Match the explanation List I with concept in List II
| LIST I explanation | LIST II concept | ||
| (A) | Opening up of a country's economy to the world market | (I) | transnational corporations |
| (B) | Work force involved in design and development | (II) | Electronic economy |
| (C) | Firms having more than 1 company in many countries | (III) | Liberalisation |
| (D) | Able to make transactions without physical presence | (IV) | Knowledge economy |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A)-(III), (B)-(IV), (C)-(I), (D)-(II)
(A) Opening up of a country's economy to the world market — this matches (III) Liberalisation. Since the 1990s India has followed a policy of liberalisation: private and foreign firms may invest in sectors earlier reserved for the government, licences are no longer needed to open industries, and foreign products are easily available in Indian shops.
(B) Work force involved in design and development — this matches (IV) Knowledge economy. A knowledge economy is one in which much of the workforce is involved not in the physical production of goods but in their design, development, technology, marketing, sale and servicing.
(C) Firms having more than 1 company in many countries — this matches (I) transnational corporations. TNCs are companies that produce goods or market services in more than one country, from small firms with one or two factories abroad to giants such as Coca Cola or General Motors.
(D) Able to make transactions without physical presence — this matches (II) Electronic economy. In the electronic economy banks, corporations and investors can shift funds internationally with the click of a mouse, without anyone having to be present where the money goes.
NCERT (2025-26): “Globalisation, Liberalisation and Changes in Indian Industry … Since the 1990s, the government has followed a policy of liberalisation. Private companies, especially foreign firms, are encouraged to invest in sectors earlier reserved for the government, including telecom, civil aviation, power, etc. Licenses are no longer required to open industries. Foreign products are now easily available in Indian shops.…” “b. The transnational corporations … Among the many economic factors driving globalisation, the role of transnational corporations (TNCs) is particularly important. TNCs are companies that produce goods or market services in more than one country. These may be relatively small firms with one or two factories outside the country in which they are based. They could also be gigantic international ones whose operations criss-cross the globe. Some of the biggest MNCs are companies known all around the world: Coca Cola, General Motors, Colgate-Palmolive, Kodak, Mitsubishi and many others. They are oriented to the global markets and global profits even if they have a clear national base. Some Indian corporations are also becoming transnational. We are, however, not sure at this point of time, what this trend may mean to the people of India as a whole. c. The electronic economy The ‘electronic economy’ is another factor that underpins economic globalisation. Banks, corporations, fund managers and individual investors are able to shift funds internationally with the click of a mouse. This new ability to move ‘electronic money’ instantaneously carries with it great risks however.…” “d. The Weightless Economy or Knowledge Economy … In contrast to previous eras, the global economy is no longer primarily agricultural or industrial in its basis. The weightless economy is one in which products have their base in information, as in the case with computer software, media and entertainment products and internet-based services. A knowledge economy is one in which much of the workforce is involved not in the physical production or distribution of material goods, but in their design, development, technology, marketing, sale and servicing.…” |