GLOBALISATION AND INDIAN ECONOMY CBSE CLASS 10 SOLUTIONS

 Globalisation and Indian Economy CBSE Class 10 Important Question and Answers

Solution for Social Science Class 10 CBSE Globalisation


1.In what three ways has liberalization of trade and investment policies helped the globalisation process? 
Ans.A. With liberalization of trade, industrialists are al lowed to make decisions freely about what they wish to import and export. 
B. Goods now be imported and exported easily. 
C. Companies can set their manufacturing units any oth er country of the world. 
D. The process of foreign trade and investment has bee n increased by the MNCs. 
E. Domestic companies are free to compete with produce rs around the world. 


2.What are SEZs? Explain the facilities which SEZs have? 
Ans.A. The central and state governments in India are taki ng special steps to attract foreign companies to invest in India. Industrial Zo nes called special economic Zones are being set up. 
B. SEZs are to have world class facilities: electricit y, water, roads, transports, and storage, recreational and educational facilities. 
C. Companies who set up production units in the SEZs d o not have to pay taxes for an initial period of five years. 


3.Why the MNCs are interested to set up their manufac turing units in developing countries 
Ans.A. MNCs set up production where it is close to the mar kets, where there is skilled and unskilled labour available at low costs. 
B. In developing countries labour laws are not properl y followed and the labour is available at very low cost in these countries. 
C. In developing countries the availability of other f actors of production is assured. Raw material is also available at low price. 
D. MNCs look for government policies that look for the ir interests. The governments of developing countries need the help of MNCs to se t up industries in their countries. That’s why that government makes policie s according to the interests of MNCs. 

4.Mention the reasons that forced Indian Government f or putting barriers to foreign trade and foreign investment just after independence? 
Ans.Following are the reasons that forced the India n Government for putting Barriers: 
A. To protect producers within the country from foreig n competition. 
B. To save our freedom from Neo Colonialism. 
C. To regulate foreign Trade. 
D. To decide what kind of goods and how much of each s hould come into country. 

5.Suggest any three ways by which globalization can b e made fairer so that it benefits all people. 
Ans.A. Government can ensure that labour laws should be pr operly implemented and the workers get their rights. 
B. It can support small producers to improve their per formance till the time they become strong enough to compete. 
C. People can play an important role in the struggle f or fair globalisation through massive struggle and movements. 
D. Government can put pressure on WTO to make policies fairer. 

6.Why did the government of india change the old economic policy in 1991 
Ans.following are the reasons. 
A. The time had come for the Indian producers to compe te with producers around the globe as competition would improve performance. 
B. Powerful international organizations like WTO and W orld Bank forced the government to take this step. 
C. Liberalization was adapted to encouraged free movem ent of goods, services and manpower across countries 

7.Explain the factors which facilitated Globalisation 
Ans.A. Rapid improvement in technology has been one major factor that has enabled the globalisation process. 
B. Improvement in information technology has played a major role in spreading out production of services across countries. Telecommun ication facilities are used to contact one another around the world to access info rmation instantly and to communicate from remote areas. 
C. Improvement in transportation has made possible muc h faster delivery of goods across long distances at low cost. 
D. Due to the pressure of WTO many developing countrie s have removed many of the trade barriers to foreign trade and investment and thus promoted and facilitate the globalisation. 
E. Multilateral trade agreement has promoted foreign t rade and free flow of investments. 

8."WTO is not making rules fairly" Explain the term with an example
Ans.A. To regulate World Trade Organisation is one such or ganization whose aim is to liberalize international trade. 
B. WTO is supposed to allow free trade for all, in pr actice, it is seen that the developed countries have unfairly retained trade ba rriers. 
C. On the other hand WTO rules have forced the develo ping countries to remove trade barriers and subside. 
D. For Example: The farmers of US receive massive sums of money from the US government for production and foe exports to other countries. Due to this massive money US farmers can sell the farm products at abno rmally low prices. Developed countries have reduced trade barriers as per WTO bu t the governments of developed countries have ignored the rules of WTO. 

9.What do you think can be done so that trade between countries is become fair?
Ans. The following steps should be taken to make tr ade between countries more fair: 
A. There should be uniform rules and regulations made by WTO. 
B. The interests of the developing countries should be protected. 
C. There should be no trade barriers except in the int erests of the developing countries. 

10.Explain the way by which government regulate the foreign trade .
Ans.A. Tax on imports is an example of trade barriers. .
B. It is called trade barriers because some restricti ons have been setup. .
C. Government can use trade barriers to increase or de crease (regulate) foreign trade and to decide what kinds of goods and how much of e ach, should come into the country. 

11.How do the MNCs help in the growth of local Companies? 
Ans.A. MNCs are spreading their production and interacting with local producers in various countries across the globe. 
B. By setting p partnerships with local companies. 
C. By using the local companies for supply. 
D. By closely competing with local companies or buying them. 

12.Can list any three different ways by which foreign trade results in connecting the markets or integration of markets in different countries? 
Ans.A. Foreign trade creates an opportunity for the produc ers to reach beyond the domestic markets, i.e., markets of their own countr ies. 
B. Producers can sell their produce not only in market s located within the country but can also compete in markets located in other countr ies. 
C. For the buyers, import of goods produced in another country is one way of expanding the choice of goods beyond what is domest ically produced. 

13.Why did ford Motors Company want t o develop ford India as a component supplying bases for its other plants across the globe? Explain. 
Ans.A. Because there is great demand of Ford cars in the I ndian market. By the year 2004 Ford Motors was selling 27000 cars in Indian market . 
B. The availability of cheap labour, raw material and energy are the major reasons to develop Ford India as a component supplying base. 
C. The location of India on the head of Indian Ocean h elps Ford Motors to export their products to South Africa, Mexico and Brazil. 

14.Explain with an example the major route by which MN Cs set up their business units in Developing countries? 
Ans.The most common route for MNCs investments is to buy up local companies and then to expand production. MNCs with huge wealth can qui te easily do so. Example : Cargill Foods, a very large American MNC, has bought over smaller Indian companies such as Parakh Foods. Parakh Foods had built a large marketing network in various parts of India, where its brand was well reputed . Also Parakh Foods had four oil refineries , whose control has now shifted to Cargill. Cargill is now the largest producer of edible oil in India, with a capacity to make 5 million pouches daily. 

15.Why is it important for Gover nment to focus on the protection of unemployed and those who are working in unorganized sector? 
Ans.Due to following factors it is important for Government to focus on the protection of unemployed and those who are working in unorganized sector. 
A. Government has to ensure equality among rich and po or citizens of the countries. 
B. Citizens are the important assets of the countries so it is the duty of government to take care of its citizens. 
C. Unemployment will cause anarchy in the country. 
D. Massive campaigns and representation by people’s or ganization have influenced the government. 
E. For the welfare of labour and those who are working in unorganized sector, Government has made labour laws so it is the duty o f government to follow that laws. 

16.Explain the factors which facilitate Globalisation.
Ans.A. Rapid improvement in Technology. 
B. Liberalization of trade and investment policies. 
C. Pressure from international organizations like WTO and World Bank. 
D. Improvement of transport facilities. 
E. Improvement in communication facilities. 
F. Dependence of Developing countries upon Developed C ountries 

17.How would you explain that the globalisation give opportunity to the producers to reach up to the buyers of the World? 
Ans.A. Globalization creates opportunity for the producers to reach beyond the domestic market, i.e., markets of their own their countries.
B. Producers can sell their produce not only n markets located within the country but can also compete in markets located in other countr ies of the world. 
C. Producers are able to get advance technology and fo reign investment through investment. 

18.Name the products in which ‘ Sundaram Fasteners ’ a MNC dea ls. Why do you call ‘Sundaram fastener’s a MNC? 
Ans.. Sundaram Fasteners’ a MNC and it deals in Nuts and Bolts. 
B. This company has huge capital. 
C. This company has huge network of trade. 
D. This company is spreading their operation worldwide . 

19.Explain the meaning of fai r globalisation. Why there is a need to make globalisation fair? Explain. 
Ans.A. Globalisation is the process of rapid integration o r interconnection between countries. MNCs are playing a major role in globali sation process. More and more goods and services, investments and technology are moving between countries. 
B. Fair globalisation would create opportunities for a ll and also ensure that the benefits of globalisation are shared better. 
C. Fair globalisation must protect the interests not o nly of the rich and powerful, but all the people in the country. 

20.What can be done by government so that the workers can get a fair share of benefits brought by globalisation? 
Ans.A. The government can play a major role in making this possible. Its policies must protect the interests not only of the rich and powe rful, but all the people in the country 
B. The government can ensure that labour laws are prop erly implemented and the workers get their rights. 
C. Government can negotiate at the WTO for fairer labo ur laws. 

21.Explain the way which is by the Indian garment expo rters to cut down the cost of production to compete in the global market? 
Ans.A. The Indian garment exporters try hard to cut their own costs. As costs of raw materials cannot be reduced, exporters try to cut l abour costs to compete in the global market. 
B. Where earlier a factory used to employ workers on a permanent basis, now they employ workers only on a temporary basis so that th ey do not have to pay workers for whole year. 
C. Workers also have to put in very long working hours and work night shifts on a regular basis during the peak season. 
D. Wages are low and workers are forced to work overti me to make both ends meet. 

22.Can you elaborate the effects of government’s decis ion on the small production unit of Ravi? 
Ans.A. Ravi had started his own company producing capacito rs in 1992. Within three years he was able to expand production and had 20 w orkers working under him. 
B. His struggle to run his company started when the go vernment removed restrictions on import on capacitors as per its agreement at WTO in 2001. 
C. Now his main clients start buying capacitors from M NCs because companies are selling capacitors at very low price. 
D. Ravi Now produces less than half the capacitors tha t he produced in the year 2000 and has only seven workers working for him. 

23.How has Information and Communication Technology pl ayed a big role in bringi ng the whole world close to each other? 
Ans.A. In recent times technology in the areas of telecomm unications, computers, and internet has been changing rapidly. 
B. Telegraph, telephone, internet, mobile phone and fa x are used to contact one another around the world, to access information instantly a nd to communication from remote areas. 
C. This has been facilitated by satellite communicatio n devices. 
D. Through internet information can be shared and obta ined, anytime and anywhere. 
E. Internet also allows us to send instant electronic mail and talk across the world at negligible costs. 


24.In what ways the globalisation affected the life of Sushila? 
Ans.A. Sushila has spent many years as a worker in garment export industry in Delhi. She was employed as a permanent worker entitled to heal th insurance, provident fund, over time at durable rate. 
B. In 1990 her factory was closed due to the introduct ion of new economy policy which was introduced by the Indian Government. She become s unemployed. 
C. After searching a job for six months, she finally g ot a job 30 km away from her home. 
D. Even working in this factory for several years, she is a temporary worker and earns less than half of what she was earning earlier. 
E. She leaves her house every morning, seven days a we ek at 7:30 a.m. and returns at 10 p.m. A day off from work means no wage. 
F. She has none of the benefits she used to get ear lier. 

25.How does the rise of the Multinational Companies af fect the poor workers? Explain. 
Ans.A. Their jobs are no longer secure. 
B. Many workers lost their jobs. 
C. Their wages and remunerations are very low.
D. They have to put in very long working hours very ri gid. 

26.Give some factors on the bases of which MNCs set up productio n units in the developing countries? 
Ans. MNCs set up production on the basis of following factors: 
A. Closeness of the place to the markets. 
B. Availability of skilled and unskilled labour at low costs. 
C. Availability of other factors of production i.e., r aw material, energy etc. 
D. Government’s favourable policies. 

27.Name any five Indian companies which have emerged a s Multinational Companies due to globalisation and name the products in which they deals? 
Ans.. Tata Motors in automobiles 
B. Ranbaxy in Medicine 
C. Asian Paints in Paints 
D. Infosys in information technology 
E. Sundaram Fasteners in nuts and bolts


28.Explain any three social values which are promoted by Globalisation? 
Ans.A. Globalisation is this process of rapid integration or interconnection between countries. Globalisation promotes world brotherhood among the citizens of the different countries. 
B. It promotes equality among people and different cou ntries of the world by promoting economic opportunities
. C. Globalisation encourages unity and integration among the people. 
D. Globalisation helps in the promotion of cultural exchange
. 

29.Explain the different ways by which Multinational C orporations manage to keep the cost of production of their goods low? 
Ans.A. MNCs setup production units in those countries wher e labour is available at cheaper rate and has large market to sell their products. 
B. MNCs setup production units jointly with some of the local companies of the countries. 
C. MNCs buy up local companies and then expand production. 

30.Explain any two factors which enable globalisation in India? 
Ans.A. Liberalization and removal of trade barriers by the Indian Government facilitate globalization. This enables MNCs to come and invest in India. 
B. Advancement in Transportation facilities made the faster delivery of goods across long distances possible at cheap costs. 
C. Advancement in Information and Technology played a major role in spreading out production of services across the countries. Te lecommunication facilities are used to contact one another around the world to acc ess information instantly and to communicate from remote areas. Computers have no w entered almost every field. So as the internet is available at reasonabl e rates. 

31.How would flexibility in labour laws help Multinati onal Companies? 
Ans.A. In the absence of strict laws most of the companies employ workers on temporary bases so that they do not have to pay workers for t he whole year. 
B. Workers also have to put in very long working hours and work night shifts on a regular basis during the peak seasons. 
C. Wages are low and workers are forced to work overti me to make both ends meet. 
D. To earn huge profits employers try to cut the labou r cost by different ways. 
E. Thus in the absence of labour laws, companies explo it the workers. 
F. Flexibility in labour laws have helped the compa nies to increase their income granted by not paying reasonable wages and other benefits s uch as provident fund insurance etc. 

32.Why did the Government of India remove trade barrie rs? Explain the reasons.
Ans.A. The government of India decided that the Time had c ome for Indian traders to compete with the producers and manufacturers of the world. 
B. Government felt that competition would improve the performance of producers. 
C. The decision to remove trade barriers was supported by powerful international organizations like World Bank, World Trade Organiza tion and International Monetary fund. 
D. Businessmen are allowed to take decisions freely ab out their imports and exports. In this way Government decentralized the power to t he businessmen. 
E. Advance technology and Foreign Investment is requir ed for the development of country. 

33.Can you suggest some ways to make globalisation ‘Fair’ in India?
Ans.A. Efforts by the Government: The government can play a major role in making this possible. Its policies must protect the interests o f all the sections of society. For example Government can ensure that labour laws are properly implemented and workers get their rights. 
B. Efforts by the People: People can also play an impo rtant role in the struggle for fair globalisation. Massive campaigns and representation by the people’s organizations can influence the important decisions related to tr ade and foreign investment 

34.How use of containers has helped much greater volum es of goods being transported by airlines? 
Ans. Yes, the use of containers has helped much greater volumes of goods being transported by airlines. Goods are placed in containers that c an be loaded intact into planes. Containers have led to huge reduction in port handl ing costs and increased the speed with which exports can reach markets. Similarly, th e cost of air transport has fallen. This has enabled much greater volumes of goods bein g transported by airlines. Airlines are the fastest mean of transportation. 

35.Explain any three factors which are responsible of globalisation in India. 
Ans.A. Advancement in Information and Technology played a major role in spreading out production of services across the countries. Te lecommunication facilities are used to contact one another around the world to acc ess information instantly and to communicate from remote areas. Computers have no w entered almost every field. So as the internet is available at reasonabl e rates 
B. Liberalization and removal of trade barriers by the Indian Government facilitate globalization. This enables MNCs to come and invest in India. 
C. Advancement in Transportation facilities made the faster delivery of goods across long distances possible at cheap costs. 

36.How far is it correct to say that globalisation and greater competition among producers both local and foreign producers has been of advantage to consumers? 
Ans.A. Globalisation and greater competition among produce rs both local and foreign producers has been of advantage to consumers partic ularly the well-off sections in the urban areas. 
B. There is greater choice before the consumers who no w enjoy improved quality of lower prices for several products. 
C. As a result, these people enjoy much higher standar ds of living than was possible earlier. 

37.Highlight any three disadvantages of Multinational Corporations. 
Ans.A. Due to globalisation several manufacturing units ha ve shut down . Batteries, capacitors, plastic, toys, tyres, dairy products an d vegetable oils are some examples of industries. 
B. Due to shutting down of industrial units many workers become jobless . Workers’ jobs are no longer secure.
C. Globalisation and the pressure of competition have substantially changed the lives of workers.

38.What do you understand by liberalization of foreign trade? Give any two benefits of adopting liberalization of trade and investment policies. 
Ans.Liberalization: Liberalization of foreign trad e means the removal of trade barriers or restrictions set by the government to attract foreign investment . Following are the benefits of adopting liberalization of trade and in vestment policies: 
A. With liberalization of trade businesses are allowed to make decisions freely about what they wish to import or export. 
C. Foreign companies could set up factories and offices in other countries. 

39.“Be careful! That’s our world you are playing with! Some day you’ll hav e to pay a price!” How would you prioritize the facts behind t his warning? 
Ans.Be careful! That’s our world you are playing with! Some day you’ll have to pay a price!” These are the words said by a kid to the ow ner of MNCs when he said. “Globalization is fun”. Following are the facts beh ind this warning: 
A. This indicates that Globalisation is a process of earning huge profit by the MNCs. The main motive the MNCs to earn huge profit. To ac hieve this motive, these MNCs exploit the resources of earth without caring environment. 
B. MNCs put pressure on the governments of the develop ing countries to mend their policies according to them. 
C. Some critics said globalisation is a form of neo-colonialism
. D. The manufacturing units of the MNCs are the major c ause of spreading pollution in the environment. 
E. Globalisation widens the gap between rich and poor. One day all the effects of globalisation bring disa ster in the world. The people of the whole world will suffer from it. 

40.Can you illustrate the features of the New Economic policy introduced in 1991? 
Ans. Following are the features of New Economic Po licy introduced in 1991: A. Liberalized policy towards foreign trade and foreign investmen t. 
B. Introduction of foreign capital investment
C. Removal of trade barriers . 
D. Reduction in the role of Public sector
E. Promotion to private sector
F. Reforms in the financial sector
. G. Liberalization of import licensing
. H. Freedom is given to the MNCs to set up there industrial units .