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Assertion : Foreign trade creates an opportunity for the producers to reach beyond
the domestic markets.
Reason : Foreign trade expands the choice of goods beyond what is domestically
produced.
(a)Both A and R are true and 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 correct, but R is wrong.
(d) A is wrong, but R is correct.

6 Globalisation has led to higher standards of living of:
(a) well-off consumers
(b) poor consumers
(c) big producers
(d) small producers

7 Which out of the following industries has a large number of well-off buyers in
urban areas?
(a) Footwear
(b) Automobiles
(c) Jewellery
(d) Clothing and accessories

8 In recent years, the central and state governments in India are taking special steps
to attract foreign companies to invest in India. Industrial zones, called Special
Economic Zones (SEZs), are being set up. SEZs are to have world class facilities:
electricity, water, roads, transport, storage, recreational and educational facilities.
Companies who set up production units in the SEZs do not have to pay taxes for
an initial period of five years
Analyse the situational information given above and choose the option that
best shows the group of farmers that actually supply wheat to the market.

One major government initiative to attract foreign companies to invest in
Indiais:
(a) to raise the standard of education
(b) to promote unemployment in the public sector
(c) to build special economic zones
(d) both (a) and (c)

9 Globalisation has posed major challenges for:
(a) big producers
(b) small producers
(c) rural poor
(d) rich consumers

10 Fair globalisation would not mean:
(a) fair opportunities for all