Case Study Question 01

Economics- Understanding Economic Development

Chapter 4: Globalisation and The Indian Eonomy

Class 10

Read the following passage carefully and answer the following questions:
Ford Motors, an American company, is one of the world’s largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks. By the year 2004, Ford Motors was selling 27,000 cars in the Indian markets, while 24,000 cars were exported from India to South Africa, Mexico and Brazil. The company wants to develop Ford India as a component supplying base for its other plants across the globe.

Question.1.
How can you say that Ford Motors is an MNC?

(a) Ford Motors has only production units in India.
(b) Ford Motors has production spread over 26 countries.
(c) Ford Motors is an Indian company.
(d) It is an American company.

(b) Ford Motors has production spread over 26 countries

Question.2.
How much foreign investment done by Ford Motors in India in 1995?

(a) 27000 crores
(b) 1700 crores
(c) 24000 cars
(d) None of these

(b) 1700 crores

Question.3.
What do you think that MNCs like Ford Motors invested in countries like India?

(a) To make India develop
(b) In America company was making loses.
(c) Cost of production in India is low.
(d) Both a and b

(c) Cost of production in India is low

Question.4.
Ford Motors is an ……………… company.

(a) Indian
(b) American
(c) Japnese
(d) None of these.

(b) American

Question.5.
To which countries Ford motors export cars?

(a) South Africa
(b) Mexico
(c) Brazil
(d) All the above

(d) All the above

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