote efficiency of local industries.
Question 6.
Assertion: The critics argue that contemporary globalization represents a particular phase of global capitalism that makes the rich richer (and fewer) and the poor poorer.
Reason: Weakening of the state leads to a reduction in the capacity of the state to protect the interest of its poor.
Answer:
(A) Both (A) and (R) are true, but (R) is the correct explanation of (A).
Explanation:
Globalization leads to an increase opportunities of local as well as foreign trade. in income inequality around the globe. This is Hence, the hope of creating new employment because globalization encourages prosperous opportunities. nations to outsource production to locations
Question 7.
Assertion: There have been left wing protests to economic liberalization voiced through political parties as well as through forums like the Indian Social Forum.
Reason: The left wing believed that globalization would corrupt the politics of India.
Answer:
(C) (A) is true, but (R) is false.
Explanation:
The left wing of India criticized globalization mainly on the issue of the entries of multinational companies and foreign investment. According to them, this would affect the trade opportunities of the local industries and products.
Case-Based MCQs
I. Study the cartoon carefully and give the answers to the question that follows:
Question 1.
What is depicted in the picture?
(A) Spread of nuclear weapons
(B) Spread of various diseases
(C) Attacks by using biological weapons
(D) None of the above
Answer:
(B) Spread of various diseases
Explanation:
Globalization, the flow of information, goods, capital, and people across political and geographic boundaries, allows infectious diseases to rapidly spread.
Question 2.
Who identified the four basic aspects of globalization?
(A) IMF
(B) UN
(C) EU
(D) World Bank
Answer:
(A) IMF
Explanation:
In 2000, the International Monetary Fund (IMF) identified four basic aspects of globalization: trade and transactions, capital and investment movements, migration and movement of people, and the I dissemination of knowledge.
Question 3.
How did globalization help in the medical field?
(A) Exports of medicines increased.
(B) Helped in finding effective and speedy cure for the diseases with the collaboration of the medical facilities and knowledge of many countries.
(C) Inviting foreign doctors and creating employment opportunities in the various countries.
(D) All of the above
Answer:
(B) Helped in finding effective and speedy cure for the diseases with the collaboration of the medical facilities and knowledge of many countries.
Explanation:
Although, globalization increases the risk of spreading diseases, it also helps in finding effective and speedy cure for the diseases with the collaboration of the medical facilities and knowledge of many countries. The best example can be the invention of Covid-19 vaccine.
Question 4.
Why is Africa featured in the above picture?
(A) Because it is the centre of globalization.
(B) The diseases mentioned in the picture have their epicentre in Africa.
(C) Because Africa is a poor country.
(D) Because world aims at developing Africa.
Answer:
(B) The diseases mentioned in the picture have their epicentre in Africa.
II. Read the passage given below and answer the questions that follows:
At the most simple level, globalisation results in an erosion of state capacity, that is, the ability of government to do what they do. All over the world, the old ‘welfare state’ is now giving way to a more minimalist state that performs certain core functions such as the maintenance of law and order and the security of its citizens.
However, it withdraws from many of its earlier welfare functions directed at economic and social well-being. In place of the welfare state, it is the market that becomes the prime determinant of economic and social priorities.
The entry and the increased role of multinational companies all over the world leads to a reduction in the capacity of governments to take decisions on their own. What is important is for people in different parts of the world to recognise these interconnections with the rest of the world. Currently, we are aware of the fact that events taking place in one part of the world could have an impact on another part of the world.
The Bird flu or tsunami is not confined to any particular nation. It does not respect national boundaries. Similarly, when major economic events take place, their impact is felt outside their immediate local, national or regional environment at the global level.
Question 1.
At the most simple level, globalisation results in an erosion of …………..
(A) political capacity
(B) state capacity
(C) capital capacity
(D) global capacity
Answer:
(B) state capacity
Explanation:
Globalization has had a dual effect on the sovereignty of the nation-state. Yet, simultaneously, economic integration has limited the range of policy options available to states. This has diminished their capacity to meet these obligations.
Question 2.
What is given way recently by the old “Welfare state”?
(A) More minimalist state
(B) More capitalist state
(C) More socialist state
(D) More democratic state
Answer:
(A) More minimalist state
Explanation:
More minimalist state; A state with the least possible amount of powers. It is a term used in political philosophy where the duties of the state are so minimal that they cannot be reduced much further.
Question 3.
What do the new states withdraw as a result of globalisation?
(A) Many of its ethics for the welfare of human race
(B) The ideal world order
(C) Many of its earlier welfare functions directed at economic and social well-being.
(D) All of the above
Answer:
(B) The ideal world order
Question 4.
The increase in the MNCs all over the world has resulted in ……………
(A) the governments’ inability to cater to their needs.
(B) the capacity of the nations to incorporate these MNCs.
(C) poverty to the population where these companies are set up.
(D) reduction in the capacity of governments to take decisions on their own.
Answer:
(D) reduction in the capacity of governments to take decisions on their own.
III. Read the passage given below and answer the questions that follows:
While everything may not be known about the economic facets of globalisation, this particular dimension shapes a large part of the content and direction of contemporary debates surrounding globalisation. A part of the problem has to do with defining economic globalisation itself. The mention of economic globalisation draws our attention immediately to the role of international institutions like the IMF and the WTO and the role they play in determining economic policies across the world.
Yet, globalisation must not be viewed in such narrow terms. Economic globalisation involves many actors other than these international institutions. A much broader way of understanding of economic globalisation requires us to look at the distribution of economic gains, i.e. who gets the most from globalisation and who gets less, indeed who loses from it. What is often called economic globalisation usually involves greater economic flows among different countries of the world.
Some of this is voluntary and some forced by international institutions and powerful countries. As we saw in the examples at the beginning of this chapter, this flow or exchange can take various forms: commodities, capital, people and ideas. Globalisation has involved greater trade in commodities across the globe; the restrictions imposed by different countries on allowing the imports of other countries have been reduced.
Similarly, the restrictions on movement of capital across countries have also been reduced. In operational terms, it means that investors in the rich countries can invest their money in countries other than their own, including developing countries, where they might get better returns.
Question 1.
Where does economic globalisation draw our attention to?
(A) Declining economy
(B) Poverty in the third world countries
(C) To the role of international institutions like the IMF and the WTO
(D) All of the above
Answer:
(C) To the role of international institutions like the IMF and the WTO
Explanation:
The IMF and the WTO are international organizations with about 150 members in common. While the IMF’s central focus is on the international monetary and financial system, and the WTO’s is on the international trading system, both work together to ensure a sound system for global trade and payments.
Question 2.
How globalisation should not be viewed?
(A) in broader terms
(B) in narrow terms
(C) positively
(D) None of the above
Answer:
(B) in narrow terms
Question 3.
According to broader way of looking at globalisation, what should we focus on?
(A) The distribution of economic gains
(B) Increasing poverty in third world countries
(C) Unemployment in economic sectors
(D) Increasing population of the world
Answer:
(A) The distribution of economic gains
Question 4.
In terms of trade, what is the impact of globalisation?
(A) Countries are divided in groups and trading with their groups only.
(B) Developing countries are not given importance in trade.
(C) Any country can receive the opportunity of trading with the other countries.
(D) None of the above
Answer:
(C) Any country can receive the opportunity of trading with the other countries.
Explanation:
Globalization has increased the production of goods and services. The largest companies are no longer national firms, located in one single country; they are multinational corporations with businesses in 1 many countries.
IV. Read the passage given below and answer the questions that follows:
The most visible impacts of globalization are definitely the ones affecting the economic world. Globalization has led to a sharp increase in trade and economic exchanges, but also to a multiplication of financial exchanges. In the 1970s world economies opened up and the development of free trade policies accelerated the globalization phenomenon. Between 1950 and 2010, world exports increased 33-fold. This significantly contributed to increasing the interactions between different regions of the world.
This acceleration of economic exchanges has led to strong global economic growth. It fostered as well a rapid global industrial development that allowed the rapid development of many of the technologies and commodities we have available nowadays. Knowledge became easily shared and international cooperation among the brightest minds speeded things up. According to some analysts, globalization has also contributed to improving global economic conditions, creating much economic wealth.
At the same time, finance also became globalized. From the 1980s, driven by neo- liberal policies, the world of finance gradually opened. Many states, particularly the US under Ronald Reagan and the UK under Margaret Thatcher introduced the famous “3D Policy”: Disintermediation, Decommissioning, and Deregulation.
Question 1.
We can see “a sharp increase” due to globalisation in ?
(A) employment and capital
(B) trade and economic exchanges
(C) poverty and hunger
(D) All of the above
Answer;
(B) trade and economic exchanges
Explanation:
Globalization has resulted in greater inter connectedness among markets around the world and increased communication and awareness of business opportunities in the far corners of the globe.
Question 2.
In between which years the world’s export has increased 33-fold?
(A) 1970-1980
(B) 1950-1990
(C) 1950-2000
(D) 1950-2010
Answer:
(D) 1950-2010
Question 3.
What is the impact of increase in the economic exchanges between the countries of the world?
(A) Strong global economic growth
(B) Sharp decline in the trade
(C) Decline in the unemployment numbers
(D) Increase in the index of poverty and hunger index
Answer:
(A) Strong global economic growth
Explanation:
Countries that are open to international trade tend to grow faster, innovate, improve productivity and provide higher income and more opportunities to their people.
Question 4.
After the 1980s, which policy was introduced by US and UK?
(A) 4D Policy
(B) 3D Policy
(C) Fair Trade Policy
(D) None of the above
Answer:
(B) 3D Policy
Explanation:
Several states, particular the United states and have adopted the popular “3D Policy”: disintermediation, decommissioning, deregulation. The idea was to simplify the regulation of finance, eliminate the mediators and break down the barriers between the financial centres of the world. And the aim was to make it easier for the financial players of the world to exchange money. This financial globalization has contributed to the rise of a global financial market in which the proliferation of contracts and capital exchanges.