CBSE Class 10 Economics Chapter 4 Globalisation and the Indian Economy Important Questions

Globalisation has become one of the most important topics in CBSE Class 10 Economics Chapter 4 – Globalisation and the Indian Economy. This chapter explains how the world has become more connected through trade, technology, and investment, and how these changes have influenced India. While preparing for exams, students often come across questions like “what are the factors that have enabled globalisation” or “what are the factors affecting globalisation class 10”. Understanding these concepts is essential to score well and to develop a clear idea of how economies function in the modern world.

When we study the factors that have enabled globalisation class 10, the focus is on three major elements: improvement in transportation, advancement in communication technology, and liberalisation of trade policies. Students are often asked to explain the factors that have enabled globalisation in detail, since these points form the foundation of the entire topic

The chapter also touches upon challenges, such as the negative impacts on small producers, and opportunities like growth in employment and foreign investment. Hence, while practicing important questions, it is necessary to focus on both the factors affecting globalisation class 10 and its impacts

Do Check: CBSE Class 10 Economics Important Questions

Globalisation and the Indian Economy Class 10 Important Questions

Q1. What are the factors that have enabled globalization?

Answer: Globalization has been made possible due to several important factors:

1. Improvement in Transportation:
   • Over the years, transportation facilities such as modern ships, airplanes, railways, and road networks have improved greatly.
   • This has allowed goods to be delivered quickly and cheaply across long distances. For example, fresh fruits, clothes, or electronic items can be sent from one country to another within days or even hours.
   • Movement of people has also become faster. Today, individuals can travel across continents in just a few hours, which was not possible in earlier times. This has helped in the exchange of ideas, culture, and labor.
2. Growth of Information and Communication Technology (ICT):
   • Communication is the backbone of globalization. Developments in computers, the internet, mobile phones, satellite communication, and fax machines have made information instantly available across the world.
   • For multinational companies (MNCs), smooth and quick transfer of information is essential. For example, a company with offices in India and the US can share data and hold video conferences in real time without delay.
   • ICT has made it possible for service-based industries such as banking, customer care, and IT-enabled services to function across borders.
3. Liberalization of Trade and Investment Policies:
   • Earlier, many countries had strict rules regarding imports and foreign investments. Goods from abroad were either not allowed or were heavily taxed.
   • With liberalization (removal of trade restrictions), countries opened their markets for foreign goods and investments.
   • For example, in India during the 1990s, restrictions on foreign trade were reduced. As a result, many MNCs started investing in India, and foreign goods became available in the Indian market.

Together, these three factors — transport, communication, and liberalization — have made globalization a reality.

Q2. Write a short note on WTO.

Answer: The World Trade Organization (WTO) is an international organization that was set up in 1995 with the purpose of promoting global trade. Its headquarters is in Geneva, Switzerland.

Objectives of WTO:

• To encourage free and fair trade among all nations.
• To make sure that countries follow agreed rules regarding trade.
• To solve disputes and disagreements that arise between countries in matters of international trade.

Functions of WTO:

1. Framing Trade Rules: It creates rules and agreements for global trade so that countries can trade fairly with each other.
2. Trade Negotiations: It provides a platform where member countries can negotiate and discuss ways to reduce trade barriers.
3. Settlement of Disputes: When one country accuses another of unfair trade practices, the WTO looks into the matter and settles disputes.
4. Monitoring National Policies: It checks and reviews the trade policies of different nations to ensure they are in line with global agreements.
5. Support for Developing Nations: It provides training, technical support, and financial assistance to developing countries so they can also benefit from global trade.
6. Cooperation: It works together with other organizations such as the International Monetary Fund (IMF) and the World Bank to ensure smooth global economic functioning.

Currently, more than 150 countries are members of WTO, which shows its importance in regulating and promoting global trade.

Do Check: CBSE Class 10 Social Science Syllabus

Q3. What are the positive impacts of globalization in India?

Answer: Globalization has brought many benefits to India, some of which are listed below:

1. Better Choice and Quality for Consumers:
   • Due to the entry of foreign companies, Indian consumers now have access to a wide variety of products.
   • Competition among producers has improved the quality of goods while reducing prices. For example, in the mobile phone market, consumers enjoy cheaper and better-quality phones.
2. Increased Foreign Investment:
   • Many multinational companies have invested in India by setting up factories, offices, and research centers.
   • This has created thousands of jobs in fields like IT, automobile, and manufacturing.
3. Growth of Local Suppliers:
   • Indian companies that supply raw materials and parts to these foreign industries have grown and expanded their businesses.
4. Improvement of Indian Companies:
   • Leading Indian companies have upgraded their production methods and technology to compete with foreign players.
   • Some of them have even become global giants, such as Tata Motors and Infosys.
5. Growth of IT and Service Industry:
   • Globalization has opened opportunities for India in the IT sector. Services like software development, customer support, accounting, and data processing are now outsourced to India by developed countries.
   • This has generated employment for millions and increased India’s importance in the global market.

Q4. What are the negative impacts of globalization in India?

Answer: Alongside benefits, globalization has also had negative effects in India:

1. Problems for Small Producers:
   • Small industries producing goods like toys, electronics, and garments face tough competition from cheaper foreign products.
   • Many local businesses have shut down as they could not match the quality and low cost of imported goods.
2. Unfair Treatment of Workers:
   • In order to compete in the global market, many employers cut down labor costs.
   • Workers are often paid low wages, denied proper benefits, and made to work in poor conditions.
3. Unequal Benefits:
   • While big companies and skilled workers gained from globalization, small producers, unskilled workers, and farmers often faced losses.
   • This increased the gap between the rich and poor.

Do Check: CBSE Class 10 Social Science Notes

Q5. Differentiate between a permanent worker and a temporary worker.

Answer:

• Permanent Worker:
  • Gets job security and cannot be removed easily.
  • Eligible for benefits like provident fund, health insurance, overtime pay, and paid leave.
  • Works fixed hours with proper pay.
• Temporary Worker:
  • Paid less than permanent workers.
  • Does not get health insurance, provident fund, or paid leave.
  • No fixed working hours, and a day off means loss of wages.
  • Can be removed from the job at any time.

Q6. Write a short note on MNCs with an example.

Answer: A Multinational Corporation (MNC) is a company that owns or controls production in more than one country.

• MNCs usually set up factories or offices where labor is cheap and resources are easily available. This reduces production costs and increases profits.
• MNCs sell their products worldwide, giving consumers more choices at lower prices.
• Globalization of production means that different parts of a product may be made in different countries.

Example: Cognizant Technology Solutions – headquartered in New Jersey, USA – provides IT and consulting services worldwide. It has offices in India, UK, Germany, Singapore, China, and many other countries.

Q7. What is meant by interlinking production across countries?

Answer: Interlinking of production happens when MNCs spread their production activities across different countries.

• MNCs choose production sites based on factors like cheap labor, good infrastructure, and favorable government policies.
• For example, a car might be designed in Japan, its parts manufactured in India, assembled in Thailand, and sold in Europe.
• Sometimes MNCs collaborate with local companies. This benefits local producers with money, new machines, and modern technology.
• Thus, production activities in different countries are connected, creating a global production chain.

Do Check: CBSE Class 10 Social Science Sample Papers

Q8. Discuss the role of IT in globalization.

Answer: Information Technology (IT) has been key to globalization. With computers, internet, telephones, and satellites, information can be shared instantly worldwide.

• IT allows companies to communicate easily across countries.
• Email, video calls, and other services have reduced costs.
• Many service-based jobs in India, like call centers and data entry, exist because of IT.

Q9. What are the factors that have enabled globalization? (Repeated)

Answer:

• Better transportation made movement of goods and people faster and cheaper.
• IT and communication made instant global contact possible.
• Liberal trade policies allowed more foreign investment and trade.

Q10. What are the positive impacts of globalization in India? (Repeated)

Answer:

• Consumers have more options and better prices.
• More jobs due to foreign investment.
• Indian companies, especially IT firms, got new opportunities and grew.

Q11. Mention a few negative impacts of globalization in India. (Repeated)

Answer:

• Small producers lost their market due to cheap imports.
• Workers often get low wages and fewer benefits.

Do Check: NCERT Solutions for Class 10 Social Science Economics

Q12. IT in Globalization – Discuss. (Repeated)

Answer:

• IT has spread services like banking, software, and customer support across countries.
• Email, internet, and mobile communication make global trade easier.
• It has allowed India to provide services to developed countries at low cost.