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

 Question. Liberalization involves which of the following? 
(a) Removal of trade barriers
(b) Increasing subsidy on fertilizers
(c) Increasing import duties on goods
(d) Increasing export duties on goods

Answer : A

Question. Which one of the following is not characteristic of ‘Special Economic Zone’? 
(a) They do not have to pay taxes for long period.
(b) Government has allowed flexibility in labour laws.
(c) They have world class facilities.
(d) They do not have to pay taxes for an initial period of five years.

Answer : A

Question. What is the process of rapid integration or inter connection between countries called? 
(a) Industrialization
(b) Globalization
(c) Liberalization
(d) Privatization

Answer : B

Question. Globalization, by connecting countries, shall result in
(a) Lesser competition among producers
(b) Greater competition among producers
(c) No change in competition among producers
(d) Additional Questions

Answer : B

Question. WTO was started at the initiative of which one of the following group of company? 
(a) Rich countries
(b) Poor countries
(c) Developed countries
(d) Developing countries

Answer : C

Question. Globalization does NOT involve which one of the following?
(a) Rapid integration between countries
(b) More goods and services moving between countries
(c) Increased taxes on imports
(d) Movement of people between countries for jobs, education etc.

Answer : C

Question. To get large orders, Indian exporters try hard to cut their own costs by
(a) Reducing cost of raw materials
(b) Reducing advertising and marketing cost
(c) Reducing electricity cost
(d) Cutting labour cost

Answer : D

Question. The past two decades of globalization has seen rapid movements in
(a) Goods, service and people between countries
(b) Goods, services and investment between countries
(c) Goods, investments and people between countries

Answer : A

Question. around which year, need for removing barriers on foreign trade and foreign investment in India was felt?
(a) 1990
(b) 1991
(c) 1992
(d) 2000

Answer : B

Question. Which one of the following is not a feature of multinational company?
(a) It owns/controls production in more than one nation
(b) It set up factories where it is close to the markets
(c) It organized production in complex ways
(d) It employs labour only from its own country.

Answer : D

Question. Which one of the following organization lays stress on liberalization of foreign trade and foreign investment? 
(a) International Labour Organization
(b) International Monetary Fund
(c) World Health Organization
(d) World Trade Organization

Answer : D

Question. Which one of the following is an example of trade barrier? 
(a) Tax on exports
(b) Tax on imports
(c) Free trade
(d) Restrictions on export

Answer : B

Question. Cargill Food’s is the largest producer of which of the following in India?
(a) Medicine
(b) Asian paints
(c) Edible oil
(d) Garment

Answer : C

Question. Till 2006, how many members were there in WTO?
(a) 139
(b) 150
(c) 101
(d) 149

Answer : B

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 partnership with local companies

Answer : B

Question. Which one of the following Indian industries has been hit hard by globalization?
(a) IT
(b) Toy Making
(c) Jute
(d) Cement

Answer : B

Question. Investment made by the MNCs is termed as:
(a) Indigenous investment
(b) Foreign investment
(c) Entrepreneur’s investment
(d) None of the above

Answer : B

Question. __________ is one such organization whose aim is to liberalize international trade
(a) UNICEF
(b) World bank
(c) WTO
(d) IDBI

Answer : C

Question. Globalization has led to improvement in living conditions
(a) Of all people
(b) Of people in the developed countries
(c) Of workers in the developing countries
(d) None of the above

Answer : C

Question. To achieve the goal of fair globalization, major role can be plays by
(i) People
(ii) Government
(iii) MNCs
(iv) None of the above
(a) (i) and (iii)
(b) (ii) and (iv)
(c) (i) and (ii)
(d) (iii) and (iv)

Answer : C

Question. Which one of the following type of countries has been more benefited from globalization? 
(a) Rich countries
(b) Poor countries
(c) Developing countries
(d) Developed countries

Answer : D

Question. Allowing private sector to set up more and more of such industries as were previously reserved for public sector.
(a) Globalization
(b) Privatization
(c) Liberalization
(d) Socialization

Answer : B

Question. Removal of barriers set by the government is known as
(a) Globalization
(b) Liberalization
(c) Industrialization
(d) Privatization

Answer : B

Question. Ford motors came to India in
(a) 1996
(b) 1995
(c) 1994

Answer : B

Question. Removing barriers or restrictions set by the government known as
(a) Privatization
(b) Liberalization
(c) Globalization
(d) Socialization

Answer : B

Question. Company that owns or controls production in more than one nation
(a) Foreign companies
(b) Government companies
(c) Multinational companies

Answer : C

Question. Effects of Chinese toys on Indian toy maker is:
(a) No effect
(b) Making profit
(c) Suffering losses
(d) None of them

Answer : C

Question. It refers to globalization which creates opportunities for all and ensures that its benefits are better shared.
(a) Privatization
(b) Special economic zones (SEZ)
(c) WTO
(d) Fair globalization

Answer : D

Question. Cargill is now largest producer of edible oil in India, with a capacity to make_________ pouches daily.
(a) 6 million
(b) 5 million
(c) 4 million
(d) 55 million

Answer : B

Question. Examples of industries where production is carried out by a large number of small producers around the world.
(a) Garments
(b) Footwear
(c) Sport items
(d) All of them

Answer : D

Question. Companies who set up production units in the special economic zones (SEZs) do not have to pay taxes for an initial period of
(a) 2 years
(b) 5 years
(c) 4 years
(d) 10 years

Answer : B

Question. Benefits to local company of joint production with MNCs is
(i) Money from MNCs for additional investment
(ii) Moral and social support
(iii) Latest technology for productions
(iv) All of them
(a) (i) and (ii)
(b) (ii) and (iii)
(c) (iii) and (iv)
(d) (i) and (iii)

Answer : D

Question. Post 50 years have seen several improvements in
(a) Transportation technology
(b) Information technology
(c) Communication technology
(d) All of them

Answer : D

Question. Industries where small manufacturers have been hit hard due to competition.
(a) Batteries
(b) Tires
(c) Dairy products
(d) All of them

Answer : D

Question. Cargill foods, a very large American MNC, has bought over smaller Indian companies such as
(a) Parikh foods
(b) Amul
(c) Britannia
(d) None of the above

 Answer :  A

Question. Rapid integration or interconnection between countries is known as
(a) Privatization
(b) Globalization
(c) Liberalization
(d) Socialization

Answer : B

Question. Number of workers that small industries in India employ
(a) 18 million
(b) 19 million
(c) 20 million
(d) 21 million

Answer : C

Question. Investment made by MNCs is called
(a) Mutual investment
(b) Inter-government investment
(c) Portfolio investment
(d) Foreign investment

Answer : D

Question. Tax on imports is an example of
(a) Terms of trade
(b) Collateral
(c) Trade barriers
(d) Foreign trade

Answer : C

Question. Removing barriers or restrictions set by the government is called:
(a) Liberalization
(b) Investment
(c) Favorable trade
(d) Free trade

Answer :  A

Very Short Answer Type Questions

Question. Differentiate between investment and foreign investment.
Answer: The money that is spent to buy assets such as land, building, machines etc. is called investment whereas investment made by a MNC to buy such assets is called foreign investment.

Question. Why do MNCs set up their offices and factories in those regions where they get cheap labour and other resources?
Answer: MNCs set up their offices and factories in those regions where they get cheap labour and other resources because they bring down the cost of production and ensure more profits for themselves.

Question. Due to what reason are the latest models of different items available within our reach?
Answer: Globalisation

Question. Why had the Indian Government put barriers to foreign trade and foreign investment after independence? State any one reason.
Answer: To protect the producers within the country from foreign competition.

Question. What is meant by trade barrier?
Answer: It refers to the various restrictions which are used by the government of a country to increase or decrease foreign trade such as tax on imports.

Question. Why did the Indian government remove barriers to a large extent on foreign trade and foreign investment?
Answer: The Indian government realised that its domestic industries had established themselves and it was the proper time to face competition and improve the quality of production. So, barriers on foreign trade and investment were removed

Question. In which two different forms do we participate in the market?
Answer: We participate in the market as producers and consumers.

Question. What is Multinational Corporation?
Answer: A multinational corporation is a company that owns or controls the production of its goods in more than one country.

Question. Give the meaning of globalisation.
Answer: Globalisation means integrating the economy of a country with the economies of other countries under conditions of free flow of trade, capital and movement of persons across borders.

CASE/SOURCE BASED QUESTIONS

1. Read the paragraphs given below and answer the questions that follows

In general, 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. In addition, MNCs might look for government policies that look after their interests. You will read more about the policies later in the chapter. Having assured themselves of these conditions, MNCs set up factories and offices for production. 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. Any investment is made with the hope that these assets will earn profits. At times, MNCs set up production jointly with some of the local companies of these countries. The benefit to the local company of such joint production is two-fold. First, MNCs can provide money for additional investments, like buying new machines for faster production. Second, MNCs might bring with them the latest technology for production.

Question. Which of the following is not a condition checked by any MNC to set up factories and offices for production?
a. Availability of cheap labour
b. Closeness of market
c. Only a
d. Both a and b
Answer : C

Question. Which of the following is wrong about investment?
a. Investment is the amount of money spent on purchase of equipments
b. Investment made by MNCs is called foreign investment
c. Investment is made with the hope to earn profits
d. Investment made by local companies is called foreign investment
Answer : D

Question. Which of the following is not a benefit that local companies get when MNCs set up production jointly with the local companies of any country?
a. Money for additional investment
b. Access to latest technology
c. Access to cheap labour
d. Increase in market share
Answer : C

Question. Which of the following might not be a benefit that MNCs get when MNCs set up production jointly with the local companies of any country?
a. Access to cheap labour
b. Extra access to market
c. Decrease in investment amount
d. Access to favorable government policies
Answer : C

2. Read the paragraphs given below and answer the questions that follows

The result of greater foreign investment and greater foreign trade has been greater integration of production and markets across countries. Globalization is this process of rapid integration or interconnection between countries. MNCs are playing a major role in the globalization process. More and more goods and services, investments and technology are moving between countries. Most regions of the world are in closer contact with each other than a few decades back. Besides the movements of goods, services, investments and technology, there is one more way c. This is through the movement of people between countries. People usually move from one country to another in search of better income, better jobs or better education. In the past few decades, however, there has not been much increase in the movement of people between countries due to various restrictions.

Question. Which of the following is not a role of MNCs in globalization?
a. Greater foreign investment
b. Access to advanced technology
c. Rapid movement of goods
d. Rapid movement of people
Answer : D

Question. Which of the following is not an example of globalization?
a. Greater foreign trade
b. Increase in movement of people in search of jobs
c. Decrease in movement of people due to restrictions
d. Increase in foreign investment
Answer : C

Question. Which of the following is an example of movement between countries?
a. Movement of goods
b. Movement of technology
c. Only a
d. Both a and b
Answer : D

Question. What has restricted the movement of people between countries?
a. Restrictions by countries
b. Globalization
c. Foreign trade
d. None of the above
Answer : A

3. Read the paragraphs given below and answer the questions that follows

USING IT IN GLOBALISATION

Information and communication technology (or IT in short) has played a major role in spreading out production of services across countries. 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 air 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. Which of the following is not a word describing the use of technology in production mentioned in paragraph?
a. E – banking
b. Designing
c. Publishing
d. Printing
Answer : A

Question. Where the magazine does gets printed for readers in London?
a. Delhi
b. London
c. Karachi
d. Tokyo
Answer : A

Question. By which technology design of the magazine is prepared?
a. Telecommunication
b. Information and communication technology
c. E - banking
d. None of the above
Answer : B

Question. Which technology is used to make payment?
a. Telecommunication
b. Information and communication technology
c. E – banking
d. None of the above
Answer : C

Short Answer Type Questions

Question. Mr. Shyam is a small producer of Raipur. A multinational company wants to tie up with him to open a factory in outskirt of Raipur. What benefit he might get from this?
Answer : a. Access to latest technology
b. Access to money for investment
c. Global recognition

Question. Mr. Mohanlal owns a huge chain of delivery outlets. Which characteristics his business should have in order to be recognized as MNC?
Answer : a. Offices in many countries.
b. Tie up with local companies of other countries
c. Huge capital

Question. Maharashtra government decided to weaken labour laws. How it will help companies?
Answer : a. They can get workers at cheap rates
b. They can ask workers to work for more hours
c. They can get relaxation in case of loss caused to workers due to accidents or negligence.

Question. Help Sharat Chandra to know about telecommunication facilities.
Answer : Telecommunication facilities include telegraph, telephone including mobile phones, fax.

Question. After reading an article about protest against WTO, Amin is trying to know about negative points about WTO. Which points he should include?
Answer : a. Developed countries dominate in WTO
b. WTO force developing countries to open their economies for trade.
c. WTO works in favor of developed countries.

SHORT /LONG ANSWER TYPE QUESTIONS

Question. Write four functions of WTO.
Answer : Four functions of WTO are:
(i) Administering trade agreements between nations.
(ii) Forum for trade negotiations.
(iii) Handling trade disputes.
(iv) Maintaining national trade policy.

Question. What is the impact of WTO on Indian economy?
Answer : The impact of WTO on Indian economy is:
(i) An opportunity to India for trading with other member countries.
(ii) Availability of foreign technology to India at a reduced cost.
(iii) Many laws of WTO are unfavorable to the developing countries like India.
(iv) Certain clauses of WTO agreement on agriculture put restrictions on the provision of subsidized food grains in India.

Question. What is trade barrier? How governments can use trade barriers?
Answer : Any kind of restrictions imposed on trade is called a trade barrier. Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each, should come into the country.

Question. What is privatization and liberalization?
Answer : Privatization means allowing the private sector to set up industries which were earlier reserved for
the public sector. Removing barriers or restrictions set by the government on trade is called liberalization.
Thus, privatization and liberalization results in freedom from closed and regulated economy.

Question. How MNCs can spread their production?
Answer : MNCs can spread their production by:-
1. Setting up joint production units with local companies.
2. To Buy up local companies and expanding its production base.
3. Placing orders with small producers

Question. Mention three factors responsible for globalization.
Answer :
(i) Growth of MNCs.
(ii) Growth of technology.
(iii) Development in transport and communication technology.

Question. ‘Barriers on foreign trade and foreign investment were removed to a large extent in India since 1991.’ Justify the statement.
Answer: In 1991, the Indian government decided that the time has come for Indian producers to compete with
producers around the world. It felt that foreign competition would improve the quality of goods produced by Indian producers within the country.
Thus, barriers on foreign trade and foreign investment were removed to a large extent. It meant goods could be imported or exported easily and foreign companies could set up factories and offices in India.

Question. “Globalisation and greater competition among producers has been of advantageous to consumers.” Justify the statement with examples.
OR
“A wide ranging choice of goods are available in the Indian markets.” Support the statement with examples in context of globalisation.
Answer: Globalisation and greater competition among producers has been of advantageous to consumers in the following ways:
• Consumers in today’s world have a wide variety of goods and services to choose from. The latest models of digital cameras, mobile phones and televisions made by the leading manufacturers are available to them.
• Consumers now enjoy better and improved quality at lower prices.
• It has resulted in higher standards of living.
• There has been a varying impact on producers and workers.
• Many top Indian companies have been able to establish themselves as multi¬national corporations.
• Latest technology and production methods have raised production standards.

Question. Why had the Indian government put barriers to foreign trade and foreign investment after independence? Analyse the reasons.
Answer: The Indian government put barriers on foreign trade and foreign investment after independence because:
(a) It was considered necessary to protect the producers within the country from foreign competition.
(b) In 1950s and 1960s, the industries were in nascent stage and competition from imports at that stage would not have allowed these industries to develop.
(c) Therefore, India allowed the imports of only essential items like machinery, fertilizers, petroleum etc.

Question. Explain by giving examples how Multinational Corporations (MNCs) are spreading their products in different ways.
Answer: Multinational Corporations (MNCs) are spreading their production in different ways. Some of them are:
By buying local companies and, then expanding production. For example, Cargill Foods, a very large American MNC, purchased small Indian company, Parakh foods. Cargill Foods is, now, the largest producer of edible oil in India with a capacity making 5 million pouches daily.
By placing orders for production with small producers. Garments, footwears, sports items are examples where production is carried out by small producers for large MNCs around the world.
By producing jointly with some of the local companies. It benefits the local company in two ways.
1. A MNC can provide money for additional investments.
2. A MNC can bring latest technology for production.
For example, Ford Motors set up a large plant near Chennai, in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks.

Question. How have our markets been transformed? Explain with examples.
Answer: The advent of globalisation and the policy of liberalization have opened the market to the world players. It has given rise to wide choice of goods and services to the consumer.MNCs have played a vital role in the world market. Foreign trade and investment in’the country has increased. It has also resulted in exchange of technology between countries. In recent times, technology in the areas of telecommunications, computers and internet has been changing rapidly.
Globalisation has also created new opportunities for companies providing services, particularly those involving in IT. Better job opportunities for people have given rise to migration.
Globalisation has also enabled some large Indian companies to emerge as multinationals For example,Tata Motors, Infosys, Ranbaxy have expanded their operations around the world.

Question. How does foreign trade integrates the markets of different countries? Explain with examples.
Answer: Foreign trade integrates the markets of different countries as:
(a) It provides an opportunity for both producers and consumers to reach beyond the markets of their own country.
(b) Producers now compete with markets located in other countries.
(c) There is an expAnswer:ion of choice of goods beyond the domestic market.
(d) For example, during the Diwali season, buyers in India have the option of buying either Indian or
Chinese decorative lights and bulbs. The Chinese manufacturers get the opportunity to expand their business.

Question. How do large companies manipulate the market? Explain with examples.
Answer: The large companies manipulate the market in the following ways:
• Sometimes false information is passed on through media and other sources to attract consumers.
For example, a company selling powder milk for babies as the most scientific product claiming it to be better than mother’s milk which although was a false claim.
• Some food items were consumed in India for many years although it is very harmful for the health of people. But through attractive and convincing advertisements in media, it was able to control the market such as Maggie noddles manufactured by Nestle was found harmful after testing in India in May 2015.
• They may also hide the essential information about the product like expiry date, contents, terms and conditions etc. to keep the consumers in dark.
• Sometimes, the expired products are packed in a new packing and again released in the market.
• It has also been evident that artificial scarcity is created by the producers and the product is hoarded for sale in future at a high price. (any three)

Question. “Information and communication technology has played a major role in spreading out production of services across countries”. Justify the statement with examples.
Answer:
Information and communication technology has played a major role in spreading out products and services across countries. In recent years, technology in the areas of telecommunication facilities (telegraph, telephone including mobile phone) are used to contact one another around the world. For example, a news magazine published for London readers is to be designed and printed in India. The text is sent through the internet to Delhi office. Design of the magazine is also sent to Delhi from London office using telecommunication facilities. The design is done on a computer. After printing, the magazines are sent to London by air. The payment for the services from London to Delhi is done instantly through the internet (e-banking).

Question. Explain the role of government in- making globalisation fair.
Answer: Government can play an important role in making globalisation fair in the following ways:
• Policies should be made in such a way that they protect the interests of not only the rich and prosperous producers but also the workers.
• Labour laws should be properly implemented favouring the workers so that their basic rights like sustainable wages, better working conditions, health etc. are not hampered.
• Efforts should be made to protect the small producers from international competition and prepare a stage for their survival.

Question. Explain any three conditions that determine MNCs setting up production in other countries.
Answer: The factors that MNCs take into consideration to set up their production units in a particular place are:
• where it is close to the markets.
• where the skilled and unskilled labour at low costs is available.
• where the favourable government policies looking after their interest are , present.
• where the other factors of production such as raw materials, water, electricity and transport are available.
• where there are standard safety measures for assured production.

Question. What changes have taken place in our markets during the last few years ?
Answer: In the last few years, our markets have been transformed as mentioned below :
● There is a wide choice of goods and services in the markets.
● The latest models of digital cameras, mobile phones and televisions made by the leading manufacturers of the world are available in the markets. Not only this these products are affordable and within reach of the people. Thus a few years back, there were only few brands of different goods in the markets. A consumer did not have real choice and had no option to purchase a particular brand. But now he has a number of options between Indian as well as foreign brands.

Question. “Information and communication technology has played a major role in spreading out production of services across countries.” Justify the statement with examples. 
Or Explain the factors that have enabled globalisation. Or
How has information and communication technology stimulated Globalisation ? Explain with example.
Answer: The factors that have enabled Globalisation are as given below :
1. Technology :
● In the past fifty years, several improvements in technology have taken place.
● For example, in transportation technology, containers are used for the transportation of goods which are placed in containers that can be loaded intact on to ships, railways, planes and trucks. Containers have led to huge reduction in port handling costs and increased the speed with which exports can reach markets.
● Similarly, the cost of air transport has fallen. This has enabled much greater volumes of goods being transported by airlines.
(2) Information technology :
● Telecommunication facilities – telegraph, moblie phones, fax – are used to contact one another around the world and to communicate from remote areas.
● This has been facilitated by satellite communication devices.
● Internet enables to send instant electronic mail and talk across the world at negligible costs.
● Now a news magazine published for London readers can be designed and printed in Delhi.
● The designing is done on a computer.
● After printing, the magazines are sent by air 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., e-banking.
(3) Liberalisation of foreign trade and foreign investment policy :
● Removing barriers or restrictions set by the government is liberalisation. Under liberalisation goods can be imported and exported easily.
● Foreign companies are allowed to set up factories and offices in other countries.
● Thus liberalisation has enabled MNCs to increase their investments in other countries as India.
● As a result of greater foreign investment and greater foreign trade, there is greater integration of production and markets across countries.
● Globalisation is this process of rapid integration of interconnection between countries.

Question. “Globalisation and competition among producers has been of advantage to the consumers.” Give arguments in support of this statement.
Answer: Globalisation and competition among producers has been of advantage to the consumers in the ways as mentioned below :
● Now there is more choice for the consumers in the markets. For example in the field of toys, the markets are flooded with Chinese toys which are cheaper and of better quality than Indian toys. People now have a choice between Indian toys and Chinese toys.
● The consumers now have products of better quality.
● The prices of various products have come down due to competition among the producers/manufacturers.
● Globalisation has led to improvement in the standard of living of people.

Question. What is a trade barrier ? “Tax on imports is one type of trade barrier. The government could also place a limit on the number of goods that can he imported. This is known as quotas. Can you explain using the example of Chinese toys, how quotas can be used as trade barriers ? Do you think this should be used ? Discuss.
Answer : 1. Trade barrier means restrictions to increase or decrease foreign trade and to decide what kinds of goods and how much of each should come into the country.
2. Tax on imports is a trade barrier because this will lead to increase in the price of the product. In such a situation foreign products will become costlier than Indian goods and the Indian producer will be in a position to sell their products and earn profits.
3. In case of Chinese toys, quotas can be used as trade barrier because the government can put restrictions on the number and type of toys that can be imported into the country In such case, there will be less competition between Indian toys and Chinese toys. The Indian toy makers may also not suffer losses. Quotas should be used as trade barriers in the interest of the Indian toy makers.

Question. Give arguments in favour of WTO. Or Write a short note on World Trade Organisation.
Answer :  (1) World Trade Organisation was set up in 1995 at the initiative of the developed countries. Its aim is to liberalise international trade. Its headquarters is at Geneva. WTO establishes rules regarding international trade among countries of the world in an open,uniform and non-discriminatory manner. In 2006,149 countries of the world were its members.
(2) 1. With the liberalisation of foreign trade and investment, it is necessary to have an international organisation to supervise the trade between countries.
2. It sees that all the countries in the world liberalise their policies.
3. It allows free trade for all i.e., in developing and developed countries.
4. It implements the rules for trade in all the countries.
5. WTO looks after to make globalisation more fair to create opportunities for all and also ensure that the benefits of globalisation are shared better.

Question. Describe the major problems created by the globalisation for a larger number of small producers and workers. Or Describe the effects of globalisation on small producers and workers.
Answer : Small producers such as producing batteries, capacitors, toys have been hit hard due to competition with the MNCs. They could not compete on the issue of price and quality. As a result of it, their production decreased and many units were closed. Many workers became jobless. Many employers prefer to employ workers on temporary basis which means workers’ jobs are no longer secure. Women are denied their fair share of benefits. Workers have to put in very long working hours without any overtime. Also see 

Question. What steps have been taken by the government to attract foreign investment ?
Answer : The steps taken by the government to attract foreign investment are as mentioned below :
1. Industrial zones, called Special Economic Zones (SEZs) are being set up.
2. SEZs are to have world class facilities : electricity, water, roads, transport, storage etc.
3. Companies who set up production units in the SEZs do not have to pay taxes for an initial period of five years.
4. The government has also allowed flexibility in labour laws g., workers can be hired for short period.

Question. “The impact of globalisation has not been visualised uniformly among producers and workers.” Support the statement with facts.
Answer : Everyone has not benefitted from globalisation. While people with education, skill and wealth have made the best use of the opportunities offered by globalisation, the others have not shared the benefits. While producers have become MNCs, the workers are facing many problems. Globalisation and competition among producers have changed the life of the workers. Most employers want to employ workers flexibly which means: jobs are no longer secure. Earlier workers were employed permanently. Now, they employ the workers temporarily, when there is pressure of work, otherwise they are dismissed.

Question. “Globalisation and greater competition among producers has been of advantageous to consumers.” Justify the statement with examples.
Answer : Globalisation and greater competition among producers has been of advantageous to consumers in the following ways:
• Consumers in today’s world have a wide variety of goods and services to choose from. The latest models of digital cameras, mobile phones and televisions made by the leading manufacturers are available to them.
• Consumers now enjoy better and improved quality at lower prices.
• It has resulted in higher standards of living.
• There has been a varying impact on producers and workers.
• Many top Indian companies have been able to establish themselves as multinational corporations.
• Latest technology and production methods have raised production standards.

Question. How do multinational companies manage to keep the cost of production of their goods low?
Explain with examples.
Answer : The multinational companies manage to keep the cost of production of their goods low in the following ways:
• They set up production jointly with some of the local companies of these countries. For example, Ford Motors spent Rs. 21700 crores to set up a large plant near Chennai in collaboration with Mahindra and Mahindra. In India, labour and transportation cost is very low which cuts down the cost of production.
• They buy up local companies and expand production. For example, Cargill Foods, a large American MNC bought Parakh Foods. The company got readymade infrastructure. As production increases, cost comes down.
• They place orders for production with small producers. They purchase garments, footwear, sports goods and sell them under their brand name.

Question. “Information and communication technology has played a major role in spreading out products and services across countries.” Support the statement.
Answer : Information and communication technology has played a major role in spreading out products and services across countries. In recent years, technology in the areas of telecommunication facilities (telegraph, telephone including mobile phone) are used to contact one another around the world.
For example, a news magazine published for London readers is to be designed and printed in India. The text is sent through the internet to Delhi office. Design of the magazine is also sent to Delhi from London office using telecommunication facilities. The design is done on a computer. After printing, the magazines are sent to London by air. The payment for the services from London to Delhi is done instantly through the internet (e-banking).

Question. ‘Barriers on foreign trade and foreign investment were removed to a large extent in India since 1991.’ Justify the statement.
Answer : In 1991, the Indian government decided that the time has come for Indian producers to compete with producers around the world. It felt that foreign competition would improve the quality of goods produced by Indian producers within the country.
Thus, barriers on foreign trade and foreign investment were removed to a large extent. It meant goods could be imported or exported easily and foreign companies could set up factories and offices in India.

Question. Why had Indian government put barriers to foreign trade and foreign investment after independence? Explain.
Answer : The Indian government put barriers on foreign trade and foreign investment after independence because:
• It was considered necessary to protect the producers within the country from foreign competition.
• In 1950s and 1960s, the industries were in nascent stage and competition from imports at that stage would not have allowed these industries to develop.
• Therefore, India allowed the imports of only essential items like machinery, fertilizers, petroleum etc.

Question. Explain with three examples how top Indian companies have benefitted from globalisation.
Answer : The top Indian companies have benefitted from globalisation in the following ways:
• They have been able to survive in the international competition.
• They have invested in newer technology and production methods and raised their production standards.
• They also have gained from successful collaborations with foreign companies.
• Many of them have emerged as multinationals themselves such as Tata Motors and Asian Paints.
• It has provided them new opportunities for expansion and value addition of their services. (any three)

Question. Why have the barriers on foreign trade and foreign investment been removed to a large extent by the Indian government? Explain.
Answer : In 1991, the Indian government decided that the time has come for Indian producers to compete with producers around the world. It felt that foreign competition would improve the quality of goods produced by Indian producers within the country.
Thus, barriers on foreign trade and foreign investment were removed to a large extent. It meant goods could be imported or exported easily and foreign companies could set up factories and offices in India.

Question. Give the meaning of WTO. Mention any two shortcomings of WTO. Answer: WTO stands for World Trade Organisation which was started at the initiative of developed countries to liberalise international trade.
Answer : The shortcomings of WTO are:
• It is dominated by the developed countries who manipulate its policies to favour their interest, thus ignoring the developing countries.
• It was supposed to allow free trade, but the developed countries have unfairly retained trade barriers whereas it forced the developing countries to remove the trade barriers.

Question. How are local companies benefited by collaborating with multinational companies? Explain with examples.
Answer : The local companies are benefited by collaborating with multinational companies in the following ways:
• They provide money to the local companies for additional investments like buying new machines to replace the old ones.
• They bring the latest technology for production.
• They may build new stores and office buildings, thus providing employees with modern surroundings.

Question. How does foreign trade integrates the markets of different countries? Explain with examples.
Answer : Foreign trade integrates the markets of different countries as:
(a) It provides an opportunity for both producers and consumers to reach beyond the markets of their own country.
(b) Producers now compete with markets located in other countries.
(c) There is an expansion of choice of goods beyond the domestic market.
(d) For example, during the Diwali season, buyers in India have the option of buying either Indian or Chinese decorative lights and bulbs. The Chinese manufacturers get the opportunity to expand their business.

Question. Why did Ford Motors want to develop Ford India as a component supplying base for its other plants across the globe? Explain.
Answer : Ford Motors wanted to develop Ford India as a component supplying base for its other plants across the globe because:
• Ford Motors was selling 27,000 cars in the Indian market and 24,000 cars were exported from India to South Africa, Mexico and Brazil. India was making components and know how to produce them, so they could be easily manufactured and sent across the globe.
• Sending components from India to other plants will reduce the time in manufacturing the components and the orders could be placed immediately.
Same plants would not need to be set up at all locations.

Question. “A wide ranging choice of goods are available in the Indian markets.” Support the statement with examples in context of globalisation.
Answer : The Indian market has been transformed in recent years. The consumers have a wide variety of goods and services to choose from, which were not available earlier. For example:
The latest models of mobile phones, television, digital cameras of leading manufacturers and other well known brands of the world are easily available in the markets.
New models of cars and automobiles are launched every season.
The top companies in the world have introduced their popular brands in India for various products like shirts, fruit juices, cosmetics, toys, furniture, stationery etc.
All this has been possible only due to globalisation.

Question. How have markets been transformed is recent years? Explain with examples.
Answer : The advent of globalisation and the policy of liberalization have opened the market to the world players. It has given rise to wide choice of goods and services to the consumer.
MNCs have played a vital role in the world market. Foreign trade and investment in the country has increased. It has also resulted in exchange of technology between countries. In recent times, technology in the areas of telecommunications, computers and internet has been changing rapidly.
Globalisation has also created new opportunities for companies providing services, particularly those involving in IT. Better job opportunities for people have given rise to migration.
Globalisation has also enabled some large Indian companies to emerge as multinationals For example, Tata Motors, Infosys, Ranbaxy have expanded their operations around the world.

Question. How have our markets been transformed? Explain with examples.
Answer : The advent of globalisation and the policy of liberalization have opened the market to the world players. It has given rise to wide choice of goods and services to the consumer. 
MNCs have played a vital role in the world market. Foreign trade and investment in’the country has increased. It has also resulted in exchange of technology between countries. In recent times, technology in the areas of telecommunications, computers and internet has been changing rapidly.
Globalisation has also created new opportunities for companies providing services, particularly those involving in IT. Better job opportunities for people have given rise to migration.
Globalisation has also enabled some large Indian companies to emerge as multinationals For example, Tata Motors, Infosys, Ranbaxy have expanded their operations around the world.

Question. Describe the steps that may be taken make globalisation more ‘fair’.
Answer : The following steps may be taken to make globalisation more fair :
● Labour laws should be implemented properly to avoid exploitation of the workers.
● The government should protect the interest of the small producers by using trade and investment barriers till they are in a position to compete with large producers or MNCs.
● The government should negotiate at the WTO for “fairer rules”.
● The government should align with other developing countries to fight against the domination of developed countries.