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TS 10th Class Social 9th Lesson Questions and Answers Globalisation

Question 1.
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: Barriers to foreign trade and foreign investment were put by the Indian government to protect domestic producers from foreign competition, especially when industries had just begun to come up in the 1950 and 1960s. At this time, competition imports would have been a death blow to growing industries Hence, India allowed imports only essential goods

Later in the 1 990s. the government wished to remove these barriers because it that domestic producers were ready to compete with foreign industries. It felt that foreign competition would ii tact improve the quality of goods produced by Indian industries. This decision was also supported by powerful international organizations

Question 2.
How would flexibility in labour laws help companies?

Answer:

  1. Flexibility in labour laws can help the companies to decrease their production cost by employing labourers only for short period of time when there is need instead of employing them for long periods of time or yearly basis
  2. By using upon labour laws, company heads can negotiate wages and terminate employment, depending on market conditions
Question 3.
What are the various ways In which MNCs set up or control production in other countries?

Answer: MNCs can set up and control production In other countries in following ways

  1. By setting up now factories/production units
  2. By purchasing/acquiring local units of domestic nations
  3. By setting up partnerships with local companies. MNCs have technical, financial and marketing superiority and thus can control production in other countries
Question 4.
Why do developed countries want developing countries to liberalise their trade and Investment? What do you think should the developing countries demand in return?

Answer:

  1. Developed countries want developing countries to liberalise their trade and investment so that goods could be imported and exported easily
  2. Also, they could set up their factories and offices in the developing countries for enjoying the benefits of low cost of labour and high demand, i,e, large markets
  3. In return, developing countries expect that developed nations should not impose Import duties or other barriers on goods imported from developing nations, by developed countries
Question 5.
"The impact of globalisation has not been uniform." Explain this statement?

Answer:

  1. The impact of globalisation has not been uniform. It has benefited skilled and professional persons In urban areas, It has not benefited much the persons who are unskilled
  2. The industrial and service sectors have gained because of globalization, but the agriculture sector has not gained much from globalisation
  3. Moreover, globalisation has benefited large industrial units as MNCs have collaborated with beg units only
  4. The small and medium-sized industrial units are hit hard as they find it very difficult to compete with huge MNCs
  5. Many small units have faced closure while large industrial units have succeeded in expanding their market to many other nations
Question 6.
How has liberalisation of trade and Investment policies helped the process of globalisation?

Answer: With the liberalisation of trade and investment policies, the goods could be imported and exported easily between the countries arid foreign investment can be done without much restrictions. The foreign countries could now set up their factories and offices in the domestic country

This results in interaction of the foreign country with the domestic country which is known as globalisation. In other words, globalisation is the process of rapid integration or interconnection between countries which is possible by the liberalisation of trade and investment

Question 7.
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: After 15 to 20 years, world would undergo a positive change which will possess the following features. healthy competition, improved production efficiency, and increased volume of output. income and employment, and better living standards. greater availability of information and modern technology

Reasons: Favourable factors for globalisation:

  1. Availability of human resources both quantity-wise and quality-wise
  2. Broad resource and industrial base of major countries
  3. Growing entrepreneurship
  4. Growing domestic market
Question 8.
Locate the following In the map of world?
  1. China
  2. Japan
  3. Brazil
  4. South Africa

Answer:

TS 10th Class Social 9th Lesson Globalisation Intext Questions

Question 1.
Choose any one single item like Mobile phones or vehicles; identify the number of Brands available for this item in the market. Are they owned and manufactured in India or abroad? Discuss with your parents or other adults and find out how many such brands were available 30 years ago?

Answer: Lets take cell phones for instance. There are numerous varieties in cell phones. e.g: Nokia, Samsung, Celkon, Videocon, LG, Micromax, Sony Ericson, etc. LG, Videocon, and Onida cell phones are manufactured in India. But the raw materials used in them like chips, motherboards and accessories are mostly imported from foreign countries such as Japan, China, Singapore, Korea, Malaysia, etc

So the cell phones manufactured in our country are affordable to us. In the past, BSNL and Reliance produced land phones. Later Reliance subscribed to walkie-talkies, mobile phones, etc. Mobile phones werent available in our country thirty years ago

Read the passage (Ford Motors, across the globe.) In page no. 120 and answer the following 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 crores to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of eeps 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

Question2.
Would you say Ford Motors Is an MNC? Why?

Answer: Yes, we can say Ford Motors is an MNC because its production units have spread over 26 countries of the world. This is the most important feature of an MNC

Question 3.
What is foreign Investment? How much did Ford Motors Invest In India?

Answer:

  1. Foreign investment: Private capital investment by firms of one country into those of another country is called foreign investment
  2. Ford Motor invested Rs, 1,700 crores In India
Question 4.
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: MNCs set up production

  1. where it s close to the market
  2. where the skilled and unskilled labour is available at low costs
  3. where the availability of other factors of production is assured
  4. The concerned government policies are favourable to the MNCs
Question 5.
Why do you think would the company want 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:

  1. Wages and salaries are much lower In India when compared to in developed countries. Raw material and power is also cheaper
  2. There are many companies which manufacture various auto parts. Because of their lower cost of operation, these companies supply various parts at less price
  3. India and China together have 30/ of the worlds population and they provide a huge market for various companies. Making a production base in India provides easy access to these two markets
Question 6.
In what ways will the production of cars by Ford Motors in nca lead to Inter linking of production?

Answer: The company is making engines and body at its plant. it is processing other components from various suppliers which operate in India. Even designing some of the new models has been done India. So India is providing a perfect base for all the operations related to 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 7. In what ways is an MNC different from other companies?

Answer: An MNC does different operations related to its business at different locations across the globe. Other companies limit their operation to a single country or to a few countries. By doing so, an MNC is able to take advantage of cost-benefit and also of easier access to important markets, Ths may not be possIe for other companies

Question 8.
Nearly all major multinationals are American, Japanese or European, such as Nike, Coca-Cola, Pepsi, Honda, Nolda. Can you guess why?

Answer: Industrialization began from Europe and then spread to America and later to Japan. By the time India became independent, many companies of these countries had already become financially strong. This is the reason that most of the MNCs are from America, Europe or Japan

Question 9.
What was the main channel for connecting the countries in the past? How is it different now?

Answer: Trade was the main channel which 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 arid study also contributes towards making the world a more interconnected place now

Question 10.
Distinguish between foreign trade and foreign Investment?

Answer: Foreign trade implies exchange of goods and services across nations. Foreign investment implies transfer of capital from one nation to another

Question 11.
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:

  1. Because of cheap availability of steel from India, Chinese steel industry will prosper
  2. Steel industries in India will obviously suffer due to lack of availability of steel
  3. Other industries of China which are dependent on steel will also prosper
Question 12.
How will the import of steel from India into the Chinese markets lead to integration of markets for steel In the two countries?

Answer: Steel is often called the backbone of modern industry. Tools, machinery, equipments, tombs of transport and infrastructure largely need steel. If we export steel to China, it will increase foreign trade. Development in China will further benefit increase demand for steel and exports from India, Steel Industries will help In manufacturing of other goods which will be further create foreign exchanges, thus integrating trade between two countries

Question 13.
What is the role of MNCs in the process of globalisation?

Answer:

  1. MNCs are playing a major role In the process of globalisation. MNCs have been looking for locations around the world, which would be cheap for their production
  2. As a result of greater foreign investment and greater foreign trade, there would be greater integration of production and markets across countries
  3. More and more goods and services, investments and technology are moving between the Countries
  4. Most regions of the world are in closer contact with each other than a decade back
  5. Foreign investment in the countries has been rising
  6. Foreign trade between the countries has been rising
  7. The activities of most of the MNCs involve substantial trade in goods and also services
Question 14.
What are the various ways in which countries can be linked? LIflt?

Answer: The various ways in which countries can be linked are

  1. by trade relations
  2. by exchange of services
  3. through communication
  4. through general tourism
  5. through economic aid and mutual borrowing
  6. through education in worldwide institutions
Question 15.
Choose the correct option: Globalisation, by connecting countries, results in?
  1. lesser competition among producers
  2. greater competition among producers
  3. no change in competition among producers

Answer:

  1. greater competition among producers
Question 16.
In this example, underline the words describing the use of technology In production?

Answer: A news magazine published for London readers is to be designed and printed in Delhi. The text of the magazine is sent through Internet to the Delhi office. The designers in the Delhi office get instructions on how to design the magazine are ven from the office in London using te4ecomrnurcation facilities. The designing is done on a computer. After printing, the magazines are sent by air to London. Even the payment of money for denying arid Dnnting from a bank is London to a bank in Delhi is done instantly through the internet (e-banking)

Question 17.
How Is information technology connected with globalisation? Would globalisation have been possible without the expansion of IT?

Answer:

  1. Globalisation is the process of growing integration of one countrys economy with world economy
  2. Information and communication technology has played a major role in spreading out production of services across countries
  3. The development in IT. in the areas of telecommunications, computers, Internet have been changing rapidly
  4. Telecommunication facilities are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices
  5. Internet also slows us to send instant email and talk across the world at negligible costs. Globalisation would not have been possible without the expansion of IT
Question 18.
What do you understand by liberalisation of foreign trade?

Answer: Removing barriers or restrictions set by the government on foreign trade and foreign investment is known as liberalisation of foreign trade

Question 19.
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: A fixed quantity for import is called quota. This can be done in case of Chinese toys. This will have both negative and positive impacts. Once trade restrictions shall be there, the Indian toy manufacturers will be in a position to sell their products. This will help the Indian toy manufacturers and employees. But as the experience of better quality at lesser price in case of Chinese toys shows, this step would be detrimental for consumers interest

Question 20.
Fill in the blanks?
    WTO was started at the initiative of ..........
  1. ........ countries. The aim of the WTO is to ........
  2. ...... WTO establishes rules regarding .....
  3. .... for 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 practices

Answer:

  1. developed
  2. liberalise international trade
  3. international trade
  4. these rules are properly obeyed
  5. fair
  6. removed trade barriers
Question 21.
What do you think can be done so that trade between countries is fairer?

Answer: All countries should remove trade barriers to make for a fair international trade. Developed countries should desist from forcing the developing countries in agreements which they themselves may not obey.

Question 22.
Read the passage on (The agriculture sector .. and fair trade ?) page 127 and answer the following question?

The agriculture sector provides the bulk of employment in India. Compare this with a developed country such as the US with the share of agriculture in GDP at 1% and its share in total employment a tiny 0.5% And yet this very small percentage of people who are engaged in agriculture in the US receive massive sums of money from the US, government for production and for exports to other countries

Due to this large amount of money that they receive, US farmers can sell the farm products at abnormally low prices. The surplus farm products are sold in the markets In other countries at low prices, adversely affecting farmers in these countries

Developing countries are, therefore, asking the governments of developed country, We have reduced trade barriers as per WTO rules. But you have ignored the rules of WTO and have continued to pay your farmers vast sums of money. You have asked our governments to stop supporting our farmers, but you are doing so yourselves. is this free and fair trader?"

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: 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 23.
How has competition benefitted the people in India?

Answer: Competition has benefitted the Incans in a positive way. To understand this, let us take the example of the availability of two-wheelers. Before liberalization, there were only the following brands of two-wheelers - Bajaj, Rajdoot. Bullet and Yezdl. li 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 areas of India. All of this could be possible because of competition

Question 24.
Should mole Indian companies emerge as MNCs? How would it benefit the people In the country?

Answer: Its desirable that more Indian companies emerge as MNCs. This will help those companies in expanding their market and 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 corporate Social responsibility programmes

Question 25.
Why do governments try to attract more foreign investment?

Answer: More foreign investment helps in increasing the economic activities. This helps in employment generation. So the governments try to attract more foreign investment

Question 26.
Elsewhere, we read that 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 are these people and why are they opposing It?

Answer: When an SEZ is being made in a particular location a vast tract of land needs to be acquired. Land acquisition means a large population Is forced to relocate from many villages. Displacement is always painful for people. Moreover, people who are evacuated do not get proper compensation for their land. Rehabilitation is never adequate and timely. So, many people oppose various developmental activities

Question 27.
Write an Imaginary caption for the image here. What does it tell about the globalization?

Answer:A. Craze tor artificial drinks spoils healthCrave (or natural drinks Is good for health. Globalizaton leads to run behind products like pizzas, burgers, and cool drinks, They spoil health on the other hand, they badly hit small vendors that depend on setting natural products like coconuts, palm fruits, mango el1y, groundnut cakes. etc

Question28.
What are the ways In which Ravis small production unit was affected by rising competition?

Answer: Ravis small production unit was affected by rising convetiton in the following ways

  1. His customers have changed their product. as they are now manufacturing TV sets for- the MNC brands, who do not use the capacitors produced by Ravis unit
  2. His production arid sales have also reduced due to his capacitors being costlier than the imported variety, due to the removal of import duties on imported capacitors
  3. He is going into loss due to not recovering his costs with such a small amount of production. He may even have to close down his unit like his friends have done
Question 29.
Should producers like Ravi stop production because their cost of production is higher compared to producers in other countries? What do you think?

Answer: I think it is better to use machines of high technology to reduce his cost of production. It is better to acquire another loan from banks and to repay it in easy installments

Question 30.
Recent studies point out that small producers In India need three things to compete better in the market : (a) better roads, power, water, raw materials, marketing and Information network. (b) improvement and modernization of technology, and (c) timely availability of credit at reasonable interest rates. Explain how these three things would help Indian producers?

Answer: These three things will help the lack producers to compete better in the market as follows

  1. Better infrastructure will help them to work more efficiently and timely so that they can compete with foreign Companies In the market
  2. Better technology will help the producers to create better quality products efficiently at cheaper rates
  3. Better finance will enable them to run their production smoothly without delays, thus improving their competitiveness
Question 31.
Do you think UPIC. will be Interested in Investing In these? Why?

Answer: MICa will not be interested in investing in these because the Indian produces will then compete with ram as equate in the same make (. thus reducing their market share

Question 32.
Do you think the government basa rote In making these facilities available? Why?

Answer:

  1. The government has a role in making these facilities available
  2. If the government makes these facilities available, then many small Indian producers develop themselves
  3. They would be able to compete with foreign MNCs
  4. As governments are nowdays welfare states, they have a role in making these facilities available
Question 33.
Think of any other steps that the government could take. Discuss?

Answer:

  1. The government could lrrçoee sanctions or restrictions on MNCs
  2. Make that MNCs should behave with corporate social responsibility
  3. Government should protect the foretaste of She people end that MNCs prospers
  4. It Should adopt the policy whIch provides lot initial consent

Important Question

TS 10th Class Social Important Questions 9th Lesson Globalisation

1 Mark Questions
Question 1.
What is the difference between foreign trade and foreign investment?

Answer: Foreign trade: Foreign trade is any kind of trade (exports and imports) with other countries of the world. Foreign investment: Private capital investment by firms of one country into those of another country is called foreign investment

Question 2.
Mention any two factors which led to Globalisation?

Answer: Globalisation is a process of connecting countries across the globe. Technology, Liberalisation of foreign trade and investment, foreign investment policy, WTO and other global institutions led to this globalisation

Question 3.
What is an MNC?

Answer: An MNC is a multinational company that owns or controls production n more than one nation

Question 4.
What do you mean by foreign investment?

Answer: Investments made by MNCs is called foreign investment

Question 5.
What is Investment?

Answer: The money that es spent to buy assets such as land, building, machines and other equipment is called investment

Question 6.
What is foreign trade?

Answer: Foreign trade Is any kind of trade with other countries of the world

Question 7.
What do you mean by trade barrier?

Answer: It is called a barrier since some restrictions have been set up by Indian government on foreign trade and foreign investment. It can be tax in imports

Question 8.
What is Globalisation?

Answer: Globalisation Is a major change that occurred across the globe in the late 20th century. This has political, cultural as well as economic dimensions

Question 9.
What was called Arab Spring?

Answer: In 2013 several nations in Western Asia and Northern Africa like Tunisia. Egypt were influenced by each others revolutions and uprooting of dictators. This was called Arab Spring In the media

Question 10.
Where do MNCs set up offices and factories for production? Give reason?

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

Question 11.
Define Economic reforms of NEP 1991?

Answer: Economic policy adopted by the Government of India since July 1991 is termed as new economic policy or economic reforms

Question 12.
What is Privatisation?

Answer: Privatisation means reduced government intervention and increased private investment in production activities

Question 13.
What is Outsourcing?

Answer: Outsourcing means going out to a source outside the company to buy regular service

Question 14.
How many countries are currently the members of the WTO?

Answer: The WTO has 164 member countries as on 29th July 2016

Question 15.
In which year, the government started to remove barriers on foreign trade and foreign Investment?

Answer: In 1991

Question 16.
Why are the Chinese toys popular in the world?

Answer: Chinese toys are comparatively cheaper and have new designs. So they are popular in the world

Question 17.
Why are the MNCs making investments in India?

Answer: In India, labour cost is very low when compared to rest of the world. So, many MNCs are making investments In India

Question 18.
Which organisation lay emphasis on the liberalisation of foreign trade and foreign investment in India?

Answer: The WTO

Question 19.
When was the WTO established?

Answer: The WTO was established on 01-01 -1995

Question 20.
Where is the main head office of the WTO?

Answer: It is in Geneva - Switzerland

Question 21.
What is the purpose of foreign trade?

Answer: Foreign trade creates an opportunity for the producers to reach beyond the domestic markets, They can sell their products in other countries also

Question 22.
State a positive aspect of Indias development strategy prior to 1991?

Answer: The strategy has helped India in creating a large industrial base and increase in industrial production

Question 23.
What do you mean by export quotas?

Answer: For the protection of local consumers, government restricts giving limits of export of particular goods. This is called export quota

Question 24.
What is Import quota?

Answer: For the protection of local manufacturers from the competition of producers of other country, government imposes taxes on the imported goods. This is called import quota

Question 25.
State any two impacts of liberalisation and globalisation in India?

Answer:

  1. There are better services in communication sector
  2. Many food processing companies have taken over the market
Question 26.
State the new strategies of NEP?

Answer:

  1. Liberalization
  2. Privatization
  3. Globalization
Question 27.
What is meant by modernisation of the economy?

Answer: The NEP accords top priority to modern techniques and technologies. It also promotes computers and electronics industries, It has made the Indian industries dynamic

Question 28.
What is Joint Venture?

Answer: At times MNCs set up production jointly with the local companies of the countries where they established their MNC operations

Question 29.
Expand W.T.O. How does it work?

Answer:

  1. WTO - World Trade Organisation. It lays emphasis on the liberalisation of foreign trade and foreign investments
  2. It was established In 1995 with headquarters in Geneva Switzerland
Question 30.
Expand the term I.B.R.D?

Answer: International Bank for Reconstruction and Development. (OR) World Bank

Question 31.
Explain SEL?

Answer:

  1. The full form of SEZ is Special Economic Zone
  2. They are meant for the free establishment of industries
2 Marks Questions
Question 1.
Estimate the impact of globalization on local industries of India?

Answer: Impact of globalization

Positive effect:
  1. Several of the top Indian companies have been able to benefit from the increased competition
  2. They have invested in newer technology and production methods and raised their production standards
  3. Some have gained from a successful collaboration with foreign companies
Negative effect:
  1. Some of the small industries have been hit hard due to competition
  2. Several units have been shut down rendering many workers jobless
Question 2.
Globalisation by connecting countries results in greater competition among producers." Justify the statement?

Answer:

  1. Globalisation is a maor change that occurred across the globe In the late 20th century. This has politics. cultural as well as economic dimensions
  2. An MNC does different operations related to its business at different locations across the globe
  3. An MNC is able to take advantage of cost benefits and also of easier access to important markets
  4. There is a greater choice before the consumers who now improved quality and lower prices for several productions
  5. Competition held between local producers and foreign companies
Question 3.
Give four reasons to the factors that helped Globalisation. 311 2O17?

Answer: Globalization means interconnecting the markets and countries also. Factors that helped globalization are

  1. Technology: The development in Information and Communication Technology have been even more remarkable and rapid. Rapid Improvement technology has been one major factor that has stimulated the globalisation process
  2. Transportation: As a result goods are delivered faster across long distances at lower costs.The  Internet also allows us to send instant electronic mail and talk across the world at negligible costs
  3. Liberallsatlon of Foreign Trade: With liberalisation of trade, businesses are allowed to make decisions freely about what they wish to irrçort or export
  4. Uberalisation of Foreign Investment: Due to this so many companies are going to Invest on new products
  5. Political climate: We must remember that political decisions are taken In a particular context, which accounts for the economic and technological change that has already taken place
Question 4.
Write about the problems of Urbanization?

Answer: Problems of urbanisation

  1. The rapid inflows of rural population to urban places give rise to housing problem and thus slums are developed in these places
  2. The decrease In rural population effects the agricultural production due to shortage of workers in rural areas
  3. Due to use of more vehicles, air, and water sound pollutions are increased
  4. traffic problems will arise
  5. Proper drainage facilities are not expanded
  6. Using of plastic covers is increased
  7. The unemployment increases in urban areas
  8. Due to this, various criminal activities, corruption, etc. increase affecting the law and order system
Question 5.
How are the Indian companies benefited with Globalisation at present?

Answer: Benefits for Indian companies with globalisation at present

  • Invested in newer technology and production methods
  • Raised their production standards
  • Gained from collaboration with foreign companies
Question 6.
What will be the consequences of Globalisation, if it spreads to all sectors in future?

Answer: More products will be available if globalisation process is continued and spreads. Quality of goods will be increased prices come down. Foreign investment is increased. Many new jobs will come up. IT services will be increased. Technology will be more used. Small-scale industries will be closed. Culture and nationalism are also affected. Soil lose its fertility

Question 7.
What do you understand by globalisation?

Answer: Globalisation is a process associated with increasing openness, growing economic independence and deepening economic integration with the world economy. In other words, it means opening up of domestic economy for the foreign countries

Question 8.
What is the role of media in Arab Spring?

Answer: Media played a crucial role during Arab Spring. Television Channels that wore owned and run by people from other countries supported such mobilisation which resulted in regulating the powers of local leaders. While events like civil war or natural disasters like Tsunamis are discussed within the national boundaries they also receive support and sympathy from around the world

Question 9.
Give a picture of Production across countries before large MNCs?

Answer: Until the middle of the twentieth century, production was largely organised within countries. Raw materials, food grams and finished products only crossed the boundaries of these countries. Colonies such as India exported raw materials and food grains and imported finished goods. Trade was the main channel connecting distant countries. This was before large multinational corporations (MNCs) emerged on the scene

Question 10.
What is Important regarding MNCs?

Answer: MNCs not only sell their finished products globally but more important, the goods and services are produced globally. As a result, production is organised in increasingly complex ways. The production process is divided into small parts and spread out across the globe

Question 11.
"Previously important decisions regarding the value of currency were taken by sovereign governments but today they are made by market players and forces." Comment with example?

Answer:

  1. Previously important decisions regarding the value of currency were taken by sovereign governments but today they are made by market players and forces
  2. In fact, many of the MNCs have wealth exceeding the entire budgets of the developing country governments
  3. With such enormous wealth, imagine the power and the influence of these MNCs
  4. This is how the decision-making powers of sovereign governments are at a risk
Question 12.
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 ........
  1. ........ . Markets in India are selling goods produced in many other countries. This means there is increasing .......
  2. ........ with other countries. Moreover, the using number of brands that we see in the markets might be produced by MNCs in India. MNCs are investing in India because ......
  3. ......... . While consumers have more choices n the market, the effect of rising .......
  4. ...... and .....
  5. ...... has meant greater .....
  6. ...... among the producers

Answer:

  1. globalisation
  2. foreign trade
  3. they have access to cheaper labour
  4. prices
  5. standards
  6. competition
Question 13.
Match the following?
  1. MNCs buy at cheap rates from small producers [ ] (a) Automobiles
  2. Quotas and taxes on imports are used to regulate trade items [ ]
  3. Garments, Footwear, Sports
  4. Indian companies who have invested abroad [ ] (c) Call centres
  5. IT has helped in the spreading of production of services [ ] (d) Tata Motors, Infosys, Ranbaxy
  6. Several MNCs have invested in setting up factories in India for production [ ] (e) Trade barriers

Answer:

  1. -b
  2. -e
  3. -d
  4. -c
  5. -a
4 Marks Questions
Question 1.
Explain with examples, how small and cottage industries are extinct because of multinational companies?

Answer: Small and college industries are going the extinct because of multinational companies due to the following reasons

  1. Small industries are not having capacity to compete with MNCs
  2. Imported goods quality is high and cost s low
  3. People are attracted to machine-made goods. But cottage industries are not following
Example:
  1. Basket making
  • Small industries do not get good quality of plastic, because its cost is high
  • Instead of traditional baskets, MNCs imported steel and metal baskets
  1. Weaving
  1. Small and cottage industries using old traditional methods for weaving, only handlooms
  2. MNCs using power looms for weaving and using machines and Imported machine-made doth
Question 2.
Write the advantages and disadvantages of Multi-National Companies?

Answer: Advantages and disadvantages of Multinational Companies

Advantages
  1. Competition among countries increased
  2. Quality improvement
  3. Decrease in prices
  4. Increase in production
  5. Increase in access of goods and services
  6. Development in research and technology
  7. Increase in employment opportunities
Disadvantages:
  1. Decline in small-scale industries
  2. No employment opportunities for unskilled labourers
  3. Agriculture is affected
  4. The environment is affected
  5. The exploitation of natural resources
  6. The value of currency is determined internationally
  7. Indigenous languages and cultures are affected
Question 3.
How can flexibility in labour laws support the present companies?

Answer:

  1. Flexibility in labour laws can help the companies to decrease their production cost by employing labourers only for short period of lime when there is need instead of employing them for long period of time or yearly basis
  2. By easing upon labour laws, company heads can negotiate wages and terminate employment. depending on market conditions
Question 4.
Read the following paragraph and interpret. The developments n information and communication technology have been ever mere remarkable and rapid. Telecommunication facilities are used to contact one another around the world to access information instantly and the communicate from remote areas?

Answer: The given paragraph Is about developments in technology, especially with regard to information and communication technology. It has various effects on society and made the task of many people easy. In the fast-growing world, every field is being updated and upgraded. There are so many reasons for these changes in technology. Due to globalization, getting and sending information should be fast, email, Google, internet. Wikipedia all these made our task easy

People also changed their lifestyles. Even in mobile phones various activities like e-banking, and different payments like electricity bill, phone bills are paid. Many of the GOs and Memos are sent by mail. It has negative effects also. Some youth are attracted by obscene films and pornographic videos are watched, Students can utilise it lot their study. Government should take necessary action/p>

Question 5.
Read the following paragraph and Interpret it. Economic proponents of Globalisation argue that it is the economic forces that are responsible for Globalisation and control its contours and borders. Those holding the political line argue that it is the governments decisions that allow movement in the first place?

Answer: According to the given paragraph, economic forces are responsible for Globalization. They are controlled by them. The policies of the government play a vital role in Globalization process. The people in government will decide flic line of the Globalization

Many Multinational Companies in various countries dominate governments of different countries by pressuring them. The key persons in governments are Influenced by them. Governments take decisions of policymaking in favour of the multinational companies. If the countries which are influenced by the multinational companies take decisions to make their companies run well in their countries, these companies influence the local markets

For example. Val Mart, D Mart, more supermarkets are running in India and small retail shop owners are lacing problems of sales. Their sales came down as the commodities are sold at cheaper rates. They take directly from companies and use their own transportation and so prices will be less

The governments should take decisions in favour of local people. The multinational companies should be allowed in the needy areas but not aN the fields in which local companies run well. The duty of the government is to take decisions for the welfare of the people

Question 6.
What are the three types of movement within international economic exchanges?

Answer: The three types of movement within international economic exchanges: The first is the flow of trade in goods as well as services. The second is the flow of labour the migration of people in search of employment. The third is the movement of capital for short-term or long-term investments over long distances. Besides, there are political and cultural dimensions of globalisation

Question 7.
Read the following paragraph and write whether you agree with this paragraph or not. Mention why/why not. At times, MNCs set up production jointly with the local companies In these countries. The local corrçany benefits by the additional Investments and the latest technology that be MNCs bring?

Answer: According to the paragraph ven, it says that the multinational companies invest for the production of goods jointly with the local companies. This additional investment is a sort of benefit for the local companies as they have access to the technology

To some extent It is true. When foreign companies want to establish a new factory they bring sorne new technology and provide job opportunities for the local people. They utilize the local resources along with human resource. The companies keep the local companies wi their grip and gradually they lose their control on their own production. They have to depend on the multinational companies. They have to supply their production to them only. They have to accept many of their conditions

Some people say that the multinational companies are helpful to the local companies. It is true in initial stage but in due course it leads to downfall. So I dont fully agree with this paragraph. Government should put barriers which are useful for the local companies. Such laws are to be brought and implemented

Question 8.
Read the following paragraph and Interpret. For a long time, trade has been the main channel of connecting countries. In history you would have read about the trade routes connecting India and South Asia to markets both in the East and West and the extensive trade that took place along these routes. You would also remember that was trading Interests whicti attracted various trading companies such as East India Company to India?

Answer: According to the paragraph given, trade is the main channel bringing the nations together. East India Company came to India in such a way. In the name of trade, the Europeans tried to find out new sea routes and in the series of efforts, they explore many countries and established markets

The exploration doesnt stop with spreading the markets. It leads to exploitation of natural resources. The trade extended to both East and West and many of the Asian, African countries have lost their Freedom and suffered a lot. East India Company came to India and looted the country. Trade doesnt mean exploitation. The explorations were useful to the developed countries only. Quality improvement, falling of prices, competition, etc. is acceptable

In conclusion, I would like to say that it is not so easy to decide whether the trade is really linking the markets and leading to exploitation. Every country should think whether the foreign companies are useful to their country or not. In what way they are useful for their people is important

Question 9.
Read the following paragraph and write your comments on it. To put it away, foreign trade creates an opportunity for the producers to reach beyond the domestic markets. Similarly, for the buyers, trade expands the choice of goods beyond what is domestically produced. Foreign trade, thus, results in connecting the markets or integration of markets is different countries?

Answer: The given paragraph says that because of foreign companies opportunities are created and the producers send their goods to other markets also. The buyers also have the choice to select the commodities or goods what ever they like. Foreign trade helps in connecting markets of the globe. International market system will be increased

My comments on this paragraph are that many of the foreign products like Coca-Cola, Pepsi and other cool drinks are available In our country. Local coconuts and buttermilk are not being utilized. There is a scope for Honda, Nokia and other products available in India. Quality and better products are being utilized by Indians. A few local company products are also being sold in international markets. Selection of goods plays a crucial role in the business

Though there is a choice for buyers, they should think of their domestic market also. Foreign trade connects the markets in different countries. The integration of market system doesnt collapse the domestic economic system

Question 10.
Read the following paragraph and write your opinion on it. Rapid growth of technology has been one major factor that has stimulated the globalization process For Instance, the past fifty years have seen several improvements in transportation technology. As a result, goods are delivered faster across long distances?

Answer: According to the given paragraph technology is one major factor in the process of globalization. Recently there are many changes in transportation technology. It led to faster movement in reaching destination

My opinion is that the technology is a part of globalization. Many multinational companies use different technology for various purposes. In this paragraph, it is discussed about transportation technology- Different types of vehicles ara used for transportation. Better roadways are also a part of that. The improvement of roadways affects transportation If roads are not good in condition, the vehicles move on the road will be damaged

Improved transportation makes travel easy. Construction and management of roads including vehicle maintenance are to be concentrated. Better roads help in minimizing the prices because of the fuel consumption. If roads are not good in condition, they lead to vehicle damage and so it causes for increasing in prices

Question 11.
Read the following paragraph and write your comments Lets us return to the example of imports of Chinese toys in India. suppose the Indian government imposes a tax on import of toys. And because of the tax, buyers will have to pay a higher price on imported toys. Chinese toys will no longer be as cheap in the Indian markets and imports from China will automatically reduce and Indian toy-makers will prosper?

Answer: According to the paragraph given, the government has to put barriers on Chinese toys. Thus the prices of the Chinese toys risa. Automatically Indian toys will have positive market. Indian toy makers will get benefits

My comments on this paragraph are as follows. This Is only an example, Like the Chinese toys, there are so many goods coming from abroad arid making good business. They are getting good profits. The same Indian manufacturers tace many troubles. If tax barriers are put against the foreign companies, they will sell their goods for higher prices but many a time such situation is not seen. Many of the electronic goods are being imported to our country in the same way as the Chinese toys are coming to our native market

In conclusion, I would like to say that the government should take necessary steps to strengthen the Indian companies and small-scale industries along with artisans and handicrafts

Question 12.
What is the influence of globalization Ofl the Indian economic system? What are the advantages of extending globalization to India? Express your opinion?

Answer: Globalisation has been of advantage to consumers. particularly the well-oft sections in the urban areas. There is greater choice before these consumers who now enjoy Improved quality and lower prices for several products. As a result, these people today enjoy much higher standards of living than was possible earlier. Among producers and workers, the impact of globalisation has not been uniform Firstly

MNCs have increased their investments in India, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, automobiles, electronics, soft links fast food oil services such as banking in urban areas. These products have a large number of well-off buyers

In these industries and services, new jobs have been created. Also, local companies supplying raw materials etc., to these Industries have prospered

Secondly, several of the top Indian companies have been able, to benefit from the increased competition. They have invested in newer technology and production methods and raised their production standards. Some have gained from successful collaborations with foreign companies

Moreover, globalisation has enabled some large ln can companies to emerge as multinationals themselves! Globalisation has also created new opportunities for companies providing services, particularly those involving IT. The Indian company producing a magazine for the London-based company and call centres are some examples. Besides, a host of services such as data entry, and accounting. administrative tasks, and engineering are now being done cheaply in countries such as India and are exported to the developed countries

Question 13.
Identify these countries on an outline map of world?
  1. United States of America
  2. China
  3. Mexico
  4. India
  5. Eastern European countries
  1. Poland
  2. Ukraine
  3. Romania
  4. Bulgaria
  5. Czech Republic
  6. Slovakia

Answer:

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