Consider the following statements about the share of the price of the…

Consider the following statements about the share of the price of the Pontiac Le Mans that goes outside America:

(A) Japan receives a share for advanced components such as engines and electronics.
(B) Taiwan and Singapore receive a share for small components.
(C) Barbados or Ireland receive a share for marketing.
(D) The United Kingdom receives a share for small components.

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → A and B only

(A) Japan receives a share for advanced components such as engines and electronics. — Correct. Japan gets 28 per cent of the share going outside America. This share pays for advanced parts such as engines and electronics.

(B) Taiwan and Singapore receive a share for small components. — Correct. Taiwan and Singapore together get 7 per cent of the rest of the price. This share is for small components.

(C) Barbados or Ireland receive a share for marketing. — Incorrect. Barbados or Ireland get only about 1 per cent of the rest, and it is for data processing. The share for marketing goes to the United Kingdom.

(D) The United Kingdom receives a share for small components. — Incorrect. The United Kingdom gets 4 per cent of the rest, and it is for marketing. Small components come from Taiwan and Singapore.

NCERT (2026-27): “Globalisation and a ew International Division of Labour …
General Motors produces an ostensibly American car such as Pontiac Le Mans. Of the showroom price of $20,000, only $7,600 goes to Americans (workers and management in Detroit, lawyers and bankers in New York, lobbyists in Washington, and General Motors shareholders all over the country). Of the rest:”

“¾¾ 48 per cent goes to South Korea for labour and assembly. ¾¾ 28 per cent to Japan for advanced components such as engines and electronics. ¾¾ 12 per cent to Germany for styling and design engineering. ¾¾ 7 per cent to Taiwan and Singapore for small components. ¾¾ 4 per cent to the United Kingdom for marketing, and about ¾¾ 1 per cent to Barbados or Ireland for data processing”