Chapter 4 Globalisation and The Indian Economy NCERT Solutions for Class 10 Economics

 

NCERT Solutions for Class 10 Economics Chapter 4 Globalisation and The Indian Economy – Important Questions

 

Given in this post is NCERT Solutions for Class 10 Economics Chapter 4 Globalisation and The Indian Economy. The important questions we have compiled will help the students to brush up on their knowledge about the subject. Students can practice Class 10 Social Science important questions to understand the subject better and improve their performance in the board exam. The NCERT solutions provided here will also give students an idea about how to write the answers.

 

 

MCQ Based Questions

 

Q1 The past two decades of globalisation has seen rapid movements in (NCERT QUESTION)

A goods, services and people between countries. 

B goods, services and investments between countries.

C goods, services and people between countries.

D all of the above

 

Ans B goods, services and investments between countries.

 

Q2 The most common route for investments by MNCs in countries around the world is to (NCERT QUESTION)

A set up new factories

B buy existing local companies

C form partnerships with local companies

D all of the above

 

Ans B buy existing local companies

 

Q3 Globalisation has led to improvement in living conditions (NCERT QUESTION)

A of all the people

B of people in the developed countries

C of workers in the developing countries

D none of the above

 

Ans D none of the above

 

Q4 Which of the following statements are true about MNCs?

A A MNC is a company that owns or controls production in more than one nation.

B MNCs set up offices and factories for production in regions where they can get cheap labour and other resources.

C This is done so that the cost of production is low and the MNCs can earn greater profits.

D All of the above.

 

Ans D All of the above.

 

Q5 The MNC is not only selling its finished products globally but, more importantly, the goods and services are produced globally. State whether true or false. 

A False

B True

 

Ans B True

 

Q6 ___________ provides the advantage of being a cheap manufacturing location. 

A China

B Japan

C South Korea

D None of the above

 

Ans A China

 

Q7 Cargill Foods, a very large ________ MNC, is the largest producer of edible oil in India, with a capacity to make 5 million pouches daily.

A Dutch

B French

C British

D American

 

Ans D American

 

Q8 __________, footwear, sports items are examples of industries where production is carried out by a large number of small producers around the world. 

A Confectionery

B Garments

C Petroleum products

D None of the above

 

Ans B Garments

 

Q9 __________, an American company, is one of the world’s largest automobile manufacturers with production spread over 26 countries of the world. 

A Ford Motors

B Porsche

C Audi

D None of the above

 

Ans A Ford Motors

 

Q10 The products are supplied to the MNCs, which then sell these under their own brand names to the customers. These large MNCs have tremendous power to determine the _________. 

A price

B quality

C labour conditions for these distant producers

D All of the above

 

Ans D All of the above

 

Q11 Ford Motors came to India in _______ and spent Rs. 1700 crore to set up a large plant near Chennai. 

A 1995

B 1999

C 1990

D 1998

 

Ans A 1995

 

Q12 When Ford established its manufacturing plant in India, it had collaborated with ____________. 

A Hero Motors

B Maruti Suzuki

C Tata Motors

D Mahindra & Mahindra

 

Ans D Mahindra & Mahindra

 

Q13 Ford Motors was selling 27,000 cars in the Indian markets, while 24,000 cars were exported from India to South Africa, Mexico and _______. 

A Brazil

B Argentina 

C Chile 

D None of the above

 

Ans A Brazil

 

Q14 Chinese toys have become more popular in the Indian markets. Within a year, ___________ of the toy shops have replaced Indian toys with Chinese toys. 

A 50 to 60 percent

B 80 to 90 percent

C 100 percent

D 70 to 80 percent

 

Ans D 70 to 80 percent

 

Q15 Which of the following is true regarding the opening of trade?

A Choice of goods in the markets rises.

B Producers in the two countries now closely compete against each other even though they are separated by thousands of miles.

C Foreign trade thus results in connecting the markets or integration of markets in different countries.

D All of the above.

 

Ans D All of the above.

 

Q16 Globalisation is a process of slow integration or interconnection between countries. State whether true or false. 

A False

B True

 

Ans A False

 

Q17 ____________ have led to huge reduction in port handling costs and increased the speed with which exports can reach markets.

A Containers

B Cranes

C Elevators

D None of the above

 

Ans A Containers

 

Q18 The cost of __________has fallen. This has enabled much greater volumes of goods being transported by __________.

A air transport, airlines

B road transport, four wheelers

C rail transport, railways

D None of the above

 

Ans A air transport, airlines

 

Q19 Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each, should come into the country. State whether true or false.

A True

B False 

 

Ans A True

 

Q20 Removing barriers or restrictions set by the government is known as ____________.  

A globalisation 

B disinvestment 

C privatisation 

D liberalisation

 

Ans D liberalisation

 

Q21 Starting around ____________, some far-reaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe. 

A 2011 

B 2001 

C 1991 

D 1981

 

Ans C 1991

 

Q22 Nearly _________ countries of the world are members of the WTO, as of June 2014.

A 50 

B 100 

C 160 

D 200

 

Ans C 160 

 

Q23 Started at the initiative of the ___________, WTO establishes rules regarding international trade, and sees that these rules are obeyed. 

A middle-income countries

B poor countries

C developing countries

D developed countries

 

Ans D developed countries

 

Q24 Which of the following international agencies allow free trade and work on mutual trade between countries? (CBSE SAMPLE PAPER 2022-23)

A WTO 

B IMF 

C UPU 

D FAO

 

Ans A WTO

 

Q25 Identify the correct statements about globalization. (CBSE SAMPLE PAPER 2022-23)

I. Removal of barriers by the government 

II. Foreign companies are allowed to set up factories 

III. Has enabled all companies to increase their investments 

IV. Has lessened foreign investment and foreign trade 

Options: 

A I &II 

B II & III 

C I & III

D II & IV

 

Ans A I &II

 

 
 

1 MARK QUESTIONS

 

Q1 What is Globalisation? (CBSE 2017)

 

Ans Globalisation is the process of rapid integration or interconnection between countries.

 

Q2 What is an MNC?

 

Ans A multinational company is a company that owns or controls production in more than one nation.

 

Q3 How are MNCs able to gain greater profits?

 

Ans MNCs set up offices and factories for production in regions where they can get cheap labour and other resources. This is done so that the cost of production is low and the MNCs can earn greater profits.

 

Q4 Which regions are favourable for MNCs to set up production?

 

Ans MNCs set up production where it is close to the markets, where there is skilled and unskilled labour available at low costs and where the availability of other factors of production is assured. 

 

Q5 What do you understand by the term ‘Investment’?

 

Ans The money that is spent to buy assets such as land, buildings, machines and other equipments is called ‘Investment’ which would later fetch them profits.

 

Q6 What is the most common route for MNC’s investment?

 

Ans The most common route for MNC’s investment is to buy up local companies and then expand the production. MNCs with huge wealth can do so quite easily. 

 

Q7 How were Parakh foods purchased by an American MNC?

 

Ans Cargill Foods, a very large American MNC, has taken over a smaller Indian company Parakh Foods. Parakh foods had five oil refineries, whose control has now shifted to Cargill, who is now the largest producer of edible oils.

 

Q8 Give examples of industries where production is carried out by a large number of small producers around the world.

 

Ans Garments, footwear and sports items are examples of industries where production is carried by a large number of small producers around the world.

 

Q9 How are MNCs interacting with local companies in spreading their production?

 

Ans There are variety of ways-By setting up partnerships with local companies, by using the local companies for supplies and by closely competing with the local companies or buying them up. 

 

Q10 What is the basic function of foreign trade?

 

Ans Foreign trade creates an opportunity for the producers to reach beyond the domestic markets, Le, markets of their own countries. Producers can sell their produce not only in markets located within the country but can also compete in markets located in other countries of the world.

 

Q11 Why are Chinese toys so popular in India?

 

Ans Buyers in India now have the option of choosing between Indian and Chinese toys. Because of the cheaper prices and new designs, Chinese toys became more popular in the Indian markets.

 

Q12 Give one advantage to China and disadvantage to India with import of Chinese toys.

 

Ans For Chinese toy makers, this provides an opportunity to expand business. Whereas Indian toy makers face losses, as their toys are selling much less.

 

Q13 Explain the role of MNCs in globalisation.

 

Ans MNCs are playing a major role in the globalisation process. More and more goods and services, investment and technology are moving between countries.

 

Q14 What is the contribution of improvement in transport technology to stimulate the era of globalisation?

 

Ans For the past fifty years, there have been several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs.

 

Q15 What is the contribution of information and communication technology in the era of globalisation?

 

Ans In recent times, technology in the areas of telecommunication, computers, internet has been changing rapidly. Telecommunication facilities like telegraph, telephone, mobile, fax, etc., help to communicate in remote areas also.

 

Q16 What is a ‘trade barrier’?

 

Ans Tax on imports by the Government is called ‘trade barrier. It is called a barrier because some restrictions have been set up.

 

Q17 Why do Governments use trade barriers?

 

Ans Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each should come into the country.

 

Q18 Why did the Indian Government after independence put barriers to foreign trade and foreign investment?

 

Ans This was considered necessary to protect the producers within the country from foreign competition. Industries were just coming up and competition from imports at that stage would not have allowed these industries to come up.

 

Q19 After independence, which items were allowed to be imported?

 

Ans After independence, imports of only essential items such as machinery, fertilisers, petroleum, etc., were allowed to be imported.

 

Q20 What does the term ‘liberalisation’ mean?

 

Ans Removing barriers or restrictions set by the government is known as ‘liberalisation’.

 

Q21 How does liberalisation policy help in trade?

 

Ans With liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export. The government imposes much less restrictions than before and is, therefore, said to be more liberal.

 

Q22 What is WTO?

 

Ans It is the World Trade Organisation which monitors the liberalisation of trade at international level.

 

Q23 What was the main aim of the formation of World Trade Organization?

 

Ans The main aim of formation of WTO is to liberalise international trade.

 

Q24 What role does WTO play to liberalise trade?

 

Ans WTO was started at the initiative of the developed countries. WTO establishes rules regarding international trade, and sees whether rules are obeyed or not.

 

Q25 What is tariff? Why is it imposed on goods?

 

Ans Tariff is a tax imposed on imported goods and services. Tariffs are used to restrict trade, as they increase the price of imported goods and services, making them more expensive to consumers.

 

Q26 How has globalisation benefited well-of buyers?

 

Ans There is greater choice before these consumers who now enjoy improved quality and lower prices for several products. As a result, these people today, enjoy much higher standards of living than was possible earlier. 

 

Q27 In which specific industries are MNCs interested?

 

Ans MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas.

 

Q28 What are the advantages of products and services produced by MNCs?

 

Ans These products have a large number of well off buyers. In these industries and new services, new jobs have been created. Also, local companies supplying raw material to these industries have prospered.

 

Q29 What are the advantages of SEZ to MNCs?

 

Ans Companies who set up production units in the SEZs do not have to pay taxes for an initial period of five years. Government has allowed flexibility in the labour laws to attract foreign investment.

 

Q30 Why are ‘Special Economic Zones’ being set up by Central and State Governments in India?

 

Ans Special economic zones are being set up by central and state government to attract foreign companies to invest in India.

 

Q31 How have top Indian Companies been benefited in competition from MNCs?

 

Ans They have invested in newer technology and production methods and raised their production standards. Some have gained from successful collaborations with foreign companies.

 

Q32 In which products, small manufacturers were hit hard?

 

Ans Batteries, capacitors, plastics, toys, tyres, dairy products and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to competition.

 

Q33 How can you say that workers’ jobs in MNCs are not secured?

 

Ans Globalisation and the pressure of competition have substantially changed the lives of workers. Faced with growing competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers’ jobs are no longer secure.

 

Q34 How can the government ensure fair globalisation in India?

 

Ans The government can play a major role in making this possible. The government can ensure that labour laws are properly implemented and the workers get their rights. If necessary, government can use trade and investment barriers.

 

Q35 Which is the most common route for investment by MNCs in countries around the world? (CBSE SAMPLE PAPER 2017)

 

Ans To buy up local companies and then to expand production.

 

Q36 Differentiate between investment and foreign investment. (CBSE 2016)

 

Ans Difference between investment and foreign investment: The money that is spend to buy assets (land, building, machines and other equipment) is called investment, while the investment made by the MNCs is called foreign investment.

 

Q37 Why do MNCs set up their offices and factories in those regions where they get cheap labour and other resources? (CBSE 2016)

 

Ans MNCs set up their office and factories in those regions where they get cheap labour and other resource because of 

  1. Low cost of production.
  2. They can earn greater profits.

 

Q38 Due to which reason the latest models of different items are available within our reach? (CBSE 2016)

 

Ans Due to globalization, the latest models of digital camera, mobile phone, TV, etc are available with us.
 

 
 

Assertion-reason based questions:

 

Q1 Assertion (A): Ford Motors is an MNC. 

Reason (R): It is one of the world’s largest automobile manufacturers with production spread over 26 countries.

Options:

  1. Both A and R are true and R is the correct explanation of A. 
  2. Both A and R are true but R is not the correct explanation of A. 
  3. A is true but R is false. 
  4. A is false but R is true.

 

Ans a. Both A and R are true and R is the correct explanation of A.

 

Q2 Assertion (A): MNCs can exert a strong influence on product at distant locations 

Reason (R): MNCs set up partnership with local companies, use local companies for supplies, compete with local companies or buy them.

Options:

  1. Both A and R are true and R is the correct explanation of A. 
  2. Both A and R are true but R is not the correct explanation of A. 
  3. A is true but R is false. 
  4. A is false but R is true.

 

Ans a. Both A and R are true and R is the correct explanation of A.

 

Q3 Assertion (A): Online shopping has become popular among people. 

Reason (R): It destroyed domestic market.

Options:

a. Both A and R are true and R is the correct explanation of A. 

b. Both A and R are 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.

 

Ans a. Both A and R are true and R is the correct explanation of A.

 

Q4 Assertion (A): Foreign trade and foreign investment are two main factors of globalisation.

Reason (R): They are not playing any role in international market.

Options:

a. Both A and R are true and R is the correct explanation of A. 

b. Both A and R are 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.

 

Ans c. A is true but R is false.

 

Q5 Assertion (A): An MNC is a company that owns or controls production in more than one nation. 

Reason (R): They set up their offices and factories for production in regions where they can get cheap labour and other resources.

Options:

a. Both A and R are true and R is the correct explanation of A. 

b. Both A and R are 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.

 

Ans a. Both A and R are true and R is the correct explanation of A.

 

Q6 Assertion (A): Globalisation is related with only two countries. 

Reason (R): MNC s play major role in globalization.

Options:

a. Both A and R are true and R is the correct explanation of A. 

b. Both A and R are 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.

 

Ans d. A is false but R is true.

 

Q7 Assertion (A): People are attracted towards Chinese products. 

Reason (R): They are cheaper and new designed.

Options:

a. Both A and R are true and R is the correct explanation of A. 

b. Both A and R are 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.

 

Ans a. Both A and R are true and R is the correct explanation of A.

 

Q8 Assertion (A): Globalisation leads to increased competition in international and domestic market. 

Reason (R): Globalisation also makes the consumer better off as they have a wider variety of goods to choose at lower prices.

Options:

a. Both A and R are true and R is the correct explanation of A. 

b. Both A and R are 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.

 

Ans a. Both A and R are true and R is the correct explanation of A.

 

Q9 Assertion (A): Foreign trade and foreign investment are two main factors of Globalisation. 

Reason (R): They are not playing any role in international market.

Options:

a. Both A and R are true and R is the correct explanation of A. 

b. Both A and R are 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.

 

Ans c. A is true but R is false.

 

Q10 Assertion (A): Rapid improvement in technology has been one major factor that has stimulated the globalisation process. 

Reason (R): Developing countries are likely to become at par with developed countries in terms of technological development due to globalization.

Options:

a. Both A and R are true and R is the correct explanation of A. 

b. Both A and R are 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.

 

Ans a. Both A and R are true and R is the correct explanation of A.

 

 
 

Fill in the blanks in the following:

 

Q1 Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of _______________. (NCERT QUESTION)

 

Ans globalisation

 

Q2 Markets in India are selling goods produced in many other countries. This means there is increasing ____________ with other countries. (NCERT QUESTION)

 

Ans trade 

 

Q3 The rising number of brands that we see in this market might be produced by MNCs in India because of ______________. (NCERT QUESTION)

 

Ans cheaper production costs

 

Q4 While consumers have more choices in the market, the effect of rising ____________ and ______________ has meant greater ______________ among the producers. (NCERT QUESTION)

 

Ans demand; purchasing power; competition 

 

Q5 MNCs buy ________________ at cheap rates from small producer. (NCERT QUESTION)

 

Ans Garments, footwear, sports items

 

Q6 Quotas and taxes on imports are used to regulate ______________. (NCERT QUESTION)

 

Ans trade barriers

 

Q7 Some examples of Indian companies who have invested abroad are _________________. (NCERT QUESTION)

 

Ans Tata motors, Infosys, Ranbaxy

 

Q8 IT has helped in spreading of production of services by _____________. (NCERT QUESTION)

 

Ans Call centres

 

Q9 Several MNCs have invested in setting up factories in India for production of ______________. (NCERT QUESTION)

 

Ans Automobiles

 

Q10 Globalisation is the process of ___________________ between countries.

 

Ans rapid integration or interconnection

 

Q11 The money that is spent to buy assets such as land, buildings, machines and other equipments is called ___________ which would later fetch them profits.

 

Ans Investment

 

Q12 Batteries, capacitors, plastics, toys, tyres, dairy products and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to ___________.

 

Ans competition

 

 
 

2 MARK QUESTIONS

 

Q1 What were the reasons for putting barriers to foreign trade and foreign investment by the Indian government? Why did it wish to remove these barriers? (NCERT QUESTION)

 

Ans 1. Barriers to foreign trade and foreign investment were out by the Indian government to protect the domestic producers from foreign competition, especially when industries had just begun to come up in the 1950s and 1960s. During this time, the competition from the imports would have been a hard blow on the growing industries. Therefore, India allowed only essential goods to be imported.

  1. But in 1991, with the implementation of the New Economic Policy, the government wished to remove these barriers because it seemed as the time when the domestic producers were ready to compete with foreign industries. This decision was also supported by the powerful international organisation.

 

Q2 How would flexibility in labour laws help companies? (NCERT QUESTION)

 

Ans 1. For companies to sustain themselves in competition and progress, flexibility in labour plays a major role. 

  1. By easing up on labour laws, company heads can negotiate wages and terminate employment depending on market conditions. This results in an increase in the company’s competitiveness.

 

Q3 How are Indian markets transformed with Globalisation?

 

Ans 1. The latest models of digital cameras, mobile phones and televisions made by the leading manufacturers of the world are within everyone’s reach. 

  1. We would not have found such a wide variety of goods in Indian markets even two decades back. In a matter of years, our markets have been transformed.

 

Q4 How does foreign trade connect markets?

 

Ans 1. Choice of goods in the market rises. Prices of similar goods in the two markets tend to become equal. 

  1. Producers in the two countries now closely compete against each other even though they are separated by thousands of miles. Foreign trade, thus, results in connecting the markets. 

 

Q5 If the Indian Government puts a tax on import of toys, how would it affect the import of Chinese toys?

 

Ans 1. Those who wish to import these toys will have to pay tax on this. Because of the tax, buyers will have to pay a higher price on imported toys. 

  1. Chinese toys will no longer be as cheap in the Indian markets and imports from China will automatically reduce. Indian toy makers will prosper in this situation. 

 

Q6 What are SEZs?

 

Ans 1. SEZ is a special economic zone of a country that is subject to unique economic regulations that differ from other areas in the same country. 

  1. These regulations tend to be conducive to foreign. direct investment. Conducting business is an SEZ typically implies that the company will receive tax incentives and the opportunity to pay lower tariffs.

 

Q7 What is investment? How is foreign investment different from it?

 

Ans 1. The money that is spent to buy assets such as land, building, machines and other equipment is called investment.

  1. Investment made by MNCs is called foreign investment. Every investment is made with the hope that the assets will earn profits for these companies.

 

Q8 The MNC’s of a country sets up a production jointly with the local company of other country. State any one benefit of this joint production to the local company. (CBSE SAMPLE PAPER 2018-19)

 

Ans Benefits of Joint Production: 

  1. MNC can provide money for additional investment.  
  2. MNC might bring the latest technology for production.

 

 
 

3 MARK QUESTIONS

 

Q1 What do you understand by Globalisation? Explain in your own words. (NCERT QUESTION)

 

Ans Globalisation in today’s world has come to imply many things. It is a process of integrating the economy of a country with the economies of other countries under conditions of free flow of trade, capital and movement of persons across borders.

It also includes –

  1. Export and import of techniques of production.
  2. Migration of people from own country to another.
  3. Increase in foreign trade.

 

Q2 What are the various ways in which MNCs set up or control production in other countries? (NCERT QUESTION)

 

Ans The factories or production units of Multinational Companies are set up mainly close to the markets where they can get the desired skilled or unskilled labour at low cost along with other factors of production. After the company has been set up, they set production units in the following ways:

  1. Form a company jointly with some local companies of the existing country. 
  2. Buy the local companies and then expand its production with the help of modern technology.  
  3. The order is placed by them for small producers to sell these products under their own brand name to the customers worldwide.

 

Q3 Why do developed countries want developing countries to liberate their trade and investment? What do you think should the developing countries demand in return? (NCERT QUESTION)

 

Ans 1. Developed countries want developing countries to liberate their trade and investment because then the MNCs belonging to the developed countries can set up factories in less-expensive developing nations and could increase their own profits.

  1. It would be beneficial for them as the manufacturing price would be lower but the sales price would remain the same.
  2. In my opinion, the developing countries should demand for some sort of protection of domestic producers against competition from imports in return. Also, charges should be levied on MNCs planning to set base in developing countries.

 

Q4 “The impact of globalisation has not been uniform”. Explain this statement. (NCERT QUESTION)

 

Ans 1. Let us observe the impact of MNCs on domestic producers and the industrial working class to verify the truth behind this statement. 

  1. Small producers of goods such as barriers, capacitors, plastic toys, tyres, dairy products and vegetable oil have been hit hard by the competition from cheaper imports. Also, due to the growing competition, the workers are hired on flexible wages. This has reduced their job security. 
  2. Though efforts are now to make globalisation ‘fair’ for all since it has become a worldwide phenomenon.

 

Q5 How has liberalisation of trade and investment policies helped the globalisation process? (NCERT QUESTION)

 

Ans 1. Earlier, several developing countries had placed barriers and restrictions on imports and 

investments from abroad to protect domestic production. 

  1. Nevertheless, to improve the quality of domestic goods, these countries have therefore removed those barriers. 
  2. Thus, Liberalisation is leading to a further spread of globalisation because now business companies are allowed to make their own decisions on imports and exports. This has led to a deeper integration of national economies into one business as a whole.

 

Q6 How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here. (NCERT QUESTION)

 

Ans 1. Foreign trade provides opportunities for both producers and buyers to reach beyond the markets of their own countries. 

  1. Goods travel from one country to another which creates competition among producers of various countries as well as options for buyers. Thus foreign trade leads to integration of markets across countries. 
  2. For example, during Diwali season, buyers in India have option of choosing between Indian and Chinese decorative lights and bulbs. So this provides an opportunity to expand business. 

 

Q7 Globalisation will continue in the future. Can you imagine what the world would be like twenty years from now? Give reasons for your answer. (NCERT QUESTION)

 

Ans After twenty years, the world would undergo a positive change and enhanced human resource efficiency which will possess the following features- healthy competition, improved productive efficiency, increased volume of output, income and employment, better living standards, greater availability of information and modern technology.

These are the favourable factors for globalisation – 

  1. Availability of human resources both quantitative and qualitative.
  2. Broad resource and industrial base of major countries.
  3. Growing entrepreneurship 
  4. Growing domestic market.

 

Q8 Suppose you find two people arguing: One is saying globalisation has hurt our country’s development. The other is telling, globalisation is helping India develop. How would you respond to these arguments? (NCERT QUESTION)

 

Ans Following are the benefits of globalisation in India: 

  1. There is an increase in the volume of trade in goods and services
  2. It has led to the rise of quality product.
  3. There is an inflow of private foreign capital and export orientation of the economy.
  4. There is an increase in volume of output, income and employment. 

Though there are also some negative impacts of globalisation. They are as follows:

  1. It might not help in achieving sustainable growth.
  2. It might not lead to lessening of income inequalities among various countries.
  3. It might lead to aggravation of income inequalities within countries. 

Whatever may the fear or negative impact of globalisation be, it feels that it has now become a process which is catching the fancy of more and more nations. Therefore, we must become ready to accept globalisation with grace and also maximise economic gains from the world market.

 

Q9 Under what conditions do MNCs set up production units?

OR 

Examine any three conditions which should be taken care of by multinational companies to set up their production units. (CBSE 2017)

OR

Describe any five factors that promote the Multinational Corporations (MNCs) to setup their production units in a particular place. (CBSE 2016)

 

Ans MNCs set up production units on the basis of: 

  1. proximity to the markets;
  2. availability of skilled and unskilled labour at low cost; 
  3. availability of other factors of production is assured; and
  4. government policies that look after their interests.
  5. developed infrastructure 
  6. safety measures.

 

Q10 What are the basic functions of foreign trade?

 

Ans 1. Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.

  1. Producers can sell their produce not only in markets located within the country but can also compete in markets located in other countries of the world. 
  2. For the buyers, import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced.

 

Q11 What do you mean by liberalisation of foreign trade?

 

Ans 1. Removing barriers or restrictions set by the government is known as liberalisation.

  1. With the liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export.
  2. The government imposes lesser restrictions than before and is therefore said to be more liberal.

 

Q12 What is the role of WTO in international trade?

 

Ans 1. WTO’s aim is to liberalise international trade.

  1. It establishes rules regarding international trade and sees that these rules are obeyed.
  2. 164 countries of the world are its members currently.
  3. It is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced developing countries to remove trade barriers.

 

Q13 What changes do you find with the arrival of MNCs in the markets?

 

Ans 1. As consumers in today’s world, some of us have wider choice of goods and services before us.

  1. The latest models of digital cameras, mobile phones and televisions made by the leading manufacturers of the world are within our reach. 
  2. Every season, new models of automobiles can be seen on the Indian roads.

 

Q14 What are the effects of foreign trade?

 

Ans Effects of foreign trade are as follows:

  1. Chinese have started exporting Chinese plastic toys to India.
  2. Buyers in India now have the option of choosing between Indian and Chinese toys.
  3. Because of the cheaper prices and new designs, Chinese toys have become more popular in the Indian markets. 

In the competition between Indian and Chinese toys, Chinese toys prove better. With the result, Indian toy-makers face losses, as their toys are selling less.

 

Q15 What are MNCs?

 

Ans 1. An MNC is a company that owns or controls production in more than one nation. 

  1. These companies set up offices and factories for production in regions where they can get cheap labour and other resources.
  2. This is done to ensure that the cost of production remains low and MNCs can earn greater profits. 

 

Q16 What are the benefits of MNCs’ production to the local companies?

OR

Which two benefits local companies get when they set up production in association with MNCs?

OR

How are ‘local companies’ benefited by collaborating with ‘multinational companies’ ? Evaluate any three benefits. (CBSE 2017)

 

Ans 1.  MNCs can provide money for additional investments, like buying new machines for faster production.

  1. MNCs might bring with them the latest technology for production. 
  2. MNCs also buy some local companies to expand production, since they have wealth exceeding the entire budgets of some of the developing countries.

 

Q17 How are MNCs spreading their production across the globe?

 

Ans There are variety of ways in which the MNCs are spreading their production across the globe such as:

  1.  setting up partnerships with the local companies; 
  2. using the local companies for supplies; and
  3. closely competing with the local companies or buying them. 

As a result, production in these widely dispersed locations is getting interlinked.

 

Q18 Why are trade barriers imposed on the foreign trade and investment in a country? Explain with the help of two illustrations. (CBSE SAMPLE PAPER 2017)

 

Ans Trade barriers are used by the governments –

  1. To increase, decrease or regulate foreign trade. 
  2. To decide what kinds of goods and how much of each, should come into the country.
  3. To protect the producers within the country from foreign competition.

 

Q19 What is the role of MNCs in the globalisation process?

 

Ans 1. MNCs are playing a major role in the globalisation process.

  1. More and more goods and services, investments and technology are moving between countries.
  2. Most regions of the world are in closer contact with each other than a few decades back.

 

Q20 Besides the movement of goods, what are the ways in which countries can be linked?

 

Ans 1. Besides the movement of goods, services, investment and technology, there is one more way in which the countries can be connected.

  1. It is done through the movement of people between countries. 
  2. People usually move from one country to another in search of better income, better jobs or better education.

 

Q21 How is foreign trade interlinking markets of different countries? Explain with example. (CBSE 2017)

 

Ans Foreign trade has interlinked markets of different countries.

  1. Foreign trade has been the main channel connecting countries.
  2.  Foreign trade creates an opportunity for the producers to reach beyond the domestic 
  3. Producers can sell their produce in local and foreign market.
  4. It is one way of expanding the choice of goods. 
  5. Choice of goods in the markets rises.
  6. Prices of similar goods in the two markets tend to become equal.
  7. Close competition with each other.

 

Q22 What is the impact of globalisation on the consumers of India?

 

Ans 1. Globalisation and greater competition among producers-both local and foreign-have been of advantage to consumers, particularly the well-off sections in the urban areas.

  1. There is a greater choice before these consumers who now enjoy improved quality and lower prices for several products.
  2. As a result, these people today enjoy much higher standards of living than was possible earlier.

 

Q23 Which Indian companies have become MNCs with the competition in globalisation?

 

Ans 1. Several of the top Indian companies have been able to benefit from the increased competition.

  1. They have invested in newer technology and production methods and raised their production standards.
  2. Globalisation has enabled some large companies to emerge as multinationals themselves like Tata Motors (automobiles), Infosys (IT), Ranbaxy (Medicines), Asian Paints (paints), Sundaram Fastners (nuts and bolts) are some Indian companies which are spreading their operations worldwide.

 

Q24 Explain by giving examples that Multinational Corporations (MNCs) are spreading their productions in different ways.

 

Ans Multinational Corporations are spreading their productions in different ways: 

  1. By setting up partnership with local companies.
  2. By placing orders with local companies. For example, Garments, Footwear, Sports items, etc. 
  3. By closely competing with the local companies.
  4. By buying local companies- For example, Cargill buying Parakh foods in India.

 

Q25 How are companies providing services benefitted by globalisation?

 

Ans 1. Globalisation has also created new opportunities for companies providing services, particularly those involving IT.

  1. There are Indian companies which are producing magazines for the London-based companies and call centres are also existing due to globalisation only. 
  2. Besides, a host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in developing countries such as India and are exported to the developed countries.

 

Q26 Analyze the Impact of globalization. (CBSE SAMPLE PAPER 2017)

 

Ans  Positive:

  1. Wide variety of good is now available to the consumers.
  2. New jobs are created in industries. 
  3. Local companies have prospered through supplying raw materials to the industries.
  4. Top Indian companies have benefitted for successful collaborations with foreign companies.

Negative:

  1. Globalization has led to the annihilation of small producers who face stiff competition from cheaper imports.  
  2. Workers no longer have job security as they are employed ‘flexibly’.
  3.  It may lead to greater dependence of underdeveloped countries on advanced countries.

 

Q27 Chinese toys have taken over the Indian toy market due to globalization and promotion of international trade leading to huge losses to Indian toy manufacturers. Do you think the mantra of “Boycott and Swadeshi” would be of any help today? Why or why not? (CBSE SAMPLE PAPER 2016)

 

Ans We cannot deny the fact that Chinese toys have taken over the Indian toy market due to promotion of international trade and globalisation leading to huge losses to the Indian toy manufacturers. In spite of this, ‘Boycott and Swadeshi’ mantra won’t help because 

  1. With lifting of trade barriers, import and export of foreign goods have become easier and markets of native countries are flooded with foreign products. 
  2. Prices of foreign products, especially the Chinese items like toys are cheap and have a great variety to attract customers.
  3. Swadeshi and Boycott movements were relevant and worked because of the movement for Independence of our country. Today, the circumstances are different. Technology has made its mark. Foreign goods increase the revenue for the native countries. Moreover, free trade and marketing needs to be accepted for the country’s economic growth.

 

Q28 Classify industries on the basis of capital investment. How are they different from one another? Explain with examples. (CBSE 2016)

 

Ans Classification of the industries on the basis of capital investment:

  1. Small Scale industry
  2. Large Scale industry

Difference:

  1. If the investment is more than one crore, any industry is considered as a large scale industry, for example, Iron and Steel Industry/Cement Industry. 
  2. While the investment is less than one crore on an industry is considered as a small scale industry, for example, Plastic industry, Toy industry.

 

Q29 Barriers on foreign trade and foreign investment were removed to a large extent in India since 1991. Justify the statement. (CBSE 2016)

 

Ans Removal of barriers on foreign trade and foreign investment:

  1. Barriers on foreign trade and foreign investment were partially removed.
  2. Goods could be improved and exported easily.
  3. Foreign companies could set up factories and offices here.
  4. Opportunities for Indian producers to compete with producers around the globe. 

 

Q30 “A wide ranging choice of goods are available in the Indian markets.” Support the statement with examples in the context of globalisation. (CBSE 2016)

OR

“In a matter of years, Indian markets have been transformed with wide ranging choice of goods.” Support the statement with examples. (CBSE 2017)

 

Ans We have a wide variety of goods and services before us in the market.

  1. The latest models of the digital cameras, mobile phones and televisions made by leading manufacturers of the world are available in the market.
  2. Every season, new models of automobiles can be seen on Indian roads. 
  3. Today Indians are buying cars produced by nearly all the top companies in the world.
  4. A similar explosion of brands can be seen for many other goods.

 

Q31 “Globalisation and greater competition among producers has been of advantage to consumers.” Justify the statement with examples. (CBSE 2016)

OR 

Describe any five advantages to consumers due to globalisation and greater competition among producers. (CBSE 2017)

 

Ans Globalisation and competition among producers are beneficial to consumers:

Globalisation and greater competition among producers, both local and foreign producers have been of advantage to consumers.

  1. There is a greater choice before consumers along with competitive price.
  2. Then enjoy improved quality and lower prices for several products.
  3. They enjoy much higher standards of living that was possible earlier.
  4. Strengthening of Consumer Rights like – Right to Information, Right to Choose, Right to be Heard, and Right to Seek Redressal has been given to consumers. 
  5. Legal rights of consumers have become more effective.

 

Q32 Why had the Indian government put barriers to foreign trade and foreign investments after independence? Analyse the reasons. (CBSE 2016)

 

Ans Indian government has put barriers to foreign trade and foreign investments after independence because:

  1. It wanted to protect the producers within the country from foreign competition.
  2. As the industries were just coming up in 1950s and 1960s, the competition from inputs at that stage would not have allowed these industries to come up. 
  3. Indian allowed imports of only essential items such as machinery fertilizers, petroleum, etc. 

 

Q33 How does foreign trade integrate the markets of different countries? Explain with examples. (CBSE 2016)

 

Ans Integration of Foreign markets:

  1. Producers reach beyond the domestic market.
  2. Producers compete with markets located in other countries of the world.
  3. There is expansion of choice of goods beyond the domestic market. 
  4. Produces in the two countries closely compete against each other.

 

Q34 What is globalisation? What is the role of MNCs in the globalisation process?

OR

Evaluate the role of MNCs in the economic development of a country. (CBSE SAMPLE PAPER 2018-19)

 

Ans Globalisation is the process of rapid integration or interconnection between countries. 

  1. MNCs are playing a major role in the globalisation process.
  2. More and more goods and services, investments and technology are moving between countries.
  3. Most regions of the world are in closer contact with each other than a few decades back.

 

Q35 What are the various ways in which countries can be linked?

 

Ans Besides the movement of goods, services, investments and technology, there is one more way in which the countries can be linked. 

  1. This is through the movement of people between countries. 
  2. People usually move from one country to another in search of better income, better jobs or better education. 
  3. In the past few decades, however, there has not been much increase in the movement of people between countries due to various restrictions.

 

Q36 Why have MNCs increased their investment in India?

 

Ans 1. MNCs have increased their investment in India over the past few years, which means investing in India has been beneficial for them.

  1. MNCs have been interested in industries such as cellphones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas, as these products have a large number of well-off buyers.
  2. Since these MNCs are earning profits by selling their products and services, they are increasing their investment in India.

 

Q37 Critically examine the impact of globalization in India. (CBSE SAMPLE PAPER 2018-19)

OR

Assess the impact of globalization on India and its people. (CBSE SAMPLE PAPER 2021-22)

 

Ans Impact of Globalization in India: 

  1. Stiff competition for local producers and manufacturers. 
  2. No job security 
  3. Workers are denied their fair share of benefit 
  4. Long working hours and low wages to the worker. 
  5. Expansion of unorganized sector. 
  6. New opportunities for IT sector 
  7. Increase in investment and foreign trade 

 

Q38 Describe the role of technology in promoting globalisation process. (CBSE SAMPLE PAPER 2019-20)

OR

Examine the role of Information Technology in stimulating the process of globalization. (CBSE SAMPLE PAPER 2021-22)

 

Ans 1. Rapid improvement in technology has stimulated the globalisation process. This has made much faster delivery of goods across long distances possible at lower costs. 

  1. Even more remarkable have been the developments in information and communication technology. 
  2. Technology in the areas of telecommunications, computers, Internet has been changing rapidly. 
  3. Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas. 
  4. This has been facilitated by satellite communication devices.

 

 
 

4 MARK QUESTIONS

 

Q1 Read the extract and answer the questions that follows: (CBSE SAMPLE PAPER 2019-20)

 

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 wanted to develop Ford India as a component supplying base for its other plants across the globe.

 

  1. The passage given above relates to which of the following options? 

A Increased employment 

B Foreign investment

C Foreign collaboration

D International competition

 

Ans B Foreign investment

 

  1. According to the given passage, Ford Motors can be termed as a Multi-National Company based on which of the following options? 

A Production of different types of automobiles

B  Largest automobile manufacturer in the world

C Because of largescale exports of cars across globe

D Industrial and commercial ventures across globe

 

Ans D Industrial and commercial ventures across globe

 

  1. By setting up their production plants in India, Ford Motors wanted to –

A Collaborate with a leading Indian Automobile company

B Satisfy the demands of American, African, and Indian markets

C Tap the benefits of low-cost production and a large market

D Take over small automobile manufacturing units in India

 

Ans C Tap the benefits of low-cost production and a large market

 

  1. ‘Ford Motors’ wish to develop Ford India as a component supplying base for its other plants across the globe is an evidence of – 

A Promoting local industries of India

B Merging trade from different countries

C Supplying jobs to factory workers in India

D Interlinking of production across countries

 

Ans D Interlinking of production across countries

 

Q2 Read the extract and answer the questions that follows:

 

Chinese manufacturers learn of an opportunity to export toys to India where toys are sold at a high price. They start exporting plastic toys to India. Buyers in India now have the option of choosing between Indian and Chinese toys. Because of the cheaper prices and new designs, Chinese toys have become more popular in the Indian markets. Within a year, 70 to 80% of the toy shops have replaced Indian toys with Chinese toys. Toys are now cheaper in the Indian markets than earlier. What is happening here? As a result of trade, Chinese toys come into the Indian markets. In the competition between Indian and Chinese toys, Chinese toys prove better. Indian buyers have a greater choice of toys and at lower prices. For the Chinese toy makers, this provides an opportunity to expand business. The opposite is true for Indian toy makers. They face losses, as their toys are selling much less. Suppose the Indian government puts a tax on import of toys. What would happen? Those who wish to import these toys would have to pay tax on this. Because of the tax, buyers will have to pay a higher price on imported toys. Chinese toys will no longer be as cheap in the Indian markets and imports from China will automatically reduce. Indian toy makers will prosper.

 

  1. Chinese toys have become more popular in the Indian markets. Within a year, ___________ of the toy shops have replaced Indian toys with Chinese toys. 

A 50 to 60 percent

B 80 to 90 percent

C 100 percent

D 70 to 80 percent

 

Ans D 70 to 80 percent

 

  1. Why are Chinese toys so popular in India?

 

Ans Buyers in India now have the option of choosing between Indian and Chinese toys. Because of the cheaper prices and new designs, Chinese toys became more popular in the Indian markets.

 

  1. Give one advantage to China and disadvantage to India with import of Chinese toys.

 

Ans For Chinese toy makers, this provides an opportunity to expand business. Whereas Indian toy makers face losses, as their toys are selling much less.

 

  1. How will Indian toy makers prosper?

 

Ans If the Indian government puts a tax on import of toys so those who wish to import these toys would have to pay tax on this. Because of the tax, buyers will have to pay a higher price on imported toys. Chinese toys will no longer be as cheap in the Indian markets and imports from China will automatically reduce and thus Indian toy makers will prosper.

 

Q3 Read the extract and answer the questions that follows:

 

Globalisation and the pressure of competition have substantially changed the lives of workers. Faced with growing competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers’ jobs are no longer secure. Large MNCs in the government industry in Europe and America order their products from Indian exporters. These large MNCs with worldwide networks look for the cheapest goods in order to maximise their profits. To get these large orders, Indian garment exporters try hard to cut their own costs. As the cost of raw materials cannot be reduced, exporters try to cut labour costs. Where earlier a factory used to employ workers on a permanent basis, now they employ workers only on a temporary basis so that they do not have to pay workers for the whole year. Workers also have to put in very long working hours and work night shifts on a regular basis during the peak season. Wages are low and workers are forced to work overtime to make both ends meet. While this competition among the garment exporters has allowed the MNCs to make large profits, workers are denied their fair share of benefits brought about by globalisation.

 

  1. How has globalisation changed the lives of workers?

 

Ans Globalisation has made the jobs of workers insecure.

 

  1. Which countries order their products from Indian exporters?

 

Ans Europe and America order their products from Indian exporters

 

  1. How are workers exploited?

 

Ans Workers also have to put in very long working hours and work night shifts on a regular basis during the peak season. Wages are low and workers are forced to work overtime to make both ends meet.

 

  1. How can government ensure fair globalisation in India?

 

Ans The government can play a major role in making this possible. The government can ensure that labour laws are properly implemented and the workers get their rights. If necessary, government can use trade and investment barriers.

 

 
 

5 MARK QUESTIONS

 

Q1 Describe any four benefits of globalisation to the Indian economy. (CBSE 2017)

 

Ans Globalisation has benefited Indian economy: 

  1. Local companies supplying raw materials, etc. to these industries have prospered. Several of the top Indian companies have been able to benefit from the increased competition.
  2. Investment in newer technology and production methods has raised their production standards. 
  3. Some industries have gained from successful collaborations with foreign companies. It has enabled some large Indian companies to emerge as multinationals. 
  4. It has also created new opportunities for companies providing services, particularly those involving IT and many new jobs have been created in industries. 
  5. Host of services such as data entry, accounting, administrative tasks, and engineering are now being done cheaply in countries such as India and are exported to the developed countries.

 

Q2 Which factors have stimulated the globalisation process?

 

Ans The following factors have stimulated the globalisation process:

  1. Improvement in transportation: In the last fifty years, there have been a lot of improvements in transportation technology. This has made faster delivery of goods across long distances possible, at lower costs. 
  2. Development in information and communication technology: Technology in the areas of telecommunication and computers has been advancing rapidly.
  3. Telecommunication: Telecommunication facilities like telephone, telegraph, mobiles, fax are used to connect people in the world. This has been made possible due to satellite communication devices,
  4. Computers: They have now entered almost in every field of activity. In the amazing world of internet, we can obtain and share information on almost anything. 
  5. Internet: Internet also allows us to send instant electronic mail (e-mail) and talk (voice mail) across the world at negligible cost. Even the payment of money from one bank to another can be made through e-banking.

 

Q3 How was the liberalisation policy gradually adopted in India?

 

Ans 1. After Independence, the Indian government had put barriers on foreign trade and foreign investment.

  1. Initially, Indian industries were just coming up after Independence, so competition from imports wouldn’t have allowed these industries to come up.
  2. In 1999, the government decided that the time had come for Indian producers to compete with the producers around the globe.
  3. It was felt that competition would improve the performance of domestic producers since would improve the quality of their products.
  4. Thus, barriers on foreign trade and foreign investment were removed to a large extent. Now, goods could be imported and exported easily and foreign companies could also set up factories and offices here.

 

Q4 How do MNCs manage the production in other countries?

OR

In what ways Multi National Corporation (MNC) different from other companies? Explain with an example. (CBSE SAMPLE PAPER 2022-23)

 

Ans 1. MNCs not only sell their finished products globally, but also produce the goods and services globally. 

  1. As a result, production is organised in increasingly complex ways. 
  2. The production process is divided into small parts and spread out across the globe.
  3. For example, China provides the advantage of being a cheap manufacturing location. Mexico and Eastern Europe are useful for their closeness to the markets in the US and Europe.
  4. India has highly skilled engineers, who can understand the technical aspects of production. It also has educated English-speaking youth, who can provide customer care services. And all this probably can mean 50-60 per cent cost savings for the MNCs.

 

Q5 Describe the problems created by globalisation for small producers and workers. (CBSE 2017)

 

Ans Problems created by globalizations for Small Producers and Workers:

  1. Tough competition with the Big Companies.
  2. Several small units are being shut down. 
  3. Unemployment of Workers.
  4. Insecurity of Job.
  5. Small producers and exporters try hard to cut their cost due to competition.
  6. Workers are hired on temporary basis. 
  7. Workers have to put in long working hours and work night shifts.
  8. Wages are low and forced to work overtime. 
  9. Workers are denied their fair share of benefits brought about by globalisation.

 

Q6 How did Ford Motors, an MNC, set its foot in India?

 

Ans 1. Ford Motors, an American company, is one of the world’s largest automobile manufacturers with production spread over twenty-six countries of the world. 

  1. It came to India in 1995 and spent 7 1,700 crore to set up a large plant near Chennai.
  2. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks.
  3. By the year 2014, Ford Motors was selling 77,000 cars in the Indian markets, while another 77,000 cars were exported from India to South Africa, Mexico and Brazil. 
  4. The company wanted to develop Ford India as a component supplying base for its other plants across the globe.

 

Q7 How did rapid improvement in technology stimulate the globalisation process?

OR

Describe the contribution of technology in promoting the process of globalisation. (CBSE 2017) 

 

Ans 1. For the past fifty years, several improvements in transportation technology have been made. It has helped in the faster delivery of goods across long distances at lower costs.

  1. Even more remarkable have been the developments in information and communication technology. Technology in the areas of telecommunications, computers, internet has been changing rapidly. 

3.Telecommunication facilities like telegraph, telephone including mobile phones or fax, etc., are used to contact one another around the world to access information instantly and to communicate from remote areas. 

  1. There is an amazing world of internet, where we can obtain and share information on almost anything we want to know. 
  2. Internet also allows us to send instant electronic mail and talk across the world at negligible costs. 

 

Q8 In what ways has competition affected workers, Indian exporters and foreign MNCs in the garment industry?

 

Ans 1. Large MNCs in the garment industry in Europe and America get their products from Indian exporters.

  1. These large MNCs with worldwide networks look for the cheapest goods in order to maximise their profits.
  2. To get these large orders, Indian garment exporters try hard to cut their own costs. 
  3. Earlier, a factory used to employ workers on a permanent basis. Now they employ workers only on a temporary basis, so that they do not have to pay workers for the whole year.
  4. Workers also have to put in very long working hours. They have to work in night shifts on a regular basis during the peak season. 
  5. Wages are low and workers are forced to work overtime to make both ends meet. 
  6. While this competition among the garment exporters has allowed the MNCs to make large profits, workers are denied their fair share of benefits brought about by globalisation.

 

Q9 “The impact of globalization has not been uniform.” Demonstrate with the help of illustrations. (CBSE SAMPLE PAPER 2016)

 

Ans Since its introduction, globalisation of the Indian economy has come a long way. While globalisation has benefited well-off consumers and also producers with skill, education and wealth, many small producers and workers have suffered as a result of the rising competition.

  1. Now people have a wide range of products with improved quality and lower prices. They are enjoying much higher standards of living than earlier. 
  2. Removal of trade barriers and liberalization policies of the governments to facilitate globalization have hit the local producers and manufacturers hard. 
  1. Illustration: MNCs have increased their investments in India over the past 20 years, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas. These products have a large number of well-off buyers. In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc. to these industries have prospered.

Globalisation and the pressure of competition have substantially changed the lives of workers. Faced with growing competition, most employers these days prefer to employ workers ‘flexibly. This means that workers’ jobs are no longer secure.

  1. Illustration: Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to competition.Several of the units have shut down rendering many workers jobless. The small industries in India employ the largest number of workers (20 million) in the country, next only to agriculture. 

 

Q10 What is globalisation? Describe the role of Multinational Corporations (MNCs) in promoting the globalisation process. (CBSE 2016)

OR

Analyse the importance of multinational companies in the globalisation process. (CBSE 2017)

 

Ans Globalisation is the process of rapid integration or interconnection between countries.

MNCs play an important role in the globalisation process. 

  1. They compete with the local producers directly even after being miles apart, thus integrating the markets.
  2. Their work leads to exchange of investments and products which leads to interconnection between diverse countries. MNCs control production in more than one country.
  3. They collaborate with smaller industries helping them to be more profitable. 
  4. Being economically affluent they are able to make investments in various countries.
  5. They are also technically advanced promoting globalization.
  6. They offer higher income, better jobs and better education.
  7. More goods are available globally at a cheaper rate and a good quality. 
  8. They provide greater opportunity for choices.

The role of MNCs in the process of globalisation can further be understood through the following five examples:

  1. MNCs have led to the availability of products from all over the world in any country. For example, in India, corporations like Ford and Hyundai have led to a greater availability of cars from other countries. 
  2. MNCs from developing countries are also increasing their presence in developed countries. For example, Tata Tea purchased Tetley, a tea brand in Britain a few years ago.
  3. They have led to a greater movement of labour across the world. For example, Indian software engineers working in TCS go to U.S. for work.
  4. MNCs have increased the inflow of education and foreign capital across different countries. For example, when a corporation like General Electric invests in India, it brings in capital from abroad.
  5. They have led to more transfer of education and technology across the countries. For example, Samsung brings in more advanced technology for manufacturing electronics into countries like India.

 

Q11 Describe the impact of globalisation on the Indian economy with examples. (CBSE 2016, CBSE 2017)

OR

Analyse any five positive effects of globalisation on the Indian economy. (CBSE 2017)

OR

Describe the impact of Globalisation on the Indian economy.

 

Ans Positive effects of Globalisation:

  1. Globalisation has brought greater competition among producers – both local and foreign producers has been of advantage to consumers particularly the well-off sections in the urban areas.
  2. There is greater choice before consumers. They enjoy improving quality at lower prices.
  3. People today enjoy much higher standards of living.
  4. Local companies supplying raw material have prospered. 
  5. The top Indian companies have been able to benefit from increased competition.
  6. Some Indian companies have gained from successful collaboration with foreign companies. 
  7. MNCs have increased their investments in India over the past 20 years, especially in cell phones, automobiles, electronics, soft drinks etc.
  8. Many Indian companies have emerged as Multi Nationals themselves. Example-Tata Motors, Infosys, Ranbaxy, Asian Paints etc. 
  9. Globalisation has created opportunities for new jobs.
  10. Wide variety of good are now available to the consumers.
  11. Improved quality of products. 
  12. Lower prices of commodities.
  13. Higher standard of living for people. 
  14. Globalization may not help in achieving sustainable development. It may lead to widening income inequalities among various countries. It may lead to greater dependence of underdeveloped countries on advanced countries.

 

Q12 Describe the major problems created by globalization for a large number of small producers and workers. (CBSE 2016)

 

Ans Problems created by the globalization for small producers and workers:

  1. It may lead to widening income inequalities among various countries.  
  2. Workers’ jobs are no longer secure.
  3. Expansion of the unorganized sector.
  4. Small manufacturers have been hit hard due to severe competition. 
  5. Several units have been shut down rendering many workers jobless.
  6. Lives of workers are on the whims of employers. 
  7. Workers are denied their fair share of benefits.

 

Q13 What is liberalisation? Describe any four effects of liberalisation on the Indian economy. (CBSE 2017)

 

Ans Liberalisation means:

Removing barriers or restrictions set by the government is known as liberlisation:

Impacts of Liberalisation:

  1. Competition would improve the performance of producers within the country. 
  2. Barriers on foreign trade and foreign investment were removed to a large extent. This goods could be imported and exported easily.
  3. Foreign companies could set up factories and offices to boost up production. 
  4. It allows you to make decisions freely.
  5. The competition would improve the performance of producers within the country since they have to improve their quality.

 

Q14 In what ways do MNCs control production of local companies?

 

Ans 1. Large MNCs in developed countries place orders for production with small producers.

  1. Garments, footwear, sports items are examples of industries where production is carried out by a large number of small producers around the world. 
  2. The products are supplied to the MNCs, which then sell these products under their own brand names to the customers. 
  3. These larger MNCs have tremendous power to determine price, quality, delivery and labour conditions for these distant producers.

 

Q15 “Only fair globalisation can give, new shape to the world economy.” Explain.

OR 

How can globalisation be made more fair?

OR

Evaluate the measures to make globalisation more fair. (CBSE 2017)

 

Ans 1. Fair globalisation would create opportunities for all, and also ensure that the benefits of globalisation are shared better.

  1. The government can play a major role in making this possible. It needs to frame policies for all.
  2. Government can ensure that labour laws are properly implemented and the workers get their rights. Benefits of globalisation are shared better. 
  3. It can support small producers to improve their performance till the time they become strong enough to compete.
  4. It can negotiate at the WTO for fairer rules. Massive companies and representation related to trade and investment at WTO can be encouraged.
  5. It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.
  6. If necessary, the government use trade and investment barriers.

 

Q16 What is WTO? Why it has been formed?

 

Ans 1. The World Trade Organisation (WTO) is the only International Organisation that deals with the global rules of trade between nations.

  1. Its main role is to help producers of goods and services, exporters and importers protect and manage their businesses better.
  2. It was established in 1995 and its headquarters are in Geneva, Switzerland. 
  3. At its heart are the WTO agreements, negotiated and signed by the bulk of the World’s trading nations and ratified in their parliaments. 
  4. Its purpose is to monitor WTO Trade agreements, facilitate trade negotiations, mediate trade disputes, monitor international trade policies and provide assistance to developing economies.

 

Q17 Mention any two factors that have enabled globalisation in India. How are Indians struggling for fair Globalisation? (CBSE 2017)

 

Ans Two factors that have enabled globalization are:

  1. Improved transport, making global travel easier. For example, there has been a rapid growth in air-travel, enabling greater movement of people and goods across the globe. 
  2. Improved technology which makes it easier to communicate and share information around the world. E.g. internet.

Struggle of Indians for fair globalization:

  1. Indian workers are struggling for their rights. 
  2. Workers are pressurizing the government to ensure that labour laws are properly implemented.
  3. Smaller producers are struggling to compete with the MNCS. 
  4. Indians are pressurizing the government to negotiate at the WTO for the ‘fairer rules”. 
  5. Workers are struggling against lack of job security.
  6. Workers are fighting for more congenial working hours.

 

Q18 Explain with an example as to how information technology is connected with globalisation. 

 

Ans 1. Information and communication technology has played a major role in spreading out production of services across countries.

  1. For example, a news magazine published for London readers to be designed and printed in Delhi.
  2. The text of the magazine is sent through the internet to the Delhi office. 
  3. The designers in the Delhi office get orders on how to design the magazine from the office in London using telecommunication facilities.
  4. The designing is done on a computer. After printing, the magazines are sent by air to London. 
  5. Even the payment for designing and printing from a bank in London to a bank in Delhi is made instantly through e-banking.