All questions of Globalisation and the Indian Economy for Class 10 Exam

Correct answer is option B that is Globalisation .
Because more and more goods and services , investments and technology are moving between countries.
there is one more way in which the countries can be connected . This is through the movement of people between countries. MNCs are playing major role in globalisation process .

Liberalisation is the process or means of the elimination of the control of the state over economic activities. It provides greater autonomy to the business enterprises in decision-making and eliminates government interference.

Ans is b
becoz of imports choices increases and if the import tax is less very often price will be more less and affordable
so ,the demand for domestic market goods will fall .
u can refer ncert eco book
ex ;of China's toys.

Explanation:

Globalisation refers to the integration of economies, societies and cultures of different countries. It has a profound impact on the competition among producers. The correct answer to the given question is option 'A' i.e. more competition among producers. Let's understand why:

Reasons:

1. Increased market size: Globalisation increases the market size for producers as they can now sell their products to customers all over the world. This leads to more competition among producers as they are all vying for the same customers.

2. Lower trade barriers: Globalisation leads to the reduction of trade barriers between countries. Producers can now import and export goods more easily, which increases competition among producers as they are now competing with producers from other countries.

3. Advancements in technology: Globalisation has led to advancements in technology, which has made it easier for producers to produce and sell goods. This has increased competition among producers as they are now able to produce goods more efficiently and at a lower cost.

4. Increased access to capital: Globalisation has led to an increase in access to capital for producers. This has enabled them to invest in research and development, which has led to the creation of new and innovative products. This has increased competition among producers as they are now competing with producers who have access to the latest technology.

Conclusion:

In conclusion, globalisation has resulted in more competition among producers. This competition has led to innovations in products, lower prices for consumers and increased efficiency in production. However, it has also led to job losses in some sectors and increased inequality.

In brief, the World Trade Organization (WTO) is the only international organization dealing with the global rules of trade. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.

Option b is correct. Because, When you come to the concept regarding to the Globalisation, it refers to the increase in the cross - border movement of goods and services. When there is a movement of goods and services,then there will be always investment. Globalisation is not including only our country India, but also it includes all the countries in the world in order to increase GDP of a country and leads to the competition between other countries. In order to increase GDP of a country, then there should be transaction of goods and services between other countries. So, when there is a transaction of goods and services, then there is investment between other countries.

Tata Steel is an Indian MNC ( established in Jamshedpur , Jharkhand ) { founder - Jamsetji Tata ) .

The World Trade Organisation (WTO) lays stress on liberalization of foreign trade and foreign investment.

Introduction:
The assertion and reason given in the statement are related to the process of globalisation and the impact of technology on it.

Explanation:
- Assertion: Rapid improvement in technology has stimulated the globalisation process.
The assertion is true because technology has played a crucial role in the globalisation process. Technology has made it easier to communicate, transport goods and services, and access information globally. This has led to increased trade, investment, and cultural exchange between countries. The development of the internet, social media, and e-commerce platforms has made it easier for businesses to reach a global audience and for people to connect with each other across borders.

- Reason: Everyone has benefited from globalisation.
The reason is not entirely true because while globalisation has brought many benefits, it has also created winners and losers. Developed countries have benefited more from globalisation than developing countries. Many workers in developed countries have lost their jobs due to outsourcing and competition from cheaper labour in developing countries. This has led to increased inequality and social unrest in some countries.

Conclusion:
In conclusion, option C is the correct answer as the assertion is true, but the reason is not entirely correct. Rapid improvement in technology has indeed stimulated the globalisation process, but not everyone has benefited equally from globalisation.

Answer a

Correct answer is option c

Any restriction imposed on the free flow of trade is a trade barrier. Trade barriers can either be tariff barriers (the levy of ordinary negotiated customs duties in accordance with Article II of the GATT) or non-tariff barriers, which are any trade barriers other than tariff barriers
Tax on imports is an example of Trade Barrier. Thus, option C is right ans

Investment made by MNCs is called foreign investment. Any investment is made with the hope that these assets will earn profits.

Transportation has played a crucial role in promoting globalization. Globalization refers to the process of integrating different countries, economies, and cultures into a single global community. The advancement in the transportation sector has led to improved connectivity and faster communication between different parts of the world. This, in turn, has led to the following benefits:

1. Increased Trade: The improvement in transportation has enabled companies to transport goods and services across the globe. This has led to increased trade between different countries and has helped to boost economic growth and development.

2. Cultural Exchange: The improvement in transportation has also made it easier for people to travel and experience different cultures. This has led to cultural exchange and has helped to break down barriers between different communities.

3. Increased Investment: The improvement in transportation has made it easier for investors to invest in different parts of the world. This has led to increased investment and has helped to create jobs and stimulate economic growth.

4. Improved Communication: The improvement in transportation has also led to faster communication between different parts of the world. This has helped to improve collaboration and has made it easier for people to share knowledge and ideas.

Overall, the improvement in transportation has played a crucial role in promoting globalization and has led to numerous benefits for different parts of the world.

BPOs, also known as Business Process Outsourcing, have benefited the growth of MNCs (Multinational Companies) in various ways. Here are some of the reasons why:

1. Cost Reduction: BPOs help multinational companies to reduce their operational and labor costs significantly. This is because BPOs are located in low-cost countries such as India, the Philippines, and China, where labor is comparatively cheaper.

2. Access to Skilled Talent: MNCs can access a large pool of skilled talent through BPOs. These skilled professionals provide high-quality services to MNCs at a fraction of the cost of hiring full-time employees.

3. Increased Efficiency: BPOs help MNCs to streamline their business processes and increase efficiency. This enables MNCs to focus on their core competencies and strategic initiatives.

4. 24/7 Operations: BPOs operate round the clock, providing MNCs with 24/7 support. This ensures that MNCs can provide uninterrupted services to their customers.

5. Expansion into New Markets: BPOs can help MNCs to expand into new markets by providing local language support and cultural knowledge.

6. Improved Customer Service: BPOs help MNCs to improve their customer service by providing timely and accurate responses to customer queries.

In summary, BPOs have benefited the growth of MNCs by reducing costs, providing access to skilled talent, increasing efficiency, enabling 24/7 operations, expanding into new markets, and improving customer service.

• Assertion (A): "Until the middle of the 20th century, production was largely organised within countries." This is true. Before the globalization and advancements in communication and transportation, production processes were primarily conducted within national borders.
• Reason (R): "Lack of trade among nations." This is incorrect. While trade among nations was more limited compared to the modern era, it was not the primary reason why production was organized within countries. The organization of production within countries was influenced more by technological limitations, transportation costs, and political factors rather than a complete lack of trade among nations.

* World Trade Organisation (WTO) is an international body, which aims at liberalising international trade. It was started at the initiative of developed countries.
WTO establishes rules regarding international trade.

* So option " c " is correct

Explanation:

Small Scale Industries (SSIs) are defined as industries that require low capital investment and less human resources. These industries contribute significantly to the economic growth of the country by providing employment opportunities and by promoting entrepreneurship. However, SSIs face stiff competition from various sources, of which cheap imports are the most significant. The following points explain why SSIs face competition from cheap imports:

1. Advantages of Cheap Imports:

Cheap imports are products that are produced in foreign countries and imported into the domestic market at a lower cost than the locally produced goods. The main advantage that cheap imports have over domestic goods is the cost factor. Cheap imports are usually produced in countries where the cost of production is low due to lower labor costs, fewer taxes, and cheaper raw materials. As a result, these products are sold at a much lower price than the locally produced goods.

2. Impact on Domestic Industries:

The availability of cheap imports in the domestic market affects the competitiveness of the domestic industries, especially the SSIs. The SSIs usually operate on a small scale and have limited resources, which makes it difficult for them to compete with the cheaper imported products. The cheap imports make it difficult for the SSIs to increase their market share and to expand their operations.

3. Quality of Goods:

The quality of the imported goods also plays a significant role in the competition faced by the SSIs. Imported goods are usually of better quality than the locally produced goods. This makes it difficult for the SSIs to compete with the foreign products, as the consumers prefer products that are of better quality.

4. Government Policies:

The government policies also play a significant role in the competition faced by the SSIs. The government policies such as trade agreements, tariffs, and subsidies have a significant impact on the competitiveness of the domestic industries. The government policies that favor the import of cheap goods over the locally produced goods can negatively impact the SSIs.

Conclusion:

In conclusion, SSIs face stiff competition from cheap imports due to the cost advantage, quality advantage, and government policies. The government needs to formulate policies that promote the growth of the SSIs and reduce their dependence on imports. The government can promote the growth of the SSIs by providing them with financial assistance, technical support, and favorable policies.

I'm not so called Confidence,but the Answer maybe Is option B) Both A and R are true and R is not the correct explanation of A

(D) It employs labour only from its own country.

Some features of MNC's
They base their operations in many different countries upon market demand and availability of cheap labour
They bring huge investments along with modern technology into production. They expand production by buying up local companies or entering into partnership with them.

To answer the question, let's break it down into different points:
1. Definition of a company operating in more than one country:
- A company that operates in more than one country is known as a multinational company.
2. Options provided:
- A: Partnership
- B: Corporation
- C: Foreign company
- D: Multinational
3. Analysis of the options:
- Option A: Partnership refers to a business owned and operated by two or more individuals, but it does not necessarily operate in multiple countries.
- Option B: Corporation is a legal entity that is separate from its owners, and it can operate in multiple countries. However, not all corporations operate internationally.
- Option C: Foreign company generally refers to a company that operates in a country other than its home country, but it may not necessarily operate in multiple countries.
- Option D: Multinational is the correct answer as it specifically describes a company that operates in more than one country.
4. Conclusion:
- Based on the analysis, the correct answer is option D: Multinational.

Introduction:
Multinational corporations (MNCs) are companies that operate in multiple countries and have expanded their operations to global markets. Their success in entering these markets can be attributed to various factors, including their ability to adapt to different cultures, economies, and regulations. One significant factor that has facilitated the success of MNCs in entering global markets is the World Trade Organization (WTO).
Explanation:
The World Trade Organization (WTO) is an international organization that deals with the global rules of trade between nations. It provides a platform for negotiations and the resolution of trade disputes. The WTO aims to promote free and fair trade by reducing barriers to trade and ensuring that trade flows smoothly.
Benefits of WTO for MNCs:
Here are some reasons why MNCs have succeeded in entering global markets through the WTO:
1. Market Access: The WTO encourages its member countries to eliminate trade barriers such as tariffs, quotas, and discriminatory regulations. This provides MNCs with increased market access and the opportunity to expand their operations globally.
2. Non-Discrimination: The WTO promotes the principle of non-discrimination in international trade. It prohibits its member countries from treating foreign companies less favorably than domestic ones. This ensures that MNCs can compete on an equal footing with local companies in global markets.
3. Dispute Resolution Mechanism: The WTO provides a dispute settlement mechanism to resolve trade disputes between member countries. This mechanism ensures that MNCs have a fair and transparent process to address any trade-related issues they may face in global markets.
4. Intellectual Property Rights (IPR) Protection: The WTO has established intellectual property rights (IPR) agreements that protect the rights of inventors, authors, and creators. This provides MNCs with a secure environment to invest in research and development and protects their innovations and brands in global markets.
5. Technical Barriers to Trade: The WTO also addresses technical barriers to trade, such as product standards and regulations. It encourages its member countries to adopt international standards, which makes it easier for MNCs to comply with regulations in different markets.
Conclusion:
In conclusion, the World Trade Organization (WTO) has played a crucial role in facilitating the success of multinational corporations (MNCs) in entering global markets. The WTO's focus on promoting free and fair trade, market access, non-discrimination, dispute resolution, intellectual property rights protection, and addressing technical barriers to trade has created a favorable environment for MNCs to expand their operations globally.

FDI (Foreign Direct Investment) in India

Foreign Direct Investment (FDI) is an investment made by a company or individual in one country into a business located in another country. FDI has become an important aspect of globalisation and has played a significant role in India's economic growth. Let's see which entities attract FDI in India.

Multinational Corporations (MNCs)

MNCs are companies that operate in multiple countries through subsidiaries, affiliates, or branches. They are the primary source of FDI in India. MNCs invest in India to take advantage of the country's large consumer base, low-cost labor, and favorable investment policies. Some of the top MNCs that have invested in India are:

- Coca-Cola
- PepsiCo
- Microsoft
- IBM
- Samsung
- Toyota
- Ford

Foreign Governments

Foreign governments can also invest in India through FDI. However, this is relatively rare as most governments invest in other countries through foreign aid or other forms of financial assistance.

World Bank

The World Bank is an international financial institution that provides loans and grants to developing countries. It does not directly invest in businesses but can provide financial assistance to governments to create an environment that is conducive to FDI.

Conclusion

In conclusion, FDI attracted by globalisation in India belongs primarily to multinational corporations. These corporations invest in India to take advantage of the country's favorable investment policies, large consumer base, and low-cost labor. While foreign governments can also invest in India, this is relatively rare. The World Bank provides financial assistance to governments to create a conducive environment for FDI.

Facilitation of production of services across countries

Introduction:
The production of services across countries has been facilitated by several factors. However, the most important factor is the advancement in information and communication technology.

Information and Communication Technology:
Information and communication technology (ICT) refers to the use of electronic devices, such as computers and smartphones, to communicate, store, retrieve, and transmit information. The development of ICT has had a significant impact on the production of services across countries.

Advantages of ICT in production of services across countries:
1. Increased Efficiency: ICT has increased the speed and efficiency of service production across countries. The use of internet-based platforms has enabled service providers to communicate and collaborate with clients and other service providers in real-time.

2. Reduced Costs: ICT has reduced the cost of service production across countries. Service providers can now communicate with clients and other service providers using low-cost internet-based platforms.

3. Improved Quality: ICT has improved the quality of service production across countries. Service providers can now access a wide range of information and resources from different countries and use them to improve the quality of their services.

4. Access to Global Markets: ICT has provided service providers with access to global markets. Service providers can now market their services globally using internet-based platforms.

Conclusion:
In conclusion, the production of services across countries has been facilitated by several factors. However, the most important factor is the advancement in information and communication technology. The use of internet-based platforms has increased the efficiency, reduced the cost, improved the quality, and provided access to global markets for service providers.

Liberalization refers to a relaxation of government restrictions, usually in such areas of social, political and economic policy. In some contexts, this process or concept is often, but not always, referred to as deregulation.

Explanation:

Multinational corporations (MNCs) are large companies that operate in multiple countries. They have a global presence and are involved in various business activities such as manufacturing, marketing, and distribution of products and services. MNCs are also known as transnational corporations (TNCs) or multinational enterprises (MNEs).

Characteristics of MNCs:
- Operate in multiple countries
- Have a global presence
- Involved in various business activities
- Have a large workforce
- Use advanced technology and management techniques

Advantages of MNCs:
- Access to larger markets
- Economies of scale
- Access to resources and technology
- Ability to spread risk
- Opportunities for growth and expansion

Disadvantages of MNCs:
- Exploitation of workers and resources
- Dominance over local businesses
- Negative impact on the environment
- Transfer of profits to other countries
- Lack of accountability

Examples of MNCs:
- Coca-Cola
- McDonald's
- Nike
- Toyota
- Apple

Conclusion:

MNCs play a significant role in the global economy. They have advantages and disadvantages, and it is essential to balance their impact on the local economy and society. Governments need to regulate MNCs to ensure that they operate ethically and contribute to sustainable development.

Foreign Trade as an Opportunity for Producers

Foreign trade refers to the exchange of goods and services across borders. In today's globalized economy, foreign trade has emerged as a critical factor in the growth and development of nations. For producers, foreign trade provides an opportunity to expand their markets beyond the domestic boundaries. Let us explore how foreign trade can be beneficial for producers.

Access to Larger Markets

The domestic market is limited by the size of the population and the purchasing power of the people. By exporting their products to foreign markets, producers can tap into larger markets with greater demand for their products. This provides an opportunity to increase sales, revenue, and profits.

Diversification of Markets

Relying solely on the domestic market can be risky for producers as it is subject to fluctuations and changes in the economy. By diversifying their markets through foreign trade, producers can spread their risks and reduce their dependence on a single market.

Competitive Advantage

Foreign trade can provide producers with a competitive advantage by allowing them to tap into markets where their products may be in high demand or where they can offer their products at a lower cost. This can help to improve their market share and increase their competitiveness.

Access to New Technologies and Resources

Foreign trade can provide producers with access to new technologies and resources that may not be available domestically. This can help to improve the quality of their products and enhance their production processes.

Conclusion

In conclusion, foreign trade provides an opportunity for producers to expand their markets, diversify their risks, improve their competitiveness, and access new technologies and resources. It is, therefore, essential for producers to explore foreign trade as a means of growing their businesses and contributing to the economic growth of their countries.

Globalisation results in greater competition among producers
- Globalisation leads to an increase in international trade and the flow of goods and services across borders.
- This greater interconnectedness and integration of economies result in producers from different countries competing with each other in the global marketplace.
- Here are some reasons why globalisation leads to greater competition among producers:
- Access to larger markets: Globalisation allows producers to access larger markets beyond their domestic boundaries. This means they have to compete with more players for market share.
- Lower trade barriers: Globalisation often involves the reduction of trade barriers such as tariffs and quotas. This allows producers from different countries to compete on a more level playing field, increasing competition.
- Technological advancements: Globalisation is often accompanied by advancements in technology and communication. This enables producers to reach customers in different parts of the world more easily, leading to increased competition.
- Price comparison: With globalisation, consumers have access to more information and can easily compare prices and quality from different producers. This puts pressure on producers to offer competitive prices and higher quality.
- In conclusion, globalisation results in greater competition among producers as they have to compete with a larger pool of players, face reduced trade barriers, leverage technological advancements, and meet the demands of informed consumers.

The correct answer is option 'D' - None of the above.

Explanation:
MNCs, or Multinational Corporations, are large companies that operate in multiple countries and have a significant impact on the global economy. While MNCs can have various effects on the market, they do not directly increase competition, price wars, or quality in the same way that domestic companies might.

1. MNCs and Competition:
While MNCs may have a large market share in certain industries, their presence does not necessarily increase competition. In fact, MNCs often have significant advantages over smaller domestic companies, such as greater financial resources, access to global markets, and economies of scale. These advantages can make it difficult for smaller competitors to effectively compete with MNCs, leading to less competition rather than more.

2. MNCs and Price Wars:
Price wars typically occur when companies engage in aggressive price-cutting strategies to gain market share. While MNCs may engage in price competition, it is not accurate to say that MNCs directly increase price wars. Price wars are more likely to occur when there is intense competition among companies in a particular market, regardless of whether they are MNCs or domestic companies. Additionally, MNCs may have the financial capacity to sustain price wars for longer periods, which can further discourage smaller competitors from entering the market.

3. MNCs and Quality:
MNCs often have a reputation for providing high-quality products and services, as they are driven by the need to maintain their brand image and customer loyalty across different markets. However, it is important to note that MNCs do not automatically increase the overall quality of products or services in a market. Quality can vary among MNCs, and domestic companies may also offer products and services of comparable quality or even higher quality in certain cases.

In conclusion, while MNCs have a significant impact on the global economy, it is not accurate to say that they directly increase competition, price wars, or quality. The effects of MNCs on these factors depend on various market dynamics and the specific strategies employed by individual companies.

In general, MNCs set up production where it is close to the markets where there is skilled and unskilled labourj available at low costs and where the availability of other factors of production is assured. in addition, MNCs might look for government policies that look after theirs interest

Investment refers to the act of spending money with the expectation of generating future income or returns. In the context of the given options, investment can be made in various forms, such as factory building, machines, and equipment. Let's break down each option to understand how they contribute to investment:
1. Factory Building: Investing in factory buildings involves constructing or acquiring physical structures where production activities take place. This includes purchasing land, materials, and labor to establish a manufacturing facility.
2. Machines: Investment in machines refers to purchasing or leasing equipment that aids in the production process. Machines can range from simple tools to complex industrial machinery, depending on the nature of the business.
3. Equipment: Equipment investment involves acquiring necessary tools, devices, or instruments to support the production or operation of a business. This can include items such as computers, vehicles, furniture, or specialized machinery.
4. All the above: The answer option "D: all the above" indicates that investment encompasses spending on factory building, machines, and equipment. This means that investment is not limited to any single form but includes all these options.
In summary, investment involves spending on factory building, machines, and equipment. These investments are made with the expectation of generating future income or returns.