NCERT MCQ Solutions for Class 10 Social Science Economics Chapter 4 Globalisation and the Indian Economy

NCERT MCQ Solutions for Class 10 Social Science Economics Chapter 4 Globalisation and the Indian Economy for Session 2025-26. Class 10 Economics MCQs provide accurate and simplified answers to all important multiple-choice questions. These solutions help students understand key concepts like MNCs, foreign trade, WTO and liberalisation. Designed for quick revision and better exam preparation, these MCQs test comprehension and application of knowledge. Perfect for CBSE board practice, they strengthen the foundation for scoring full marks in the objective section.
Class 10 Economics Chapter 4 NCERT Solutions
Class 10 Multiple Choice Questions
Class 10 Social Science MCQ

Globalisation and the Indian Economy Class 10 Economics Chapter 4 MCQ

Q1. What is globalisation?

[A]. Limiting foreign products
[B]. Separation of countries
[C]. Integration of countries through trade and investment
[D]. Isolation of economies

Q2. Which of the following best describes a multinational corporation (MNC)?

[A]. Only a trading company
[B]. Only a government organisation
[C]. A company working only in one country
[D]. A company owning or controlling production in more than one country

Q3. The main aim of an MNC investing in another country is

[A]. To spread culture
[B]. To reduce costs and earn greater profits
[C]. To support only government companies
[D]. To help small producers only

Q4. Which is a common way MNCs expand production?

[A]. By buying local companies
[B]. Only by building new factories
[C]. By avoiding investments
[D]. By ignoring local producers

Class 10 Economics Chapter 4 Objective Questions

Q5. What is foreign investment?

[A]. Export of goods only
[B]. Money sent abroad by individuals
[C]. Investment made by MNCs in other countries
[D]. Import of goods only

Q6. Why do MNCs set up production in different countries?

[A]. To avoid markets
[B]. To reduce profits
[C]. To increase local competition
[D]. To get cheap labour and resources

Q7. Foreign trade integrates markets because

[A]. It bans foreign goods
[B]. It reduces competition
[C]. It connects producers and buyers across the world
[D]. It makes countries independent

Q8. Which technological factor has accelerated globalisation?

[A]. Use of only paper currency
[B]. Rapid improvements in transport and IT
[C]. Old postal services
[D]. Traditional farming

Class 10 Economics Chapter 4 Globalisation and the Indian Economy MCQ

In today’s world, we see products from all over the globe in our local markets. From foreign-made smartphones to clothes stitched in other countries, globalisation has changed what we buy and how things are made. This chapter introduces students to the idea of globalisation, which means increased connections between countries through trade and investment. The role of multinational companies (MNCs) is especially important. These companies set up factories in different nations to reduce costs and earn more profit. By understanding this, students can relate the topic to their daily lives. Studying MCQs from this chapter helps revise these core ideas in a quick and effective way. MCQs train students to pick key concepts, like what globalisation means or how MNCs function. They also improve exam performance, as many boards now include multiple-choice questions in economics papers. So, practising them builds both knowledge and confidence.

Q9. What is liberalisation?

[A]. Removing restrictions on foreign trade and investment
[B]. Imposing more trade barriers
[C]. Limiting imports
[D]. Banning MNCs

Q10. What is a trade barrier?

[A]. Only a transport issue
[B]. Free access for all goods
[C]. A restriction like a tax or quota on imports
[D]. A law promoting free trade

Q11. The World Trade Organisation (WTO) aims to

[A]. Liberalise international trade
[B]. Control local markets only
[C]. Ban foreign investments
[D]. Promote war

Q12. Which Indian sector has benefited most from globalisation and MNC investment?

[A]. Only handlooms
[B]. Cottage industries
[C]. Small-scale farming
[D]. Industries with many buyers like electronics and cars
Class 10 Economics Chapter 4 MCQ Solutions

Q13. What has been a negative impact of globalisation on small producers?

[A]. No change
[B]. Increased competition, leading to closures and job loss
[C]. Government support
[D]. Increase in profits

Q14. Which policy change in India encouraged globalisation since 1991?

[A]. Liberalisation of trade and investment policies
[B]. Isolation from foreign markets
[C]. Ban on exports
[D]. Increased import taxes

Q15. What is a Special Economic Zone (SEZ)?

[A]. Area for farming only
[B]. An area with higher taxes
[C]. Only a rural development project
[D]. An industrial area with world-class facilities and tax benefits for companies

Q16. Why do developed countries retain some trade barriers despite WTO rules?

[A]. To only export goods
[B]. To protect their own producers
[C]. To help developing countries
[D]. To promote free trade fully
Revision through Class 10 Economics Chapter 4 MCQs

Globalisation has had both positive and negative effects in India. On one hand, it has created job opportunities, improved product quality and increased consumer choice. On the other hand, small producers and workers often suffer due to high competition. For example, many local businesses shut down because they couldn’t compete with cheaper foreign goods. Workers have also faced job insecurity as companies prefer short-term hiring to cut costs. This makes it important for students to understand not just what globalisation is, but how it affects different people. That’s where MCQs play a key role. They help summarise facts, causes and impacts in a format that is easy to practise. By solving MCQs, students can test how well they understand the effects of globalisation, including government policies and worker conditions. It also sharpens their thinking by asking them to compare, contrast and choose the best options under time pressure—just like in real exams.

Q17. What can help small Indian producers compete better in the global market?

[A]. Hiring fewer workers
[B]. Better infrastructure and timely credit
[C]. Isolation from world markets
[D]. Reducing technology use

Q18. Which group has not equally benefited from globalisation in India?

[A]. Large Indian companies
[B]. Small producers and unskilled workers
[C]. MNCs
[D]. Well-off urban consumers

Q19. Flexible labour laws help companies by

[A]. Increasing workers’ wages
[B]. Making permanent employment compulsory
[C]. Allowing hiring and firing based on work demand
[D]. Ensuring job security for all workers

Q20. What does fair globalisation mean?

[A]. Ignoring workers’ rights
[B]. Ensuring all sections of society get opportunities and benefits
[C]. Only benefiting MNCs
[D]. Removing all trade barriers

How do Class 10 Economics Chapter 4 MCQ help in understanding the impact of globalisation on India?

Class 10 Economics Chapter 4 MCQ questions give a focused and quick way to understand how globalisation has changed life in India. Through these questions, students learn about real-life effects like the entry of foreign brands, job creation in some sectors and losses for small producers in others. MCQs often ask about terms such as foreign investment, trade barriers, SEZs and more, which are important to grasp the overall picture. Since globalisation affects economy, workers and consumers differently, solving MCQs helps students understand all angles in an easy format. It’s like summarising the entire chapter through key points.

Why is it important to focus on Class 10 Economics Chapter 4 MCQ?

Focusing on Class 10 Economics Chapter 4 MCQ during revision is important because these questions help in quickly reviewing the chapter’s core concepts. Topics like the spread of MNCs, integration of markets and the impact of trade policies are often asked in exams in the form of MCQs. They are helpful in testing how well a student can apply knowledge in limited time. Also, since board exams now include objective-type questions, regular practice of MCQs ensures that students don’t miss out on easy scoring opportunities. They reinforce memory, improve concept clarity and make last-minute revisions more effective.

What are the benefits of solving Class 10 Economics Chapter 4 MCQ for board exam preparation?

Solving Class 10 Economics Chapter 4 MCQ helps students prepare smartly for their board exams. These questions are designed to cover the most important topics like globalisation, the role of MNCs, foreign trade, and liberalisation policies. MCQs test both memory and understanding in a quick format, which is perfect for revision. They also highlight commonly asked points like how globalisation affects small producers or how international organisations like the WTO operate. Practising MCQs regularly boosts speed, accuracy, and confidence. It also helps in identifying weak areas so students can focus more on them before the exam.