UP Board Solutions for Class 10 Social Science Economics Chapter 4 Globalisation and the Indian Economy

UP Board Solutions for Class 10 Social Science Economics Chapter 4 Globalisation and the Indian Economy

UP Board Solutions for Class 10 Social Science Economics Chapter 4 Globalisation and the Indian Economy Textbook Questions and Answers, Additional Important Questions.

UP Board Class 10 Economics Chapter 4 Globalisation and the Indian Economy InText Questions and Answers

Let’s Work these out (Page 57)

Question 1.
Complete the following statement to show how the production process in the garment industry is spread across countries.
Answer:
The brand tag says ‘Made in Thailand’ but they’re not Thai products. We dissect the manufacturing process and look for the best solution at each step. We’re doing it globally. In making garments, the company may, for example, get cotton fibre from Korea, manufacture cloth in China and India, make garments in Thailand and sell all over the world.

Let’s Work these out (Page 59)

Read the passage given below and answer the questions :
Ford Motors, an American company, is one of the world’s largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks. By the year 2017, Ford Motors was selling 88,000 cars in the Indian markets, while another 1,81,000 cars were exported from India to South Africa, Mexico and Brazil and United State of America. The company wants to develop Ford India as a component supplying base for its other plants across the globe.
Question 1.
Would you say Ford Motors is an MNC ? Why ?
Answer:
Yes, I would say Ford Motors is an MNC. This is because, it owns or controls production in more than one nation. Its production spreads over 26 countries of the world.

Question 2.
What is foreign investment ? How much did Ford Motors invest in India ?
Answer:
The investment made by MNCs is called foreign investment. Ford Motors invested Rs. 1700 crores in India.

Question 3.
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:
As we know, MNCs generally set up production :
(a) at a place which is close to the markets ;
(b) Where there is skilled and unskilled labourers available at low costs;
(c) Where the availability of other factors of production is assured ; and
(d) Where the concerned government policies are favourable to the MNCs.
So, India is a favourite destination for the MNCs. It provides not only large and growing markets but a vast skilled and unskilled labour force at low costs. Naturally, in the case of Ford Motors also, the company taps the advantage of large Indian markets as well as lower costs of production.

Question 4.
Why do you think company wants to develop India as a base for manufacturing car components for its global operations ? Discuss the following factors :
(a) cost of labour and other resources in India.
(b) the presence of a several local manufacturers who supply auto-parts to Ford Motors.
(c) closeness to a large number of buyers in India and China.
Answer:
(a) Cost of labour and other resources is cheap in India. There are a large number of skilled and unskilled labourers available at low wages.
(b) A number of local manufacturers in India supply auto¬parts to Ford Motors which has tremendous power to determine price, quality delivery and labour conditions.
(c) The company wants to develop India as a base for manufacturing car components because India and its neighbour China have a large number of prospective buyers. They have great purchasing power.

Question 5.
In what ways will the production of cars by Ford Motors in India lead to interlinking of production ?
Answer:
The production of cars by Ford Motors in India will lead to interlinking of production in the following ways :
(i) Ford Motors set up production jointly with Mahindra and Mahindra a major Indian manufacturer of jeeps and trucks.
(ii) The company places orders for production with small producers in the country.
(iii) It closely compete with the local companies.

Question 6.
In what ways is an MNC different from other companies ?
Answer:
In the following ways, an MNC is different from other companies :
Multinational Company
(1) It owns or controls production in more than one nation.
(2) It sets up offices and factories for production in regions where they can get cheap labour and other resources.
(3) Since the cost of production for an MNC is low, it can earn greater profits.

Other Company:
(1) It owns or controls production within the country.
(2) It has no such option.
(3) It has no such scope to earn greater profits.

Question 7.
Nearly all major multinationals are American, Japanese or European, such as Nike, Coca-Cola, Pepsi, Honda, Nokia. Can you guess why ?
Answer:
Yes, America, Japan and many European countries are developed countries. MNCs need huge money to expand their production and market outside the country, so much money is not generally available with the companies of poor countries. That is why, nearly all major multinationals are American, Japanese or European.

Let’s Work these out (Page 61)

Question 1.
What was the main channel connecting countries in the past ? How is it different now ?
Answer:
The main channel connecting countries in the past was foreign trade. In the past, foreign trade was done through sea routes but now it is done through various ways : sea routes, air routes, roads, telecommunication, etc.

Question 2.
Distinguish between foreign trade and foreign investment.
Answer:
Foreign trade : It means buying and selling of goods abroad. It creates an opportunity for the producers to reach beyond the domestic markets, i.e., markets for their own countries.
Foreign investment: Investment made by MNCs to earn profits is called foreign investment.

Question 3.
In recent years, China has been importing steel from India. Explain how the import of steel by China will affect.
(a) steel companies in China.
(b) steel companies in India.
(c) industries buying steel for production of other industrial goods in China.
Answer:
(a) The steel companies in China will be able to sell less products, they may face losses.
(b) The steel companies in India will expand their business because the demand for their products will grow.
(c) The industries buying steel for production of other industrial goods in China will be benefited as they will have a greater choice at lower prices.

Question 4.
How will the import of steel from India into the Chinese markets lead to integration of markets for steel in the two countries ? Explain.
Answer:
The import of steel from India into the Chinese markets will lead to integration of markets for steel in the two countries in the following ways :
(1) Indian steel will reach from domestic market to Chinese market.
(2) Choice of goods in the markets will rise.
(3) Prices of similar quality of steel in the two markets will tend to become equal.
(4) Producers in the two countries will now closely compete against each other.

In-text Questions (Page 62}

Question 1.
What is the role of MNCs in the globalisation process ?
Answer:
MNCs are playing a major role in the globalisation process:
(1) MNCs are spreading their production to other countries. In this way, they bring foreign investment in these countries.
(2) A large part of the foreign trade is also controlled by MNCs. Activities of most MNCs involve substantial trade in goods and also services.
(3) They bring new and advanced technology with themselves.

Question 2.
What are the various ways in which the countries can be linked ?
Answer:
The following are the main ways in which the countries can be linked:
(1) Movement of goods between countries.
(2) Movement of services.
(3) Arrival of foreign investments.
(4) Movement of new and advanced technology.
(5) Movement of people between countries.

Question 3.
Choose the correct option :
Globalisation, by connecting countries, shall result in
(a) lesser competition among producers
(b) greater competition among producers
(c) no change in competition among producers
Answer:
(b) greater competition among producers.

Let’s Work these out (Page 63)

Using IT in Globalisation
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 orders on how to design the magazine from the office in London using telecommunication facilities. The designing is done on a computer. After printing, the magazines are sent by airline to London. Even the payment of money for designing and printing from a bank in London to a bank in Delhi is done instantly through the Internet (e-banking) !

Question 1.
In the above 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 orders on how to design the magazine from the office in London using telecommunication facilities. The designing is done on a computer. After printing, the magazines are sent by airline to London. Even the payment of money for designing and printing from a bank in London to a bank in Delhi is done instantly through the Internet (e-banking)

Question 2.
How is information technology connected with globalisation? Would globalisation have been possible without expansion of IT ?
Answer:
(1) The developments in information and communication technology, i.e., telecommunications, computers, internet has facilitated to contact one another around the world, to access information instantly and to communicate from remote areas. This enables to provide much faster services across long distances at lower costs. In this way, information technology is connected with globalisation.

(2) No, globalisation would not have been possible without expansion of IT.

Let’s Work these out (Page 64)

Question 1.
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 2.
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 ? Dp you think this should be used ? Discuss.
Answer:
(1) If the Indian government imposes quota on Chinese toys, i.e., places a limit on the number of toys that can be imported, supply of these toys in Indian markets could be limited. Indian buyers will have little option to purchase Chinese toys at cheaper prices because these toys will be available at limited number. Indian toy makers will not face much losses because the demand for Indian toys will reduce only in negligible quantity. In this way, quotas can be used as trade barriers.

(2) No, I do not think this should be used now. But Indian producers should compete with producers around the globe. Competition would improve the quality of the products at the same prices.

Let’s Work these’out (Page 66)

Question 1.
Fill in the blanks :
WTO was started at the initiative of ……………….. countries. The aim of the WTO is to………………. WTO establishes rules regarding …………….. for all countries, and sees that ……………… In practice, trade between countries is not ………………. Developing countries like India have ……………….. whereas developed countries, in many cases, have continued to provide protection to their producers.
Answer:
WTO was started at the initiative of developed countries. The aim of the WTO is to liberalise international trade. WTO establishes rules regarding international trade for all countries, and sees that these rules are obeyed. In practice, trade between countries is not fair. Developing countries like India have removed trade barriers whereas developed countries, in many cases, have continued to provide protection to their producers.

Question 2.
What do you think can be done so that trade between countries is more fair ?
Answer:
The following efforts should be done so that trade between countries is more fair :
(1) International organisations like WTO, IMF should be strengthened. They should play a key role in this direction.
(2) Developing countries should unitedly and strongfully keep their views before the international institutions like WTO.

Question 3.
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:
If governments give support to promote production of certain types of goods, such as those which are environmentally friendly, this is not unfair. This is because, environmental problem is a matter of global concern. But the laws should be equal for all the countries of the world.

Let’s Work these out (Page 67)

Question 1.
How has competition benefited people in India ?
Answer:
Globalisation and greater competition have benefited the people in India as follows :
(1) The consumers particularly the well-off sections in the urban areas have now greater choice. They enjoy improved quality and lower prices for several products resulting in much higher standard of living than the earlier.
(2) MNCs have increased their investments especially in cell phones, automobiles, electronics, soft drinks, fast food and banking industries. In these industries, new jobs have been created.
(3) Local companies supplying raw materials, etc. to these industries have prospered.
(4) Several big companies have invested in advanced technology and production methods and raised their production standards.
(5) Some companies have gained from successful collaborations with foreign companies.
(6) Some large Indian companies have spread their operations worldwide and emerged as multinationals/ For example, Tata Motors, Infosys, Ranbaxy, etc.
(7) Globalisation and competition has created new opportunities for companies providing services such as data entry, accounting, engineering, information-technology, etc.

Question 2.
Should more Indian companies emerge as MNCs ? How would it benefit the people in the country ?
Answer:
Yes, more Indian companies should emerge as MNCs. It would benefit the people in the country in the following ways :
(1) Indian people will have greater job opportunities.
(2) These companies will bring newer technology and raise production standards.
(3) Due to large operations, they will provide quality products at cheap rates.
(4) They will bring scarce foreign exchange for the country.

Question 3.
Why do governments try to attract more foreign investment ?
Answer:
The governments try to attract more foreign investment for ;he following reasons :
(1) Foreign investments create new job opportunities in the country.
(2) This not only provides finance but managerial and technical personnel and new technology in production also.
(3) This encourages local enterprises to invest more in sub .idiary services like transport and training agents and in collaboration with foreign enterprises.
(4) A part of the profits from such investment is generally invested in the expansion and modernisation of related industries.
(5) The social returns are greater than the private returns on foreign investment.
(6) The governments get revenue when it taxes on profits of foreign firms or gets royalties from concession agreements.

Question 4.
In chapter I, we saw 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:
These are displaced people such as tribals. They are opposing it because they fear that the setting up of Special Economic Zones (SEZs) may submerge the land and distrupt their lives.

Let’s Work these out (Page 68)

Question 1.
What are the ways in which Ravi’s small production unit was affected by rising competition ?
Answer:
The following are the ways in which Ravi’s sma’l production unit was affected by rising competition :
(1) The government removed restrictions on imports of capacitors as per its agreements at WTO in 2001.
(2) Competition from the MNC brands forced Indian television companies, purchaser of Ravi’s capacitors, to move into assembling activities for MNCs.
(3) Moreover, television companies preferred to import because the price of the imported item was half the price charged by the people like Ravi.
(4) Ravi now produces less than half the capacitors that he produced earlier and has only seven workers in place of 20 workers.

Question 2.
Should producers such as Ravi stop production because their cost of production is higher compared to producers in other countries ? What do you think ?
Answer:
No, producers such as Ravi should not stop their production but should reduce their cost by adopting advanced technology and production methods and raising their production standards. Also, the government should provide loan and protect them.

Question 3.
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) improvements and modernisation of technology
(c) timely availability of credit at reasonable interest rates.
(i) Can you explain how these three things would help Indian producers ?
(ii) Do you think MNCs will be interested in investing in these ? Why ?
(iii) Do you think the government has a role in making these facilities available ? Why ?
(iv) Can you think of any other step that the government could take ? Discuss.
Answer:
(i) They would help Indian producers in the following ways :
(a) better roads : for transportation of raw materials and that of produced goods.
power : for operating machines, lights, etc.
water : for production process and other uses.
raw materials : For producing goods.
marketing and information network :‘When production is complete, produced goods are to be sold. This requires good marketing and information network.

(b) Improvements and modernisation of technology increase quality of the products and reduce their costs.
(c) Timely availability of credit at reasonable interest rates encourages entrepreneures to invest in newer technology and production methods. As a result, quality of the products will increase and prices will decrease. And the small producers will compete better in the market.
(ii) No, I do not think MNCs will be interested in investing in these things. This is because, investment on these things have long gestation period and low earnings.
(iii) Yes, the government has an important role in making these facilities available. This is because, social welfare is the main objective of a government.
(iv) Yes, I think the government should remove corruption, red-tapism in its offices and provide better facilities under single window programme.

Let’s Work these out (Page 70)

Question 1.
In what ways has competition affected workers, Indian exporters and foreign MNCs in the garment industry ?
Answer:
Competition has affected workers, Indian exporters and foreign MNCs in the following ways :
(1) Workers:
(i) Their jobs are no longer secure. They now work on a temporary basis.
(ii) They have to put in very long working hours.
(iii) They have to work night shifts on a regular basis during the peak season.
(iv) Wages are low.
(v) They are denied their fair share of benefits.

(2) Indian exporters:
(i) They get order from MNCs at cheap rates.
(ii) They try hard to cut their costs.
(iii) They cut labour costs.
(iv) They employ workers only on a temporary basis.

(3) Foreign MNCs :
(i) They are able to find the cheapest goods in order to maximise their profits.
(ii) Competition among the garment exporters has allowed these MNCs to make large profits.

Question 2.
What can be done by each of the following so that the workers can get a fair share of benefits brought by globalisation?
(a) government
(b) employers at the exporting factories
(c) MNCs
(d) workers.
Answer:
(a) Government : It should protect the workers by making labour laws and implementing them with full devotion.
(b) Employers at the exporting factories: They should
give fair wages, and job security to the workers and should not force them for overtime. ”
(c) MNCs : They should give order to those exporters who follow labour laws properly.
(d) Workers: They should organise trade unions and give pressure on exporters through them to get their fair share of the benefits.

Question 3.
One of the present debates in India is whether companies should have flexible policies for employment. Based on what you have read in the chapter, summarise the point of view of the employers and workers.
Answer:
(1) View of the employers : They prefer to employ workers flexibly, i.e., on the temporary basis. It means that worker’s jobs are no longer secure. Due to the pressure of competition, the employers try hard to cut their own costs. They employ workers only on a temporary basis so that they do not have to pay worker’s for the whole year.

(2) View of the workers : They are not in favour of flexible policies for employment. That is why, this condition of employment shows that workers are denied their fair share of benefits. That is, their jobs are insecure. They dam less than half of the earlier earnings. They get no other benefit except daily wages.

UP Board Class 10 Economics Chapter 4 Globalisation and the Indian Economy Textbook Questions and Answers

Question 1.
What do you understand by globalisation ? Explain in your own words.
Answer:
(1) Globalisation is the process by which the whole world becomes a single market. It may be defined as the rapid integration or interconnection between countries through foreign trade and foreign investments by multinational corporations (MNCs).

(2) Thus, in this process we become economically interdependent at international level. Producers from out side the country can produce and sell goods and services in India. We can also produce goods and services and sell them in other countries. The labourers can also move from one country to other country.

Question 2.
What was the reasons for putting barriers to foreign trade and foreign investment by the Indian government ? Why did it wish to remove these barriers ?
Answer:
(1) (i) This was considered necessary to protect the domestic producers from foreign competition.
(ii) Indian industries were just coming up in the 1950s and 1960s. Competition from imports at that stage would not have allowed these industries to grow.
(iii) That is why, Indian government allowed imports of only essential goods such as machinery, fertilizers, petroleum, etc. and put barriers to foreign trade and foreign investment.

(2) It wished to remove these barriers because over the years Indian producers became able to compete with producers around the globe. It was felt that competition would improve the performance of domestic producers as they would have to improve their quality.

Question 3.
How would flexibility in labour laws help companies ?
Answer:
The flexibility in labour laws would help companies in the following ways :
(1) Companies could employ workers on a temporary basis so that they do not have to pay them for the whole year.
(2) They could keep workers in very long working hours and night shifts on a regular basis during the peak season. In this way, they could cut labour costs and earn more profits.
(3) They could pay low wages to the workers and force them to work overtime to earn high profits.
(4) They would not have to give provident fund, paid holidays, health insurance, gratuity, pension, over-time at a double rate. In these ways, companies can cut labour costs and earn more profits.

Question 4.
What are the various ways in which MNCs set up, or control, production in other countries ?
Or
Explain with examples any four ways by which the MNCs are spreading their production and interacting with local producers in various countries.
[Annual Paper (Outside Delhi), 2010, Set 2]
Or
Explain any four ways be which MNCs exercise control on production.
[Annual Paper (Outside Delhi), 2010, Set 3]
Answer:
The following are the ways in which MNCs set up or control production in other countries :
(1) MNCs set up production where :
(i) the place is close to the markets ;
(ii) where there is skilled and unskilled labour available at low costs;
(iii) where availability of other factors of production is assured.
(iv) where government policies are favourable to MNCs.

(2) MNCs set up production jointly, i.e., partnerships with some of the local companies of those countries.
(3) They buy local companies and then expand production.
(4) They use the local companies for supplies and then sell these items under their own brand names to the customers.
(5) They closely compete with the local companies.

Question 5.
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) The developed countries want developing countries to liberalise their trade and investment because they could expand their business in developing countries through foreign trade and foreign investments by MNCs.
(2) The developing countries should demand for removing unfairly retained trade barriers by developed countries and for more economic aid. Developed countries should remove agricultural and other subsidies.

Question 6.
The impact of globalisation has not been uniform. Explain this statement.
Answer:
The impact of globalisation has not been uniform among producers and workers :
(1) Positive Impact :
(i) Globalisation has been beneficial for consumers especially rich people in the urban areas. There is greater choice before these consumers who now enjoy improved quality and lower prices for several goods and services. That is, they enjoy higher standard of living.
(ii) A large number of jobs have been created in cell phone, automobile, electronics, soft drinks, fast food and services industries such as banking, insurance industries in urban areas especially for well-educated and skilled labour.
(iii) Local companies supplying raw materials, etc. to MNCs have prospered.
(iv) The top Indian companies have been able to benefit from the increased competition by adopting advanced technology. Globalisation has enabled some of them to emerge as multinationals.
(v) It has also created new opportunities for companies providing services especially those involving information- technology, data entry, accounting, administrative tasks, engineering, etc. But, the development for one may be destructive for the other.

(2) Negative Impact :
(i) There are a number of industries such as toys, tyres, batteries, capacitors, plastics, dairy products, vegetable oils where the small manufacturers have been hit hard due to foreign competition.
(ii) Thousands of uneducated and unskilled labourers have become jobless due to closure of various units.
(iii) Globalisation has negative impact on most of the small industries which employ the largest number of workers after agriculture.

Question 7.
How has liberalisation of trade and investment policies helped the globalisation process ?
Answer:
The liberalisation of trade and investment policies has resulted in greater foreign investment and greater foreign trade. This has further led to greater integration of production and markets across countries. MNCs are playing a major role in the globalisation process. More and more goods and services, investments and technology are moving between countries.
Thus, liberalisation of trade and investment policies has helped the globalisation process in the following ways :
(1) Movements of goods and services between countries ;
(2) Increase in foreign investments ;
(3) Movement of new and advanced technology ;
(4) Movement of people between countries in search of better income, better jobs or better education.

Question 8.
How does foreign trade lead to integration of markets across countries ? Explain with an example other than those given here.
Or
How is foreign trade inter-connecting the markets in different countries ? Explain with examples.
[Annual Paper (Outside Delhi), 2010, Set 3]
Answer:
(1) This is in the following ways :
(i) It creates an opportunity for the producers to sell their joods and services beyond the markets in their own countries.
(ii) It also provides an opportunity for the buyers to expand ;he choice of goods and services and choose from imported goods, .e., the goods beyond what is domestically produced.
(iii) Prices of similar goods in the two countries markets end to become equal.
(iv) Producers in the two countries closely compete against sach other.

(2) Thus, foreign trade leads to integration of markets across ountries. This can clearly be explained by the following ixample : As a result of opening of trade, foreign car makers ame into the Indian markets. In the competition between Indian .nd foreign cars, foreign cars prove better. So, Indian buyers Lave a greater choice of cars at lower prices. Foreign car makers ecame able to expand their business. In contrast, Indian car aakers face losses because their cars are selling much less.

Question 9.
Globalisation will continue in the future. Can ou imagine what the world would be like twenty years rom now ? Give reasons for your answer.
Answer:
Yes, according to me the whole world would become a ingle market after twenty years from now, for the following easons:
(1) MNCs would produce goods and services in those locations around the world which would be cheap for their production.
(2) Foreign investment by MNCs would increase much more.
(3) Foreign trade between countries would sufficiently rise.
(4) A large part of the foreign trade would be controlled by MNCs.
(5) There would be greater integration of production and markets across countries due to greater foreign investment and foreign trade.
(6) More and more goods and services, investment and technology would move between countries.
(7) There would be greater movement of people between countries.

Question 10.
Supposing you find two people arguing: one is saying globalisation has hurt our country’s development. The other is telling, globalisation is helping India develop. How would you respond to these arguments ?
Answer:
I would respond that globalisation has not hurt our country’s development but is helping India develop. But it has benefited well-off consumers and producers with skill, education and wealth. On the other hand, many small producers and workers have suffered as a result of the rising competition. They have not shared the benefits of globalisation. The government should try to make globalisation more fair. Fair globalisation would create opportunities for all and ensure that the benefits of globalisation are shared better.

Question 11.
Fill in the blanks :
Indian buyers have a greater choice of goods than even two decades back. This is closely associated with the process of ………………. Markets in India are selling goods produced in many other countries. This means there is increasing ………………. with other countries. Moreover, the rising number of brands that we see in the markets might be produced by MNCs in India. MNCs are investing in India because …………………. While consumers have more choices in the market, the effect of rising ………………. and ……………. has meant greater ………………. among the producers.
Answer:
Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of globalisation. Markets in India are selling goods produced in many other countries. This means there is increasing foreign trade with other countries. Moreover, the rising number of brands that we see in the markets, might be produced by MNCs in India. MNCs are investing in India because they find India as a vast market and availability of factors of production at low costs. While consumers have more choices in the market, the effect of rising foreign trade and foreign investment has meant greater competition among the producers.

Question 12.
Match the following :
(i) MNCs buy at cheap rates from small producers – (a) Automobiles
(ii) Quotas and taxes on imports are used to sports items regulate trade – (b) Garments, footwear,
(iii) Indian companies who have invested abroad – (c) Call centres
(iv) IT has helped in spreading of Ranbaxy production of services – (d) Tata Motors, Infosys
(v) Several MNCs have invested in setting up factories in India for production – (e) Trade barriers
Answer:
(i) (b) Garments, footwear
(ii) (e) Trade barriers
(iii) (d) Tata Motors, Infosys
(iv) (c) Call centres
(v) (a) Automobiles

Question 13.
Choose the most appropriate option.
(i) The past two decades of globalisation has seen rapid movements in
(a) goods, services and people between countries.
(b) goods, services and investments between countries.
(e) goods, investments and people between countries.
Answer:
(i) (b) goods, services and investments between countries.
(ii) The most common route for investments by MNCs in countries around the world is to
(a) set up new factories.
(b) buy existing local companies.
(c) form partnerships with local companies.

Answer:
(ii) (b) buy existing local companies.
(iii) Globalisation has led to improvement in living conditions
(a) of all the people
(b) of people in the developed countries
(c) of workers in the developing countries
(d) none of the above

Answer:
(iii) (d) none of the above

Additional Activity/Project

Question 1.
Take some branded products that we use everyday (soaps, toothpaste, garments, electronic goods, etc.). Check which of these are produced by MNCs.
Answer:
Students, do it yourselves.

Question 2.
Take any Indian industry or service of your choice. Collect information and photographs from newspapers, magazine clippings, books, television, internet, interviews with people on the following aspects of the industry.
(i) Various producers/companies in the industry
(ii) Is the product exported to other countries
(iii) Are there MNCs among the producers
(iv) Competition in the industry
(v) Conditions of work in the industry
(vi) Has there been any major change in the industry in the past fifteen years
(vii) Problems that people in the industry face.
Answer:
Students, do it yourselves.

UP Board Class 10 Economics Chapter 4 Globalisation and the Indian Economy Additional Important Questions and Answers

Objective Type Questions

Multiple Choice Questions (MCQs)

Question 1.
In today’s world, a consumer has.
(a) limited choice of goods and services
(b ) A wide choice of goods and services
(c) No choice of goods and services
(d) None of these
Answer:
(b) a wide choice of goods and services

Question 2.
What is the most common route for investments by MNCs in countries around the world ?
(а) Set up new factories
(b) Buy existing local companies
(c) Form partnerships with local companies
(d) All the above
Answer:
(b) Buy existing local companies

Question 3.
Which one of the following is a basic function of foreign trade?
(а) Goods and services are produced for internal markets
(b) Trade flourishes in the domestic market
(c) It gives opportunity to reach beyond the domestic market
(d) Investment is done to expand the trade within the domestic markets
Answer:
(c) It gives opportunity to reach beyond the deomestic market.

Question 4.
At present how many countries are the members of the World Trade Organisation ?
(a) 139
(b) 164
(c) 159
(d) 169
Answer:
(b) 164

Question 5.
Who can play an important role in the struggle for fair globalisation?
(a) Skilled labour
(b) Unskilled labour
(c) Governments
(d) None of these
Answer:
(c) Governments

Fill in the blanks :

Question 6.
The consumer is a person who.
Answer:
purchases goods and services for personal use

Question 7.
A company that owns or controls production in more than one country is called.
Answer;
multinational companies

Question 8.
Effect of Chinese toys on Indian toy-makers is.
Answer:
suffering losses

Question 9.
By connecting different countries, globalisation shall result in.
Answer:
greater competition among producers

Question 10.
The aim of World Trade Organisation (WTO) is to.
Answer:
liberalise international trade

Question 11 .
Globalization has posed major challenges for.
Answer:
people with education, skill and wealth have not been benefited.

State whether the following statements are True or False:

Question 12.
Until 1950, production was largely organised within countries.
Answer:
True

Question 13.
A MNC is a company that owns or controls production in a country.
Answer:
False

Question 14 .
MNCs are playing an important role in globalization process.
Answer:
True

Question 15.
The WTO allows free trade to all countries without any trade barriers.
Answer:
False

Question 16.
Fair globalisation can give new shape to the world economy.
Answer:
True

Very Short Answer Type Questions (VSAQs)

Question 17.
Name the major items imported by India.
Answer:
The major items imported by India are : petroleum, machinery, fertilizers, gold and silver, electronic goods, pearls and precious stones, etc.

Question 18.
What is meant by ‘investment’?
Answer:
The money that is spent to buy assets such as land, building, machines and other equipments is called investment.

Question 19.
Define ‘foreign trade’.
Answer:
Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.

Question 20.
What do you mean by globalization?
Answer:
Globalization is the process by which the whole world becomes a single market.

Question 21.
What is privatisation ?
Answer:
Privatisation refers to shifting of the ownership or management of a government owned enterprise to private ownership.

Question 22 .
Which organisation lays stress on liberalisation of trade and foreign investment ?
Answer:
World Trade Organisation

Question 23.
Why did India set up SEZs?
Answer:
India set up SEZs to attract foreign companies to invest in India.

Assertion and Reason

Question 25.
In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the correct option:
Assertion (A) : Developed countries want developing countries to liberalise their trade and investment.
Reason (R) : In fact, developed countries want to expand their business in developing countries through foreign trade and foreign investments by MNCs.
Options :
(а) Both A and R are true and R is the correct explanation of A.
(b) Both A and R are true but R is not the correct explanation of A.
(c) A is correct but R is wrong.
(d) A is wrong but R is correct.
Answer:
(a) Both A and R are true and R is the correct explanation of A.

Case/Source-Based Integrated Question

Question 26.
Read the sources given below and answer the questions that follows :
Source A : Production across countries
Until the middle of the twentieth century, production was largely organised within countries. What crossed the boundaries of these countries were raw material, food stuff and finished products. Colonies such as India exported raw materials and food stuff and imported finished goods. Trade was the main channel connecting distant countries. This was before large companies called multinational corporations (MNCs) emerged on the scene.

Source B : Foreign trade and integration of markets Foreign trade creates an opportunity for the producers to reach beyond the domestic markers, i.e., markets of their own countries. Producers can sell their produce not only in markets located within the country but can also compete in markets located in other countries of the world. Similarly, for the buyers, import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced.

Source C : Impact of globalisation in India Globalisation and greater competition among producers – both local and foreign producers – has been of advantage to consumers, particularly the well-off 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.
Questions :
Source A : Production across countries
(i) How are MNC’s a major force in connecting the countries of the world ?
Answer:
MNCs produce and sell products globally. They set up factories, offices in other countries. Thus, they are connecting the countries of the world.

Source B : Foreign trade and integration of markets
(ii) How does foreign trade become a main channel in connecting countries ?
Answer:
(a) Foreign trade means buying and selling of goods abroad.
(b) It creates an opportunity for the producers to reach beyond the domestic markets, i.e., markets for their own countries.

Source C : Impact of globalisation in India
(iii) How is globalisation beneficial for consumers ?
Answer:
Globalisation is beneficial for consumers in the following ways :
(a) There is a great choice before consumers.
(b) They now enjoy improved quality.
(c) Consumers get several products on lower prices.
(d) As a result, these people today, enjoy much higher standards of living than before. (any two)

Subjective Type Questions

Question 27.
How have our markets been transformed in recent years ? Explain with examples.
Answer:
In recent years, markets have been transformed in many ways :
(1) As consumers, we have now wide choice of goods and services before us.
(2) The latest models of digital cameras, mobile phones and television sets made by the leading manufacturers of the world are within our reach.
(3) Every season, new models of automobiles can be seen on Indian roads.
(4) Earlier Ambassador and Fiat were the only cars on
Indian roads. Today, Indians are buying cars produced by nearly all the top companies in the world.
(5) A similar explosion of brands can be seen for many other goods from agricultural equipments to heavy vehicles, from processed fruit juices to shirts and various electronic goods. This is relatively recent phenomenon.

Question 28.
Explain any five ways in which countries can be linked through globalisation.
Answer:
Countries can be linked through globalisation in the following ways :
(1) Foreign investment by MNCs across countries.
(2) Foreign trade creates an opportunity for the producers to reach beyond the domestic markets. With the opening of trade, goods travel from one market to another.
(3) Information and communication technology has played a major role in spreading out production of goods and services across countries.
(4) There is one more way in which the countries can be connected. This is through the movement of people between countries.
(5) Countries can be linked by improvements in transportation.

Question 29.
How does globalisation make the whole world a single market and rapidly integrates various countries ?
Answer:
(1) Globalisation is the process of rapid integration of countries. This is happening through greater foreign trade and foreign investment. MNCs are playing a major role in the globalisation process.
(2) Technology, particularly IT, has played a big role in organizing production across countries. .
(3) In addition, liberalisation of trade and invest-ment has facilitated globalization by removing barriers to trade and investment.

Question 30.
Why did India change its economic policy in 1991 ? Explain.
Answer:
(1) The Government of India decided that the time had come for Indian producers to compete with producers around the globe.
(2) It felt that competition would improve the performance of producers within the country since they would have to improve their quality.
(3) The decision to remove trade barriers was supported by powerful international organisations like IMF, WTO, etc.
(4) With liberalisation of trade, business are allowed to make decisions freely about what they wish to import or export.
(5) Goods could now be imported and exported easily and also foreign companies could set up factories and offices here.

Question 31.
What is WTO ? Has it been successful in its objective ? Explain.
Answer:
(1) World Trade Organization (WTO) is one such organization whose aim is to liberalise International Trade. WTO establishes rules regarding international trade, and sees that these rules are obeyed. At present, 164 countries of the world are currently members of the WTO.

(2) (i) No, it has not been successful in its objective. Though WTO is supposed to allow free trade for all. But in practice, it is seen that the developed countries have unfairly retained trade barriers.

(ii) On the other hand, WTO rules have forced the developing countries to remove trade barriers. An example of this is the current debate on trade in agricultural products.

Question 32.
How can the government ensure that globalisation is fair and its benefit are shared in a better way by all ?
Answer:
The government policies must protect the interests not only of the rich and the powerful, but all the people in the country.
(1) The government can ensure that labour laws are properly implemented and the workers get their rights.
(2) It can support small producers to improve their performance till the time they become strong enough to compete.
(3) If necessary, the government can use trade and investment barriers.
(4) It can negotiate at the WTO for ‘fairer rules’.
(5) It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.