Table of Contents
NCERT Class 10 Economics GLOBALISATION AND THE INDIAN ECONOMY
The NCERT Solutions for Class 10 Social Science Understanding of Economic Development Chapter 4 Globalization and the Indian economy provides an overview of the concept of globalisation and its impact on the Indian economy. It discusses the different aspects of globalisation, and also highlights the advantages and disadvantages of globalisation for the Indian economy.
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Here are some important questions on the chapter – Globalisation and the India Economy.
Ques 1. What do you understand by globalization? Explain in your own words.
Ans. Globalization is defined as the integration between countries through foreign trade and foreign investments by multinational corporations (MNCs). An increase in foreign trade, migration of people from one country to another, the flow of capital finance from one country to another, and private and public investments from foreign countries all together contribute to globalization.
Ques 2. 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?
Ans. The main reason for putting barriers to foreign trade and foreign investment by the Indian government was to protect the interest earned by producers and small industrialists of our country from foreign competition.
But later it was accepted by the government that foreign competition would encourage Indian industrialists to improve the quality of their products and removing these barriers would increase trade and quality of products produced in the country. 
Ques 3. How would flexibility in labour laws help companies?
Ans. Flexibility in labour law helps companies because it helps to attract foreign investments. Instead of hiring workers on a regular basis, companies hire workers flexibly for short periods when there is intense pressure on work. This is done to reduce the cost of labour for the company.
However, still not satisfied, foreign companies are demanding more flexibility in labour laws. The competition in the market is increasing each day, and if the Government does not allow flexibility with these laws, the foreign companies will not be able to reach their desired profit levels.
Ques 4. What are the various ways in which MNCs set up, control, or produce in other countries?
Ans. i. MNCs set up and control production by investing a huge amount of money in a country’s economy. It sets up production units close to the market so that they get cheaper labour.
ii. To increase production, MNCs collaborate with some local companies as the production rate would rapidly increase. In most of cases, the MNCs buy local companies and expand their production.
iii. The other way in which they control production is by placing the orders for production with small and local producers. They help production using technology and heavy machinery, which makes the work more efficient and productive.
Ques 5. Why do developed countries want developing countries to liberalize their trade and investment? What do you think should the developing countries demand in return?
Ans. i. Developed countries want developing countries to liberalize their trade and investment because MNCs can set up industries in small and developing nations, which are less expensive and can earn them more profit.
ii. The labour cost decreases the manufacturing cost and these decreases in cost result in an increase in profit. Also setting up factories and industries in developed countries increases competition.
iii. The developing countries should, in turn, ask for a fair removal of trade barriers in order to protect their own industries.
Ques 6. “The impact of globalization has not been uniform.” Explain this statement.
Ans. The impact of globalization has not been uniform because only the developed countries have gained profits due to globalization.
i) For consumers, wide varieties of good quality goods at lower prices are available which
leads to a higher standard of living.
ii) New jobs are created in industries such as cell phones, electronics, fast food, automobiles.
iii) Local companies have prospered through supplying raw materials to these industries.
iv) Top Indian companies have gained from successful collaborations with foreign companies.
Some of these companies have emerged as Multinationals Companies.
v) Companies providing services have also benefited from new opportunities.
But the small industries and companies in developing countries have constantly been facing challenges in terms of earning profits and bringing their goods to the market.
Ques 7. How has the liberalization of trade and investment policies helped the globalization process?
Ans. Liberalization of trade and investment policies promotes globalization. Explain. Globalization means the free interaction of an economy with the economies of the rest of the world.
1) Removal of Trade Barriers: Under the policy of liberalization Indian government has removed various restrictions from the import and export of goods and services. Now MNC’s are free to import goods in India and Indian companies are free to export goods and services abroad.
2) Liberalisation of Investment: Under this policy, MNC is free to invest in India. Many MNC have invested in banking, infrastructure, soft drinks, automobiles, etc. Even the Indian government is also encouraging MNC to invest in India and for this government has created Special Economic Zones which provide electricity, roads, transport, and other facilities.
3) New Technology: The process of liberalization has brought new technology to India which has promoted globalization. Information and communication technology has played a major role in spreading out production of services across countries.
Ques 8. How does foreign trade lead to the integration of markets across countries? Explain with an example other than those given here.
Ans. i) To put it simply, foreign trade Creates an opportunity for the producers to reach beyond the domestic markets, i.e., markets of their own countries. Producers can sell their products not only in markets located within the country, but can also compete in markets located in other countries of the world.
ii) Similarly, for the buyers, the import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced.
iii) In general, with the opening of trade, goods travel from one market to another. Choice of goods in the markets rises. Prices of similar goods in the two markets tend to become equal.
iv) Through foreign trade, producers in the two countries now closely compete against each other even though they are separated by thousands of miles.
Ques 9. Globalization will continue in the future. Can you imagine what the world would be like twenty years from now? Give reasons for your answer.
Ans. Globalization will continue in the future as well. Twenty years from now, the production of goods will be more efficient, competition in the market will increase, advancement in every field will be evident and the quality and quantity of goods produced will also increase. Small industries and entrepreneurs will increase as more opportunities will be provided to them.
Ques 10. Supposing you find two people arguing: One is saying globalization has hurt our country’s development. The other is telling, globalization is helping India develop. How would you respond to these arguments?
Ans. Globalization has its pros and cons, and there are various advantages and disadvantages of increasing globalization in the country. The advantages of increased globalization include improved trade opportunities and the increase in the number of employed because of small-scale industries. The profit market has increased, and the increase in imports and exports has increased the economy of the nation. People can buy goods that are made across the world at cheaper prices.
The disadvantages of globalization include that globalization has increased the income of the rich and has decreased the income of the poor because the small-scale local industrialists are unable to earn much profit. Thereby increasing income inequality.
Ques 11. 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.
Ans. Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of globalization. Markets in India are selling goods produced in many other countries. This means there is increasing trade 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 of the cheaper production costs. While consumers have more choices in the market, the effect of rising demand and purchasing power has meant greater competition among the producers.
12. 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, sports items |
| (iii) Indian companies who have invested abroad | (c) Call centers |
| (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 |
Ans.
| (i) MNCs buy at cheap rates from small producers | (b) Garments, footwear, 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 producers |
Ques 13. Choose the most appropriate option.
(i) The past two decades of globalization have 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.
(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.
(iii) Globalisation has led to improvement in living conditions
(a) of all the people
(b) of people in the developed countries
(c) of workers in the developing countries
(d) none of the above
NCERT Book Solutions For Class 10 Economics Chapter 4 Globalization and the Indian Economy – CBSE Term II Free PDF NCERT Book Solutions For Class 10 Economics Chapter 4 Globalization and the Indian Economy Download
INFINITY LEARN’s NCERT Solutions for Class 10 Economics Chapter 4 Globalization and the Indian Economy improves how one expresses answers in the exam, which is very important. Students that are skilled at expressing themselves can easily get good grades. NCERT Solutions for Class 10 Economics Chapter 4 – Globalization will assist students in developing their own responses. Furthermore, students can write the identical answer in their exam as supplied in the solutions PDF if they choose. Students can use these answers to help them study for their examinations more effectively. Students can also look up the exercise answers for all of the chapters of History, Geography, Political Science, and Economics in NCERT Solutions Class 10 Social Science.
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NCERT Solutions for Class 10 Economics Chapter 4 Globalization And The Indian Economy are available to download.
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NCERT Solutions for Class 10 Economics Chapter 4 FAQs
How many questions are there in NCERT Solutions for Economics Chapter 4 for Class 10?
There are a total of 13 questions in the NCERT Solutions for Class 10 Globalization and the Indian Economy. The first ten questions are divided into two categories: short answers and extensive responses. The last three questions are fill-in-the-blanks, match-the-answers, and multiple-choice questions that cover all of the chapter's major points. The answers to these questions are created by a team of INFINITY LEARN's subject experts with extensive experience in the field of education.
According to NCERT Solutions for Class 10 Economics Chapter 4, how is globalization defined?
Globalization is described as the integration of countries through international trade and multinational firms' abroad investments (MNCs). This chapter also covers a number of other subjects, including the impact of globalization, how globalization has helped the country's development, rapid technological advancements, and liberalization.
What kind of questions can I expect from NCERT Solutions for Class 10 Economics Chapter 4 in the CBSE Term II exams?
From the perspective of the examination, questions about foreign trade and market integration, factors that have permitted globalization, liberalization, the World Trade Organisation, the impact of globalization, and battles for fair globalization can be expected. In our NCERT Solutions, students may discover extensive answers to such questions. Students' CBSE Term II test preparations would be aided by using these materials.
