Chapters

Solutions

Globalisation and the Indian Economy 10th Class Social Economics 4th Lesson

Question 1.
What do you understand about globalisation? explain in your own words?

Answer: Globalisation refers to the process of increased interconnectedness and integration between countries through foreign trade and foreign investments

  1. It involves the spread of production and markets by multinational corporations (MNCs) across different countries.
  2. MNCs set up factories and offices in regions with cheap labour and resources
  3. Factors facilitating globalisation include advancements in technology, trade liberalisation, and pressure from international organisations like the WTO
  4. Globalisation has both positive and negative effects on countries, with benefits for consumers, skilled producers, and large companies, but challenges for small producers and workers
  5. It has led to the integration of production and markets, enabling greater trade and competition between countries
  6. Globalisation has influenced the development process and requires analysis of local examples and activities
  7. Additional resources and teaching methods can be utilised to enhance understanding of globalisation
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 put barriers to foreign trade and foreign investment to protect domestic producers from foreign competition

  1. These barriers were necessary as industries were just emerging in the 1950s and 1960s and competition from imports could hinder their growth
  2. The government wished to remove these barriers to allow Indian producers to compete globally and improve their quality
  3. The decision to remove barriers was supported by powerful international organisations
  4. Liberalisation of foreign trade and investment was introduced to allow for easier import and export of goods and the establishment of foreign companies in India
Question 3.
How would flexibility in labour laws help companies?

Answer: Flexibility in labour laws can help companies by:

  1. Reducing the cost of labour for the company
  2. Allowing companies to hire workers on a shor - term basis during periods of intense work pressure.
  3. Providing companies with the ability to adjust their workforce according to fluctuating market demands
  4. Enabling companies to rapidly adapt to changes in the business environment
Question 4.
What are the various ways in which MNCs set up, control or produce in other countries?

Answer:

  1. MNCs set up production in countries where they can get cheap labour and resources
  2. MNCs may set up production jointly with local companies
  3. MNCs control production by placing orders with small producers
  4. MNCs spread their production by setting up partnerships with local companies, using local companies for supplies, competing with or buying out local companies
  5. MNCs may set up factories and offices for production
  6. MNCs may have research centres in one country, manufacture components in another, assemble products in different locations, and provide customer care services through call centres in another country
  7. MNCs may buy existing local companies to expand production
  8. MNCs may set up production in collaboration with local companies
Question 5.
Why do developed countries want developing countries to liberalise their trade and investment? What do you think the developing countries should demand in return?

Answer: Developed countries want developing countries to liberalise their trade and investment because it creates a larger market for their products and services

  1. It allows developed countries to access cheaper labour and resources in developing countries, which can reduce production costs.
  2. Developing countries should demand in return
  3. Fair access to the markets of developed countries, with reduced trade barriers and tariffs
  4. Technology transfer and knowledge sharing to enhance their own industries
  5. Support for the development of domestic industries and infrastructure
  6. Protection of their own local industries and workers from unfair competition
  7. Recognition of their unique economic and social challenges, and flexibility in meeting international standards and agreements
  8. Assistance in addressing issues related to environmental and social sustainability
  9. Collaboration in global decision - making processes to ensure their voices are heard and their interests are represented
Question 6.
The Impact of globalisation has not been uniform." Explain this statement?

Answer: Globalisation has affected different individuals and groups in different ways

  1. People with education, skills, and wealth have benefited the most from globalisation
  2. They have had access to better job opportunities, improved living standards, and a wider range of consumer goods
  3. On the other hand, many small producers and workers have not shared in the benefits of globalisation
  4. They have faced increased competition, job insecurity, and exploitation
  5. The impact of globalisation has varied across different sectors and regions
  6. Some industries and areas have experienced rapid growth and development, while others have struggled to compete
  7. The benefits and drawbacks of globalisation have not been evenly distributed among countries
  8. Developed countries have generally benefited more from globalisation, while developing countries have faced challenges and uneven development
  9. The impact of globalisation on inequality and poverty levels has also been uneven
  10. Some argue that globalisation has widened the gap between the rich and the poor, while others believe it has the potential to reduce poverty through increased trade and investment
Question 7.
How has liberalisation of trade and investment policies helped the globalisation process?

Answer: Liberalisation of trade and investment policies has helped the globalisation process in the following ways:

  1. Removal of barriers and restrictions on foreign trade and foreign investment
  2. Increased import and export of goods and services
  3. Facilitated the setting up of factories and offices by foreign companies in different countries
  4. Encouraged competition among producers, leading to improved quality and lower prices
  5. Attracted foreign investment by multinational corporations (MNCs) to different countries
  6. Enabled the integration of production and markets across countries
  7. Increased the flow of technology, knowledge, and resources between countries
  8. Encouraged the growth of industries and services, creating new jobs
  9. Supported economic development and growth of developing countries
  10. Enhanced Opportunities for consumers through a wider range of choices and improved living standards
Question 8.
How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here?

Answer: Foreign trade connects markets in different countries

  1. Integration of markets occurs when goods travel between countries through trade
  2. The choice of goods in markets increases, and prices become more equal
  3. Producers in different countries compete againsteach other even if they are far apart
  4. Example: Chinese toys being exported to India, leading to competition and lower prices, causing Indian toy makers to face losses and Chinese toys becoming popular in the Indian market
Question 9.
Globalisation will continue in the future! Can you imagine what the world would be like twenty years from now? Give reasons for your answer?

Answer: Globalisation is likely to continue in the future as it has been an ongoing process for the past few decades

  1. With advancements in technology, particularly in communication and transportation, the world will become even more interconnected
  2. There will be further integration of markets, with goods and services being easily traded across borders
  3. The movement of people between countries may increase, as people seek better job opportunities and education
  4. Multinational corporations (MNCs) will continue to play a major role in the globalisation process, expanding their operations to other countries
  5. The global economy will become more interdependent, with countries relying on each other for trade and investment
  6. However, the impact of globalisation may not be uniform, with some countries and individuals benefiting more than others
  7. There may be increased competition among producers, leading to improved quality - and lower prices for consumers
  8. Environmental concerns may become a greater focus, with efforts to promote sustainable practices and reduce carbon emissions
  9. Overall, the world will become more connected and interdependent, but the consequences of globalisation will depend on how it is managed and regulated
Question 10.
Supposing you find two people arguing: One is saying globalisation has hurt our countrys development. The other is telling, globalisation is helping India develop. How would you respond to these arguments?

Answer: Globalisation has had both positive and negative effects on Indias development. It is important to consider both sides of the argument

Arguments for globalisation helping India develop :
  1. Increased foreign investments by multinational corporations have brought economic growth and job opportunities
  2. Integration of markets through foreign trade has expanded the countrys export capacity and access to international markets
  3. Indian companies have also benefited from globalisation, with some becoming multinational themselves
Arguments for globalisation hurting Indias development:
  1. Not everyone has benefited equally from globalisation. It has primarily benefited those with education, skills, and wealth, while leaving many without access to the benefits
  2. The conditions of work for many workers have worsened, particularly in the unorganised sector, where job security is minimal
  3. There may be challenges in protecting the interests of the poor and vulnerable sections of society, as globalisation can be driven by the priorities of rich and powerful stakeholders
  4. It is important to consider the specific evidence and context when evaluating the impact of globalisation on Indias development. Different factors and perspectives need to be taken into account
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 MNCs in India. 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:

  1. globalisation
  2. interconnectedness
  3. its is beneficial for them
  4. competition
  5. imports
  6. competition
Question 12.
Match the following?
  1. MNCs buy at cheap rates from small producers (a) Automobiles
  2. Quotas and taxes on imports are used to sports regulate trade (b) Garments, foot wear, items
  3. Indian companies who have invested abroad (c) Call centres
  4. IT has helped in spreading of production of services (d) Tata Motors, Infosys, Ranbaxy
  5. Several MNCs have invested in setting up factories in India for production (e) Trade barries

Answer:

  1. - b
  2. - e
  3. - d
  4. - c
  5. - a
Question 13.
Choose the most appropriate option?

Answer:

  1. The past two decades of globalisation has seen rapid movements in ( a )
  1. goods, services and people between countries
  2. goods, services and investments between countries
  3. goods, investments&rad people between countries
  1. ii. The most common route for investments by MNCs in countries around the world is to (c)
  1. set up new factories
  2. buy existing local companies
  3. form partnerships with local companies
  1. iii. Globalisation has led to improvement in living conditions (c)
  1. of all the people
  2. of people in the developed countries
  3. of workers in the developing countries
  4. none of the above

AP 10th Class Social Economics 4th Lesson InText Questions and Answers Globalisation and the Indian Economy

Activities
Question 1.
Take some branded products that we use everyday (soaps, toothpaste, garments, electronic goods, etc.). Check which of these are produced by MNCs?

Answer:

  1. Soaps : Products like Dove, Lux, and Pears are produced by MNCs such as Unilever
  2. Toothpaste : Brands like Colgate and Sensodyne are produced by MNCs
  3. Garments : Many branded clothing items like Nika, Adidas, and Levis are produced by MNCs
  4. Electronic goods: Companies like Samsung, Apple, and Sony produce electronic goods and gadgets
Question 2.
Take any Indian industry or service of your choice. Collect information and photographs from newspapers, magazine clippings, books, television, internet, interviews with people on the following aspects of the industry?
  1. Various producers/companies in the industry
  2. Is the product exported to other countries
  3. Are there MNCs among the producers
  4. Competition in the industry
  5. Conditions of work in the industry
  6. Has there been any mqjpr change in the industry in the past 15 years
  7. Problems that people in the industry face

Answer:

  1. Various producers/companles lii the Industry
  1. Some of the major textile producers in India include Arvind Limited, Raymond Limited, Welspun India Limited, and Grasim Industries Limited
  2. There are also many small and medium-sized enterprises that contribute to the industry
  1. Is the product exported to other countries
  1. Yes, India is a major exporter of textiles and clothing products, with around 15% of global textile and apparel exports coming from India
  2. The United States, the United Arab Emirates, and the United Kingdom are some of the major importers of Indian textiles
  1. Are there MNCs among the producers : Yes, there are several multinational corporations (MNCs) that are involved in the Indian textile industry, including Levi Strauss & Co., Gap Inc., and Adidas
  2. Competition in the industry
  1. The Indian textile industry faces stiff competition from other countries, particularly China and Bangladesh
  2. However, the industry has been able to maintain its competitiveness by focusing on quality, design, and innovation
  1. Conditions of work in the industry
  1. The textile industry in India employs a large number of people, both skilled and unskilled
  2. However, there have been concerns about poor working conditions, low wages, and lack of safety measures in some factories
  1. Has there been any major change in the industry in the past 15 years
  1. Yes, there have been several major changes in the Indian textile industry over the past 15 years
  2. For instance, there has been a shift towards the use of technology and automation in production processes
  3. The industry has also witnessed a growing trend towards sustainable and eco¬friendly practices
  1. Problems that people in the industry face
  1. Some of the major problems faced by people in the Indian textile industry include low wages, poor working conditions, and lack of safety measures
  2. There have also been concerns about the environmental impact of textile production and the need for more sustainable practices
Question 1.
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 butthey me not,Thai products. We dissect the, manufacturing process and look far the bestsolutkmat each step: Weare doing it globally. In making garments, the company may, for example, get c&tton fibre from Korea,..

Answer: The production process in the garment industry is spread across countries

  1. The company may get cotton fibre from Korea
  2. The manufacturing process is dissected globally to find the best solution at each step
  3. The brand tag may say Made in Thailand but the products are not necessarily made in Thailand
  4. Global sourcing and production is a common practice in the garment industry
Question 2.
Read the passage given below and answer the questions?
Ford Motors, an American company, is one of the, worlds 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 2017, Ford Motors was selling 88,000 cars in the Indian markets, while another 1,81,00 cars here"exported from India to South Africa, Mexico, Brazil and United States of America The company warm to develop Ford Indians a component supplying base for its other Plants across the globe
Question 1.
Would you say Ford Motors is a MNC? Why?

Answer: Ford Motors is considered a multinational corporation (MNC) because it has production facilities in multiple countries around the world

Question 2.
What is foreign investment? How much did Ford Motors invest in India?

Answer: Foreign investment refers to the investment made by a company from one country in another country. Ford Motors invested Rs.1700 crore in setting up a plant in India

Question 3.
By setting up their production plants in India, MNCs such as Ford Motors tap the advantage not only of the large markets that countries such as India provide, but also the lower costs of production. Explain the statement?

Answer: By setting up production plants in countries like India, MNCs like Ford Motors can benefit from both the large markets and lower production costs This is because they can sell their products to a large customer base while also taking advantage of cheaper . labour and resources

Question 4.
Why do you flunk the company wants to develop India as a base for manufacturing car components for its global operations? Discuss the following factors?
  1. cost of labour and other resources in India
  2. the presence of several local manufacturers who supply auto - parts to Ford Motors
  3. closeness to a large number of buyers in India and China

Answer: The company wants to develop India as a base for manufacturing car components for its global operations due to factors such as:

  1. Cost of labour and other resources in India are relatively lower compared to other countries
  2. The presence of several local manufacturers who can supply auto II - parts to Ford Motors reduces logistics costs and enhances efficiency
  3. Indias proximity to a large number of buyers in both India and China allows for easier access to these markets
Question 5.
In what ways will the production of cars by Ford Motors in India lead to interlinking of production?

Answer: The production of cars by Ford Motors in India will lead to interlinking of production in several ways, such as:

  1. The supply chain will involve sourcing raw materials and components from different locations, resulting in a complex network of inputs from various countries
  2. The exporting of cars to different countries creates interdependencies and global market linkages
Question 6.
6. In what ways is a MNC different from other companies?

Answer: MNCs differ from other companies in various ways, including:

  1. They operate in multiple countries and have production facilities internationally
  2. They have a global customer base and market presence
  3. They often have significant financial resources and global brand recognition
Question 7.
Nearly all major multinationals are American, Japanese or European,such as Nike, Coca-Cola, Pepsi, Honda, Nokia. Can you guess why?

Answer: Major multinationals are primarily American,. Japanese, or European due to factors such as:

  1. Historical dominance of these countries in terms of economic power and technological advancements
  2. Early industrialization and development of multinational corporations in these regions
  3. Strong international trade relations and alliances between these countries
  4. Market access and favourable business environments in these regions
Question 1.
What was the main channel connecting countries in the past? How is it different now?

Answer: In the past, the main channel connecting countries was foreign trade, where goods were traded between different markets, resulting in the integration of markets in different countries. This process involved the export of raw materials and food stuff from colonies like India and the import of finished goods from other countries. However, now, the main channel connecting countries is globalisation, which involves not only foreign trade but also foreign investments by multinational corporations (MNCs), leading to greater interconnectedness between countries. The integration of markets is now facilitated through the movement of goods, services, investments, and technology between countries

Question 2.
Distinguish between foreign trade and foreign investment?

Answer: Foreign trade refers to the exchange of goods and services between countries, involving the import and export of products

  1. It focuses on the movement of goods and services across borders
  2. On the other hand, foreign investment refers to the investment made by multinational corporations (MNCs) in other countries, involving the setting up of offices and factories to carry out production activities in regions where resources and labour are cheaper
  3. It focuses ori the investment of capital in foreign countries
  4. While foreign trade deals with the movement of products, foreign investment deals with the establishment of production facilities in foreign countries
Question 3.
In recent years China has been importing steel from India. Explain how the Import of steel by China will affect?
  1. steel companies in China
  2. steel companies in India
  3. industries buying steel for production of other industrial goods in China

Answer: The import of steel from India by China will affect:

  1. Steel companies in China: The import of steel from India may pose competition for steel companies in China. They may face challenges in terms of pricing, market share, and profitability due to the availability of cheaper stee^from India
  2. Steel companies in India: The import of steel by China may have a positive impact on-steel companies in India. It can create an opportunity for them to expand their export market and increase their production to meet the demand from China. This can lead to growth and profitability for Indian steel companies
  3. Industries buying steel for production of other industrial goods in China: The import of steel from India into China can benefit industries in China that require steel as a raw material for the production of other industrial goods. They can utilise the cheaper imported steel from India and potentially reduce , their production costs, leading to increased competitiveness in the market
Question 4.
How will the import of steel from India into the Chinese markets lead to integration of markets for steel in the two countries? Explain?

Answer: The import of steel from India into the Chinese markets will lead to the integration of steel markets in the two countries through the following ways:

  1. Increased trade volume: The import of steel from India will increase the trade volume between India and China. this will deepen their economic ties and strengthen their bilateral trade relationship
  2. Market interdependence: As China becomes more reliant on steel imports from Ipdia, its steel market will become interdependent with the Indian steel market. This means that any changes in the Indian steel market, such as fluctuations in prices or supply, will directly impact the Chinese steel market, and vice versa
  3. Technology and knowledge transfer: The import of steel from India may facilitate the transfer of advanced technologies and knowledge related to steel production from Indian steel companies to Chinese steel companies. This can contribute to the growth and development of the Chinese steel industry
  4. Market competition and efficiency : The import of steel from India may increase competition in the Chinese steel market, leading to improved market efficiency and innovation. Chinese steel companies may be motivated to enhance their production processes, reduce costs, and improve the quality of their products to remain competitive in the market
  5. Economic integration: The integration of steel markets between India and China can contribute to the overall economic integration between the two countries. It can foster closer economic ties, promote investment and collaboration, and create opportunities for mutual growth and development
Question 1.
What is the role of MNCs in the globalisation process?

Answer: The role of MNCs in the globalisation process includes:

  1. Spreading their production to other countries
  2. Increasing foreign trade and foreign investments
  3. Integrating production and markets across countries
  4. Facilitating the flow of goods, services, investments, and technology between nations
Question 2.
What are the various ways in which countries can belinked?

Answer: Various ways in which countries can be linked include:

  1. Foreign trade and exports
  2. Foreign investments by MNCs
  3. Integration of production and markets
Question 3.
Choose the correct option. Globalisation, by connecting countries, shall resultion?
  1. lesser competition among producers
  2. greater competition among producers
  3. no change in competition among producers

Answer: The correct option for the impact of globalisation on competition among producers is Answer :(b)

Question 1.
In the above example, underline the words describing the use of technology in production?

Answer: In the above example, the words describing the use of technology in production are "rapid improvements in technology" and "technology, particularly IT, has played a big role in organising production across countries"

Question 2.
How is information technology connected with globalisation? Would Globalization have been possible without expansion of IT?

Answer:

  1. Information technology is connected with globalisation as it enables rapid communication, data sharing, and coordination across countries
  2. It allows companies to set up global supply chains, manage international operations, and connect with customers worldwide
  3. Globalisation would not have been possible without the expansion of IT as it has facilitated the flow of information, goods, and services globally
Question 1.
What do you understand about liberalisation of foreign trade?

Answer: Liberalisation of foreign trade refers to the process of removing barriers and restrictions on international trade, allowing businesses to freely make decisions about what they want to import or export

Question 2.
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:

  1. Quotas can be used as Hrarie barriers by placing a limit on the number of goods that can be imported, effectively restricting the amount of foreign products entering the domestic market
  2. In the example of Chinese toys, quotas on imports would limit the quantity of Chinese toys that can be brought into the country, reducing their availability in the domestic market and protecting domestic toy manufacturers
  3. Whether quotas should be used as trade barriers is a matter of debate
  4. Some argue that quotas can protect domestic industries by reducing competition from imported goods, allowing them to grow and develop
  5. Others argue that quotas can lead to higher prices for consumers and less variety in the market, limiting choices for consumers
  6. The decision on whether to use quotas should be based on a thorough analysis of the specific industry and its impact on the overall economy
Question 1.
Fill in the t anks. WTO was started at the initiative of _____ countries. The aim of the WTO is to _____. WTO establishes rules regarding _____ for all countries, and sees that _____ In practice, trade between countries is not _____ Developing countries like India have _____, whereas developed countries, in many cases, have continued to provide protection to their producers?

Answer: WTO was started at the initiative of developed countries. The aim of the WTO is to liberalise international trade. WTO establishes rules regarding international trade for all countries, and sees that they are obeyed In practice, trade between countries is not free and fair. Developing countries like India have removed trade barriers, whereas developed countries, in many cases, have continued to provide protection to their producers

Question 2.
What do you think can be done so that trade between countries is more fair?

Answer: Possible solutions for fair trade between countries:

  1. Implement fair trade policies and regulations at the global level
  2. Remove trade barriers and promote free and fair competition
  3. Ensure that labour laws are properly implemented to protect the rights of workers
  4. Support small producers and provide them with necessary resources and assistance to compete
  5. Negotiate for fairer rules and equal representation in international organisations like the WTO
Question3.
In the above example, we saw that the US government gives massive sums of money to farmers for production. At times, governments also give support to promote production of certain types of goods, such as those which are environmentally friendly. Discuss whether these are fair or not?

Answer: Fairness of government support for specific types of goods:

  1. The fairness of government support for specific types of goods, such as environmentally friendly products, can vary depending on the context and intention behind the support
  2. Some argue that government support for environmentally friendly goods promotes sustainable development and protects the environment, which can be considered fair
  3. Others argue that such support may create distortions in the market and prevent fair competition, which may not be fair to other producers
  4. The fairness of government support needs to be assessed based on the overall impact on the economy, environment, and society
Question 1.
How has competition benefited people in India?

Answer: Greater competition among producers has led to improved quality and lower prices for several products, benefiting consumers; particularly the well - off sections in urban areas. Consumers now have a greater choice of products, leading to higher standards of living

Question 2.
Should more Indian companies emerge as MNCs? How would it benefit the people in the country?

Answer: Yes, more Indian companies emerging as MNCs would benefit the people in the country

  1. It would create new jobs and opportunities for local companies supplying goods and services to these MNCs
  2. It would contribute to the growth of the Indian economy and promote technological advancements
Question 3.
Why do governments try to attract more foreign investment?

Answer: Governments try to attract more foreign investment to promote economic growth and development. Foreign investment brings in capital, technology, and expertise, contributing to job creation and increased production. It helps in the development of infrastructure and facilitates the transfer of knowledge and skills

Question 4.
In Chapter 1, we saw what may be development for one may be destructive for others.The setting of SEZs has been opposed by some people in India. Find out who these people are and why they are opposing it?

Answer: Some people in India oppose the setting of SEZs (Special Economic Zones). The reasons for opposition may include displacement of local communities, loss of agricultural land, environmental concerns, and unequal distribution of benefits

Question 1.
What are the ways in which Ravis amsti production unit was affected by risi ng competition?

Answer:

  1. Increased competition led to lower prices for the products produced by Ravis unit
  2. The unit faced difficulty in attracting customers due to the availability of cheaper alternatives
  3. Ravis unit experienced a decrease in sales and revenue
  4. The unit may have had to shutdown or lay off workers due to financial losses
Question 2.
Should producers such as Ravi slop production because their cost of production is higher compared to producers in. other countries? What do you think?

Answer:

  1. it depends on various factors such as the demand for the product, the uniqueness of the product, and the target ntarket
  2. Producers like Ravi can focus on niche markets and produce specialised products that cannot be easily replicated by producers in other countries
  3. They can also invest in improving production processes and technology to reduce posts and increase efficiency
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 modernisation of technology
  3. timely availability of credit at reasonable interest rates. Tan you explain how these three things would help Indian producers? Do you think MNCs will be interested in investing in these? Why? Do you think the government has a role in making these facilities available? Why? Can you think of auy other step thut the government could take? Discuss

Answer: Better infrastructure like roads, power, water, and raw materials would enable smoother production processes, reduce transportation costs, and improve overall efficiency

  1. Improvements and modernization of technology would lead to higher productivity, lower costs, and better quality products
  2. Timely availability of credit at reasonable interest rates would help small producers invest in machinery, expand their production capacity, and develop new products
  3. MNCs may be interested in investing in these facilities as improved infrastructure, technology, and access to credit would create a more favourable business environment and enhance their profitability
  4. The government has a role in making these facilities available as it is responsible for infrastructure development, providing incentives for technology adoption, and . ensuring access to credit through policies and programs
  5. Other steps the government could take include providing skill development programs for workers, promoting research and development, establishing specialised industrial zones, and facilitating collaboration between small producers and MNCs for knowledge transfer and market access
Question 1.
In what way has competition affected workers, Indian exporters and foreign MNCs in tiie garment industry?

Answer: Workers jobs are no longer secure, leading to increased job insecurity and flexibility in employment

  1. Employment conditions have worsened, with workers in both the organised and unorganised sectors facing hardships
  2. Women workers are often denied their fair share of benefits
  3. Indian exporters face pressure to produce goods at cheap rates for MNCs
  4. Foreign MNCs have expanded their investments in India, particularly in industries such as automobiles, electronics, and fast food
  5. The presence of MNCs has created new jobs and opportunities in certain industries
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: Implement and enforce labour laws to protect workers rights and ensure fair working conditions

  1. Provide support and assistance to small producers to enhance their competitiveness
  2. Negotiate for fairer trade and investment rules at the WTO
  3. Collaborate.with other developing countries to resist domination by developed countries in the WTO. Employers at the exporting factories:
  4. Provide fair wages, benefits, and working conditions to workers
  5. Ensure equal opportunities for women workers
  6. MNCs:
  7. Treat workers in their factories and offices equally and provide them with fair wages and benefits
  8. Support local producers and suppliers to promote their development. Workers
  9. Advocate for their rights and demand fair treatment and benefits from employers and MNCs
  10. Organise and participate in workers movements to fight for fair globalisation
Question 3.
One of the present debates in India is whether companies should have flexible policies for employment. Based on what you have read in the chapter, summarise the point of view of the employers and workers?

Answer:

  1. Point of view of Employers :
  • They prefer to employ workers on flexible basis i.e., employ them when required. This means the workers are employed on temporary basis for the period when they one required
  • In case extra woNrk is there for a short period, i.e., in season, the workers can be paid overtime wages
  • In case the work is machinery based and there are only a limited number of machines, workers can be employed in shifts, including night shift. This will ensure delivery of finished products in time to customers
    1. 2.Point of view of Workers:
    • They always prefer permanent employment so that they can have a regular income to look after their families
    • They will then also get the other benefits of regular employment like provident fund, gratuity, etc

Important Question

Globalisation and the Indian Economy AP 10th Class Social Economics 4th Lesson Important Questions

AP 10th Class Social Economics 4th Lesson Important Questions: 8 Marks

Question 1.
How do Multi-National Corporations (MNCs) interlink production across countries?
Explain with examples?

Answer: Multinational Corporations (MNCs) interlink their production across countries in following ways

  • MNCs set up offices and factories for production in regions of other country where they can easily get cheap labour and other resources. This minimise the cost of production end to maximise the profit
  • The production process is divided into small parts and spread out across the globe
  • The MNCs not only sell its finished products globally, but more importantly, the goods and services are produced globally
  • Also, MNCs control production by placing orders around the world with a large number of small producers of items, like garments, footwear, sports items, etc. Then MNC sells these products under its brand name
  • The common route for MNC investments is to buy local companies and then to expand production. For example: Cargill Foods an American MNC had bought over an Indian company Parakh Foods which had their large marketing network in various parts of India and also has a good reputation
  • With this advantage, Cargill is now the largest producer of edible oil in India
Question 2.
Examine the steps taken by the Central and State governments to attract foreign companies to invest in India?

Answer: The steps taken by the central and state governments to attract foreign companies to invest in India are

  • Sezs: Spherical economic zones have been developed in the country
  • They are to have world-class facilities of water, electricity, education, labour etc
  • Industries established in these regions do not have to pay taxes for an initial period of five years
  • Flexibility in Labour laws: Governments allowed flexibility in labour laws i.e., workers were employed on a temporary basis. This meant that workers jobs were no longer secure
  • They had to put in long working hours and nights shifts during the peak season Their income was meagre and the working conditions were poor
  • Liberalisation: Standing around 1991 some far reaching change, were made in the trade policy of India, which attracted foreign investment
Question 3.
Why did the developing countries organize the G-77?
Give three reasons?

Answer:

  • The G-77 is the largest intergovernmental organization of developing countries in the United Nations
  • India is a member of this group. The developing countries of the world organise the G-77 because
  • Developing countries are getting nothing from the growth and development of western economy along with the World bank and International Monetary Fund (IMF). So, they need to organize them as G-77 group
  • Another organization New International Economic Order (NIEO) provides . developing countries a right to control their own resources, helps in the development and the fair pricing of their raw materials and develops market to access the manufacturing goods
  • G-77 wanted a change in the international financial system which was proposed by Bretton Woods Conference. There was no work done for the eradication of poverty and there was ho development in their colonies
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    Question 4.
    How,are our markets transformed in recent years?
    Explain with examples?

    Answer: The markets have been transformed in the following ways

    • The markets of the entire world are interlinked. For example, we can buy any goods & services from other countries by just clicking on our devices
    • Perishable products of other countries are available in local markets in no time due to faster and better transportation network
    • Market has grown multifold and the transactions are happening more on virtual mode
    • We now have a wide variety of products to choose in the market
    • MNCs organise the production, distribution process globally in a complex way. For example Tata Motors, Coca-Cola or Tesla have unique styles of investment plans for different countries
    Question 5.
    How has foreign trade been integrating markets of different countries?
    Explain with examples?

    Answer:

    • The foreign trade provides an opportunity for both producers and buyers to reach beyond the markets of their own country
    • There is a huge competition among producers of one country and producers of other country. Since goods transported from one country to another
    • Now there is competition among buyers they have more choice of goods, over domestically produced goods
    • With the opening of trade, goods travel from one market to another and varieties of goods on the markets rises. Price of similar goods in two markets tend to become stabilise
    • For Example, During Diwali season, buyers in India have the option of choosing between Indian and Chinese lights and bulbs
    • Chinese lights manufacturers gets an opportunity to expand their business as these lights are cheap and available in larger quantities
    Question 6.
    Technology is the vital force in the modern form of globalisation." Explain the statement with suitable examples?

    Answer:

    1. Technology has led to the emergence of the global village. For example, th 3 world wide web has reduced the barriers of time and place in business dealings
    2. Technology has made much faster delivery of goods and services across long distances possible at lower costs
    3. Technology in the areas of telecommunications, computers and Internet is used to contact one another around the world, to access information and to commi/nicate from remote areas
    4. Communication between different countries has been revolutionised because of technology
    5. Satellite communication devices are used very rapidly
    6. Buyers and sellers can now make transactions at any time and in any part of the globe
    Question 7.
    Describe the contribution of technology in promoting the process of globalisation?

    Answer: The technology has contributed immensely in promotion the process of globalisation in the following ways

    • Faster made delivery of goods faster across long distances possible at cheaper costs
    • The technology in the areas of telecommunication, computers, internet, mobiles has changed rapidly. It technology has facilitated the satellite communication devices
    • Telecommunication facilities are used to make contact with one another around the world at any time
    • The facility of video conferencing or one to one video calling has become common in present days
    • It also allows us to send instant electronic mail (e-mail), and voice mail across the world at negligible costs
    Question 8.
    How has improvement in technology stimulated the globalisation process?
    Explain with five examples?

    Answer:

    • Technical equipment as cell pbpne, internet, telephone and microchip have contributed to globalization by exchanging ideas, capital and people to make convenient to move from one place to another as a fast pace to stimulate the process of globalization
    • With the help of internet we can find anything on single click
    • Transportation technology has stimulated the globalization process in the following ways: Faster trains connecting every nook and corner of a country and faster planes that cover the distance within a few hours have enabled the faster delivery of goods
    • Globalization is defined as the set of processes (economic, social, cultural, technological, and institutional) that contribute to the relationship between societies and individuals around the world
    Question 9.
    Explain any five steps taken by the Central and State. Governments to attract foreign investments?

    Answer: The Central and the State governments Eire taking special steps to attract foreign - companies to invest in India

    1. Special Economic Zones are being set up
    2. Special Economic Zones are to have world class facilities in the field of electricity, water, roads, transport, storage recreational and educational facilities
    3. Companies which set up production units in the SEZS, do not have to pay taxes for an initial period of five years
    4. Government has allowed flexibility in the labour laws. In recent years, the government has allowed companies to ignore many of rules and regulations
    5. Companies can hire workers for short periods when there is intense pressure of work. This is done to reduce the cost of labour for the company
    Question 10.
    The impact of globalisation has not been uniform." Explain the statement with suitable examples?

    Answer:

    • Due to the ushering in of new technologies, output increases, but employment opportunities are limited, especially in rural areas, where over 60% of the population lives. This has a negative impact on employment and real wages
    • Globalisation is mainly beneficial to large capitalists, industries and large companies
    • The small-scale industries are not able to compete with large players such as multinational corporations
    • Globalisation mainly allows developing and underdeveloped economies to supply raw material to developed countries
    • On the one hand, it has increased the GDP investment, and volume of trade, which in turn gives employment to millions and facilitates the expansion of companies like Tata Motors, etc. However, on the other hand, it has increased income inequality, increased the contractualization of labour, and shifted hazardous industries to developing countries. This shows the uneven impact of globalisation
    Question 11.
    Assess the impact of globalization on India and its people?

    Answer:

    • In all areas of development, there has been a tremendous increase in foreign investment in the nation
    • The social, financial, cultural, and political spheres are all significantly impacted by globalisation
    • Due to improvements in transportation and information technology, globalisation has taken a giant leap
    • Due to the skill and knowledge a foreign company offers, Indian firms are increasing their compensation, which indirectly has a positive impact on globalisation
    • Both the economy and the standard of living have improved in India
    • Numerous cities are seeing improvements in their lifestyles, business growth, and living standards
    Question 12.
    The impact of globalisation has hot been uniform." Explain with examples?

    Answer: The impact of globalisation has not been uniform because

    • Small manufacturers and retailers have been hard hit due to globalisation
    • Many illiterate and poor people lost their jobs due to closure of small units and change in technology
    • The developed countries exploits resources from underdeveloped countries
    • Competition from companies in developed countries also cripple industries of under developed and developing countries
    • Developed countries took resources from underdeveloped countries at cheap rate and exported costly finished products to underdeveloped countries
    • Globalisation has been beneficial only for developed countries. And had a bad impact on the underdeveloped and developing countries
    Question 13.
    Analyse any five positive effects of globalisation on the Indian economy?

    Answer: The positive impacts of globalisation on Indian economy are

    • The improvements in the transportation technology has made much faster delivery - of goods across long distances possible lower rates
    • New jobs have been created in industries where MNCs have invested such as electronics, cell phones etc
    • The invention and use of computer, internet, mobile phone, fax, etc., has made contact with each other around the world quite easy
    • Now these exists a wide choice of goods and services in the market
    • The latest models of digital cameras, mobile phones and television made by the leading manufactures of the world are available in the markets
    • These products are affordable as well as within reach of the people
    • Some Indian companies have become multinational by due to globalisation, such as Tata Motors, Ranbaxy, Infosys etc
    Question 14.
    "Globalization and greater competition among producers has been advantageous to consumers. Support the statement with examples?

    Answer: Globalization and greater competition among producers- both local and foreign, has been of advantage to consumers in the following ways

    • Consumer can enjoy improved quality at lower prices for several products. This has led to higher standard of living
    • Companies have invested in new technologies to raise their production quality to compete with the MNCs thus, ensuringthat consumers get better quality products get satisfied
    • Indian companies has collaborated with MNCs to produce more functional and advanced products, thus, benefitting the consumers
    • There is great choice available to the consumers in goods
    • The quality Of goods has been improved and due to the competition the prices of various products has decreased
    Question 15.
    "Globalisation has been advantageous to consumers as well as to producers." Support the statement with suitable examples?

    Answer:

    • Globalization allows companies to find lower-cost ways to produce their products
    • It also increases global competition, which drives prices down and creates a larger variety of choices for consumers
    • Lowered costs help people in both developing and already-developed countries live better on less money
    • They have greater choice. Better quality of products is available for consumption due to competition
    • It has reduced the cost of goods and services considerably
    • Producers now have access to international markets for their products
    Question 16.
    How do multinational corporations contribute to the process of globalisation?

    Answer:

    1. Multinational corporations (MNCs) contribute to the process of globalisation by spreading their production to other countries and setting up factories and offices where they can find cheap labour and resources
    2. MNCs play a major role in the integration of production and markets across countries, as they engage in foreign trade and foreign investment
    3. MNCs buy at cheap rates from small producers in different countries and control a large part of foreign trade
    4. MNCs invest in countries around the world, either by setting up new factories, buying existing local companies, or forming partnerships with local companies
    5. MNCs contribute to globalisation by exporting goods and services, as well as by promoting technology transfer and investment between countries
    6. MNCs have enabled some large Indian companies to become multinational themselves, expanding their operations worldwide
    7. MNCs have created new opportunities for companies providing services, particularly in the IT sector, as tasks like data entry, accounting, and engineering can be done cheaply in countries like India and exported to developed countries
    Question 17.
    What are the major drivers of globalisation and how do they enable integration of geographically distant economies?

    Answer:

    1. Rapid growth in multinational corporations seeking global presence and operational flexibility
    2. Developments in transportation technology like container shipping and air freight reducing cost of trade
    3. Dramatic improvements in communication technology like internet, mobile and video conferencingv
    4. Liberalisation of trade and investment policies by governments across the world
    5. Growth of global organisations like WTO which formulate rules and agreements to promote trade
    6. Pressure from developed countries and IMF - IWorld Bank to open up developing country markets
    Question 18.
    How are multinational companies facilitating integration of production and markets across borders?

    Answer:

    1. Setting up manufacturing facilities and service operations in multiple locations worldwide
    2. Outsourcing and partnering with local companies taking advantage of resources, skills and markets
    3. Intra - company trade within the MNC network accounts for significant part of global trade flows
    4. Transfer of capital, technology, ideas and people on a global scale within MNC networks
    5. Fragment production across locations based on cost, resources and expertise available
    6. Investments in developing nations to tap low cost workforce and serve growing local markets
    Question 19.
    What are the different ways in which multinational corporations exert control over operations in host countries?

    Answer:

    1. Set up wholly owned subsidiaries giving them full control over operations
    2. Take oyer established local companies to acquire their technology, brands and distribution network
    3. Form joint ventures and partnerships with local companies to access their market knowledge
    4. Outsource manufacturing to local contractors and suppliers to lower costs of production
    5. Control marketing of products through advertising and influence buyer preferences
    6. Dictate terms like price, quality, delivery schedule for outsourced production
    Question 20.
    How does foreign trade lead to integration of markets across countries?
    Explain the process?

    Answer:

    1. Imports allow access to goods and services from different countries thereby expanding choice for domestic consumers
    2. Exports provide an opportunity for domestic producers to reach consumers in oversea? markets beyond geographical limits
    3. Producers have to become more competitive as they now cater to both domestic and global markets simultaneously
    4. Generates competition among producers across borders forcing upgrades in quality, technology and efficiency
    5. Prices of traded goods produced in different countries tend to converge as markets get integrated
    Question 21.
    What are the arguments in favour of and against imposing trade barriers on imports?

    Answer: Arguments in favour

    1. Protects domestic infant industries from more efficient foreign producers till they gain competitiveness
    2. Prevents sudden surges in imports that can destabilise local producers and employment
    3. Generates tariff revenue which can be used for development purposes
    4. Ensure self reliance in strategic products like defence equipment, food etc
    Arguments against
    1. Reduces choice for consumers who have topay higher prices due to trade barriers
    2. Domestic producers lack incentive to improve efficiency and quality in absence of competition
    3. Other countries may also impose barriers restricting exports and growth prospects
    4. Many developing countries impose barriers due to political pressures ignoring economic logic
    Question 22.
    How has outsourcing of services to India impacted the country and the companies abroad?
    Discuss?

    Answer:

    1. Enabled India to export IT, back office, call centre, medical diagnostic services etc. to developed countries
    2. Generated employment especially for educated, English speaking youth concentrated in urban centres
    3. Fueled prosperity of cities like Bangalore, led to rapid growth of these high skill service sectors
    4. However, concerns regarding labour practices, overdependence on foreign demand exists
    5. Helped foreign companies reduce costs and improve efficiency by shifting work to skilled manpower in India
    6. But fueled anxieties in their home countries about job losses and competition from low cost locations
    Question 23.
    What strategies can the government follow to ensure the gains from globalisation are shared widely and inclusively?

    Answer:

    1. Invest heavily in health, education and skill development to enhance employability
    2. Strengthen infrastructure benefiting remote areas and disadvantaged communities
    3. Implement labour laws thoroughly to ensure decent working conditions for all
    4. Use trade policy tools more actively to protect people from unfair foreign competition
    5. Negotiate proactively at WTO and -multilateral forums- to shape rules favourably for developing Countries
    6. Make special efforts to upgrade technology, infrastructure for vulnerable sections like small enterprises, artisans etc
    Question 24.
    How has the information technology revolution contributed to the process of globalisation?

    Answer:

    1. Dramatic improvements in communication technology like internet, mobile telephony connecting remote corners
    2. Enabled real time contact, sharing of data, ideas and coordination of activities across long distances
    3. Outsourcing of services like software development, medical diagnostics, call centres etc. to overseas locations
    4. Allows new production methods such as just in time inventory, better supplier integration in value chains
    5. Facilitated spread of information & convergence of aspirations across cultures especially among younger demographics
    6. Provided opportunities for ecommerce, gaming, social media and other new business models transcending borders
    Question 25.
    How is India benefiting from greater integration with the global economy What are some of the risks involved?

    Answer: Benefits

    1. Indias share in world exports has doubled since the 1990s signalling its growing global integration
    2. Access to larger markets abroad creating opportunities for Indian companies in sectors like IT, pharma, automobiles where India is competitive
    3. Provides opportunity to absorb advanced technologies, skills and management expertise from abroad
    4. Attract greater foreign capital inflows into the economy stimulating investment and growth
    Risks
    1. India faces competition from countries like China in areas like light manufacturing, apparels/electronics etc
    2. Over dependence on foreign capital inflows that are volatile and reversible
    3. Adverse impact on income distribution as unskilled labour bears the brunt of rising competition and uncertainty
    4. Risk of losing policy autonomy as global headwinds transmit rapidly in integrated economies
    Question 26.
    How do Special Economic Zones promote exports and integrate India with global production networks?

    Answer:

    1. Provide excellent infrastructure like roads, power, water, communication facilities
    2. Streamlined procedures, faster clearances and minimal red tape
    3. Lbwer faxes, duties and simplified customs procedures compared to rest of country
    4. Foster cluster development of supporting industries in the zone vicinity
    5. Special incentives for foreign investors like tax holidays, logistics support
    6. Simplified labour regulations allow flexibility in hiring and retrenchment of workers
    7. Units can be set up quickly for assembling inputs or products catering to export markets
    Question 27.
    What are the arguments made by critics against uncontrolled liberalisation by developing countries?

    Answer:

    1. Opening up must happen in staged manner, not an indiscriminate blanket liberalisation
    2. Need for adequate safeguards against volatility and economic shocks
    3. Unfair bilateral/regional agreements due to bargaining power imbalance
    4. Social sectors like health, education not equipped to handle impact
    5. Loss of policy space and autonomy in regulating activities of foreign capital
    6. Adverse impact on livelihoods of farmers, informal sector workers, small producers etc
    Question 28.
    How can information technology help producers in developing countries integrate with global value chains?

    Answer:

    1. Internet and software enables coordination of fragmented production processes across geographies
    2. Digitally tracking movement of Inventory, inputs and final products across the value chain
    3. Using advanced software tools for product design, quality control and precision manufacturing
    4. Outsourcing of services like billing, payroll, dataeqtry to vendors in other countries
    5. Helps upgrade skills and technology of producers in developing countries to global standards
    Question 29.
    What are the arguments against providing excessive concessions like tax holidays to attract foreign capital?

    Answer:

    1. Revenue loss to government impacting resources available for development.
    2. Economic viability and location decisions should be based on genuine cost advantages not artificial incentives.
    3. Incentives often pocketed by investors without real benefit to the economy in terms of jobs, technology etc.
    4. Promotes enclave type development with weak linkages to rest of economy.
    5. One incentive period is over, investors tend to shift base again in search of more sops
    6. Difficult to withdraw incentives once granted due to pressure from business lobbies.

    AP 10th Class Social Economics 4th Lesson Important

    Questions: 4 Marks
    Question 1.
    In what ways Multi National Corporation (MNQ different from other companies?

    Answer:

    • Domestic companies tend to restrict their operations to the country of origin, while multinational corporations operate in more than two countries. Ex- Infosys
    • Companies (Infosys) expand globally for many reasons, mostly to obtain new markets, cheaper resources and reduction in operational costs, all of which significantly affect financial management. These benefits also increase the risks ,fkced by multinational corporations
    • Multinational (Infosys) financial management differs from domestic financial management in six essential ways
    • Unlike their domestic financial management counterparts, multinationals are subject to exchange rates that differ based on the prevailing inflation rate in the foreign countries where they operate
    Question 2.
    "The multinational companies (MNCs) choose China as an alternative location for investment?
    " Explain the statement?

    Answer: The multinational companies (MNCs) choose China as an alternative location for investment because

    • Since the revolution in 1949, China gradually came in the field of World economy
    • It attracted the foreign MNCs because of its lowest economic structure
    • Apart from labour, China had the greatest population. They developed a sizeable customer base as well
    • Wages in China were comparatively low. So, it was great attraction for the MNCs
    Question 3.
    "Foreign trade integrates the markets in different countries." Support the statement with arguments?

    Answer:

    • Foreign trade provides opportunities for both producers and buyers to reach t beyond the domestic market of their own countries good travel from one country to another
    • For the buyers, import of goods produced in another country provides opportunity to extent their choice of goods beyond what is domestically produced
    • Competition among producers of various countries prevail as they can sell their products not only in the domestic market but also compete in the market, of other countries
    • Foreign trade has bee the main channel connecting countries. For example. Silk route connects Indian and South Asia to the markets in both the East and West
    Question 4.
    How is information technology connected with globalization?

    Answer: Information technology has accelerated the pace of globalisation in the following ways

    • Information technology has facilitated the introduction of various satellite communication devices through which people can get connected to anyone in every corner of the world instantly
    • With information technology, there has been coordination across the different geographic locations in situations where a product is developed in one part of the world, assembled in another country, and sold in yet another country
    • Without information technology, globalisation would have taken many more years to spread since it would have taken longer for the necessary information to be conveyed, which would have slowed down the rate of country-to-country integration
    Question 5.
    "How can the Government of India play a mqjor role to make globalization more fair?
    Explain with examples?

    Answer:

    1. Fair globalization would create equal opportunities for all and would ensure that the benefits of globalization are shared better, ii) The government can play a major role in making this possible through the following ways
    2. The policies of the government must protect the interests of all the people of the country, not only of the rich and powerful
    3. The government must ensure that the labour laws are properly implemented and the workers get their rights
    4. The government must support the domestic and smaller producers by making them strong enough to enter the competitive global market
    5. The government should negotiate at the WTO for fairer rules and regulations
    Question 6.
    How do Multinational Corporations (MNCs) interlink production across countries?
    Explain with examples?

    Answer:

    • MNCs usually set up production units across the globe in places where the market is nearby, there is the availability of skilled and unskilled labour at low costs and other factors essential to the growth of production
    • The setting up of production in various countries leads to the development of products globally. Sometimes, the MNCS might also set up production with the local companies of a country as a joint responsibility, thus bringing in the latest technology and foreign investment
    Question 7.
    How do Multi National Corporations (MNCs) interlink production across countries?
    Explain with examples?

    Answer: Multinational Corporations are expanding their production in the following ways

    1. The global brands outsource the manufacturing keeping in mind the low-cost factor. They placed orders with local companies. Eg: Garments, footwear, sports items etc
    2. By setting up partnership with local companies. For example, Maruti and Suzuki has a partnership in automobile industry. Here, Suzuki is a Japanese company which had a tie up with an Indian company, Maruti
    3. Due to the availability of, cheap labour and other resources, MNCS set up offices and factories in different regions
    4. By buying local companies. Eg. Cargill Foods is a MNC which has bought Parakh foods in India
    Question 8.
    Why are rules and regulations required in the market- place?

    Answer:

    • Rules and regulations are required in the marketplace to protect consumers
    • Sellers often abdicate responsibility for a low-quality product, cheat in weighing out goods, add extra charges over the retail price, and sell adulterated/ defective goods
    • Rules are the regulations that the people under a government need to follow
    • They guarantee the smooth run of community life
    • They also ensure the safety of the citizens by giving instructions that help to reduce accidents
    Question 9.
    Examine the role of Information Technology stimulating the process of globalization?

    Answer:

    1. Technical equipment such as cell phones, the internet, telephones, and microchips - have contributed to globalisation by exchanging ideas, capital, and people to make it convenient to move from one place to another at a fast pace
    2. With the help of the internet, we can find anything with a single click
    3. Its become very easy to do online shopping with the help of technology
    4. Numerous MNCs have their customer service in India and provide online support to everyone in the world using technology
    5. Develop satellite communication devices
    Question 10.
    Why do multinational corporations (MNCs) set up their offices and factories in certain areas only?
    Explain any five reasons?

    Answer: MNCs set up their production units in a particular areas due to the following reasons

    1. Where skilled and unskilled labour is available at low costs
    2. Where markets are near
    3. Where the favourable government policies which look after their interests
    4. Where the other factors of production such as raw materials, water, electricity and transport are available and assured
    5. Where there are standard safety measures for assured production
    Question 11.
    What is liberalisation Describe any four effects of liberalisation on the Indian economy?

    Answer: Liberalisation of the economy means minimising the controls imposed by the government in return for higher enwolvement of privates organisations. The four effects of liberalisation on the Indian economy are

    • Since, barriers on foreign trade and foreign, investment were removed to a large extent. Now, goods could be imported and exported easily
    • Competition would improve the performance of producers within the country
    • Liberalisation allows to make decisions freely
    • Foreign companies could set up factories and offices to boost up production
    • Competition improve the performance of producers within the country since they have to improve their quality of the product
    Question 12.
    How do we feel the impact of globalisation on our daily life?
    Explain with examples?

    Answer: Impact of Globalization in our daily life are

    1. Employment have been created in industries where MNCs have invested
    2. Transportation technology has made much faster delivery of goods across long distances possible at lower cost
    3. Prices of products have come down due to competition among the producers and manufacturers
    4. The invention of computers, internet, mobile phones and fax has made contacting each other around the world quite easy
    5. Some Indian companies have become multinational themselves due to globalisation which increases jobs
    Question 13.
    Describe the impact of Globalization on Indian economy with examples?

    Answer: The globalisation has impacted Indian economy in the following ways

    • Over the past twenty years, the foreign investment has increased
    • Globalisation has created new opportunities for Indian companies, particularly providing services like it
    • It has created new jobs and has helped in reducing the unemployment rate to an extent
    • Services such as data entry, accounting, engineering are now being done cheaply in India
    • Indian companies like- Tata Motors, Infosys have been able to get benefits from the increased competition created as a result of Globalization
    Question 14.
    Explain the major drivers of globalisation?

    Answer:

    • Key drivers are growth of MNCs, rising foreign trade and investment, rapid technological progress in IT, internet and telecom
    • MNCs control production globally through subsidiaries, partnerships and outsourcing in different countries
    • Trade has risen due to better transportation, communication and reduced trade barriers
    • MNCs are the biggest source of foreign investments worldwide
    • IT advances have enabled exchange of data and coordination over long distances
    Question 15.
    How are MNCs playing a major role in the globalisation process?

    Answer:

    • MNCs control production globally through subsidiaries, partnerships etc
    • This links production across borders
    • They invest abroad to access cheap resources, labour and gain from vast markets
    • Their intra - company trade is a huge part of international trade
    • Top MNCs have wealth exceeding the budgets of many country governments
    • Many local brands are being bought up by MNCs
    Question 16.
    How can globalisation be made fair?
    What actions can the government take?

    Answer:

    • Protect small producers - provide facilities to improve competitiveness
    • Implement labour laws properly - ensure decent conditions for workers
    • Support workers rights - job security, fair wages, social security benefits
    • Negotiate at WTO for equitable rules. Coordinate with other developing countries
    • Use trade measures if required -to protect producers facing unfair competition
    Question 17.
    Explain how production is spread globally by MNCs?

    Answer:

    • Set up new factories where costs are low
    • Acquire existing companies
    • Form joint ventures with local firms
    • Outsource production to local suppliers
    • Locate different stages of production across countries
    • Aim to lower costs, access resources and markets
    Question 18.
    How does foreign trade integrate markets across countries?

    Answer:

    • Imports allow access to goods from different countries
    • Consumers enjoy a wider choice of goods than just domestic produce
    • Producers have access to export markets not just domestic markets
    • Competition forces producers to upgrade quality and technology
    • Prices in integrated markets tend to equalise
    Question 19.
    What are the benefits and disadvantages of liberalisation of trade and investment for India?

    Answer: Benefits:

    • Consumers have a wider choice of quality products as trade barriers are reduced
    • Skilled companies gained from access to technologies, collaboration with MNCs
    • Investment by MNCs created new jobs in certain sectors
    Disadvantages:
  • Competition hurts small manufacturers leading to the shutdown of many units
  • Unfair labour practices have increased as firms try to cut costs. Job insecurity rose
  • Reforms sometimes under pressure from rich nations unfairbilateral agreements
Question 20.
Explain some of the factors that have facilitated globalisation?

Answer:

  1. Rapid growth of MNCs seeking global operational flexibility
  2. Vast improvements in technology-transportation, telecom, internet
  3. Liberalisation of trade and investment policies by governments worldwide due to WTO, World Bank pressure
  4. Creation of global bodies like WTO to facilitate and monitor trade flows
Question 21.
What are the main ways in which MNCs exercise control over production and distribution in developing countries?

Answer:

  • Outsource manufacturing to local contractors using cheap labour
  • Form joint ventures with local companies providing capital and technology
  • Buy up local companies for their distribution network and facilities
  • Dictate terms like cost and quality as they have alternative suppliers
  • Dominate retail of their products as brands become popular

AP 10th Class Social Economics 4th Lesson Important

Questions: 2 Marks
Question 1.
Suggest any one way to enhance pilgrimage tourism through Indian Railways?

Answer:

  • The railways can make various steps in pilgrimage cities in India and can advertise the same
  • This will enable passengers to conduct mult-facious activites
  • It is great interesting force
Question 2.
Correct the following statement and rewrite it?
Questioni. Removing barriers or restrictions by the government is known as Globalisation?

Answer: Removing barriers or restrictions by the government is known as Liberalisation

Question ii. International Monetary Fund (IMF) is an organisation whose aim is to liberalise international trade?

Answer: World Trade Organisation (WTO) is an organisation whose aim is to liberalise international trade

Question 3.
"Banks are efficient medium of exchange." Support the statement with arguments?

Answer: "Banks are efficient medium of exchange " because

  • Banks accept the deposits and also pay an amount as interest on the deposits
  • The facility of cheque against demand deposit makes it possible to directly settle payments without the use of cash
  • Demand deposits are accepted widely as a medium of payment
Question 4.
Why had the Indian government put barriers to foreign trade and foreign investments after independence?
Analyse the reasons. A. The Indian government put up barriers to foreign trade and foreign investments? because:
  • To protect the producers within the country from foreign competition
  • In the 1950s and 1960s, industries were coming up in India and external competition due to imports at that stage would not have been conducive for development of domestic industries in India
  • Indian government permitted imports of only essential items such as-machinery, fertilisers, petroleum, etc
Question 5.
How are local companies benefitted by collaborating with multinational corporations?
Explain with examples?

Answer:

  • Many MNCs collaborate with local companies of the host country to invest and expand their businesses
  • In such collaborations, MNCs get entry into a new market
  • On the other hand, the local companies gain additional investments and access to the latest technology
Question 6.
What are the key drivers of globalisation?

Answer:

  • Trade, investment and technology have interconnected countries
  • MNCs, foreign trade and investment, technological improvements have facilitated it
Question 7.
How have MNCs contributed to the globalisation process?

Answer:

  • Control production globally through subsidiaries, partnerships, dutsoureing etc
  • This links production across borders
Question 8.
In what ways can MNCs exercise control over production in other countries?

Answer:

  • Set up new facilities, acquire local companies, and outsource production to local suppliers
  • This allows them to take advantage of resources and markets
Question 9.
How does foreign trade connect distant countries?

Answer:

  • Countries can export and import more goods
  • Buyers and sellers compete across borders. This integrates markets
Question 10.
How is WTO pressurising developing countries like India to liberalise?

Answer:

  • Forcing countries to remove trade barriers through international agreements
  • But double standards in areas like agriculture
Question 11.
What steps can the government take to ensure fair globalisation?

Answer:

  • Protect workers, small producers. Implement labour laws
  • Provide facilities to improve competitiveness of small-scale units
  • Negotiate at WTO for fairer rules
Question 12.
How does competition from Imports affect local producers in India?

Answer:

  • Rising competition hurts small producers as costs are higher
  • Many units close down
Question 13.
What facilities do small producers need to compete better?

Answer:

  • Better infrastructure like roads, power etc
  • Modernisation of technology. Access to credit
Question 14.
Explain the impact of globalisation on producers and workers in India?

Answer:

  • Helped skilled companies with education and capital gain technology, invest abroad
  • Competition hurts small manufacturers unable to upgrade. Many units shutdown
  • Working conditions worsened for many workers due to lack of job security, pressure to cut costs
  • But new opportunities are also created in sectors like IT, automobiles, pharma
Question 15.
Why are developed countries pressurising developing countries to liberalise trade and investment policies?

Answer:

  • MNCs from developed countries want to expand business globally
  • They want to access cheap labour, resources and markets in other countries
  • Removing trade barriers allows free flow of goods, services and investments
  • Forces like WTO, World Bank push for reforms - to remove restrictions
Question 16.
How can information technology help in spreading services across countries?

Answer:

  • Internet and telecom enables exchange of data, coordination over long distances
  • Allows outsourcing of services like software development, call centres etc. to other countries
  • Firms can get services from outside rather than set up facilities everywhere. Reduces costs
  • Countries like India with skills in IT etc., can export these services globally
Question 17.
What are the barriers that countries can impose on imports?
How do they provide protection to domestic producers?

Answer:

  • Import tariffs or taxes imposed to make imported goods more expensive
  • Quotas limit the quantity allowedto be imported
  • Such trade barriers protect domestic producers from foreign competition
  • Domestic goods become cheaper compared to imports due to barriers
Question 18.
Explain some of the ways by which MNCs exercise control over production?

Answer:

  • Set up fully owned subsidiaries in other countries
  • Take over existing local companies
  • Form joint ventures and partnerships with local companies
  • Outsource production to local suppliers - dictate price, quality etc
Question 19.
How does lowering of trade barriers help in achieving greater integration of markets?

Answer:

  • Removing barriers like import duties makes trade between countries easier
  • Domestic producers can access markets in other countries more easily
  • Imports flow freely allowing wider choice for consumers
  • Producers have to compete both in domestic and global markets
Question 20.
How does globalisation result in interlinking of production across countries?

Answer:

  • MNCs divide production into small parts and locate across the globe
  • Cheapest locations chosen for each part to minimise costs
  • Parts then brought together for final assembly
  • Production gets fragmented across countries and interconnected

AP 10th Class Social Economics 4th Lesson Important

Questions: 1 Mark
Question 1.
Cargill Foods, a very large MNC, is the largest producer of edible oil in India. Which one of these countries does it belong to?
(D)

Answer:

  1. India
  2. France
  3. Great Britain
  4. United States of America
Question 2.
Read the following data and information carefully and select the most appropriate answer from the given options: TABLE FOR COMPARISON OF THREE COUNTRIES?

Answer:

Countries Monthly income of citizens in 2007 (in Rupees)
&nbsc I II III IV V
Country A 9500 10500 9800 10000 10200
Country B 500 500 500 500 480
Country C 5000 1000 1500 4000 25000

Rita is an employee of a multinational company who gets transferred to different countries after every three years of service. She has been given an opportunity to choose any one out of the three countries mentioned in the table above as her next job location. She calculates average income of all these countries as per the given data and chooses to be transferred to Country A

Question 3.
Which one of the following refers to investment?
©
  1. The money spent on religious ceremonies
  2. The money spent on social customs
  3. The money spent to buy assets such as land
  4. The money spent on household goods
Question 4.
The process of integration between different countries is called as ____

Answer: Globalization

Question 5.
Identify the correct statements about globalization. ( A )

Answer:

  1. Removal of barriers by the government
  2. Foreign companies are allowed to set up factories
  3. Has enabled all companies to increase their investments
  4. Has lessened foreign investment and foreign trade
  5. I &II
  6. II & III
  7. I & III
  8. II & IV
Question 6.
Choose the correct statement about factors regarding globalization in India: (A)?

Answer:

  1. Improvement in transportation technology
  2. Liberalization of foreign trade and foreign investment
  3. Favourable rules of WTO towards India in comparison to developed countries. Choose the correct options from the codes given below
  4. Only I and II
  5. Only I and III
  6. Only II and III
  7. Only III
Question 7.
In which one of the following ways has information and communication technology stimulated the globalisation process the most?
( D )

Answer:

  1. Access foods across countries
  2. Access raw material across countries
  3. Access services across countries
  4. Access information instantly across countries
Question 8.
Why did the Indian government liberalize trade regulations in 1991?

Answer: Government wanted Indian producers to compete in the World Market

Question 9.
Which international agency allow free trade and work on mutual trade between countries?

Answer:" WTO (World Trade Organisation)

Question 10.
What was the main aim to form World Trade Organisation"?

Answer: To liberalise international trade

Question 11.
Evaluate the impacts of opening foreign trade on the global economy byidentifying the appropriate statements among the following options?

Answer:

  1. The choice of goods in the markets increase
  2. Producers from two countries closely compete against each other despite the distance between their locations
  3. Fpreign trade thus results in connecting the markets or integration of markets in different countries
  4. The quality of the product is always good. Options
  5. Statements i and ii are appropriate. (B)
  6. Statements i, ii and iii are appropriate
  7. All the statements are appropriate
  8. Only statement iv is appropriate
Question 12.
Which one of the following is a challenge of Globalisation?
©

Answer:

  1. Access to New Markets
  2. Access to New Talent
  3. International Recruitment
  4. Disproportionate Growth
Question 13.
Which one of the following aspects was the base of the Bretton Woods system?
©

Answer:

  1. Military system
  2. Cultural system
  3. Economic system
  4. Historical system
Question 14.
What is globalisation?

Answer: Integration between countries through trade, investment, technology etc

Question 15.
What are multinational corporations (MNCs)?

Answer: Large companies that operate across countries

Question 16.
How do MNCs control production globally?

Answer: Set up subsidiaries, partner with local companies, and outsource production

Question 17.
What has driven foreign trade growth?

Answer: Better transportation, communication, reduced tradp barriers

Question 18.
What is the major source of foreign investment worldwide?

Answer: Multinational companies

Question 19.
How has technology impacted globalisation?

Answer: Improvements in IT, internet, telecom enable global coordination

Question 20.
Who has benefited from globalisation in India?

Answer: Urban consumers, skilled companies

Question 21.
How does globalisation affect small producers and workers in India?

Answer: Rising competition hurts them

Question 22.
What reforms were made in India in 1991?

Answer: Deregulation of trade and investment

Question 23.
Which global body pressurised India to liberalise trade and investment policies?

Answer: World Trade Organization (WTO)

Question 24.
What is needed for fair globalisation?

Answer: Spread benefits widely

Question 25.
How can the government help small producers cope with competition from imports?

Answer: Provide facilities, training, and timely credit

Question 26.
What should India do to -get fairer rules at WTO?

Answer: Coordinate with other developing countries

Question 27.
How can MNCs control production without owning facilities?

Answer: Out source production to local suppliers

Question 28.
Which Indian companies have benefited from globalisation?

Answer: Tata Motors, Infosys, Ranbaxy etc

Question 29.
What do MNCs invest abroad to access?

Answer: Resources, markets, low cost production

Question 30.
How has IT enabled outsourcing of services to India?

Answer: The Internet allows sending data for back office work

Question 31.
Which sectors in India attract more foreign investment?

Answer: Automobiles, electronics, soft drinks etc

Question 32.
How does trade lead to integration of markets across countries?

Answer: Choices rise, producers compete across borders

Question 33.
How has globalisation impacted working conditions in India?

Answer: Jobs become less secure, pressure of work increases

Question 34.
How has technology facilitated globalisation?

Answer: Rapid improvements in IT, internet,Telecom etc. allow better communication, exchange of data, and coordination over long distances

Question 35.
What are the benefits of globalisation for Indian companies?

Answer: Some companies gained from collaborations, becoming MNCs themselves, access to new technology etc

Question 36.
How does globalisation benefit urban consumers in India?

Answer: More choice of brands, improved quality, lower prices higher standard of living

Question 37.
How do MNCs take advantage of establishing production in other countries?

Answer: Access to cheap labour, resources, larger markets to maximise profits

Question 38.
What are the main reforms initiated in 1991 in India?

Answer: Reduced trade barriers and deregulated foreign investment to promote globalisation

Question 39.
How has outsourcing impacted workers in India?

Answer: Lack of job security, pressure to work long hours, low wages and unfair conditions

Question 40.
How do MNCs benefit from outsourcing production to Indian companies?

Answer: Can get supplies at cheap rates from small producers, maximising profits

Question 41.
What are the concerns regarding special economic zones (SEZ) in India?

Answer: Acquiring agricultural land, not implementing labour laws

Question 42.
How does trade lead to competition among producers in different countries?

Answer: Producers have access to markets abroad. This brings about competition inter¬nationally

Question 43.
How do MNCs gain by employing workers flexibly?
Amswer: No need to pay benefits to permanent workers. Reduces costs

Question 44.
What is the drawback of imposing quotas on imports?

Answer: Limits consumer choice, protects inefficient firms

Question 45.
How does lowering of trade barriers help MNCs?

Answer: Makes it easier to set up operations and access markets across countries

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