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TN 12th Commerce Solutions Chapter 20 Liberalization, Privatization and Globalization

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Tamilnadu 12th Commerce Solutions Chapter 20 Liberalization, Privatization and Globalization. 12th standard students who want to get full marks in public examinations conducted by the Tamilnadu government must go through this guide. This is a book back answers all in one page. This guide is separated by chapter wise. One mark two mark and all brief questions are answered on this page

TN 12th Commerce Solutions Chapter 20 Liberalization, Privatization and Globalization Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
_______ is the result of New Industrial Policy which abolished the ‘License System’
(a) Globalisation
(b) Privatisation
(c) Liberalisation
(d) None of these
Answer:
(c) Liberalisation

Question 2
_______ means permitting the private sector to setup industries which were previously reserved for public sector.
(a) Liberalisation
(b) Privatisation
(c) Globalisation
(d) Public Enterprise
Answer:
(b) Privatisation

Question 3
_______ ownership makes bold management decisions due to their strong foundation in
the international level.
(a) Private
(b) Public
(c) Corporate
(d) MNC’s
Answer:
(a) Private

Question 4
_______ results from the removal of barriers between national economies to encourage the flow of goods, services, capital and labour.
(a) Privatisation
(b) Liberalisation
(c) Globalisation
(d) Foreign Trade
Answer:
(c) Globalisation

Question 5.
New Economic Policy was introduced in the year _______
(a) 1980
(b) 1991
(c) 2013
(d) 2015
Answer:
(b) 1991

II. Very Short Answer Questions

Question 1.
State the branches of New Economic Policy.
Answer:

Question 2.
What is Privatisation?
Answer:
Privatization is the incidence or process of transferring ownership of a business enterprise, agency or public service from the government to the private sector.

Question 3.
Mention any three disadvantages of Liberalisation.
Answer:

Question 4.
Name the industries which are reserved for the public sector.
Answer:
The number of industries reserved for the public sector was reduced from 17 (as per 1956 policy) to only 8 industries viz, Arms and Ammunition, Atomic Energy, Coal and Lignite, Mineral oils, Mining of ores, Mining of copper, lead, zinc, etc., Minerals for atomic energy and Railways.

Question 5.
Give any three advantages of Globalisation.
Answer:
Advantages of Globalisation:

III. Short Answer Questions

Question 1.
What do you mean by Liberalisation?
Answer:
Liberalization refers to laws or rules being liberalized, or relaxed, by a government. Liberalizing trade policy by the government includes removal of tariff, subsidies and other restrictions on the flow of goods and services between countries. Liberalization is the result of New Industrial Policy which abolished the “License system” or “Licence Raj”.

Question 2.
Explain the concept of Privatisation.
Answer:
Privatisation means permitting the private sector to set up industries which were previously reserved for the public sector. Under this policy many Public Sector Units (PSUs) were sold to private sector. The main reason for privatisation was that PSUs were running in losses due to mismanagement and political interference.

Question 3.
What are the advantages of disinvestment?
Answer:
Disinvestment in PSUs: The Govt, has started the process of disinvestment in those PSUs which had been running into loss. It means that Govt has been selling out these industries to the private sector. So disinvestment is a system of privatizing government enterprises.

Question 4.
State any three impacts on Globalisation.
Answer:

Question 5.
Write a short note on New Economic Policy.
Answer:
India agreed to the conditions of the World Bank and IMF and announced New Economic Policy (NEP) which consists of wide range of economic reforms. This new set of economic reforms is commonly known as the LPG or Liberalisation, Privatisation and Globalisation model.

IV. Long Answer Questions

Question 1.
Explain the advantages and disadvantages of liberalization.
Answer:
Liberalization means relaxation of various government restrictions in the areas of social and economic policies of the country.
Advantages of Liberalisation:

  1. Increase in foreign investment: If a country liberalizes its trade, it will make the country – more attractive for inward investment.
  2. Increase the foreign exchange reserve: Relaxation in the regulations covering foreign investment and foreign exchange has paved way for easy access to foreign capital.
  3. Increase in consumption: Liberalization increases the number of goods available for consumption within a country

Disadvantages of Liberalisation:

  1. Increase in unemployment: Due to liberalization some industries grow, some decline. Therefore, there may be unemployment from certain industries closing.
  2. Increased dependence on foreign nations: Trade liberalization means firms will face greater competition from abroad.
  3. Unbalanced development: Trade liberalization may be damaging for developing economies. which cannot compete against free trade.

Question 2.
Explain the impact of LPG on the Indian Economy.
Answer:
Impact of Liberalisation: (OFF)

Impact of Privatisation (PIP)

Impact of Globalisation: (MGR)

TN 12th Commerce Solutions Chapter 20 Liberalization, Privatization and Globalization Additional Questions and Answers

I. Choose the Correct Answer

Question 1.
…………………………. refers to laws and rules being relaxed by a Government.
a) Liberalization
b) Privatization
c) Globalization
d) Nationalization
Answer:
a) Liberalization

Question 2
is the latest outcome of liberalisation.
(a) Privatisation
(b) Globalisation
(c) Foreign collaboration
(d) None of these
Answer:
(c) Foreign collaboration

Question 3.
………………………. Stands for the consolidation of the various economies of the world.
a) Privatization
b) Globalization
c) Nationalization
d) Liberalization
Answer:
b) Globalization

II. Very Short Answer Questions

Question 1.
What are forms of LPG?
Answer:
Form of Liberalisation (FIL):
Freedom for Expansion: The industries are free to decide their production limits by their own on the basis of the requirement of the markets.

Investment Limit:
The investment limit of the small scale industries has been raised to a crore

Liberalization of Export and Import:
By simplifying the procedures for Imports and Exports the Government wanted to permit the inflow of Goods and Services, capital, HR, and technology.

Question 2.
What are the forms of Globalisation?
Answer:
Forms of Globalization:

III. Short Answer Questions

Question 1.
What are the Advantages and Disadvantages of Globalisation?
Answer:
Advantage: (TIER)

DisAdvantages (DIL)

TN 12th Commerce Guide Book Back Answers
TN 12th Commerce Book Back Answers

Unit 1 Management Process


Unit 2 Financial Markets – I

Unit 3 Financial Markets – II

Unit 4 Human Resource Management

Unit 5 Elements of Marketing

Unit 6 Consumer Protection

Unit 7 Business Environment

Unit 8 The Sale of Goods Act, 1930 and The Negotiable Instruments Act, 1881

Unit 9 Entrepreneurship Development

Unit 10 Company Law and Secretarial Practice

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