NCERT Class 10 Economics Extra Questions With Solutions
Question-1 What are the factors that have enabled Globalisation ?
Solution: Rapid improvement in transportation and communication technology and the liberalisation of trade restrictions and foreign investment have been the major factors that has enabled the globalisation process.
The dramatic improvement in transportation technology has played a vital role in faster delivery of goods across long distances at lower costs and in the movement of people from one country to another in a short time. As the basis of gloalisation is foreign trade movement of goods and people are vital for globalisation.
Information and communication technology (or IT in short) has also played a major role in globalisation. Many MNCs are service based companies therefore the transfer of information is very vital to them. Computers , internet facilities, telegraph, telephones mobile phones, and fax are used to contact one another around the world, to access information instantly, and to communicate from remote areas.
Liberalisation of foreign trade and investment policy has speeded up the globalization process. During the end of the 20th century, India removed trade barriers and foreign goods flooded the Indian market. Barriers on foreign investment were also removed to a large extent enabling many MNCs to set up their factories in India.
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Question-2 Write a short note on WTO.
Solution: World Trade Organisation (WTO) is an international body which aims at liberalising international trade. It was started at the initiative of the developed countries.
i. WTO establishes rules regarding international trade,
ii. It sees that these rules are obeyed by the member countries,
iii 149 countries of the world are currently members of the WTO (2006).
WTO Head Quarters is situated in Geneva, Switzerland. It was established in the year 1995. There are 151 member countries in WTO and its budget for the year 2007 is 182 million Swiss francs.
The functions of the WTO are as follows:
• Administering WTO trade agreements.
• Forum for trade negotiations.
• Handling trade disputes.
• Monitoring national trade policies.
• Technical assistance and training for developing countries.
• Cooperation with other international organizations.
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Question-3 What are the positive impacts of globalisation in India ?
Solution: The positive impact of globalisation in India has been tremendous.
1. Greater competition among producers resulting from Globalisation is a great advantage to consumers as there is greater choice before them. Consumers now enjoy improved quality and lower prices for several products.
2. Due to globalisation many MNCs have increased their investments in India. This means thousands of people are getting highly paid jobs and, enjoy much higher standards of living than was possible earlier.
3. Local companies supplying raw materials, to these industries have prospered.
4. Top Indian companies have benefit from increased competition. They have invested in newer technology and production methods and raised their production standards.
5. Some Indian companies have gained from successful collaborations with foreign companies.
Large Indian companies have emerged as multinationals like Tata Motors Globalisation has also created new opportunities for Indian companies providing services, particularly in the IT field. Services such as data entry, accounting, and administrative tasks, are now being done cheaply in India and exported to the developed countries. This has generated thousands of jobs.
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Question-4 Mention a few negative impacts of globalisation in India.
Solution: There has also been a negative impact of globalisation in India. Globalisation has posed major challenges to a large number of small producers.
Globalisation which resulted from liberalisation of Foreign Trade policies allowed the import of electronic goods at a very cheap cost. Local producers of electronic goods were not able to meet with this challenge. MNCs flooded the market with quality products at a cheap price. Local producer were not able to compete with this and were put to hardship as their goods do not have a market.
Another negative factor to globalisation is the lower wages that are given to labourers. In order to compete in the world market, exporters try and cut labour costs and workers are denied their fair share of benefits as manufacturers are always on the look out for cheaper labour .
Question-5 Differentiate between a ‘permanent worker ’ and a ‘temporary worker’.
Solution: A ‘permanent worker’ is entitled to health insurance, provident fund, overtime at a double rate. The permanent worker is also eligible for paid leave and has fixed working hours. Whereas a ‘ temporary worker’ earns less than a permanent worker . He does not enjoy any of the benefits a permanent worker is entitled for. A day off from work means no wage and there are no fixed timings of work. The temporary worker can be dismissed from work any time.
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Question-6 Write a short note on MNCs with an example.
Solution: A MNC or Multinational Corporation is a company that owns or controls production in more than one nation. MNCs set up offices and factories for production in regions where they can get cheap labour and other resources. The cost of production is reduced considerably due to cheap labour and the MNCs earn great profits.
MNCs not only sell their finished products globally, the goods and services are produced globally. Because of this global production , today’s consumer has a wide choice of goods and services at a very reasonable price.
Cognizant Technology Solutions is a MNC which provides end-to-end Solutions in Consulting, Application Value Management, Application Development, Re-engineering, and Platform Consolidation across all major technologies.
The company’s Head Quarters is in New Jersey, USA.
The Company has Offices in the following countries.
(i) Canada
(ii) United Kingdom
(iii) Germany
(iv) Switzerland
(v) France
(vi) Malaysia
(vii) Singapore
(viii) Australia
(ix) China
(x) India
Question-7 What is meant by interlinking production across countries?
Solution: MNCs are exerting a strong influence on production at distant locations. As a result, production in these widely dispersed locations is getting interlinked.
MNCs look into 4 major criteria before they set up production in any place.
1. The factory or company should be close to the markets.
2. Skilled and unskilled labour should be available at low costs.
3. Availability of other factors of production should be assured. (eg. Infrastructure)
4. Local Government policies should be in their interests.
When the above conditions are to their satisfaction MNCs set up factories and offices for production in different countries thus interlinking production across countries.
At times, MNCs set up production jointly with some of the local companies in other countries . Then the local company benefits in 2 ways from this joint venture. Money for additional investments, like buying new machines and the introduction of the latest technology for production is available to the local producer thus interlinking production across countries.
Question-8 IT in globalisation – Discuss.
Solution: Information and communication technology (or IT in short) has played a major role in globalisation. Production of services has spread rapidly across countries due to the growth in Information technology.
Many MNCs are service based companies therefore the transfer of information is very vital to them. Computers , internet facilities, telegraph, telephones mobile phones, and fax are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.
Question-9 What are the factors that have enabled globalization?
Solution: The dramatic improvement in transportation technology has played a vital role in globalisation, due to faster delivery of goods across long distances at lower costs and in the movement of people from one country to another in a short time.
Information and communication technology has also played a major role in globalisation. Many MNCs are service based companies therefore the transfer of information is very vital to them. Computers, internet facilities, telegraph, telephones mobile phones, and fax are used to contact one another around the world, to access information instantly, and to communicate from remote areas.
Liberalisation of foreign trade and investment policy has speeded up the globalization process.
Question-10 What are the positive impacts of globalisation in India?
Solution: The positive impact of globalisation in India has been tremendous. Greater competition among producers resulting from Globalisation is a great advantage to consumers as there is greater choice before them. Consumers now enjoy improved quality and lower prices for several products.
Due to globalisation many MNCs have increased their investments in India. This means thousands of people are getting highly paid jobs and, enjoy much higher standards of living than was possible earlier.
Globalisation has also created new opportunities for Indian companies providing services, particularly in the IT field. Services such as data entry, accounting, and administrative tasks, are now being done cheaply in India and exported to the developed countries. This has generated thousands of jobs.
Question-11 Mention a few negative impacts of globalisation in India.
Solution: There has also been a negative impact of globalisation in India. Globalisation has posed major challenges to a large number of small producers.
Globalisation which resulted from liberalisation of Foreign Trade policies allowed the import of electronic goods at a very cheap cost. Local producers of electronic goods were not able to meet with this challenge. MNCs flooded the market with quality products at a cheap price. Local producer were not able to compete with this and were put to hardship as their goods do not have a market.
Another negative factor to globalisation is the lower wages that are given to labourers. In order to compete in the world market, exporters try and cut labour costs and workers are denied their fair share of benefits as manufacturers are always on the look out for cheaper labour .
Question-12 IT in Globalization – Discuss.
Solution: Information and communication technology (or IT in short) has played a major role in globalization. Production of services has spread rapidly across countries due to the growth in Information technology.
Many MNCs are service based companies therefore the transfer of information is very vital to them. Computers , internet facilities, telegraph, telephones mobile phones, and fax are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.
