NCERT Solutions for Class 10 Social Science Economics Chapter 4 Globlisation and the Indian Economy
What do you understand by globalisation? Explain in your own words.
Globalisation is a process that brings numerous nations together. It is an integrating process which aims at free flow of good, man¬power, services, social and cultural activities from one nation to another. It is connectivity, interconnection bringing people together.
What were the reasons for putting barriers to foreign trade and foreign investment by the Indian government? Why did it wish to remove these barriers?
Till about four decades after we attained freedom from the Britishers, we had thought to build modern india on our own efforts and with whatever technical knowledge raw-material and man power resources the country itself possessed. That was why that we put barriers to foreign trade and foreign investment. But once we permitted private sector to play its role in the country’s Economy, we introduced liberalisation and privatisation. The results were very encouraging. We flourished a lot in terms of economy. It was after 1991 that the trade and foreign barriers were removed. It was a situation which made us capable of competing in world market.
How would flexibility in labour laws help companies?
Flexibility in labour laws help the companies to recruit the workers according to the needs of the companies. The companies employ the labourers with their own condition of work and pay and salaries. This helps productivity which not only yield profits for the companies, but improve the economic conditions of the people.
What are the various ways in which MNCs set up, or control production in other countries?
MNCs stand for multinational companies. These are usually foreign companies which set up their business organisations. They control production, while they operate, through numerous ways. Some of therse are
- They set up production centres close to the markets;
- They employ workers who are skilled;
- They establish their installations where the factors of production are easily available.
- They set up their organisations usually jointly with local companies so that the benefits are shared between the native and foreign companies.
- Products so made is sold under their brand names, employing the locals in the companies.
Why do developed countries want developing countries to liberalise their trade and investment? What do you think Should the developing countries demand in return?
The developed countries want the developing countries to liberalise their trade and investment so that the raw-material man-power, market of the developing countries can be utilized by the MNCs of the developed nations. This helps the developed nations to fully utilize their surplus money.
The developing countries should, in return, seek fair globalisation benefits. The globalising effects should help the economy and employment avenues of the developing nations. These developing nations should seek benefits of globalization and a fair share in development of their economy.
“The impact of globalisation has not been uniform.” Explain this statement.
The impact of globalisation has not been uniform. The consumers do enjoy the foreign- sponsored products, but these are only the well- off urban consumers; workers do enjoy the benefits of good salaries, but the workers outside the globalization institution, especially the rural poor have not been adequately compensated. The benefits of the globalisation efforts have been more towards the MNCs rather than the native companies.
How has liberalisation of trade and investment policies helped the globalisation process?
The liberalisation of trade and investnments, indeed, helped the globalisation process. Our foreign trade has increased; private sector has contributed a lot in country’s economy; the Indians have been able to enjoy the foreign- sponsored and foreign manufactured products. The liberalising measures of the government have helped the private enterprises to produce products with quality. The Indian products are competing with the products of other countries in the international markets.
How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.
Foreign trade is a trade among different nations. It helps to integrate markets across countries. What we have less, we wise to buy that, and what we have more, we wish to sell to others. For selling the products we have in plenty, we seek foreign markets to export them. For buying the products we are in shortage, we buy them from others, i.e., we import those products. In both cases we seek foreign markets and in the process, we integrate. We export textiles and import crude oil.
Globalisation will continue in the future. Can you imagine what the world would be like twenty years from now? give reasons for your answer.
Globalisation is not only going to stay, it is going to continue. It is a process of future, and in fact, the only process in the future. Once having made a beginning, it has to go further and further. After 20 years from now, we will have a situation when the borders would have no meaning; one would be travelling to other countries as if one is travelling to other cities. Social, economic and cultural relations would widen and people of the world be too nearer and closer. In fact, it would, then, be a world like a global village.
Supposing you find two people arguing. One is saying globalisation has hurt our country’s development. The other is telling globalisation is helping India develop. How would you respond to these organisations.
There is a lot of misinformation and misgivings about globalisation. On the one hand, it is argued that the globalisation is damaging our development in so far as we have begun depending on others. The other argument has the opposite view, i.e., we are developing because of globalization the fact of the matter is that globalisation has put us in the larger situation of the world; we are now at a ground where we have to compete with others. It is here that our skill matters; it is here that our expertise and quality matters; it is here that we face our competitors in the spirit of real competition. Globalisation provides us a challenge; v-.- need to face it and accept it.
Fill in the blanks:
Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of …………….. Markets in India are selling goods produced in many other countries. This means there is increasing …………….. with other countries. Moreover, the rising number of brands that We see in the markets might be produced by MNCs in India. MNCs are investing in India because ………… While consumers have more choices in the market, the effect of rising ………….. and has meant greater ……….. among the producers.
Globalisation, trade, they can get cheap labour and other resources, prices, standard, impact on workers and some people.
Match the following
|(i) MNCs buy at cheap rates from small Producers||(a) Automobiles|
|(ii) Quotas and taxes on imports are used to regulate trade.||(b) Garments, footwear and sports items|
|(iii) Indian companies who have invested abroad.||(c) Call centres|
|(iv) IT has helped in spreading of Production of services||(d) Tata motors, Infosys ranbaxy|
|(v) Several MNCs have invested in setting up factories in India for production||(e) Trade barriers|
|(i) MNCs buy at cheap rates from small Producers||(b) Garments, footwear and sports items|
|(ii) Quotas and taxes on imports are used to regulate trade.||(e) Trade barriers|
|(iii) Indian companies who have invested abroad.||(d) Tata motors, Infosys ranbaxy|
|(iv) IT has helped in spreading of Production of services||(c) Call centres|
|(v) Several MNCs have invested in setting up factories in India for production||(a) Automobiles|
Choose the most appropriate option.
(i) The past two decades of globalisation has seen rapid movements in
(a) goods, services and people between countries.
(b) goods, services and investments between countries.
(c) goods, investments and people between countries.
(c) goods, investments and people between countries.
(ii) The most common route for investments by MNCs in countries around the world is to
(a) set up new factories.
(b) buy existing local companies.
(c) form partnerships with local companies.
(b) buy existing local companies.
These Solutions are part of NCERT Solutions for Class 10 Social Science. Here we have given NCERT Solutions for Class 10 Social Science Economics Chapter 4 Globlisation and the Indian Economy.