CBSE Class 10 Social Science Economics Globalization and the Indian Economy Assignment Set B

Question. 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 coutries
(d) none of the above

Answer : C

Question. MNC stands for
(a) Multinational Corporation
(b) Multination Corporation
(c) Multinational Cities
(d) Multinational Council

Answer : A

Question. Investment made by MNCs is called
(a) Investment
(b) Foreign Trade
(c) Foreign Investment
(d) Disinvestment

Answer : C

Question. Process of integration of different countries is called
(a) Liberalisation
(b) Privatisation
(c) Globalisation
(d) None of the above

Answer : C

Question. MNCs do not increase
(a) Competition
(b) Price war
(c) Quality
(d) None of the above

Answer : D

Question. This helps to create an opportunity for the producers to reach beyond the domestic market
(a) Foreign trade
(b) Domestic trade
(c) Internal trade
(d)Trade barrier

Answer : A

Question. Foreign Trade
(a) Increases choice of goods
(b) Decreases prices of goods
(c) Increases competition in the market
(d) Decreases earnings

Answer : D

Question. Globalisation was stimulated by
(a) Money
(b) Transportation
(c) Population
(d) Computers

Answer :B

Question. Production of services across countries has been facilitated by
(a) Money
(b) Machine
(c) Labour
(d) Information and communication technology

Answer : D

Question. Tax on imports is an example of
(a) Investment
(b) Disinvestment
(c) Trade barrier
(d) Privatisation

Answer : C

Question. Liberalisation does not include
(a) Removing trade barriers
(b) Liberal policies
(c) Introducing quota system
(d) Disinvestment

Answer : C

Question. To check the free flow of Chinese goods in the Indian markets, what the Indian government can do?
(a) Ban trade with China
(b) Impose tax on imports
(c) Impose tax on exports
(d) Complain to UNO

Answer : B

Question. Uder liberal policy there has been removal of:
(a) restrictions
(b) license
(c) trade
(d) both (a) and (b)

Answer : A

Question. The process of rapid integration or interconnection between countries due to greater foreign investment and foreign trade is known as
(a) Integration of markets
(b) International trade
(c) MNC
(d) Globalisation

Answer : D

Question. A situation in which all the countries reap equally the benefits of foreign trades equally is known as
(a) Internationalisation
(b) Fair globalisation
(c) Liberalisation
(d) Equal globalisation

Answer : B

Question. The money spent on buying assets such as land, building, machinery etc is known as
(a) capital
(b) rent
(c) investment
(d) production

Answer : C

Question. Foreign trade gives more number of choices for
(a) producers
(b) sellers
(c) buyers
(d) government

Answer : C

Question. Improvement in transport has helped in promotion of:
(a) globalisation
(b) liberalisation
(c) privatisation
(d) none of these

Answer : A

Question. Why did the Indian Government restricted foreign trade after independence?
(a) To protect domestic producers
(b) To increase competition
(c) To know the international level of quality
(d) All of the above

Answer : A

Question. Globalisation will result in:
(a) more competition among producers
(b) less competition among producers
(c) no change in competition among producers
(d) none of the above

Answer : A

Question. In the competition between Indian and Chinese toys in Indian markets, China proved better because of
(a) low price and variety
(b) good shape
(c) trade relations
(d) shigh price and quality

Answer : A

Question. BPOs have benefited growth of:
(a) local companies
(b) national companies
(c) MNCs
(d) none of these

Answer : C

Question. An important factor causing globalisation is
(a) more income
(b) rxpansion of markets
(c) yechnological developments
(d) urbanisation

Answer : C

Question. When did the Indian Government introduced a policy of liberalisation known as ‘New Economic Policy’?
(a) 1980
(b) 2000
(c) 1994
(d) 1991

Answer : D

Question. Tata Steel is an:
(a) American MNC
(b) Indian MNC
(c) Chinese MNC
(d) none of these

Answer : B

Question. 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, services and people between countries

Answer : B

Question. Till which time period, production was organised within the countries?
(a) Middle of twentieth century
(b) End of twentieth century
(c) Starting of twentieth century
(d) Till nineteenth century

Answer : A

Question. The reason due to which multinational companies set up their branches in other countries is
(a) cheap labour and resources
(b) welfare motive
(c) to generate employment
(d) to generate income

Answer : A

Question. Choose the reason for which MNCs are attracted to India for investments.
(a) India has educated English speaking people
(b) India has skilled professionals
(c) India has lot of natural resources
(d) All of the above

Answer : D

Question. Liberalisation is .......... :
(a) more trade
(b) removing barriers or restrictions set by the government
(c) checking barriers by the government
(d) help by the government

Answer : B

Question. Enabling producers of one country to sell their goods in other countries is known as
(a) globalisation
(b) trade
(c) foreign trade
(d) international trade

Answer : C

Question. In earlier times, trade consisted of which of the following things?
(a) Finished goods
(b) Raw materials
(c) Food stuffs
(d) All of these

Answer : D

Question. 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 : B

Question. A company that owns or controls production in more than one country is called
(a) big company
(b) international company
(c) foreign company
(d) multinational company

Answer : D

Short Answer Type Questions :

Question. How has liberalization of trade and investment policies helped the globalization process?
Answer : It facilitated import and export of the goods easily and allowed foreign companies to set up factories and offices in India. Competition cause due to this and also helped in improving quality of the Indian products. This change in the policy was welcomed by the world community.

Question. New Economic policy/Reforms were required in 1991. Why?
Answer : Needs for New Economic Policy in 1991 was due to following reasons:
(i) Slow and unsatisfactory Economic Growth.
(ii) Inefficiency in public enterprises.
(iii) Continued inflationary pressures.

Question. How is foreign trade inter - connecting the markets in different countries? Explain with examples. 
Answer : Foreign trade provides an opportunity for both producers and buyers to reach beyond the markets of their own countries. Goods travel from one country to another. There is huge competition among producer of one country and producer of another country. Competition among buyers also prevails. Thus foreign trade led to integration of markets across countries. For example, during Diwali seasons, buyers in India have the option of choosing between Indian and the Chinese decorative lights and bulbs. Many shops have replaced Indian decorative lights with Chinese light. For Chinese light manufacturers, this provide an opportunity to expand.

Question. Explain the role of government to make globalization fair. 
Answer : Government can take some of the following steps to ensure achieving fair globalization:
(i) Labour Law should be implemented properly.
(ii) Small producers should be supported.
(iii) Use trade and investment barriers efficiently.
(iv) Negotiate at the WTO for 'Fairer Rules'.

Question. What is globalization? Explain.
Answer : Globalization. It means integrating the economy of a country with the economies of other countries under condition of free flow of trade and capital, and movement of persons across borders. In simple words, it means integrating our economy with the world economy.
IMF defines globalization as "The growing economic interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services and of international capital flows, and also through more rapid and widespread diffusion of technology."
Mitchell puts it, "Globalization for better and worse, has changed the way the world does the business. Though still in its early stages, it is all but unstoppable. The challenge that individual and businesses face is learning how to live with it, manage it, and take advantage of benefits it offers."

Question. Fair globalization would create opportunities for all and also ensure that the benefits of globalization are better shared. What role can government play in making this possible?
OR
How can benefits of globalization be shared better? Explain.
Answer : Government can take some of the following steps to ensure achieving fair globalization:
(i) Labour Law should be implemented properly.
(ii) Small producers should be supported.
(iii) Use trade and investment barriers efficiently.
(iv) Negotiate at the WTO for 'Fairer Rules'.

Question. What has been the impact of globalization on India? Explain. 
Answer : mpact of Globalization in India:
(i) For consumers, wide varieties of good quality goods at lower prices are available which leads to higher standard of living.
(ii) New jobs are created in industries such as cell phones, electronics, fast food, automobiles.
(iii) Local companies have prospered through supplying raw materials to these industries.

Question. Explain visible impacts of globalization on the Indian economy. 
Answer : (i) New jobs has been created in industries where MNCs has invest such as electronics, fast food, cell phones etc.
(ii) Some Indian companies has become multinational themselves due to globalization, e.g., Tata Motors an automobile company, Ranbaxy a medicine company.
(iii) Indian toy makers will prosper.

Question. "Globalization and competition among producers has been of advantage to the consumer." Give argument in support of this statement. 
Answer : There is a greater choice before the Consumers particularly the well-off sections in the urban areas. Consumers now enjoy improved quality and lower prices for several products. Therefore, people today enjoy higher standard of living than possible earlier.
It has also resulted in increased volume of output, income and employment.

Question. How has competition benefited people in India?
Answer : Due to competition, buyers can easily get good variety of quality products of different countries at reasonable price. Producers now sell their products not only in domestic market but also in different countries and thereby increase their profits.

Question. What are the various ways in which countries can be linked?
OR
Where do MNCs set up their production units? Explain.
Answer : (i) MNCs can jointly produce with local companies of other countries.
(ii) MNCs can buy the local companies.
(iii) MNCs can place order for production like garments, footwear etc. with small producers of other countries.

Question. Explain the three conditions that determine MNCs setting up production in other countries. 
Answer : (i) Availability of skilled and unskilled labour at low cost.
(ii) Availability of other factors of production.
(iii) Government policy looking after their interests.

Question. What are the various ways in which MNCs set up, or control, production in other countries?
Answer : Ways in which MNCs make investment or control production:
(i) Directly setup factories and offices for production.
(ii) Set up production jointly with some of the local companies of these countries.
(iii) Buy up local companies and then expand production.
(iv) Place or orders for production with small producers of the countries e.g., garments, footwear, etc.

Question. What are the benefits of foreign trade to producers and consumers? 
Answer : Foreign trade provides an opportunity for both producers and buyers to reach beyond the markets of their own countries. Goods travel from one country to another. There is huge competition among producer of one country and producer of another country. Competition among buyers also prevails. Thus foreign trade led to integration of markets across countries. For example, during Diwali seasons, buyers in India have the option of choosing between Indian and the Chinese decorative lights and bulbs. Many shops have replaced Indian decorative lights with Chinese light. For Chinese light manufacturers, this provide an opportunity to expand.

Question. What do you understand by liberalization of foreign trade?
Answer : Liberalization of foreign trade riders to removal of barriers or restrictions set by the government for attracting foreign investment. Since 1991, there has been a major shift in the thrust and direction of FDI policy, which can be described as an open - door policy on foreign investment and technology transfer.

Question. What would happen if Government of India puts heavy tax on import of Chinese toys? Explain any three points.
Answer : (i) People who wish to import these toys would have to pay tax on this.
(ii) Chinese toys will cost more therefore its import will reduce.

Question. Why do developed countries want developing countries liberalize trade and investment? What do you think should the developing countries demand in return?
Answer : Developed countries feel that all barriers to foreign trade and investment are harmful for international trade. They want that trade between countries like USA, UK have high production capacity and latest technology. They want their surplus produce to sell in other countries and utilize their technology to their optimal use. Therefore they want that developing countries should liberalize their trade and investment.
Developing countries should demand for fair globalization which ensure opportunities and benefits for all. Interest of the workers should also be taken care of.

Question. In recent years china has been importing steel from India. Explain how the import of steel by china will affect. 
(i) Steel companies in china
(ii) Steel companies in India
(iii) Industries buying steel for production if other industrial goods in china.
Answer : (i) Steel companies in china will suffer bodily at that to import steel from India.
(ii) Steel companies in India will earn huge profits due to.
(iii) Industries in china will gain more as they will be reasonable price.

Question. Give the meaning of globalization and describe the steps taken in this direction.
OR
How can the government make the benefits of globalization available to all section of the society? Give any four possible steps. 
Answer : Globalization means integrating our economy with the world economy. The economic gap between different nations is reduced by removing all restrictions between nations on the movement of goods, services, capital, technology and labour.
Indian government through its new policy realized the need for relating the Indian economy with the world economy, so that the unrestricted exchange of capital, technology and experience between countries became possible. Steps taken in this direction included removal of restrictions on import of goods, reduction in taxes on import of goods, and encouragement to investors from abroad to invest in India.

Question. Explain any three advantages of globalization. 
Answer : Advantages of globalization:
(i) Increase in the volume of trade in goods and services.
(ii) Inflow of private foreign capital and export orientation of the economy.
(iii) More availability of investible funds in the form of FDI.

Question. Explain aby four ways in which multinational corporations have spread their production and interaction with local producers in various countries across the globe. 
Answer : Ways in which MNCs have spread their production and interaction with local producers in various countries across the globe are as follows:
(i) Directly setup factory and Offices for production.
(ii) Set up production jointly with some of the local companies of these countries.
(iii) Buy up local companies and then expand production.
(iv) Place orders for production with small producers of the countries e.g., garments, footwear etc.

Question. Mention three factors which are preferred by MNCs for setting up production.
Answer : Factors that preferred by the MNCs for setting up production are:
(i) Nearness to the markets.
(ii) Availabity of skilled and unskilled labour at low cost.
(iii) Availability of other factors of production is assured.

Question. Define MNC.
Answer : Multinational Corporations (also known as International Corporation). Transactional Corporation, and Global Corporation). MNC is the company that owns or controls production in more than one nation.
According to ILO report, “The essential nature of the multinational enterprises lies in the fact that its managerial headquarters are locates in one country (referred to for convenience as the home country) while the enterprises carries out operations in a number of other countries as well (host countries)."
In other words, MNC is a corporation that controls production facilities in more than one country, such facilities having been acquired through the process of foreign direct investment.

Question. Distinguish between foreign trade and foreign investment.
Answer : (i) Foreign Direct Investment or Foreign Capital. It refers to investments directly made in industry or other spheres of economic activity of a country by foreign industrial houses or MNCs with the objective of earning profits. In short, it is an investment made by MNCs. FDI is an important source of financing industrial development in less developed countries.
(ii) Foreign Trade. Opt refers to exchange of goods - purchase and sale - across geographical boundaries of the countries.

Question. What complaint do farmers of developing countries have against developed country government?
Answer : In developing countries government have reduced trade barriers as per WTO rules. But developed countries have ignored the rules of WTO and have continued to pay their farmers vast sums of money for production and for exports to other countries. Therefore, now farmers of developed countries are able to sell farm products at abnormally low price in other country markets which is adversely affecting farmers of developing countries. This is really a case of unfair trade.

Question. How does foreign trade lead to integration of markets across countries? Explain with an example.
Answer : Foreign trade provides an opportunity for both producers and buyers to reach beyond the markets of their own countries. Goods travel from one country to another. There is huge competition among producer of one country and producer of another country. Competition among buyers also prevails. Thus foreign trade led to integration of markets across countries. For example, during Diwali seasons,
buyers in India have the option of choosing between Indian and the Chinese decorative lights and bulbs. Many shops have replaced Indian decorative lights with Chinese light. For Chinese light manufacturers, this provide an opportunity to expand.

Question. What is globalization? Mention its impact on Indian agriculture.
Answer : Globalization aims at integration of national economy with that of the world. It will encourage free trade. Its impact on Indian agriculture will be:
(i) Good quality of goods will have to be produced.
(ii) Increased use of advanced technology.
(iii) Greater inputs of capital.
(iv) Increased use of new tools.
(v) Well-knit infrastructure like roads, electricity, irrigation and credit facilities.

Question. Give a few examples of industries where the small manufactures have been hit hard due it competition.
Answer : Batteries, capacitors, plastics, toys, tiers, dairy products, vegetable oils.

Question. What is a trade barrier? Why did the Indian Government put up trade barriers after independence? Explain. 
Answer : Trade Barriers. It refers to the various restriction which are used by the government to increase and decrease the foreign trade e.g., tax on import.
Reason behind putting barriers to foreign trade and foreign investment by the Indian Government in 1950s and 1960s was to protect the producers within the country from foreign competition. At this stage competition from imports would have hampered the growth of industries.

Question. What is globalization? How do we feel the direct impact of globalization on our daily life? Explain with examples. 
Answer : Globalization means integrating the economy of a country with the economics of other countries under condition of free flow of trade and capital, and movement of persons across borders.
There is a greater choice before the Consumers particularly the well-off sections in the urban areas. Consumers now enjoy improved quality and lower prices for several products. Therefore, people today enjoy higher standard of living than possible earlier.
It has also resulted in increased volume of output, income and employment.

Question. Why is tax on imports known as a trade barrier? Why did the Indian government impose barriers to foreign trade and foreign investment after independence? Give three reasons.
Answer : Tax on imports are known as trade barrier because government can use it to increase or decrease (regulate) foreign trade.
Reasons behind imposition of barriers after independence were as follows:
(i) To protect the producers within the county from foreign competition.
(ii) To safeguard the industries which were just coming up in the 1950s and 1960s from competition from imports.
(iii) To allow imports of only essential items such as machinery, fertilizers, petroleum, etc.

Question. What was the reason for putting barriers to foreign trade and foreign investment by the Indian government? Why did it wish or remove these barriers?
Answer : Reason behind putting barriers to foreign trade and foreign investment by the Indian Government in 1950s and 1960s was to protect the producers within the country from foreign competition. At this stage competition from imports would have hampered the growth of industries.
Around 1991, government felt that it was the proper time for Indian produce to face competition and improve quality of products in comparison to produces around the globe. It was welcomed by the world business community and it has attracted a huge amount of foreign investment which is crucial for the overall development of the country.

Question. List the factors that have promoted globalization.
Answer : Factors that promoted the Globalization are:
(i) Rapid improvements in technology.
(ii) Liberalization of foreign trade and foreign investment policies.
(iii) Pressure from international organization such as WTO.
(iv) High growth by other countries due to greater liberalization and minimization of governmental control.

Question. How have Indian markets been transformed in recent years? Explain with examples. 
Answer : The Indian market has been transformed till recent years as a consumers in India have a wide choice of goods and services which was not available earlier. For example, the latest model of mobile phones, television, digital cameras of leading manufacturers of the world are within their reach. New models of automobiles and cars are launched every season. All the top companies in the world have introduced their popular brands in India for various products like shirts, fruit juices, cosmetics, toys, furniture, stationary and services like insurance, banking (debit and credit cards) and education ( courses like MBA, etc.).

Long Answer Type Questions :

Question. What is the role of MNCs in the globalization process?
Answer : MNCs - Definition: Multinational Corporations (also known as International Corporation, Transnational Corporation, Global Corporation. MNC is the company that owns or controls production in more than one nation.
According to ILO report, “The essential nature of the multinational enterprises lies in the fact that its managerial headquarters are locates in one country (referred to for convenience as the home country) while the enterprises carries out operations in a number of other countries as well (host countries)."
In other words, MNC is a corporation that controls production facilities in more than one country, such facilities having been acquired through the process of foreign direct investment.
(i) MNCs have served as agents for the transfer of superior technology. They have provided advanced technological know-how, sophisticated, manufacture processes and improved skills to underdeveloped countries.
(ii) MNCs transfer capital from countries where it is abundant to countries where it is scarce.
(iii) MNCs usually produce 'like effects' in the host country.
(iv) MNCs help to build up 'knowledge base' and thus serve for the development of human resources.
(v) Operations of MNCs have a favourably effect on the balance of payments of the host country.
(vi) MNCs also help in creating large - scale employment opportunities by setting up their branches and subsidiaries.

Question. What do you mean by Globalization? What are the effects of globalization in India?
Answer : Globalization is the integration or interconnection between the countries through trade and foreign
investments by multinational corporations (MNCs).
Positive impacts:-
1) Greater choice and improved quality of goods at competitive price and hence raises standard of living.
2) MNCs have increased investments in India.
3) Top Indian companies emerged as multinationals.
4) Created new opportunities for companies providing services like IT sector.
5) Collaborations with foreign companies help a lot to domestic entrepreneurs.
Negative impacts:-
1) Indian Economy faced the problem of brain drain.
2) Globalization has failed to mark its impact on unemployment and poverty.
3) Cut in farm subsidies.
4) Closure of small industries.

Question. What is WTO? What are the aims of WTO? What are the drawbacks of WTO?
Answer : WTO is World trade organization. It is an organization which is in favour of increasing the world trade through globalization.
The aims of WTO are:
(i) To liberalise international trade by allowing free trade for all.
(ii) To promote international trade among the countries of the world in an open uniform and nondiscriminatory manner.
(iii) Removal of both the import and export restrictions.
The drawbacks of WTO are:
1) WTO is dominated by the developed country
2) WTO is used by developed countries to support globalization in areas that are not directly related to trade.
3) Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers.

Question. What are MNCs? How the MNCs functions? What are the main guiding factors of MNCs?
Answer : MNCs are Multinational corporations. It is a company that owns or controls production in more than one Nation. MNCs set up offices and factories for production in region where they can get cheap labour and other resources, closer to the markets. This is done to reduce the cost of production and the MNCs can earn greater profits. MNCs not only sell its finished products globally but also the goods and services are produced globally. The production process is divided into small parts and spread across the globe.
The main guiding factors of MNCs are:
(i) Cheap production
(ii) Closeness of production unit to the markets.
(iii) Favourable government policies.

Question. What are the ways through which MNCs spread their production and interact with local producers?
Answer : There are a variety of ways in which MNCs spread their production and interact with local producers in various countries across the globe.
(i) Setting up partnerships with local companies,
(ii) Using the local companies for supplies
(iii) Closely competing with the local companies or buying them up,
(iv) MNCs are exerting a strong influence on production at these distant locations so that they could produce at cheapest price and earn profit.

Question. Give the main features of economic reforms introduced in 1991.
Answer : Main features of Economic reforms introduced in 1991 in India were:
(i) Deregulation of industries.
(ii) Liberalized policy towards foreign capital and technology.
(iii) Reduced role for public sector.
(iv) Disinvestment in public enterprises.
(v) Liberalization of import licensing.
(vi) Rationalization of tariff structure.
(vii) Reforms in foreign exchange management.
(viii) Reforms in financial sector.

Question. What are the characteristics of MNCs?
Answer : Characteristics of MNCs:
(i) They are of a giant size. The assets and sales of MNCs run into billions of dollars and they also make supernormal profits.
(ii) A multinational conducts international operations.
(iii) It is oligopolistic in character.
(iv) It grows in a spontaneous and conscious manner.
(v) It facilitates a multilateral transfer of resources.

Question. Globalization will continue in the future. Can you imagine what the world would be like twenty years from now? Give reasons for your answer.
Answer : After 20 years, world would undergo a positive change which will possess the following features:
Healthy competition, improved productive efficiency, increased volume of output, income and employment, better living standards, greater availability of information and modern technology.
Reasons for the views given above - following are number of favourably factors for globalization.
(i) Availability of Human Resources both quantity wise and quality wise.
(ii) Broad resource and industrial base of major countries.
(iii) Growing entrepreneurship
(iv) Growing domestic market
(v) Expanding internal markets
(vi) Economic liberalizations
(vii) Growing competition
(viii) Transratiinalisation of world economy

Question. What was the development strategy prior to 1991 adopted by India?
Answer : Development of strategy prior to 1991 adapted by India has:
(i) Private sector as well as public sector operated side by side in the economy.
(ii) Role of public sector was expanded.
(iii) Strict regulation of private sector was observed through various instruments such as licensing system, permits, etc.
(iv) Strict norms and conditions were imposed while giving permission to foreign direct investment.
(v) Strict institutions are imports were imposed.

Question. Supposing you find two people arguing: one is saying globalization has hurt our country's development. The other is telling globalization is helping India develop. How would you respond to these organizations?
Answer : Benefits of Globalization in India:
(i) Increase in the volume of trade in goods and services.
(ii) Inflow of private foreign capital and export orientation of the economy.
(iii) More availability of investible funds in the form of FDI.
(iv) Helps in development and strengthening of domestic economies of India.
(v) Improved productive efficiency and healthy competition.
(vi) Increased volume of output, income and employment.
Negatives or Fears of Globalization:
(i) Globalization may not help in achieving sustainable growth.
(ii) It may lead to widening of income inequalities among various countries.
(iii) It may lead to greater dependence of the underdeveloped countries on advanced countries.
(iv) It may lead to loss of autonomy.
(v) It may impart some instability in world's economies.
Whenever the fears of globalization, I feel that it has now become a process which is catching the fancy of more nations. Hence we must become ready to accept globalization with grace, at the same time evolve measures and adopt methods and by which we safeguard our national self-interest and also maximize economic gains from the world market. India can gain much from globalization if proper policies are effectively implemented and economic reforms properly pursued.

Question. How have transportation technology and information and communication technology stimulated the globalization process? Explain with suitable examples.
OR
Information and communication technology has played a major role in spreading out products and services across countries. Support the statement.
OR
Explain the role of technology in stimulating the globalization process. 
OR
"Rapid improvement in technologies has been a major factor that has stimulated the globalization process." Support the statement with suitable examples.
Answer : (i) Transportation technology has witnessed several improvements in past fifty years. This has made much faster delivery of goods across long distance possible at lower costs, e.g., use of containers have led to huge reduction in port handling costs and increased the speed with which exports can reach markets. Also, the cost of air transport has fallen. Ultimately it has stimulated the globalization process.
(ii) Information and communication technology has also shown remarkable development. Telecommunication, internet, computers, e-mail, voice-mail, etc., are used intensively to contact one another around the world, to access information instantly and to communicate from remote areas, e.g., call centers running in Gurgaon (near Delhi) use this technology to satisfy their customers abroad or provide outsourcing services while sitting in India.

Question. How has globalization been advantageous to both the producers as well as the consumers in India? Explain.
OR
Explain four ways in which 'globalization' and the pressure of competition has changed the lives of workers substantially? Explain.
Answer : Impact of Globalization I India:
(i) For consumers, wide varieties of good quality goods at low prices are available which leads to higher standard of living.
(ii) New jobs created in industries such as cell phones, electronics, fast food, automobiles.
(iii) Local companies have prospered through supplying raw materials to these industries.
(iv) Top Indian companies have gains from successful collaborations with foreign companies. Some of these companies have emerged as multinationals themselves.
(v) Companies providing services have also benefited from new opportunities.

Question. Discuss the need for foreign investment in short?
Answer : Foreign Investment/Foreign Capital is required because.....
(i) It helps in sustaining a high level of investment.
(ii) It fills up the technology and management gap.
(iii) It ensures most efficient use of capital.
(iv) It fills up the saving - investment gap.
(v) It minimize balance of payments problem.
(vi) It undertakes the initial risk of investment.
(vii) It helps in development of basic economic infrastructure.

Question. What are fears of globalization?
Answer : Fears or Negative Aspects of Globalization:
(i) Globalization may not help in achieving sustainable growth.
(ii) It may lead to widening of income inequalities among various countries.
(iii) It may lead to greater dependence of the underdeveloped countries on advanced countries.
(iv) It may lead to loss of autonomy.
(v) It may impart some instability in world's economies.

Question. Match the following:

Answer : (i) - (b). (ii) - (e). (iii) - (d). (iv) - (c). (v) - (c).

Question. What is the main impact of globalization on Indian Economy?
OR
Explain political impact of globalization.
Answer : Impact of Globalization on Indian Economy (or Political Impact).
Following main achievements have been claimed especially on the external front-
(i) India's share in world trade which had fallen 0.53 % in1991 from 17.8% in 1950, has shown reverse trends and has improved to 0.86% in 2003.
(ii) In June 1991, foreign currency reserves were barely one billion dollars, it rose to about 141 billion dollars in March, 2005.
(iii) Average growth rate of export has been around 10% per annum during 1992-2004.
(iv) International confidence in India had been restored. In 1991, FDIs were just 155 million dollars in 1991, which increased to around 3200 million dollars in 2004-05.
(v) Rating agencies have upgraded India's rating.
(vi) Exports now finance over 80% of imports.
(vii) Current account deficit was over 3% of GDP in 1990-91, it had fallen to less than 1% in 2000-01.

Question. Discuss the disadvantages of MNCs.
Answer : Disadvantages of MNCs are as follows:
(i) MNCs are profit oriented and are not concerned with an overall economic development of the host countries.
(ii) Their technology is usually capital intensive which is not suited for a country like India.
(iii) MNCs create regional economic disparities.
(iv) Foreign remittances like payment of dividend, royalties, technical know-how and professional services, etc., put a severe drain on the foreign exchange resources of a developing economy.
(v) MNCs may prove detrimental to industrial development in the long run.
(vi) MNCs expenditure on scientific research in developing economy is negligible.
(vii) MNCs often resort to undesirable and corrupt practices.
(viii) MNCs prefer to participate in the production of mass consumption and non - essential items.

Value Based Questions :

Question. 'Integration of production and integration of markets is the key idea behind understanding
The process of globalization and its impact.'
(a) What is meant by integration of production and integration of markets?
(b) What values do you learn from the above paragraph?
Answer : (a) The goods and the components are produced in countries where the labour is cheap, laws are favourably and the skill to produce goods exists. Integration of markets mean that the goods from the site of production are set directly to the importing country.
(b) Cooperation, fairness, unprejudiced opinion.

Question. (a) 'There was a demonstration against WTO in Hong Kong.' Why?
(b) What values did you learn from this?
Answer : (a) People demonstrated against the WTO, because earlier only big companies and nations had a say in the working of the WTO. WTO is supposed to allow free trade for all but in practice the developed countries have retained trade barriers.
(b) Fairness, Equality, Protest against unfavourable measures, fair globalization.
A Multinational Corporation (MNC) is a company that owns or controls production in more than one nation. MNCs set up offices and factories for production in regions where they can get cheap labour and other resources. The MNC is not only selling its finished products globally, but more important, the goods and services are produced globally. MNCs set up production where it is close to the markets; where there is skilled and unskilled labour available at low costs; and where the availability of other factors of production is assured. MNCs set up production jointly with some of the local companies of these countries. First, MNCs can provide money for additional investments.
Second, MNCs might bring with them the latest technology for production.But the most common route for MNC investments is to buy up local companies and then to expand production. Large MNCs in developed countries place orders for production with small producers. The products are supplied to the MNCs, which then sell these under their own brand names to the customers. So, MNCs are exerting a strong influence on production at these distant locations. As a result, production in these widely dispersed locations is getting interlinked The money that is spent to buy assets such as land, building, machines and other equipment is called Investment. Investment made by MNCs is called Foreign Investment.
Globalization is the fast integration of goods, technology, services, investment, culture, ideas and People etc. MNCs are playing a major role in tis process.