Q1: Read the source below and answer the questions that follow:
Globalisation refers to the integration of economies across the world through foreign trade, investments by multinational corporations (MNCs), and advancements in technology. It has allowed goods, services, and information to move across borders, impacting consumers, businesses, and workers.
i. What is meant by globalisation? (1 mark)
ii. How has technology contributed to globalisation? (1 mark)
iii. Explain one positive and one negative impact of globalisation on Indian businesses. (2 marks)
Ans:
i. Globalisation is the process of increased interconnectedness between countries through trade, investment, and technology.
ii. Technology has contributed by improving transportation, making communication faster, and enabling digital transactions for global trade.
iii. Positive impact: Indian businesses have access to global markets and advanced technology.
Negative impact: Small businesses face increased competition from MNCs, which may lead to their closure.
Q2: Read the source below and answer the questions that follow:
Multinational Corporations (MNCs) play a major role in globalisation by setting up factories and offices in different countries. They invest in nations where production costs are low, allowing them to maximize profits. MNCs often collaborate with local companies, bringing in new technology and financial investments.
i. What is an MNC? (1 mark)
ii. Why do MNCs invest in other countries rather than producing everything in their home country? (1 mark)
iii. How does the presence of MNCs benefit local industries in a country like India? (2 marks)
Ans:
i. An MNC is a company that owns or controls production in more than one country.
ii. MNCs invest in other countries to reduce production costs, access local markets, and benefit from cheap labor and resources.
iii. Benefits to local industries:
- Access to modern technology and advanced machinery, which improves productivity and product quality.
- Increased employment opportunities and financial investments in local businesses, fostering economic growth and development.
Q3: Read the source below and answer the questions that follow:
Foreign trade has been a major channel of globalisation, connecting producers and consumers across different countries. It allows producers to sell goods in multiple markets, while buyers have access to a wider variety of products at competitive prices. However, small businesses often struggle to compete with cheaper imported goods.
i. How does foreign trade lead to market integration? (1 mark)
ii. Give one advantage and one disadvantage of foreign trade for Indian producers. (1 mark)
iii. Explain with an example how foreign trade impacts local industries. (2 marks)
Ans:
i. Foreign trade integrates markets by allowing goods and services to move across borders, leading to competition and price adjustments.
ii. Advantage: Producers can sell their goods in international markets, increasing profits.
Disadvantage: Small businesses may struggle due to competition from cheaper imported goods.
iii. Example: The entry of Chinese toys into Indian markets led to lower prices for consumers due to mass production and economies of scale. However, this negatively impacted local Indian toy manufacturers, as they could not match the low prices of imported toys, resulting in reduced sales and financial losses for domestic businesses.
Q4: Read the source below and answer the questions that follow:
Globalisation has created new employment opportunities, especially in sectors like IT, call centers, and automobile manufacturing. However, many workers in traditional industries have faced job losses due to increased competition and automation. Some jobs have become temporary, reducing job security.
i. How has globalisation impacted employment in India? (1 mark)
ii. Why do some workers face job insecurity due to globalisation? (1 mark)
iii. Suggest two ways the government can help workers affected by globalisation. (2 marks)
Ans:
i. Globalisation has increased employment in service and industrial sectors but has also led to job losses in small-scale industries.
ii. Workers face job insecurity because companies prefer hiring temporary or contract workers to reduce costs.
iii. Two government measures:
- Providing skill development programs to equip workers with new skills, enabling them to transition to emerging industries.
- Ensuring fair labor laws and policies to protect workers’ rights, improve job security, and provide social safety nets for those who lose their jobs.
Q5: Read the source below and answer the questions that follow:
The World Trade Organization (WTO) aims to promote free trade by reducing barriers between countries. However, while developing nations like India have reduced trade restrictions, developed countries continue to support their farmers with subsidies, creating an unfair trade environment.
i. What is the role of the WTO? (1 mark)
ii. Why do developing countries argue that global trade is not fair? (1 mark)
iii. Suggest two ways in which WTO can ensure fair trade for all countries. (2 marks)
Ans:
i. The WTO regulates international trade and ensures trade agreements are followed.
ii. Developing countries argue that trade is unfair because developed nations still provide subsidies to their industries, making it hard for developing countries to compete.
iii. Two ways to ensure fair trade:
- Enforcing equal trade policies for all countries, preventing subsidies for rich nations.
- Encouraging financial and technical assistance for developing countries to compete in global markets.