CBSE Class 10 Economics Globalization Worksheet

Question. Read the given statements in context of ‘globalization’ and choose the correct option:
(A) It is the only way for economic development of the country.
(B) Interlinks only production based activities in dispersed locations in the world.
(C) It has always given only positive results in all the countries.
(D) Leads to spread of technology, cultures and diseases from one region to another.

Answer : D

Question. What is foreign investment? 
(A) Investment made by the foreign governments.
(B) Investment made by the foreign banks.
(C) Investment made by the MNCs.
(D) Investment made by the IMF and World Bank.

Answer : C

Question. An organization whose aim is to liberate international trade is: 
(A) World Bank
(B) International Monetary Fund (IMF)
(C) World Trade Organisation (WTO)
(D) United Nations Organisation (UNO)

Answer : C

Question. What is the idea behind the development of Special Economic Zones (SEZs) in India? 
(A) To boost Indian industries.
(B) To solve the problem of unemployment.
(C) To produce handicrafts.
(D) To attract foreign investment.

Answer : D

Question. Removing barriers or restrictions set by the  government is known as: 
(A) Privatisation
(B) Liberalisation
(C) Globalisation
(D) Industrialisation

Answer : B

Question. When and where did the Ford Motors set up their large plant in India? R
(A) In 1975 at Pune
(B) In 1985 at Gurugram
(C) In 1995 at Chennai
(D) In 2005 at Mumbai

Answer : C

Question. Arrange the following in the correct sequence:
(i) Meanwhile, the company’s customer care is carried out through call centres located in India.
(ii) And then has the components manufactured in China.
(iii) A large MNC, producing industrial equipment, designs its products in research centres in the United States.
(iv) These are then shipped to Mexico and Eastern Europe where the products are assembled and the finished products are sold all over the world.
Options:
(A) (iv) - (iii) - (ii) - (i)
(B) (i) - (ii) - (iii) - (iv)
(C) (ii) - (iii) - (i) - (iv)
(D) (iii) - (ii) - (iv) - (i)

Answer : D

Question. Arrange the following in the correct sequence:
(i) A news magazine published for London readers is to be designed and printed in Delhi.
(ii) The designing is done on a Computer. After printing the magazines are sent by air to London.
(iii) 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)
(iv) The text of the magazines is sent through is sent through Internet to the Delhi office. The designers in Delhi office get orders on how to design the magazine from the office in London using telecommunication facilities.
Options:
(A) (iii) - (iv) - (i) - (ii)
(B) (i) - (iv) - (ii) - (iii)
(C) (iv) - (i) - (ii) - (iii)
(D) (ii) - (iv) - (iii) - (i)

Answer : B

Question. Analyze the information given below, considering
one of the following correct options:
Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers.
On the other hand, WTO rules have forced the developing countries to remove trade barriers. An example of this is the current debate on trade in agricultural products.
(A) Trade and Commerce
(B) Agricultural products
(C) Trade barriers
(D) World Trade Organization

Answer : D

Question. Analyze the information given below, considering one of the following correct options:
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)!
(A) Using IT in globalisation
(B) London readers
(C) Publishing magazine
(D) Telecommunication facilities

Answer : A

Question. Find the incorrect option from the following:
(A) Fair globalisation would create opportunities for all.
(B) MNCs are playing a major role in the globalisation process.
(C) Globalisation has led to improvement in living conditions of all the people.
(D) MNCs have increased their investment in India over the past 20 years.

Answer : C

Question. Find the incorrect option from the following:
(A) MNCs play an important role in the liberalization process.
(B) MNCs control production in more than one country.
(C) MNCs compete with the local producers directly.
(D) MNCs set up their production units close to market.

Answer : A

 

Question. Analyze the information given below, considering one of the following correct options:
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)!
(A) Using IT in globalisation
(B) London readers
(C) Publishing magazine
(D) Telecommunication facilities

Answer : A

Question. 

(A) (i)-(c), (ii)-(d), (iii)-(b), (iv)-(a)
(B) (i)-(a), (ii)-(c), (iii)-(d), (iv)-(b)
(C) (i)-(d), (ii)-(a), (iii)-(c), (iv)-(b)
(D) (i)-(c), (ii)-(b), (iii)-(a), (iv)-(d)

Answer : A

Question. What is the idea behind the development of Special Economic Zones (SEZs) in India? 
(A) To boost Indian industries.
(B) To solve the problem of unemployment.
(C) To produce handicrafts.
(D) To attract foreign investment.

Answer : D

Question. Arrange the following in the correct sequence:
(i) Meanwhile, the company’s customer care is carried out through call centres located in India.
(ii) And then has the components manufactured in China.
(iii) A large MNC, producing industrial equipment, designs its products in research centres in the United States.
(iv) These are then shipped to Mexico and Eastern Europe where the products are assembled and the finished products are sold all over the world.
Options:
(A) (iv) - (iii) - (ii) - (i)
(B) (i) - (ii) - (iii) - (iv)
(C) (ii) - (iii) - (i) - (iv)
(D) (iii) - (ii) - (iv) - (i)

Answer : D

Question. Removing barriers or restrictions set by the government is known as: 
(A) Privatisation
(B) Liberalisation
(C) Globalisation
(D) Industrialisation

Answer : B

Question. Find the incorrect option from the following:
(A) Fair globalisation would create opportunities for all.
(B) MNCs are playing a major role in the globalisation process.
(C) Globalisation has led to improvement in living conditions of all the people.
(D) MNCs have increased their investment in India over the past 20 years.

Answer : C

Question. Read the given statements in context of ‘globalization’ and choose the correct option:
(A) It is the only way for economic development of the country.
(B) Interlinks only production based activities in dispersed locations in the world.
(C) It has always given only positive results in all the countries.
(D) Leads to spread of technology, cultures and diseases from one region to another.

Answer : D

Question. Arrange the following in the correct sequence:
(i) A news magazine published for London readers is to be designed and printed in Delhi. 
(ii) The designing is done on a Computer. After printing the magazines are sent by air to London.
(iii) 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)
(iv) The text of the magazines is sent through is sent through Internet to the Delhi office. The designers in Delhi office get orders on how to design the magazine from the office in London using telecommunication facilities.
Options:
(A) (iii) - (iv) - (i) - (ii)
(B) (i) - (iv) - (ii) - (iii)
(C) (iv) - (i) - (ii) - (iii)
(D) (ii) - (iv) - (iii) - (i)

Answer : B

Question. An organization whose aim is to liberate international trade is: 
(A) World Bank
(B) International Monetary Fund (IMF)
(C) World Trade Organisation (WTO)
(D) United Nations Organisation (UNO)

Answer : C

Question. 

(A) (i)-(a), (ii)-(b), (iii)-(c), (iv)-(d)
(B) (i)-(b), (ii)-(c), (iii)-(a), (iv)-(d)
(C) (i)-(b), (ii)-(d), (iii)-(c), (iv)-(a)
(D) (i)-(a), (ii)-(c), (iii)-(d), (iv)-(b)

Answer : C

Question. What is foreign investment? 
(A) Investment made by the foreign governments.
(B) Investment made by the foreign banks.
(C) Investment made by the MNCs.
(D) Investment made by the IMF and World Bank.

Answer : C

Question. When and where did the Ford Motors set up their large plant in India? 
(A) In 1975 at Pune
(B) In 1985 at Gurugram
(C) In 1995 at Chennai
(D) In 2005 at Mumbai

Answer : C

Question. Find the incorrect option from the following:
(A) MNCs play an important role in the liberalization process.
(B) MNCs control production in more than one country.
(C) MNCs compete with the local producers directly.
(D) MNCs set up their production units close to market.

Answer : A

Question. Analyze the information given below, considering one of the following correct options:
Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers. An example of this is the current debate on trade in agricultural products.
(A) Trade and Commerce
(B) Agricultural products
(C) Trade barriers
(D) World Trade Organization

Answer : D

Assertion and Reason Based MCQs :

Directions : In the following questions, A statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
(A) Both A and R are true and R is the correct explanation of A.
(B) Both A and R are true but R is NOT the correct explanation of A.
(C) A is true but R is false.
(D) A is false and R is true.

Question. Assertion (A): The car manufacturing plant of Maruti Udyog Ltd. in India produces cars for Indian markets.
Reason (R): It also exports cars to other developing countries and exports car components for its many factories around the world.

Answer : C

Question. Assertion (A): MNCs can exert a strong influence on production at distant locations.
Reason (R): MNCs set up partnerships with local companies, use local companies for supplies, compete with the local companies or buy them up.

Answer : A

Question. Assertion (A): Global production has a complex structure.
Reason (R): Production of one good may take place in different parts of the world. For instance, an equipment may be formed by combining components produced in different countries.

Answer : A

Question. Assertion (A): The Indian government, after independence, had put barriers to foreign trade and foreign investment.
Reason (R): The government considered it necessary to protect the producers within the country from foreign competition.

Answer : A

Question. Assertion (A): Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
Reason (R): Foreign trade expands the choice of goods beyond what is domestically produced.

Answer : B

Question. Assertion (A): Local businesses may set up joint production process with MNCs and earn higher profits.
Reason (R): MNCs can provide money for additional investments, like buying new machines for faster production.

Answer : A

Case-based MCQs :

Read the source given below and answer the questions that follows:

India has become a second home to many multinationals’ over the years. MNCs set up offices and factories for production in regions where they can get cheap labour and other resources. This is done so that the cost of production is low and the MNCs can earn greater profits. 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. But the most common route for MNC investments is to buy up local companies and then to expand production.
MNCs with huge wealth can quite easily do so. To take an example, Cargill Foods, a very large American MNC, has bought over smaller Indian companies such as Parakh Foods. Parakh Foods had built a large marketing network in various parts of India, where its brand was well-reputed. Also, Parakh Foods had four oil refineries, whose control has now shifted to Cargill. Cargill is now the largest producer of edible oil in India, with a capacity to make 5 million pouches daily. Large MNCs in developed countries place orders for production with small producers. Garments, footwear, sports items are examples of industries where production is carried out by a large number of small producers around the world. The products are supplied to the MNCs, which then sell these under their own brand names to the customers. These large MNCs have tremendous power to determine price, quality, delivery, and labour conditions for these distant producers. Ford Motors, an American company, is one of the world’s largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks.

Question. Investment made by MNCs is called:
(A) Investment
(B) Foreign trade
(C) Foreign investment
(D) Foreign direct investment

Answer : C

Question. In which regions MNCs set up offices and factories for production?
(A) Close to the market.
(B) Availability of skilled/unskilled labour at low cost.
(C) Favourable government policies.
(D) All of the above

Answer : D

Question. Ford Motors entered the Indian automobile business in collaboration with which Indian manufacturer?
(A) Mahindra and Mahindra
(B) Tata Motors
(C) Maruti Suzuki
(D) None of the above

Answer : A

Question. MNCs do not increase:
(A) Competition
(B) Price war
(C) Quality
(D) All of the above

Answer : D

Read the extract given below and answer the questions that follow:

Globalization expands and accelerates the movement and exchange of ideas and commodities over vast distances. Globalisation has created more competitive environment in India. In the past two to three decades, more and more MNCs have been looking for locations around the world which would be cheap for their production. Foreign investment by MNCs in these countries has been rising. At the same time, foreign trade between countries has been rising rapidly. A large part of the foreign trade is also controlled by MNCs.
The result of greater foreign investment and greater foreign trade has been greater integration of production and markets across countries. Globalisation is this process of rapid integration or interconnection between countries. MNCs are playing a major role in the globalisation process. More and more goods and services, investments and technology are moving between countries. Besides the movements of goods, services, investments and technology, there is one more way in which the countries can be connected. 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.
Rapid improvement in technology has been one major factor that has stimulated the Globalisation process. Even more remarkable have been the developments in information and communication technology. Globalisation and greater competition among producers - both local and foreign producers - has been of advantage to consumers, particularly the well-off sections in the urban areas. There is greater choice before these consumers who now enjoy improved quality and lower prices for several products. As a result, these people today, enjoy much higher standards of living than was possible earlier. Globalisation has also created new opportunities for companies providing services, particularly those involving IT.

Question. Globalisation has created new opportunities of:
(A) Employment
(B) Emerging multinationals
(C) Providing services
(D) All of the above

Answer : D

Question. Globalisation has posed major challenges for:
(A) Big Producers
(B) Small Producers
(C) Rural Poor
(D) None of these

Answer : B

Question. Process of integration of different countries is called:
(A) Liberalization
(B) Privatization
(C) Globalization
(D) None of the above

Answer : C

Question. Globalisation has led to higher standards of living of:
(A) Well-off consumers
(B) Poor consumers
(C) Big producers
(D) None of the above

Answer : A

Read the extract given below and answer the questions that follow:

In the last twenty years, globalisation of the Indian economy has come a long way. What has been its effect on the lives of people? Let us look at some of the evidence.
Globalisation and greater competition among producers - both local and foreign producers - has been of advantage to consumers, particularly the well-off sections in the urban areas. There is greater choice before these consumers who now enjoy improved quality and lower prices for several products. As a result, these people today, enjoy much higher standards of living than was possible earlier.
Among producers and workers, the impact of globalisation has not been uniform.
Firstly, MNCs have increased their investments in India over the past 20 years, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas. These products have a large number of well-off buyers. In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc., to these industries have prospered.
Secondly, several of the 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 standards. Some have gained from successful collaborations with foreign companies.
Moreover, globalisation has enabled some large Indian companies to emerge as multinationals themselves! Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts and bolts) are some Indian companies which are spreading their operations worldwide.
Globalisation has also created new opportunities for companies providing services, particularly those involving IT. The Indian company producing a magazine for the London based company and call centres are some examples. Besides, a host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in countries such as India and are exported to the developed countries.

Question. Why have MNCs increased their investments in India over the past 20 years?
(A) To attract costumers
(B) To evade taxes
(C) To make use of the market potential
(D) To do social service

Answer : C

Question. How several of the top Indian companies have been able to benefit from the increased competition?
(A) They have invested in newer technology.
(B) They have no rivals in the market.
(C) They get to travel the world.
(D) They can work in isolation.

Answer : A

Question. Globalisation has been advantageous to:
(A) Consumers
(B) Producers
(C) Consumers and producers
(D) Limited sector of the society

Answer : C

Question. Why do people have a preference for foreign products?
(A) They think foreign products are of better quality.
(B) They think it will improve their social status.
(C) They think the product is much cheaper than Indian product.
(D) None of the above.

Answer : A

Very Short Answer Type Questions :

Question. Why are MNCs setting up their customer care centers in India? 
Answer : Due to availability of cheap skilled labour and good English speaking people.

Question. What is foreign investment? 
Answer : Investment made by MNCs is called foreign investment.

Question. Analyse the contribution of fast transport in globalization. 
Answer : Fast transportation has enabled easy reach of goods in the market thereby enabling a high increase in demand. It benefits the economy on a large scale increasing the revenue. With the lower reduction in cost, fast transportation increases profit.

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

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

Question. What is the meaning of investment? 
Answer : The money that is spent to buy assets such as land, building machines and other equipment is called investment.

Question. What attracts the foreign investment? 
Answer : Infrastructural facilities.

Quedtion. In which year, the government started to remove barriers on foreign trade and foreign investment.
Answer : In 1991

Quedtion. Define Economic reforms of new Economic Policy 1991.
Answer : Economic policy adopted by the Government of India since July, 1991 is termed as new economic policy or economic reforms.

Quedtion. When was the WTO established?
Answer : The WTO was established on 1st January, 1995.

Quedtion. What is meant by Liberalisation?
Answer : Liberalisation means removing unnecessary trade restrictions and making the economy more competitive.

Quedtion. Why are the MNCs making investments in India?
Answer : In India labour cost is comparatively very low, that is why many MNCs are making investments in India

Quedtion. What is meant by modernisation of the Economy?
Answer : The new economic policy accords top priority to modern techniques and technologies. It also promotes computers and electronics industries. It has made the Indian industries dynamic.

Quedtion. Why are the Chinese Toys popular in the world?
Answer : Chinese Toys are comparatively cheaper and have new designs. That is why they are popular in the world.

Quedtion. Define Privatisation.
Answer : Privatisation means reduced government intervention and increased private investment in production activities.

Quedtion. Name the organisation which lay emphasis on liberalisation of foreign trade and foreign investment in India.
Answer : World Trade Organisation (WTO)

Quedtion. What is outsourcing?
Answer : Outsourcing means going out to a source outside the company to buy regular service that formerly used to be provided departmentally and internally just as legal advice, computer service, security, advertisement and accounting etc.

Quedtion. When was the UNO established?
Answer : The UNO was established on 24 October, 1945.

Short Answer Type Questions :

Question. “A wide ranging choice of goods are available in the Indian markets.” Support the statement with examples in context of Globalisation.
Answer : A wide ranging choice of good: 
(i) We have a wide variety of goods and services before us in the market.
(ii) The latest models of the digital cameras, mobile phones and televisions made by leading manufacturers of the world are available in the market.
(iii) Every season, new models of automobiles can be seen on Indian roads.
(iv) Today Indians are buying cars produced by nearly all the top companies in the world.
(v) A similar explosion of brands can be seen for many other goods. 

Question. How can the benefits of globalisation be shared better? Explain. 
Answer : The benefits of Globalisation can be shared better in the following ways:
(i) The government policy must protect the interest, not only of the rich and the powerful, but of all the people in the country.
(ii) The government can ensure that labour laws are properly implemented and workers get their rights. 
(iii) It can support small producers to improve their performance till they become strong enough to compete.
(iv) It can use trade and investment barriers.
(v) It can negotiate at the WTO for ‘fairer rules’.

Question. Critically examine the impacts of globalization in India. 
                                               OR
Analyse any three impacts of globalization in India. 
Answer : Impacts of globalization in India are as follows:
(i) Globalization improves the productivity and efficiency in the use of resources through the process of competition.
(ii) Due to Globalization, growth rate of economy has gone up with an increase in foreign investment and foreign technology in India.
(iii) It allows the consumers to enjoy a wider range of goods and services at a lower cost.

Question. Where do MNCs setup their production units? Explain. 
Answer : (i) MNCs setup production units at such a place where they can produce their goods at a minimum cost.
(ii) The place where markets are closer.
(iii) The place where skilled and unskilled labour are available at low cost.
(iv) Other factors of production are assured.
(v) Government policies are favourable. 

Question. ‘‘Barriers on foreign trade and foreign investment were removed to a large extent in India since 1991.’’ Justify the statement.
Answer : Removal of barriers on foreign trade and foreign investment :
(i) Barriers on foreign trade and foreign investment were partially removed.
(ii) Goods could be imported and exported easily.
(iii) Foreign companies could setup factories and offices here.
(iv) Indian producers got opportunities to compete with producers around the globe.

Question. What are MNCs?
Answer : (i) An MNC is a company that owns or controls production in more than one nation.
(ii) These companies set up offices and factories for production in regions where they can get cheap labour and other resources.
(iii) This is done to ensure that the cost of production remains low and MNCs can earn greater profits.

Question. How is foreign trade interlinking markets of different countries? Explain with example. Foreign trade has interlinked markets of different countries.
Answer : (i) Foreign trade has been the main channel connecting countries.
(ii) Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
(iii) Producers can sell their produce in local and foreign market.
(iv) It is one way of expanding the choice of goods.
(v) Choice of goods in the markets rises.
(vi) Prices of similar goods in the two markets tend to become equal.
(vii) Close competition with each other.

Question. Enumerate any three features of Multinational Corporations.
Answer : Multinational Corporations (MNCs) are the companies that own or control the production of their goods in more than one country.
The main features of MNCs are:
(i) They setup their factories and offices in more than one country.
(ii) They setup their units where the cost of production is low and higher profits can be earned.
(iii) They set up their units where they can get cheap labour and other resources. 

Question. How can the Government of India play a major role to make globalisation more fair ? Explain with examples. 
Answer : Government can play an important role in making Globalisation a success :
(i) Protection of interests : The Government should prepare such policies that may protect the interests not only of the rich and the powerful but also of all the common people in the country.
(ii) Labour laws : Government should ensure that labour laws are properly implemented and the workers get their rights.
(iii) Reserved item : Government can reserve some items exclusively for small scale and local producers.
(iv) Investment barriers : If necessary, the government can employ trade and investment barriers like quota system, import duty etc.

Question. Explain by giving examples that Multinational Corporations (MNCs) are spreading their production in different ways.
                                                                                                OR
Explain any three ways in which Multinational Companies have spread their production and interaction with local producers in various countries across the globe.
Answer : Multinational Corporations are spreading their production in different ways:
(i) By setting up a partnership with local companies.
(ii) By placing orders with local companies. For example, garments, footwear, sports items, etc.
(iii) By closely competing with the local companies.
(iv) By buying local companies. To take an example, Cargill Foods, a very large American MNC has bought over smaller Indian companies such as Parakh Foods. Parakh Food had built a large marketing network in various parts of India, where its brand was well-reputed. 

Question. “The impact of globalization has not been uniform.” Explain with examples. 
Answer : While globalisation has benefited well off consumers and also producers with skill, education and wealth, many small producers and workers have suffered as a result of the rising
competition.
Removal of trade barriers and liberalisation policies of the governments to facilitate globalisation have hit the local producers and manufactures hard.
Globalisation and the pressure of competition have changed the lives of workers.
Faced with growing competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers’ jobs are no longer secure. e.g., MNCs and workers, MNC’s and local manufactures/industries, withdrawal of subsidies, etc.

Question. Evaluate the role of MNCs in the economic development of a country. 
Answer : (i) MNCs place order for production with small producers: Due to this, small producers are able to get a global exposure as well as a huge customer base.
(ii) MNCs are setting up partnerships with local companies: The local companies are able to expand themselves at a global level.
(iii) They are interlinking markets all over the world: Interlinking of markets all over the world has led to the exchange of foreign currency and thereby providing a boom to the economy.

Question. How has Globalisation created new opportunities for companies providing services in India? Explain.
Answer : (i) Globalisation has created new opportunities for companies providing services particularly those involving IT.
(ii) The Indian company producing a magazine for the London based company and call centres are some examples.
(iii) Besides, a host of services such as data entry, accounting, administrative tasks and engineering are now being done cheaply in India and are exported to the developed countries.

Question. Why had the Indian government put barriers to foreign trade and foreign investment after independence? Analyse the reasons.
Answer : Reasons for putting trade barriers to foreign trade and investment by the Indian government after Independence are :
(i) To protect local producers and goods from foreign competition.
(ii) Industries needed protection so that they could grow and develop in order to be ready to compete with developed countries later on.
(iii) It imposed restrictions on the import of certain goods. 

Question. Assess any three advantages of globalization.
Answer : The advantages of globalization are as follows:
(i) Under the globalization process, goods and services along with capital, resources and technology can move freely from one nation to another.
(ii) It has increased the movement of people between countries. People usually move from one country to another in search of better income, better jobs or better education. Earlier the movement of people between countries was less due to various restrictions.
(iii) Rapid improvement in technology has been one major factor that has stimulated the globalization process. For instance, advancement in transportation technology has made much faster delivery of goods across long distances possible at lower costs. Container services have led to huge reduction in port handling costs. The cost of air transport has fallen which has enabled much greater volumes of goods being transported by airlines.
(iv) Developments in information and communication technology has brought a revolution in telecommunications. It has made e-banking, e-commerce, e-learning, e-mail and e-governance a reality.
(v) Globalization has resulted in greater competition among producers and has been of advantage to consumers, particularly the well-off section. Rich people now enjoy improved quality and lower prices for several products. 

Question. Explain with three examples how top Indian companies have been benefited from Globalisation.
Answer : Several top Indian companies have been able to benefit from Globalisation:
(i) They have invested in newer technology and production methods and raised their production standards.
(ii) Some have gained from successful collaborations with foreign companies.
(iii) Globalisation has enabled some large Indian companies to emerge as multinational themselves. For example, Tata Motors and Infosys.

Question. “Foreign trade is an important component of globalization”. Explain any three points in this regard. 
Answer : (i) Foreign trade implies the exchange of goods and services across the countries.
(ii) It helps to expand the size of the market for producers.
(iii) Producers and consumers can get commodities produced in any part of the world.
(iv) It works to integrate markets in different countries.

Question. Differentiate between foreign trade and foreign investment. 
Answer : Foreign Trade: The process of buying and selling goods and services between two or more than two countries is known as foreign trade.
Foreign Investment: Foreign investment involves capital flows from one country to another, granting extensive ownership stakes in domestic companies and assets.

Question. What are the Special Economic Zones (SEZs)? 
Why is the government setting up SEZs?
Answer : SEZs or Special Economic Zones are industrial areas with world class facilities.
(i) Companies who setup units in SEZs are exempted from tax for 5 years.
(ii) They are setup to attract foreign investment.

Question. Elaborate any three disadvantages of Multinational Corporations. 
Answer : The disadvantages of MNCs are :
(i) Small manufacturers like—batteries, capacitors, plastic toys, tyres, dairy products and vegetable oil are victims of competition.
(ii) Closing down of small units rendered many workers jobless.
(iii) Most employers prefer to employ workers ‘flexibly’, this means that workers jobs are no longer secure. Small Indian companies are hard hit because of government’s changed policies such as allowing import of the goods which were previously not allowed.

Question. How has globalisation affected the life of Indians? Explain with examples. 
Answer : Globalisation has affected the life of Indians in the following ways:
(i) Increase in foreign investment: Over the past twenty years, the foreign investment has increased.
(ii) Emergence of Indian companies as multinational: Several top Indian companies like Tata Motors, Infosys, Ranbaxy have been able to get benefit from the increased competition created as a result of Globalisation.
(iii) Creation of new opportunities: Globalisation has created new opportunities for Indian companies, particularly providing services like IT.
(iv) Creation of new jobs: Globalisation has created new jobs specifically for IT professionals and has helped in reducing unemployment rate to an extent.
(v) A host of services such as data entry, accounting, administrative tasks, engineering, etc. are now being performed at lesser costs in India.

Question. Describe any three ways in which countries can be linked through globalisation.
Answer : (i) By movement of goods.
(ii) By movement of services.
(iii) By movement of investments.
(iv) By movement of technology.
(v) By the movement of people between countries.

Long Answer Type Questions :

Question. What steps should be taken to make trade more fair between the countries?
Answer : The following steps should be taken:
(i) Before imposing a trade barrier, the interest of the developing countries should be taken care of.
(ii) Rules and regulations should be uniform.
(iii) Ensure that the developed countries do not retain trade barriers unfairly.
(iv) Labour laws should be implemented properly.
(v) Small producers should be supported to improve their performance till they become strong enough to compete. 

Question. How is the Government of India trying to attract more foreign investment? Explain with examples.
Answer : The government of India is trying to attract more foreign investment in the following ways:
• Government has adopted the policy of liberalisation and lifted the trade barriers to allow foreign investment.
• In recent years, industrial zones called Special Economic Zones are being set up. These areas have world class facilities such as electricity, water, transport, education and recreational.
• The companies setting up production units in Special Economic Zones are exempted from various taxes and duties.
• The government also allowed flexibility in labour laws. The workers in the organised sector are protected by the government laws. The companies in Special Economic Zones instead could ignore many of the laws and engage workers flexibly for shorter periods, when there is a pressure of work.

Question. Explain the role of technology in stimulating globalisation process.
Answer : The improvement in technology has stimulated the globalisation process as:
• There has been many improvements in transport technology in the recent years that have enabled faster delivery of goods across the world.
• Development of information technology in the areas of telecommunication like internet has revolutionised the world.
• Use of telegraph, mobiles, fax have enabled faster and easier access to information anywhere at any point of time.
• All these developments have further decreased the cost of their operations favouring the consumers around the world.
• It has opened up horizons for further advancement, research and development of existing means.

Question. How has globalisation been advantageous to both the producers as well as the consumers in India? Explain.
Answer : Advantages of globalisation for consumers:
• They have greater choice.
• Better quality of products are available for consumption due to competition.
• It has reduced the cost of goods and services considerably.
Advantages of globalisation to producers:
• They now have access to international markets for their products.
• They have easier access to foreign investment to enhance their production,
• Collaboration with MNCs have added up their performance and profits.

Question. Explain any four ways by which MNCs exercise control on production.
Answer : Multinational Corporations (MNCs) exercise control on production in the following ways:
• By setting up their factories or production units close to markets where they can get desired type of skilled or unskilled labour at low cost along with other factors of production.
• By collaborating with existing local companies of a country.
• By buying the local companies and then expand or control its production with the help of modern technology and capital.
• By placing orders to small producers and selling these products under their own brand name to the customers worldwide.

Question. What has been the impact of globalisation on India? Explain.
Answer : The impact of globalisation on Indian economy is as follows:
• It has created competition among producers, both local and foreign, which is advantageous to the consumers, particularly the well off. Now, there is a greater choice of goods before the consumers.
• It has enabled many Indian companies to become multi-national companies such as Tate Motors, Infosys and Ranbaxy.
• It has created new employment opportunities for companies providing services specially information technology. A lot of services such as data entry, accounting, administrative tasks are done cheaply in India and exported to other countries.
• New jobs are created in industries such as electronics, cell phones, automobiles and fast food.
• It had a negative impact on small manufacturers. Due to competition, some industries has been hit hard such as batteries, capacitors, plastic toys, vegetable oil etc. A number of units have shut down and a lot of workers, have become jobless.

Question. Explain any five facilities available in the special economic zones developed by the Central and State Governments to attract foreign investment.
Answer : Five facilities available in the Special Economic Zones (SEZs) by the central and state governments to attract foreign investment:
(i) Duty free import and domestic procurement of goods for the development, operation and maintenance of your company.
(ii) 100 percent income tax exemption on export income for first five years, 50 percent for five years thereafter, and 50 percent of the export profit reinvested in the business for the next five years.
(iii) Exemption from the Goods and Services Tax (GST) and levies imposed by state government. Supplies to SEZs are zero rated under the IGST Act, 2017, meaning they are not taxed.
(iv) External commercial borrowing (ECB) is allowed up to US$500 million a year without restriction. For developers of an SEZ, the ECB channel may be availed after receiving government approval, and only for providing infrastructure facilities in the zone. However, ECB will not be permissible for development of integrated township and commercial real estate within the SEZ.
(v) Permission to manufacture products directly, as long as the goods you are producing fall within a sector which allows 100 percent FDI.

Question. How are Multinational Corporations (MNCs) controlling and spreading their productions across the world? Explain.
Answer : The Multinational Corporations (MNCs) are controlling and spreading their production across the world in the following ways:
(i) MNCs setup their production units close to market.
(ii) MNCs setup production units jointly with local companies.
(iii) They setup units where there is skilled and unskilled labour available at low cost.
(iv) Large MNCs in developed countries place orders for production with small producers.
(v) They have tremendous power to determine price, quality, delivery and labour conditions for distant producers.
(vi) By purchasing local companies.

Question. Describe any five factors that promote the Multinational Corporations (MNCs) to setup their production units in a particular place.
Answer : Factors that promote MNCs:
(i) Close proximity to the market.
(ii) Availability of skilled and unskilled labour at low cost.
(iii) Assured production.
(iv) Government's liberalised policies.
(v) Developed infrastructure.
(vi) Safety measures. 

Question. Describe the major problems created by the globalisation for a large number of small producers and workers. 
Answer : Problems created by the globalisation for small producers and workers:
(i) It has led to a widening of income inequalities among various countries.
(ii) Workers jobs are no longer secure. 
(iii) Expansion of the unorganized sector.
(iv) Small manufacturers have been hit hard due to severe competition.
(v) Several units have been shut down rendering many workers jobless.
(vi) Lives of workers are on the whims of employers.
(vii) Workers are deprived from their fair share of benefits. 

Question. “Information and Communication technology has played a major role in spreading out production of services across countries.” Justify the statement with examples.
                                ​​​​​​​                                OR
Technology has stimulated the Globalisation process.” Support the statement with examples.
Answer : Rapid improvement in technology has stimulated the globalisation process:
(i) Transportation technology has made much faster delivery of goods across long distances possible at lower costs.
(ii) There are even more remarkable developments in information and communication technology.
(iii) Telecommunication facilities are used to contact one another around the world, to access information instantly, and to communicate from remote areas information instantly and to
communicate from remote areas. 
(iv) Through the internet, one can obtain and share information on almost anything. It also allows sending e-mail and talking across the world at negligible costs.
(v) For example, a news magazine published for London readers is to be designed and printed in Delhi. The text of the magazine is sent through the 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.

Question. How has information and communication technology stimulated globalisation? Explain with example. The factors that have enabled globalisation are as given below :
Answer : 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.

Question. Why do multinational corporations (MNCs) set up their offices and factories in certain areas only?
Explain any five reasons. 
Answer : Following are five reasons why multinational corporations set up their offices and factories in certain areas only:
(i) MNCs set up their companies in areas where they get cheap labour.
(ii) A large industry or a company means far more productivity so they need more labour and it will be just their benefit to get cheap labour .
(iii) While they select areas with high level of resources so that they can cut off the rate of transportations to an extent.
(iv) By choosing an area which is full of natural resources they can easily set up plants.
(v) By this, they can also provide their products to their consumers more efficiently and with more profit while cutting the costs involved in this.

Question. “Fair globalisation would create opportunities for all and also ensure that benefits of globalisation are shared better.” Support the statement. 
Answer : Fair globalisation creates opportunities : Fair globalisation would create opportunities for all and also ensure that the benefits of globalisation are shared better.
(i) Government policies must protect the interests not only of the rich and powerful but of all the people in the country.
(ii) Government can ensure that labour laws are properly implemented and the workers get their rights.
(iii) Government can support small producers to improve their performance till they become strong enough to compete.
(iv) If necessary the government can use trade and investment barriers.
(v) It can negotiate at the WTO for fairer rules.
(vi) It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.

Question. What is liberalisation? Describe any four effects of liberalisation on the Indian economy.
Answer : Liberalisation means:
Removing barriers or restrictions set by the government is known as liberalisation:
Impacts of Liberalisation:
(i) Competition would improve the performance of producers within the country.
(ii) Barriers on foreign trade and foreign investment were removed to a large extent. This meant that goods could be imported and exported easily.
(iii) Foreign companies could set up factories and offices to boost up production.
(iv) It allows making decisions freely.
(v) The competition would improve the performance of producers within the country since they have to improve their quality.
(vi) Any other relevant point.

Question. Explain any five effects of globalization.
Answer : Five effects of globalization are as follows:
(i) International product launches simultaneously across the entire world.
(ii) Access to international commercial best practices and alignment of local laws with international laws.
(iii) Higher foreign investments in fields like IT, manufacturing and other service sectors and lowering of restrictions on Foreign Direct Investments.
(iv) Increasing Investment in research and development innovative products.
(v) Growth in startups funded by international venture capital firms and angel investors.
(vi) Gradual death of regional languages as native speakers feel the need to switch to English and reduce the usage of their mother tongues.
(vii) Loss of cultural and social identity much to the detriment of national progress.

Question. Describe the role of technology in promoting globalisation process. 
Answer : Technology in promoting globalisation process Rapid improvement in technology has stimulated the globalisation process.
(i) This has made much faster delivery of goods across long distances possible at lower costs. 
(ii) Even more remarkable have been the developments in information and communication technology.
(iii) Technology in the areas of telecommunications, computers, Internet has been changing rapidly. 
(iv) Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas.
(v) This has been facilitated by satellite communication devices.

Question. How does foreign trade integrate the markets of different countries? Explain with examples.
Answer : Foreign Trade is integrating markets of different countries:
(i) Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
(ii) Producers can sell their products in the markets located in other countries.
(iii) It helps for expanding the choice of goods beyond domestic market.
(iv) It is a main channel connecting countries. 
(v) Highly helpful for extensive trade.
(vi) The trading interest attracts various trading companies.
(vii) Any other relevant point. 

Question. The impact of globalisation has not been uniform.” Demonstrate with the help of illustrations”.
Answer : (i) While globalisation has benefited well off consumers and also producers with skill, education and wealth, many small producers and workers have suffered as a result of the
rising competition.
(ii) Removal of trade barriers and liberalisation policies of the governments to facilitate globalisation have hit the local producers and manufactures hard.
(iii) Globalisation and the pressure of competition have substantially changed the lives of workers. Faced with grow in competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers’ jobs are no longer secure. Illustration : Any one case—either from the text book or beyond it, e.g., MNCs and workers, MNC's and local anufactures/
industries, withdrawal of subsidies, etc.

Question. How can consumers and producers be benefited from ‘foreign trade’? Explain with examples.
Answer : Consumers and producers are benefited from foreign trade:
(i) Foreign trade creates an opportunity for producers to reach beyond the domestic market. 
(ii) Producer can sell their produce not only in markets located within the country but can also compete in markets located in other countries of the world.
(iii) For buyers import of goods produced in another country is one way of expanding the choice of goods.
(iv) With the opening of trade goods travel from one market to another.
(v) Choice of goods in the market rises.
(vi) Prices of similar goods in the two markets tend to become equal.
(vii) Producers in the two countries closely compete with each other.
(viii) Any other relevant point. 

Question. How have our markets been transformed in recent years? Explain with examples.
                                 ​​​​​​​                    OR
How have our markets been transformed? Explain with examples. 
                                 ​​​​​​​                   OR
In recent years how our markets have been transformed? Explain with examples.
Answer : Markets have been transformed in recent years: 
(i) We have a wide choice of goods and services before us.
(ii) The latest models of digital cameras, mobile phones and televisions made by the leading manufacturers of the world are within our reach now.
(iii) Example: every season new models of automobiles can be seen on Indian roads.
(iv) Today, Indians are buying cars produced by nearly all the top companies in the world.
(v) A similar explosion of brands can be seen for many other goods; from shirts to televisions to processed fruit juices.
(vi) Any other relevant point.

Question. How do we feel the impact of globalisation on our daily life? Explain with examples.
Answer : Effect of globalisation on the lives of people are:
(i) There has been an increased investment in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas.
(ii) A lot of new jobs have been created.
(iii) Local companies supplying raw materials to these industries have experienced a boom.
(iv) Several top Indian companies have been able to benefit from the increased competition. Some have gained from successful collaborations with foreign companies.
(v) New opportunities for service such as data entry, accounting, administrative tasks, engineering are now being done cheaply in countries such as India and are exported to the developed countries.

Question. Describe the impacts of globalisation on Indian economy with examples.
Answer : Impacts of globalization on Indian economy:
(i) Higher standard of living in urban areas.
(ii) The impact has not been uniform among producers and workers.
(iii) There is the greater choice before the consumers who now enjoy the improved quality and lower prices for several products.
(iv) MNCs have increased their investments in India leading to more job opportunities.
(v) Globalisation has enabled some large Indian companies to emerge as MNCs themselves like Tata Motors, Infosys, Ranbaxy, Asian Paints, etc. 
(vi) Globalisation has also created new opportunities for companies providing services particularly those involving IT (Information Technology). For example, the Indian company producing a magazine for the London based company and call centres.
(vii) Local companies supply raw materials to foreign industries and have prospered. However, for a large number of producers and workers, globalisation has posed major challenges.

Answer :  Globalisation is the process of rapid integration or interconnection between countries.(Globalisation means integrating our economy with world economy. In this process, we become economically interdependent at the global or international level.)

1. It is the result of greater foreign investment and greater foreign trade has been greater integration of production and markets across countries.

2. More and more goods and services, investments and technology are moving between countries.

3. Most regions of the world are in closer contact with each other than a few decades back.