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

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.

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 .

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.

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.

* 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

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.

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

Investment made by MNCs is called Foreign Investment. Here is a detailed explanation:
Foreign Investment:
- Foreign investment refers to the investment made by multinational corporations (MNCs) in a country other than their home country.
- MNCs are companies that operate in multiple countries, and they often invest in various projects and ventures abroad.
- Foreign investment can take the form of capital investment, such as building factories or buying real estate, or it can involve the acquisition of existing businesses or stocks in foreign companies.
- These investments are made with the aim of expanding the MNC's operations, accessing new markets, and taking advantage of favorable economic conditions or resources in the host country.
Significance of Foreign Investment:
- Foreign investment plays a crucial role in promoting economic growth and development in host countries.
- It brings in capital, technology, and expertise, which can stimulate economic activities and create employment opportunities.
- Foreign investment also contributes to the transfer of knowledge and technology, fostering innovation and improving productivity in the host country's industries.
- Moreover, it can lead to the development of infrastructure, such as roads, ports, and power plants, which benefits both the MNC and the host country.
- Additionally, foreign investment can enhance international trade and promote global economic integration.
Examples of Foreign Investment:
- Many well-known multinational corporations, such as Coca-Cola, Ford, and Samsung, have made significant foreign investments in various countries.
- For instance, Coca-Cola has established bottling plants and distribution networks in numerous countries around the world to cater to local markets.
- Similarly, Ford has invested in manufacturing facilities in different countries to produce and sell its vehicles globally.
- These examples highlight the extensive foreign investment activities undertaken by MNCs to expand their global presence and tap into new markets.
In conclusion, foreign investment refers to the investment made by multinational corporations in foreign countries. It plays a pivotal role in promoting economic growth, knowledge transfer, and international trade. Many MNCs engage in foreign investment to expand their operations and leverage the opportunities offered by different countries.

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.

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

• 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.

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

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

Removing barriers or restrictions set by the government on foreign trade and foreign investment is known as liberalisation. It is an economic policy that aims to promote free trade and open up markets to foreign competition. Here is a detailed explanation:
Liberalisation:
- Liberalisation refers to the process of removing restrictions and regulations that hinder international trade and investment.
- It involves reducing barriers such as tariffs, quotas, and licensing requirements that limit the entry of foreign goods and services into a country.
- By liberalising trade and investment, countries aim to increase economic efficiency, promote competition, attract foreign direct investment (FDI), and stimulate economic growth.
- Liberalisation can be unilateral, where a country removes restrictions on its own, or it can be part of international trade agreements where multiple countries agree to reduce trade barriers collectively.
- It often involves the negotiation and signing of free trade agreements (FTAs) or joining regional trading blocs.
- Liberalisation can also extend to the financial sector, allowing foreign investors to enter and compete in domestic financial markets.
Benefits of Liberalisation:
- Increased competition: Liberalisation promotes competition, which can lead to improved product quality, lower prices, and greater consumer choice.
- Economic growth: Opening up markets to foreign trade and investment can stimulate economic growth by attracting capital, technology, and expertise from abroad.
- Job creation: Liberalisation can create employment opportunities as foreign companies establish operations or invest in local businesses.
- Access to new markets: Liberalisation allows domestic companies to access new export markets, diversifying their customer base and increasing their revenue.
- Innovation and technology transfer: Foreign competition can drive domestic companies to innovate and adopt new technologies, leading to productivity gains and increased competitiveness.
In conclusion, liberalisation plays a crucial role in promoting international trade and investment by removing barriers and restrictions set by the government. This policy aims to enhance economic efficiency, foster competition, attract foreign investment, and stimulate economic growth.

Introduction:
The process of integration of different countries is known as globalization. It refers to the increasing interconnectedness and interdependence of economies, cultures, and societies across national boundaries. Globalization has been facilitated by advancements in technology, transportation, communication, and economic policies.

Explanation:
Globalization is a multifaceted phenomenon that encompasses various aspects, including economic, political, social, and cultural integration. It involves the exchange of goods, services, capital, information, and ideas between countries. The integration of different countries through globalization has several implications and impacts on various stakeholders.

Economic Integration:
One of the key components of globalization is economic integration. This involves the removal of trade barriers such as tariffs, quotas, and restrictions on foreign investment. Economic integration promotes the free flow of goods, services, and capital between countries, leading to increased trade, investment, and economic growth. It allows countries to specialize in the production of goods and services in which they have a comparative advantage.

Political Integration:
Globalization also involves political integration to some extent. International organizations such as the United Nations, World Trade Organization, and International Monetary Fund play a crucial role in promoting cooperation and resolving conflicts between countries. Additionally, globalization has led to the emergence of regional integration blocs like the European Union, which aim to deepen economic and political cooperation among member states.

Social and Cultural Integration:
Globalization has brought people from different countries and cultures closer together. It has facilitated the exchange of ideas, knowledge, and cultural practices. Increased travel and migration have also contributed to cultural diffusion and the blending of different cultures. However, globalization has also raised concerns about the preservation of local cultures and traditions in the face of homogenization.

Benefits and Challenges:
Globalization has its advantages and challenges. On the positive side, it has expanded market opportunities, fostered technological advancements, and improved living standards for many people. However, globalization has also led to increased inequality, job displacement, environmental degradation, and loss of cultural diversity. It has also been criticized for favoring the interests of multinational corporations over local communities.

Conclusion:
In conclusion, the process of integration of different countries is called globalization. It encompasses economic, political, social, and cultural integration. While globalization has brought several benefits, it also presents challenges that need to be addressed through appropriate policies and regulations. The ongoing debate about the merits and drawbacks of globalization highlights the need for a balanced and inclusive approach to ensure that the benefits of integration are shared by all.

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.

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.

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.

By setting up partnerships with local companies, by using the local companies for supplies, by closely competing with the local companies or buying them up, MNCs are exerting a strong influence on production at distant locations. As a result, production in widely dispersed locations is getting interlinked.

Since globalization leads to movement of goods, services, people and technology across nations, developing countries are likely to become at par with developed countries in terms of technological development.

At times, MNCs set up production jointly with some of the local companies of the host countries. The benefit to the local company from such joint production is twofold as MNCs can provide for additional investments and can bring in newer technology of production that results in fast-paced production.

The correct answer is option C, globally.

Explanation:

When we say that an MNC (Multinational Corporation) produces goods globally, it means that the company operates in multiple countries and has production facilities in different parts of the world. This allows them to cater to a larger customer base and take advantage of various resources and markets available in different countries.

There are several reasons why an MNC would choose to produce goods globally:

1. Market Expansion: By producing goods globally, MNCs can reach a wider customer base in different countries. This helps them tap into new markets and increase their sales and revenue.

2. Resource Optimization: Different countries have different resources available, such as raw materials, labor, technology, etc. By setting up production facilities in multiple countries, MNCs can optimize their use of resources and reduce costs.

3. Access to Skilled Labor: Producing goods globally allows MNCs to access a diverse pool of skilled labor. They can hire workers with specific expertise or take advantage of lower labor costs in certain countries.

4. Reduction of Trade Barriers: By establishing production facilities in different countries, MNCs can reduce trade barriers and tariffs. This can result in lower costs and increased competitiveness in international markets.

5. Risk Diversification: Operating globally helps MNCs diversify their risks. If there are economic or political uncertainties in one country, they can still continue their operations in other countries.

6. Proximity to Customers: Setting up production facilities in different countries allows MNCs to be closer to their customers. This can lead to faster delivery times, better customer service, and improved customer satisfaction.

In conclusion, an MNC producing goods globally means that it operates in multiple countries and has production facilities in different parts of the world. This strategy allows them to expand their market reach, optimize resources, access skilled labor, reduce trade barriers, diversify risks, and be closer to their customers.

Investments by MNCs in Countries

Investments by multinational corporations (MNCs) in countries around the world can take various forms. The most common route for investments by MNCs in countries around the world is to buy existing local companies.

Reasons for Buying Existing Local Companies:

1. Faster Entry: Buying an existing company allows MNCs to enter new markets more quickly than building a new factory or forming a partnership with a local company.

2. Established Presence: Buying an existing company also provides MNCs with an established presence in the local market, including an existing customer base or distribution network.

3. Local Expertise: Buying an existing company also provides MNCs with local expertise, knowledge of the local market, and existing relationships with suppliers and customers.

4. Reduced Risk: Buying an existing company also carries less risk than building a new factory or forming a partnership with a local company, as the existing company already has a proven track record.

Conclusion:

Therefore, buying existing local companies is the most common route for investments by MNCs in countries around the world, as it provides a faster entry into new markets, an established presence, local expertise, and reduced risk.

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.

Foreign trade creates an opportunity for the producers to reach beyond the domestic markets and thus expands the choices available for consumers.

Globalisation results in greater competition among producers.

Explanation:
Globalisation refers to the increasing interconnectedness and interdependence of countries through the exchange of goods, services, information, and ideas. It has several impacts on competition among producers:

1. Market Expansion:
- Globalisation opens up new markets and increases access to consumers worldwide.
- Producers now have the opportunity to sell their products to a larger customer base, leading to increased competition among producers to capture market share.

2. Entry of Foreign Competitors:
- Globalisation allows for the entry of foreign producers into domestic markets.
- This creates a more competitive environment as domestic producers have to compete with foreign companies that may have lower production costs, better technology, or superior products.

3. Technological Advancements:
- Globalisation facilitates the transfer of technology and knowledge across borders.
- Producers can adopt new technologies and production methods from around the world, leading to increased efficiency and competitiveness.
- This technological diffusion fosters greater competition among producers as they strive to innovate and improve their products and processes.

4. Price Competition:
- Globalisation often leads to price competition among producers.
- With increased access to global markets, producers face pressure to lower their prices to remain competitive.
- This benefits consumers but intensifies competition among producers to offer the best quality products at the most competitive prices.

5. Supply Chain Integration:
- Globalisation has also led to the integration of supply chains across countries.
- Producers now rely on global suppliers and partners, which introduces additional competition in terms of sourcing quality inputs and managing costs.

In conclusion, globalisation results in greater competition among producers due to market expansion, the entry of foreign competitors, technological advancements, price competition, and supply chain integration. Producers must adapt and improve to stay competitive in a globalised economy.

The removal of barriers to trade is known as liberalization, and the businesses freely deciding which goods to import and export is an outcome of liberalization not a reason for liberalization.

Taxes increase the price of imported goods, and so the demand for imports is likely to go down. As a result, the profits of producers who sell imported goods are also likely to reduce. Governments impose taxes to regulate the amount and quality of goods that enter a nation and to protect domestic industry from foreign competition.

Due to foreign trade, producers in different countries closely compete with each other. This is because the price of similar goods tends to become equal in different markets. Therefore, if a good is priced higher in the domestic market, consumers may prefer importing it from another country at a lower price.

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