Page 2 - HA

Assertion (A) and Reason (R). Read the statements and choose the
correct option:

Assertion : Foreign trade and foreign investment results in disintegration of
production across countries.
Reason : MNCs disrupt the production processes in domestic country.
In general, MNCs set up production where it is close to the markets; where 1
7 there is skilled and unskilled labour available at low costs; and where the
availability of other factors of production is assured. In addition, MNCs might
look for government policies that look after their interests. You will read more
about the policies later in the chapter.
Analyse the situational information given above and choose the option
that best shows the group of farmers that actually supply wheat to the
market.
a) Division of labour
b) Factors deciding the location for setting up an MNC
c) Globalisation
d) Privatisation
8 These large MNCs do not determine which one of the followings 1
a) Price
b) Quality
c) Labour conditions
d) Political conditions

SUBJECTIVE ASSIGNMENT

Sl. Questions
No. Page Mar Skill Level
No. ks
1 State True/false 57 1 A E
MNCs are playing a major role in the globalisation
process.