NCERT SOLUTION CLASS 10 SOCIAL SCIENCE
CLASS 10 SOCIAL SCIENCE (ECONOMICS)
CHAPTER 4 GLOBALISATION AND THE INDIAN ECONOMY
QUESTION NO 1
What do you understand by globalisation?Explain in your words.
ANSWER
Globilisation is integration between countries through foreign trade and foreign investments by multinational companies. The followings are the key point of globalisation -
1. Globalisation means integration of economy with world economy.
2. Under globalisation a country becomes economically interdependant at the global level.
3. In globalisation goods,services,investment and technology are moving between countries.
QUESTION NO2
What was reason for putting barriers to foreign trade and foreign investment by Indian government? Why did it wish to remove these barrier.
ANSWER
The followings are the reason for putting barrier to foreign trade and foreign investment by the Indian government--
1. To protect the domestic producers of the country from foreign competition.
2. The competition from importers would have damaged the new -born industries of India. Hence import was allowed to only quite necessary items like machinary,fertilisers,petrolium etc.
After a sustainable growh of India companies later in the 1990s,the goverment wished to remove these barriers because it was felt that Indian producers were ready to compete with foreign industries. It also felt that foreign competition will improve the quality of goods produced by Indian industries.Hence, the government decided that the time had come for Indian producers to compete with producer around the globe.
After a sustainable growh of India companies later in the 1990s,the goverment wished to remove these barriers because it was felt that Indian producers were ready to compete with foreign industries. It also felt that foreign competition will improve the quality of goods produced by Indian industries.Hence, the government decided that the time had come for Indian producers to compete with producer around the globe.
QUESTION NO 3
How would flexibility in labour laws help companies?
ANSWER
Flexibility in labour law helped companies especially multinational companies.The Indian government has taken several steps to attract foreign companies to invest in India. In the organised sector,the companies have to obey rules set by the government to protect the right of the workers.But government has flexible to many companies to ignor many of these rules. As a result, companies hire workers for a short period when there is pressure of work. Some oher privelege for which workers are eligible companies due to flexible labour law may curtail them. It would help to reduce the cost of labour for the company.
QUESTION NO 4
What are the various ways in which MNCs set up or control,produuction in other countries?
ANSWER
MNCs usually set up production where it is close to the market,where there is skilled and unskilled labour available at low casts and where the availability of other factors of production is assured. MNCs also look government policies that look after their interest.
The following are various ways in which MNCs control production in other countries --
1. By setting up partnerships with local companies---MNCs set up production jointly with some of the local companies.The benefit to the local company of such joint production is two fold. First MNCs can provide money to these local companies for expansion for their business such as buying new machine for faster production. Secondly MNCs might bring with them latest technology for production.
2. The most common route for MNC investment is to buy up local companies and to expand production.
3. By using local companies for supply--
Large MNCs in developed countries place orders for production with small producers, for example garments,footwear,sport items etc. The products are supplied to MNCs which they sell it under their own brand name.These large MNCs have great power to determine the price and quality of these products.
QUESTION NO 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
Developed countries want the developing countries to liberalise their trade and investment because the MNCs belonged to the developed countries can set up factories in less expensive developing nations,hence increase profits with lower manufacturing cost and high sale price.
The interest of the local companies must be protected while liberalising the trade.Because MNCs have the capable of investing of huge amount of money and they can manipulate the price of their products. Also charges should be levied on MNCs looking to set up base in developing country.
The interest of the local companies must be protected while liberalising the trade.Because MNCs have the capable of investing of huge amount of money and they can manipulate the price of their products. Also charges should be levied on MNCs looking to set up base in developing country.
QUESTION NO 6
'' The impact of globalisation has not been uniform . Explain the statement.
ANSWER
Globalisation has been proved beneficial for the top Indian companies but a large number of small producers and workers globalisation has posed a major challenges.
Top Indian companies have been able to benefit from the increased competition.They have invested in newer technology and production methods and raised their production standard.some have gained from successful collaboration with foreign companies and emerged as a multinational themselves such as Tata Motors,Infosy, Ranbaxy,Asian paints etc.
But a large number of small producers and workers globalisation gas posed great problem.Many small industry could not competete with multinational companys. Due to huge loss several units have shut down rendering many workers jobless. Thus it can be said that impact of globalisation has not been uniformed.
Top Indian companies have been able to benefit from the increased competition.They have invested in newer technology and production methods and raised their production standard.some have gained from successful collaboration with foreign companies and emerged as a multinational themselves such as Tata Motors,Infosy, Ranbaxy,Asian paints etc.
But a large number of small producers and workers globalisation gas posed great problem.Many small industry could not competete with multinational companys. Due to huge loss several units have shut down rendering many workers jobless. Thus it can be said that impact of globalisation has not been uniformed.
QUESTION NO 7
How has liberalisation of trade and investment policies helped the globalisation process?
ANSWER
Liberalisation of trade and investment policies has helped the globalisation process by making foreign trade and and foreign investment easier.With liberalisation of trade,business are allowed to make decisions freely about what they wish to import or export. The government imposes much less restrictions than before and therefore said to be more liberal.Copanies can do their business without restriction globally.
QUESTION NO 8
How does foreign trade lead to integration of markets across counties? Explain with an example other than those given here.
1.Foreign trade gives an opportunity to producers to sell their goods in other countries of the world.Producers can sell their product not only in domestic markets but can also compete in global market.
2. Foreign trade gives opportunity to producers in the two countries closely compete against each other even though they are far away from each other.
This is how market are integrated through foreign trade. For example chinese electronic items are imported to India and have given a tough competition to Indian companies which have not advanced technology so their input cost is more compare to chinese product.
ANSWER
1.Foreign trade gives an opportunity to producers to sell their goods in other countries of the world.Producers can sell their product not only in domestic markets but can also compete in global market.
2. Foreign trade gives opportunity to producers in the two countries closely compete against each other even though they are far away from each other.
This is how market are integrated through foreign trade. For example chinese electronic items are imported to India and have given a tough competition to Indian companies which have not advanced technology so their input cost is more compare to chinese product.
QUESTION NO 9
Globalisation will continue in fuure. Can you imagine what the world would be like twenty years from now? Give reason for your answer.
ANSWER
If globalisation will continue in future, twenty years from now the world will be more globally connected and integrated into one international economy,but process of globalisation should continue on fair and equitable basis. After 20 years,the world would undergo a positive change with healthy competition,improved production efficiency,increased volume of output,better income and employment,better living standard,greater availability of information and modern technology.
Alongwith above changes some others changes will also happen --
1. Human resources,both quantitywise and quality wise will be available globally.
2. All majour countries will have a broad source and industrial base.
3. Enterpreneurship will grow.
4. Domestic markets of all major countries will experience growth.
Alongwith above changes some others changes will also happen --
1. Human resources,both quantitywise and quality wise will be available globally.
2. All majour countries will have a broad source and industrial base.
3. Enterpreneurship will grow.
4. Domestic markets of all major countries will experience growth.
QUESTION NO 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
Both the arguments are right to some extent. We can say that globilisation has positive as well as negative impact on our countrys developments.
POSITIVE IMPACT OF GLOBALISATION
There are several positive impact of globalisation such as--
1. Avalability of variety of products which enabled the consumers to have greater choice and enjoyed improved quality and lower price for several products.
2. This lead to higher standard of living.
3. Increase in foreign direct investment.
4. Creation of new jobs in certain industries.
5.Globalisation has enabled some large Indian companies to emerge as multinational by investing in new technology and production method along with the successful collaboration with foreign companies. For example Tata Motors,Infosyetc.
6. Created new opportunities for companies providing services,particularly those involving IT.
NEGATIVE IMPACT OF GLOBALISATION
There are some negative impact of globalisation also such as --
1. Small producer failed to compete with multination companies and got perished.Rising competition has led to shutting down of many units.Many workers became jobless. For example small producers which were manufacturing batteries,capacitors,plastics,toys,dairy products and vegetable oils have been hit hard due to tough competition.
2. Globalisation and pressure of competition have substantially changed the lives of workers.Faced with growing competition most employer prefer to employ workers 'flexibily'. This means workers jobs are no longer secure.
QUESTION NO 11
Fill in the blanks-
Indian buyers have a greater choice of goods than they did two decades back.This is closely associated with the process of (a)----------------. Markets in India are selling goods produced in many other countries.These means there is increasing (b)-------------- with other countries. Moreover, the rising number of brands that we see in the market might be produced by MNCs in India.MNCs are investing in India because (c)--------------------------.While consumer have more choices in the market,the effect of rising(d)--------------and (e)-----------------has meant greater(f)---------------among the producers.
Indian buyers have a greater choice of goods than they did two decades back.This is closely associated with the process of (a)----------------. Markets in India are selling goods produced in many other countries.These means there is increasing (b)-------------- with other countries. Moreover, the rising number of brands that we see in the market might be produced by MNCs in India.MNCs are investing in India because (c)--------------------------.While consumer have more choices in the market,the effect of rising(d)--------------and (e)-----------------has meant greater(f)---------------among the producers.
ANSWER
(a) globalisation (b) trade(c) production cost here are cheaper
(d) demand
(e) purchasing power
(f) competition
QUESTION NO 12
Match the followings-
(ii) Quotas and taxes on imports are used to regulate trade.
(iii) Indian companies who have invested abroad.
(iv) IT has helped in spreading of production of services.
(v) Several MNCs have invested in setting up factories in India for production.
(b) Garments,footwear,sports items
(c) Call centers
(d) Tata Motors,Infosys, Ranbaxy
(e) Trade barrier
(A)
(i) MNCs buy at cheap rates from small producers.(ii) Quotas and taxes on imports are used to regulate trade.
(iii) Indian companies who have invested abroad.
(iv) IT has helped in spreading of production of services.
(v) Several MNCs have invested in setting up factories in India for production.
(B)
(a) Automobile(b) Garments,footwear,sports items
(c) Call centers
(d) Tata Motors,Infosys, Ranbaxy
(e) Trade barrier
ANSWER
(i) ------- (b)(ii)-------(e)
(iii)-------(d)
(iv)-------(c)
(v)--------(a)
QUESTION NO 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.
(c) goods,investments and people between countries.
(ii) The most common route of investment by MNCs in countries around the world is to-
(a) set up new factories
(b) buy existing local companies.
(c) form partnership with 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) non of the above
(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.
(c) goods,investments and people between countries.
(ii) The most common route of investment by MNCs in countries around the world is to-
(a) set up new factories
(b) buy existing local companies.
(c) form partnership with 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) non of the above
ANSWER
(i)--------------(b)(ii)-------------(b)
(iii)------------(d)
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