Indian Industries & Trade

Total Questions: 65

11. Consider the following statements: [1999]

Small-scale industries are, in most cases, not as efficient and competitive as the large-scale ones. Yet the Government provides preferential treatment and reservations in a range of products to the small firms because small-scale industries:

1. provide higher employment on a per unit capital deployment basis

2. promote a regional dispersion of industries and economical activities

3. have performed better in export of manufactured products than the large scale ones

4. provide jobs to low-skill workers, who otherwise may not find employment avenues elsewhere

Which of the above statements are correct?

(a) 1 & 4
(b) 1 & 2
(c) 2 & 3
(d) 3 & 4

Correct Answer: (b) 1 & 2

Solution:SSI contribution to Indian exports is 35% and in the total manufacturing turnover contribute approximately 40%.

Small scale, industries have a low capital output ratio and give employment to larger number of workers. As they use raw material that can be dispersed over a wider area.

12. From the balance sheet of a company, it is possible to: [1999]

(a) judge the extent of profitability of this company.
(b) assess the profitability and size of the company.
(c) determine the size and composition of the assets and liabilities of the company.
(d) determine the market share, debts and assets of the company.

Correct Answer: (c) determine the size and composition of the assets and liabilities of the company.

Solution:In financial accounting, a balance sheet or statement of financial position is a summary of the financial status of an organisation which can be a sole proprietorship, a business partnership or a company.

Assets, liabilities and ownership of equity are listed as on a specific date, which is normally the end of the financial year. A balance sheet is the "snapshot of a company's financial condition".

13. Match List-I with List-II and select the correct answer using the codes given the lists: [1999]

List-I (Industries)	List-II (Industrial Centres)
A. Pearl fishing	1. Pune
B. Automobiles	2. Tuticorin
C. Ship building	3. Pinjore
D. Engineering goods	4. Marmagao

Codes:

	A	B	C	D
(a)	2	1	4	3
(b)	2	1	3	4
(c)	1	2	4	3
(d)	1	2	3	4

Correct Answer: (a)

Solution:

List-I (Industries)	List-II (Industrial Centres)
A. Pearl fishing	Tuticorin
B. Automobiles	Pune
C. Ship building	Marmagao
D. Engineering goods	Pinjore

14. The product life cycle from inception to demise is shown in the graph. Match List I with List II and select the correct answer using the codes given below the lists: [1999]

A. Product Development

B. Maturity

C. Growth

D. Introduction

	A	B	C	D
(a)	1	4	2	1
(b)	1	4	3	2
(c)	4	1	2	3
(d)	4	1	3	2

Correct Answer: (b)

Solution:A. Product Development - 1

B. Maturity - 4

C. Growth - 3

D. Introduction - 2

The product life cycle theory was developed by Raymond Vernon to explain the observed pattern of international trade.

15. Consider the following statements: [1999]

Industrial development in India, to an extent, is constrained by:

1. lack of adequate entrepreneurship and leadership in business.

2. lack of savings to invest.

3. lack of technology, skills and infrastructure.

4. limited purchasing power among the larger masses.

Which of the above statements are correct?

(a) 1, 2 & 3
(b) 1,3 & 4
(c) 2, 3 & 4
(d) 1, 2 & 4

Correct Answer: (c) 2, 3 & 4

Solution:Industrial development in India is constrained by luck of savings to invest, lack of technology, skills and infrastructure and limited purchasing capacity among the larger masses.

16. Tourism industry in India is quite small compared to many other countries in terms of India's potential size. Which one of the following statements is correct in this regard? [1999]

(a) Distances in India are too far apart and luxury hotels are too expensive for western tourists.
(b) For most of months India is too hot for western tourists to feel comfortable.
(c) Most of the picturesque resorts in India such as in the North East and Kashmir are, for all practical purposes, out of bounds.
(d) In India, the infrastructure required for attracting tourists is inadequate.

Correct Answer: (d) In India, the infrastructure required for attracting tourists is inadequate.

Solution:India due to its handicrafts, culture and monuments is a preferred destination. However, there is a lack of tourist infrastructure.

Tourism in India has grown substantially over the last three decades.

More than 15 million people are directly engaged in the tourism industry. Tourism also promotes national integration, provides support to local handicrafts and cultural pursuits.

It also helps in the development of international understanding about our culture and heritage.

Foreign tourists visit India for heritage tourism, eco tourism, adventure tourism, cultural tourism, medical tourism and business tourism.

17. Match List-I with List-II and select the correct answer using the codes given below the lists: [1999]

List-I (Industrial Unit)	List-II (Centre)
A. Atlas Cycle Company Ltd.	1. Bangalore
B. Bharat Earth Movers Ltd.	2. Bhubaneswar
C. Indian Farmers Fertilizers Co-operative Ltd.	3. Kalol
D. National Aluminium Company Ltd.	4. Sonepat

Codes:

	A	B	C	D
(a)	1	4	2	3
(b)	1	4	3	2
(c)	4	1	3	2
(d)	4	1	3	2

Correct Answer: (d)

Solution:Atlas cycle company is situated at Sonepat in Haryana. Bharat Earth Movers Limited is in Banglore, Karnataka. Indian Farmers Fertilizers Co-operative Ltd is present in Kalol in Gujarat and National Aluminium Company Limited is located at Bhubaneswar.

18. Assertion (A): Information technology is fast becoming a very important field of activity in India. [1999]

Reason (R): Software is one of the major exports of the country and India has a very strong base in hardware.

(a) Both A & R are true & R is the correct explanation of A
(b) Both A & R are true but R is not a correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Correct Answer: (c) A is true but R is false

Solution:The Indian software industry consists of a large and growing number of firms and one of the world's successful information technology industries. India has its mark in developing software products like system software, enterprise applications. Software is one of the major exports of India.

But much of India's hardware industry consists of assembly tasks, almost entirely for the domestic market, rather than for export. Despite India's emphasis on import-substituting industrialization, it has not developed robust, world-class manufacturing industry, and this includes IT hardware. Hence, the statement provided in the reason is incorrect.

19. Consider the following factors regarding an industry [2001]

1. Capital investment

2. Business turnover

3. Labour force

4. Power consumption

Which of these determine the nature and size of the industry?

(a) 1,3 & 4
(b) 1,2 & 4
(c) 2, 3 & 4
(d) 2 & 3

Correct Answer: (b) 1,2 & 4

Solution:Among various factors entrepreneurial skills, availability of finance turnover and power consumption etc, decides the nature and size of an industry.

20. Assertion (A): India's software exports increased at an average growth rate of 50% since 1995-96. [2001]

Reason (R): Indian software companies were cost-effective and maintained international quality.

(a) Both A & R are individually true & R is the correct explanation of A
(b) Both A & R are individually true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Correct Answer: (a) Both A & R are individually true & R is the correct explanation of A

Solution:The only negative factor is the time difference which causes large employee turnover as most IT work is conducted during night shift.

India's export of software services stood at US$ 128.6 billion during 2019-20, registering 9.1% growth over the previous year. Exports of computer services and ITES/BPO services contributed 66.6 per cent and 33.4%, respectively, of the total software services exports.

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