NCERT Solutions For Class 10 Economics Chapter 4 Globalisation And The Indian Economy

NCERT Solutions For Class 10 Economics Chapter 4 Globalisation And The Indian Economy Important Concepts And Terms

Globalization: Linking a country’s economy with other countries by free trade.

Liberalization: Lifting central excise imposed by governments in order to give greater freedom to economic agents to make their own decisions.

Privatization: Closely associated with liberation and signifies a greater role for the private sector in the functioning of an economy.

Tariff: Any official duty of customs imposed by the government on import and export.

Quota: A quantitative restriction on import and export.

Economic Reforms: Changes in the set of economic policies.

Direct Foreign Investments: Investment made by foreign companies to create additional capacity contributing to additional production.

Mixed Economy: A type of economy in which both public and private sectors work together.

NCERT Solutions For Class 10 Economics Chapter 4 Globalisation And The Indian Economy Flowchart

NCERT Solutions For Class 10 Economics Chapter 4 Globalisation And The Indian Economy Exercises

Question 1. What do you understand by globalization? Explain in your own words.

Answer:

Globalization means 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 includes:

1. Increase in foreign trade.
2. Export and import of techniques of production.
3. The flow of capital and finance from one country to another.
4. Migration of people from one country to another.

Question 2. 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?

Answer:

The Indian government had put barriers to foreign trade and foreign investment to protect domestic producers from foreign competition, especially when industries had just begun to come up in the 1950s and 1960s.

At this time, competition from imports would have been a death blow to growing industries. Hence, India allowed imports of only essential goods.

In the New Economic Policy in 1991, the government wished to remove these barriers because it felt that domestic producers were ready to compete with foreign industries.

It felt that foreign competition would in fact improve the quality of goods produced by the Indian industries. This decision was also supported by powerful international organizations.

Question 3. How will flexibility in labor laws help companies?

Or

Describe how flexibility in the labor laws helps companies.

Answer:

Flexibility in labor laws will help companies in being competitive and progressive.

By easing up on labor laws, company heads can negotiate wages and terminate employment, depending on market conditions. This will lead to an increase in the company’s competitiveness.

Question 4. What are the various ways in which MNCs set up, or control production in other countries?

Answer:

Multinational Corporations (MNCs) set up their factories or production units close to markets where they can get the desired type of skilled or unskilled labor at low costs along with other factors of production.

After Ensuring These Conditions, Mncs Set Up Production Units In The Following Ways:

1. 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. They place orders for small products and sell these products under their own brand name to customers worldwide.

Question 5. Why do developed countries want developing countries to liberalize their trade and investment? What do you think should the developing countries demand in return?

Answer:

Developed countries want developing countries to liberalize their trade and investment because then the MNCs belonging to the developed countries can set up factories in less-expensive developing nations, and thereby increase profits, with lower manufacturing costs and the same sale price.

In my opinion, the developing countries should demand, in return, some manner of protection for domestic producers against competition from imports.

Also, charges should be levied on MNCs looking to set bases in developing nations.

Question 6. “The impact of globalization has not been uniform.” Explain this statement.

Answer:

“The impact of globalization has not been uniform.” It has only benefited skilled and professional persons in the urban areas, not the unskilled persons. The industrial and service sector has much gained in globalization than in agriculture.

It benefited MNCs domestic producers and the industrial working class. Small producers of goods such as batteries, capacitors, plastics, toys, tires, dairy products, and vegetable oil have been hit hard by competition from cheaper imports.

Question 7. How has liberalization of trade and investment policies helped the globalization process?

Or

In what three ways has liberalization of trade and investment policies helped the globalization process?

Answer:

Liberalization of trade and investment policies has helped the globalization process by making foreign trade and investment easier. Earlier, several developing countries had placed barriers and restrictions on imports and investments from abroad to protect domestic production.

However, to improve the quality of domestic goods, these countries have removed the barriers.

Thus, liberalization has led to a further, spread of globalization because now businesses are allowed to make their own decisions on imports and exports.

This has led to a deeper integration of national economies into one conglomerate whole.

Question 8. How does foreign trade lead to the integration of markets across countries? Explain with an example other than those given here.

Answer:

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

Goods travel from one country to another. Competition among producers of various countries as well as buyers prevails. Thus foreign trade leads to the integration of markets across countries.

For example, during the Diwali season, buyers in India have the option of choosing between Indian and Chinese decorative lights and bulbs. So this provides an opportunity to expand business.

Question 9. “Globalisation will continue in the future*. Can you imagine what the world would be like twenty years from now? State reasons for your answer.

Answer:

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

Reason For The Views Given Above: These Are The Favourable Factors For Globalisation:

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

Question 10. Suppose you find two people arguing: One is saying globalization has hurt our country’s development. The other is telling, globalisation is helping India develop.

How would you respond- to these organisation arguments?

Answer:

Benefits Of Globalisation Of India:

1. Increases the volume of trade in goods and services.
2. Helps in the inflow of private foreign capital and the export orientation of the economy.
3. Increases the volume of output, income, and employment.

Negative Impact/Fears Of Globalisation:

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

Whatever may be the fears of globalization, I feel that it has now become a process that is catching the fancy of more and more nations. Hence we must become ready to accept globalisation with grace and also maximise economic gains from the world market.

Question 11. Fill in the blanks.

Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of _______Markets in India are selling goods produced in many other countries. This means there is increasing ______ with other countries. Moreover, the rising number of brands that we see in the markets might be produced by the MNCs in India. The MNCs are investing in India because _____, While consumers have more choices in the market, the effect of rising _____ and ______has meant greater _______ among the producers.

Answer:

Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of globalization. Markets in India are selling goods produced in many other countries.

This means there is increasing trade with other countries. Moreover, the rising number of brands that we see in the markets might be produced by the MNCs in India.

The MNCs are investing in India because they want to earn profit. While consumers have more choices in the market, the effect of rising demand and price has meant greater competition among the producers.

Question 12. Match the following.

Answer:

(1)-(B), (2)-(E), (3)-(D), (4)-(C), (5)-(A)

Question 13. Choose the most appropriate option.

1. The past two decades of globalization have seen rapid movements in

1. Goods, services, and people between countries.
2. Goods, services, and investments between countries.
3. Goods, investments, and people between countries.

Answer: 3. Goods, services, and investments between countries.

2. The most common route for investments by MNCs in countries around the world is to

1. Set up new factories.
2. Buy existing local companies.
3. Form partnerships with local companies.
4. None of the above

Answer: 1. Set up new factories.

3. Globalisation has led to improvement in living conditions

1. Of all the people.
2. Of people in the developed countries.
3. Of workers in the developing countries.
4. None of above

Answer: 1. Of all the people.

NCERT Solutions For Class 10 Economics Chapter 4 Globalisation And The Indian Economy Short Answer Questions

Question 1. Why is sustainable development considered important for economic growth?

Answer:

It has been felt that rapid economic growth and industrialization led to the reckless exploitation of natural resources.

The stock of natural resources is limited and their use damages the environment and ecology. They cause pollution and disturb the balance in nature.

The Important Measures Are:

1. Use of renewable and clean sources of energy.
2. Less use of fossil fuels.
3. Organic farming.
4. Measures to reduce global warming.

India should enact laws and rules to protect the environment and limit the use of energy.

Question 2. ‘There is a need for rapid industrialization of India’. State three reasons.

Answer:

The need for rapid industrialization arises due to the following reasons:

1. Industrialization provides a basis for the rapid growth of income.
2. By setting up more and more industries, opportunities for employment can be provided.
3. Industries can utilize all types of resources available in the economy and can use even scraps and waste material.

Question 3. How have Indian markets been transformed in recent years? Explain with examples. (What changes have you noticed in the markets in India recently ?)

Answer:

We have a wide choice of goods and services before us in the Indian markets now. The latest models of digital cameras, mobile phones, and televisions made by the leading manufacturers of the world are within our reach. Electronics goods have become cheaper. Every season, new models of automobiles can be seen on Indian roads.

A similar explosion of brands can be seen for many other goods: from shirts to televisions to processed fruit juices. Many international food-processing companies like Coco Cola entered Indian markets.

Question 4. What is an MNC? How does it function? Or How does it spread production across the world?

Or

How do MNCs spread production across the world?

Answer:

1. MNC is the short form of Multi-National Companies. It owns or controls production in more than one nation.
2. MNCs set up offices and factories for production in regions where they can get cheap labor and other resources. This is done so that the cost of production is low and the MNCs can earn greater profits.
3. MNCs set up production units where it is close to the markets; where skilled and unskilled laborers are available at low costs; and where the availability of other factors of production is assured. In addition, MNCs might look for government policies that look after their interests.
4. At times, MNCs set up production jointly with some of the local companies of different countries.

Question 5. Why did the Government remove of India’s trade harriers?

Answer:

1. The government realised that the trade barrier affected foreign trade adversely and foreign companies hesitated to invest in India. The negative aspects of the development strategy led to the removal of trade barriers.
2. Around 1991-1992, the Government decided that the time had come for Indian producers to compete with producers around the world. It felt that competition would improve the performance of producers within the country since they would have to improve the quality.
3. This decision was supported by powerful international organizations. In the general trend of globalization and being a member of the World Trade Organisation, the Indian government removed the trade barriers.

Question 6. Examine the role of the state in protecting the environment. Write three points.

Answer:

Environmental protection means the conservation and safeguarding of people from all types of pollution. The steps taken to protect it are:

1. It makes laws to improve living conditions through environmental protection legislation.
2. The Central Pollution Board controls water and air pollution.
3. Environmental Audit has been compulsory since 1992 for all industries seeking environmental clearance.

Question 7. Mention three objectives of liberalization policy in large-scale sectors.

Answer:

Objectives Of Liberalisation Policy Are:

1. To get the favorable ratio of net profit to capital invested.
2. To seek better private and public participation in economic development and planning through profit incentives and removal of physical controls.
3. To seek private sector participation in infrastructure development.

Question 8. ‘Negative aspect of India’s development strategy prior to 1991 relating to bad performance of the public sector was the only factor to create the need for a change in economic policy’. Do you agree with this? Comment.

Answer:

No, there are other factors also.

These Are:

1. In June 1991, there was a foreign exchange crisis in the country.
2. The balance of payment deficit of India has continuously risen since 1980 – 81.
3. Sharp rise in petrol prices.
4. Fiscal deficit.
5. Increase in prices.
6. Unemployment.
7. Poverty.
8. Shortage of capital.
9. Slow economic growth.
10. Technological backwardness.

Question 9. Write any three functions of WTO.

Answer:

Four Functions Of WTO Are:

1. Administering trade agreements between nations.
2. Forum for trade negotiations.
3. Handling trade disputes.
4. Maintaining national trade policy.

Question 10. What is the impact of WTO on the Indian economy?

Answer:

The Impact Of WTO On Indian Economy Is:

1. An opportunity to India for trading with other member countries.
2. Availability of foreign technology to India at a reduced cost.
3. Many laws of WTO are unfavorable to developing countries like India.
4. Certain clauses of the WTO agreement on agriculture put restrictions on the provision of subsidized food grains in India.

Question 11. What are privatization and liberalization?

Answer:

Privatization means allowing the private sector to set up industries that were earlier reserved for the public sector.

Removing barriers or restrictions set by the government on trade is called liberalization.

Thus, privatization and liberalization result in freedom from a closed and regulated economy.

Question 12. What is a trade barrier? How can governments use trade barriers?

Or

Define trade barriers. How can the government use it?

Answer:

Any kind of restrictions imposed on trade is called a ‘trade barrier’. 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.

Question 13. How can MNCs spread their production?

Answer:

MNCs can spread their production by:

1. Setting up joint production units with local companies.
2. Buying local companies and expanding its production base.
3. Placing orders with small producers.

Question 14. What are the two-fold benefits to the local companies in producing goods jointly with MNCs?

Answer:

1. First, MNCs can provide money to local companies for additional investments, like buying new machines for faster production.
2. Secondly, MNCs might bring with them the latest technology for production.

Question 15. How do MNCs control production all over the world?

Or

State the ways by which MNCs expand production all over the world.

Answer:

1. The most common route for MNC investments is to buy local companies and then expand production. To take an example, Cargill Foods, a very large American MNC, has bought smaller Indian companies such as Parakh Foods.
2. There’s another way in which MNCs control production. Large MNCs place orders for production with small producers. They purchase goods like garments and footwear from these small companies and then sell these under their own brand names to the customers. These large MNCs have tremendous power to determine price, quality, delivery, and labor conditions for these distant producers.
3. They set up partnerships with local companies and expand production in some cases. Thus MNCs are exerting a strong influence on production at distant locations.

Question 16. Why is foreign trade necessary?

Or

State any three reasons, that highlight the necessity of foreign trade.

Answer:

Foreign trade creates an opportunity for the producers to reach beyond the domestic markets, and reach international markets.

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.

Similarly, for the buyers, the import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced. Foreign trade thus results in connecting the markets or integrating the markets in different countries.

Foreign trade promotes international understanding and economic interdependence between countries.

Question 17. Define Globalisation. How does it help international trade?

Answer:

• Globalization is the process of integration of a country’s economy with an international economy.
• According to this, Indians can buy, and sell any product or set up industries anywhere in the world or a foreigner can do it in India.
• Since restrictions on imports and exports are removed, it makes the movements of goods, services, investments, technology, and labor freely from one country to the other.

Question 18. What is the role of MNCs in the globalisation process?

Answer:

Since Multi National Companies have expanded their production across the world, they encourage the free movement of goods and services, technology, and labor from one country to the other and thus help globalization.

The development of Information Technology and the removal of restrictions imposed on imports and exports helped these companies to accelerate the process of globalization.

Question 19. What are the factors that have enabled globalisation?

Answer:

1. Rapid improvement in transportation technology has made much faster delivery of goods across long distances possible at lower costs.
2. Even the developments in information and communication technology have helped a lot. In recent times, technology in the areas of telecommunications, computers, and the 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. Liberalization of foreign trade and foreign investment policy and the removal of trade barriers by many countries have helped globalisation.
5. The establishment of the World Trade Organisation (WTO) has played an important role in encouraging globalization.

Question 20. What is a trade harrier? Why did India Government put a harrier on foreign trade?

Or

Why did the Government put a harrier on foreign tra.de? Explain.

Answer:

1. Restricting foreign trade by imposing tax on imports is called a trade barrier.
2. Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kind of goods and how much of each should come into the country.
3. The Indian government, after Independence, had put barriers to foreign trade and foreign investment. This was considered necessary to protect the producers within the country from foreign competition.
4. Industries were just coming up in the 1950s and 1960s, and competition from imports at that stage would not have allowed these industries to come up. Thus, India allowed imports of only essential items such as machinery, fertilizers, petroleum, etc.
5. All developed countries, during the early stages of development, have given protection to domestic producers through a variety of means.

Question 21. What is the liberalization of foreign trade?

Or

What do you understand by the concept of Liberalisation of Foreign Trade?

Answer:

Removing barriers or restrictions set by the government on foreign trade is known as liberalization. With the liberalization of trade, businesspersons are allowed to make decisions freely about what they wish to import or export.

The government removed the restrictions imposed on the private sector in import and export of goods and all the rules and regulations were relaxed.

Question 22. What is WTO? What are its two faces?

Answer:

World Trade Organisation (WTO) is an international organization set up to liberalize international trade. Starting at the initiative of the developed countries, WTO establishes rules regarding international trade and sees that these rules are obeyed. 153 countries of the world are currently members of the WTO (2011).

Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers.

Question 23. What are the negative effects of globalization?

Answer:

1. Globalization and the pressure of competition have changed the lives of workers.
2. To stand in the global competition, many companies cut down the benefits
   given to workers, reduced their salaries, and treated them as temporary workers.
3. Jobs are no longer secure for them. Working conditions in the organized sector resemble the unorganized sector.
4. For a large number of small producers and workers, globalization has posed major challenges.
5. Batteries, capacitors, plastics, toys, tires, dairy products, and vegetable oil are some examples of small manufacturers, that have been hit hard due to competition. Several of the units have shut down rendering many workers jobless.

Question 24. How did flexibility in labor laws help companies?

Or

In what ways does the flexibility in labor laws help the companies?

Answer:

1. Companies are able to cut down the cost of production to maximize the profit. As the cost of raw materials cannot be reduced, they tried to cut labor costs.
2. 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 and they do not have to pay any service benefits.
3. 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. Workers are denied their fair share of benefits brought about by globalization.

Question 25. What is meant by a Special Economic Zone (SEZ)?

Answer:

1. It is the short form of Special Economic Zone. Such industrial zones are set up by the government to attract foreign companies to invest in India.
2. SEZs have world-class facilities: electricity, water, roads, transport, storage, recreational and educational facilities. Companies that set up production units in the SEZs do not have to pay taxes for an initial period of five years.
3. The government has also allowed flexibility in the labor laws to attract foreign investment.

Question 26. What are the steps taken by the government to attract foreign investment in India?

Or

Describe the step taken by the government to attract foreign movement in India.

Answer:

1. India has become a member of the World Trade Union.
2. The central and state governments set up Special Economic Zones with all facilities to attract foreign investment.
3. The Government of India followed a policy of liberalization and relaxed the rules and regulations to encourage imports and exports.
4. In recent years, the government has allowed companies to ignore many rules and regulations. Flexibility in labor laws is allowed.

Question 27. What is fair globalization? What role can the Government play in having a fair globalization?

Answer:

1. Fair globalization is a measure to eliminate the negative effect of globalization. It would create opportunities for all, and ensure that the benefits of globalization are shared better by all countries.
2. The government policies must protect the interests, not only of the rich and the powerful but all the people in the country.
3. The government can ensure that labor laws are properly implemented and the workers get their rights. It can support small producers to improve their performance until the time they become strong enough to compete.
4. If necessary, the government can use trade and investment barriers. It can negotiate at the WTO for ‘fairer rules’.
5. It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.

Question 28. How has competition benefited people in India?

Answer:

1. Competition has helped to survive good quality products only in the market at reasonable prices, which has helped consumers. It has provided them with a lot of choice in purchasing.
2. It has helped to absorb advanced technology at work and made our labor force competent.

Question 29. Why do developed countries want developing countries to liberalize their trade and investment? What do you think should the developing countries demand in return?

Answer:

1. Developed countries want to interfere in the internal matters of developing countries. They want to dominate these poor countries in the form of neo-colonialism.
2. The developed countries want to control international trade and get a market for
   their products. They even want safe places to invest their capital to maximise
   their profit. Therefore, developed countries want developing countries to
   liberalize their trade and investment.
3. Developing countries should demand advanced technology, financial assistance with a low rate of interest, and liberalization of their immigration laws to absorb skilled laborers.

Question 30. How has liberalization of trade and investment policies helped the globalization process?

Answer:

1. It has helped in the relaxation of rules and regulations on the import and export of
   goods, which has resulted in the free movement of goods and services between countries.
2. It has helped multinational companies expand their business all over the world and integrate international markets.

Question 31. In what ways is an MNC different from the national companies? Highlight any three points of Distinction.

Or

What is the difference between an MNC and a national company?

Answer:

1. MNCs have production units all over the world whereas National companies- within the country.
2. MNCs have foreign investment whereas National Companies do not.
3. National companies have limited investment whereas MNCs have unlimited huge amounts of investment.
4. National companies produce for the local market whereas MNCs produce for the international market.
5. MNCs have direct control over WTO whereas National companies do not.

Question 32. Tax on imports is one type of trade barrier. The government could also place a limit on the number of goods that can be imported. This is known as quotas. Can you explain, using the example of Chinese toys, how quotas can be used as trade barriers? Do you think this should be used? Discuss.

Answer:

In the case of Chinese toys, quotas should be used as a trade barrier so as to limit the entry of Chinese goods and protect Indian producers. Equal footing in the market should be allowed for both Indian and Chinese goods for competition.

Complete restriction of foreign goods will hamper the process of innovation by the local producers thus harming the consumers. Too much liberalization of Chinese products may result in the complete elimination of the Indian producers leaving the consumers with no choice.

Question 33. In the example ‘Debate on Trade Practice’, we saw that the US government gives massive sums of money to farmers for production. At times, governments also give support to promote the production of certain types of goods, such as those which are environmentally friendly. Discuss whether these are fair or not.

Answer:

Supporting its own farmers at the cost of fair international trade cannot be termed as a fair practice. Supporting the production of environmentally friendly products is beneficial for the whole world and every country should follow such practices.

Question 34. How has competition benefited people in India?

Answer:

Competition has benefited the Indians in a positive way. To understand this, let us take the example of the availability of two-wheelers. Before liberalization, there were very few brands of two-wheelers; like Bajaj, Rajdoot, Bullet, and Yezdi.

If someone wanted to buy a Bajaj scooter, the waiting period used to be for a couple of years. Once the markets opened up, many companies came to India. Right now, one can buy a two-wheeler of his choice at his own convenience.

Two-wheelers can be seen even in remote villages of India. All of this could be possible because of competition.

Question 35. Should more Indian companies emerge as MNCs? How would it benefit the people in the country?

Answer:

It is desirable that more Indian companies emerge as MNCs. This will help those companies in expanding their market and thus expanding their financial muscle. This will make India a stronger economy.

A stronger economy is always beneficial for its people. The Indian MNCs too can directly benefit people through various CSR (Corporate Social Responsibility) Programmes.

Question 36. Why do governments try to attract more foreign investment?

Answer:

More foreign investment in a sector helps in increasing economic activities. This helps in employment generation. That is why governments try to attract more foreign investment.

Question 37. What was the main channel connecting countries in the past? How is it different now?

Answer:

Trade was the main channel that connected the countries in the past. Things have not changed much in the present as well. Trade still is the major channel to connect the countries.

However, tourism and study also contribute towards making the world a more interconnected place now.

Question 38. Distinguish between foreign trade and foreign investment.

Answer:

Trade with different countries is called foreign trade. It includes both import and export. Foreign investment is the inflow of capital from another country to our own country.

Foreign investment is just limited to the inward flow of capital, while foreign trade is about the flow of goods.

Question 39. “In recent years China has been importing steel from India”. Explain how the import of steel by China will affect it.

1. Steel companies in China.
2. Steel companies in India.
3. Industries buying steel for the production of other industrial goods in China.

Answer:

1. Chinese companies may find it difficult to compete with the imports.
2. Steel companies in India will see a growth in business.
3. For such companies, more options will translate into better choices.

Question 40. How will the import of steel from India into the Chinese markets lead to the integration of markets for steel in the two countries? Explain.

Answer:

The Chinese companies will make various products and those products would be selling in India as well. Thus, India can be a net exporter of the raw material and an importer of the finished goods. Because of low-cost manufacturing by Chinese companies, Indians can get various products at cheaper prices.

Question 41. What is the role of MNCs in the globalisation process?

Answer:

MNCs play an important role in the process of globalisation. They bring not only their products to a country but also new business policies and cultures. They also help in increasing competitiveness among the Indian companies.

At present, most of us are able to use the latest models of cars and this could be possible because of globalization. Because of the hordes of MNCs in our country, most of the urban Indians have become broad-minded in their outlook.

Question 42. What are the various ways in which countries can be linked?

Answer:

Countries can be linked through trade, tourism, and through educational institutions. Nowadays, internet and telecommunication are also helping in interlinking different countries of the world.

NCERT Solutions For Class 10 Economics Chapter 4 Globalisation And The Indian Economy Multiple Choice Questions

Question 1. Which of the following measures is introduced in India to attract foreign investment?

1. Establishment of SEZ
2. Establishment of private industrial estates
3. Establishment of private companies
4. All of the above.

Answer: 1. Establishment of SEZ

Question 2. Globalization has resulted into

1. Failure of large enterprise
2. Failure of small and weak enterprise
3. Failure of the MNCs
4. Any of these.

Answer: 1. Failure of large enterprise

Question 3. Flexibility in labor laws means

1. Ignoring rules necessary for organized sector
2. Possibility of hiring workers for a short period.
3. Both (1) and (2)
4. None of these.

Answer: 2. Possibility of hiring workers for a short period.

Question 4. Which of the following is a major drawback of globalisation1?

1. Rising prices
2. Low quality
3. Rising competition
4. All of the above.

Answer: 4. All of the above.

Question 5. Which of the following features is common with globalisation?

1. Improved quality
2. Greater choice of a variety
3. Lower price
4. All of these.

Answer: 4. All of these.

Question 6.Which is the most favorite industry of the MNCs

1. Cosmetics
2. Medicines
3. Cell-phones
4. All of these.

Answer: 4. All of these.

Question 7. Globalization has benefited most, which of the following in India?

1. Rural consumer
2. Normal consumer
3. Well-off urban consumer
4. None of the above

Answer: 4. All of these.

Question 8. WTO wants

1. Free trade
2. Fairtrade
3. Free and Fairtrade
4. None of these.

Answer: 3. Free and Fairtrade

Question 9. In 2006, WTO had ____ member countries.

1. 188
2. 149
3. 55
4. 200.

Answer: 2. 149

Question 10. Which of the following agencies promotes globalisation?

1. RBI
2. State Bank of India.
3. WTO
4. None of these.

Answer: 3. WTO

Question 11. Which of the following statements is true for globalisation?

1. There is no trade barrier
2. Liberalisation of foreign trade
3. Liberalization of foreign investment
4. All of these.

Answer: 4. All of these.

Question 12. Choose the correct option. Globalization, by connecting countries, shall result in

1. Lesser competition among producers
2. Greater competition among producers
3. No change in competition among producers
4. None of them.

Answer: 2. Greater competition among producers

Question 13. Which of the following is not an MNC?

1. Tata Motors
2. Infosys
3. A Sugar Mill
4. Ranbaxy

Answer: 3. A Sugar Mill

Question 14. Which of the following is true?

1. MNCs order production to small producers
2. MNCs only produce the whole production
3. MNCs get goods produced through small producers and sell under their own brand name
4. None of the above.

Answer: 3. MNCs get goods produced through small producers and sell under their own brand name

Question 15. MNCs start their operation by…

1. Providing additional investments
2. Providing latest technology
3. Providing international marketing network technology
4. All of these.

Answer: 1. Providing additional investments

Question 16. An MNC produces goods through

1. Simple Ways
2. Complex way
3. Use of unskilled labor
4. None of these

Answer: 3. Use of unskilled labor

Question 17. Which of the following is the most important function of an MNC?

1. Controls overproduction in a region.
2. Controls overproduction within a nation.
3. Controls overproduction and trading within a nation.
4. Any of these.

Answer: 3. Controls overproduction and trading within a nation.

Question 18. Which of the following had a rapid transformation in recent years in India?

1. Local trade
2. Internal trade
3. International trade
4. Market trade

Answer: 3. International trade

Question 19. Which of the following is the best example of globalisation? 

1. MNCs
2. Domestic Trade
3. Local Trade
4. All of these.

Answer: 1. MNCs

Question 20. Liberalisation means

1. Free trade
2. No government interference
3. Private trade
4. Any of these

Answer: 1. Free trade

Question 21. Globalization, by connecting countries, shall result in.

1. Less competition among producers.
2. Greater competition among producers.
3. No change in competition among producers.

Answer: 2. Greater competition among producers.

NCERT Solutions For Class 10 Economics Chapter 4 Globalisation And The Indian Economy Statement Based Questions

Question 1. In the following example, underline the words describing the use of technology in production and answer the question based on it.

1. A news magazine published for London readers is to be designed and printed in Delhi. The text of the magazine is sent through the Internet to the Delhi office. The designers in the Delhi office get orders on how to design the magazine from the office in London using telecommunication facilities. The design is done on a computer. After printing, the magazines are sent by air to London. Even the payment of money for designing and printing from a bank in London to a bank in Delhi is done instantly through the Internet, (e-banking)!
2. How is information technology connected with globalization? Would globalization have been possible without the expansion of IT?

Answer:

1. The words that describe the technology in the above example are the Internet, telecommunication facilities, design, and printing.
2. Information Technology has played an important role in the process of globalization. It has helped people to get connected to different corners of the world. This has been made possible through the Internet. The use of the internet has dramatically transformed the way business is conducted around the world. Nowadays, physical products are also being transformed through the Internet along with other services. It is only because of information technology that globalization has taken such a vast form. It has been effective and profitable with the use of information technology.

Question 2. Complete the following statement to show how the production process in the garment industry is spread across countries.

The brand tag says ‘Made in Thailand but they are not Thai products. We dissect the manufacturing process and look for the best solution at each step.
We are doing it globally. In making garments, the company may, for example, get cotton fiber from Korea, ……..

Answer:

Ward and buttons from France, designed the garment in Italy, manufactured cloth in China, garment stitched in Thailand, and sold them all over the world.

Question 3. Fill in the blanks.

WTO was started at the initiative of 1 country. The aim of the WTO is to 2. WTO establishes rules regarding 3 or all countries and sees that 4. In practice, trade between countries is not 5. Developing countries like India have 6. whereas developed countries, in many cases, have continued to provide protection to their producers.

Answer:

1. developed
2. liberalize
3. International trade
4. these rules are obeyed
5. fully free
6. remove trade barriers

NCERT Solutions For Class 10 Economics Chapter 4 Globalisation And The Indian Economy Passage-Based Questions

Question 1. Read the passage and answer the questions.

Ford Motors, an American company. Read the passage and answer the question 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 ₹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.

1. Would you say Ford Motors is an MNC? Why?

Answer:

Yes, because Ford Motors has production facilities spread over 26 countries of the world. Hence, it can be termed as an MNC.

2. In what ways will the production of cars by Ford Motors in India lead to the interlinking of production?

Answer:

The company is making engines and bodies at its plant. It is procuring other components from various suppliers which operate in India. Even the designing of some of the new models has been done in India. So, India is providing a perfect base for all the operations related to the production of cars for the Ford Motor. Hence, it can be said that proper interlinking of production is happening in India for this company.

Question 2. What can be done by each of the following so that the workers can get a fair share of benefits brought by globalisation’?

1. Government
2. Employers at the exporting factories
3. MNCs
4. Workers.

Answer:

1. The government should enforce rules and regulations to safeguard the interests of workers.
2. Employers should provide good salaries, social security net, and other facilities to the workers.
3. MNCs should refuse to procure from those manufacturers who do not provide proper facilities to their workers.
4. Workers should be aware of their rights. They should form unions so that they can have bargaining leverage with their employers.

Question 3. Recent studies point out that small producers in India need three things to compete better in the market

1. Better roads, power, water, raw materials, marketing and information network
2. Improvements and modernization of technology
3. Timely availability of credit at reasonable interest rates.

1. Can you explain how these three things would help Indian producers?
2. Do you think the MNCs will be interested in investing in these? Why?
3. Do you think the government has a role in making these facilities available? Why?
4. Can you think of any other step that the government could take? Discuss.

Answer:

1. Better and improved infrastructure, improved and modernized technology, and credit facilities would certainly affect:
   • The quality of products (of international standard),
   • The per unit cost of production would come down and
   • Indian goods would stand in competition in world markets.
2. MNC’s main motive is to earn huge profits and amass a lot of wealth. So, they are only interested in investing in those goods and services that fill their coffers in a short time.
   • As they want quick returns; they would be least interested in investing in those items that do not bring them quick returns. As such, they may not be interested in investing in these areas.
3. Since these facilities cannot and will not be provided by both private capital and foreign capital, the government has to step in and assume responsibility for investing in these areas.
4. Besides providing these facilities, the government can undertake training programs to upgrade the management skills of small producers.

The government also takes the initiative to upgrade the skill levels of workers and other personnel working in these activities. In other words, the government must invest in human development programs.