Please see Globalization and The Indian Economy Exam Questions Class 10 Social Science below. These important questions with solutions have been prepared based on the latest examination guidelines and syllabus issued by CBSE, NCERT, and KVS. We have provided Class 10 Social Science Questions and answers for all chapters in your NCERT Book for Class 10 Social Science. These solved problems for Globalization and The Indian Economy in Class 10 Social Science will help you to score more marks in upcoming examinations.
Exam Questions Globalization and The Indian Economy Class 10 Social Science
Objective Type Questions
Question. It creates an opportunity for the producers to reach beyond the domestic markets. What does it refer to?
(a) Technology
(b) Globalisation
(c) Investments
(d) Trade barriers
Answer : (b) Globalisation
Question. What is the condition that should be taken up by multinational companies (MNCs) to set up their production units?
(a) Close to the market
(b) Government policies
(c) Skilled and unskilled labour available at low cost
(d) All of these
Answer : (d) All of the above
Question. Which among the following statements is correct regarding foreign trade?
(a) Foreign trade implies exchange of goods and services across the countries.
(b) It helps to expand the size of market for producers.
(c) Producers and consumers can get commodities produced in any part of the world.
(d) All of the above
Answer : (d) All of the above
Question. State whether the following statements are true or false
MNCs have increased their investments in India over the past 10 years.
Answer : False
Question. State whether the following statements are true or false
Several top companies have been able to benefit from the increased competition.
Answer : True
Question. In the questions given below, there are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the correct option:
Assertion (A): Computer and internet have entered in almost all the fields.
Reason (R): Internet allows one to share information on almost everything.
Options:
(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 but R is true.
Answer : (a) Both A and R are true and R is the correct explanation of A.
Question. Identify the corporation with the help of the following features
• It is a company that owns production in more than one nation.
• In general it sets up production where it is close to the markets.
• Investment made by it is called foreign investment.
Answer : Multinational Corporation
Question. Read the information given below and select the correct option.
Foreign trade creates an opportunity for the producers to reach beyond the domestic markets i.e., markets of their own countries. How does foreign trade become a main channel in connecting countries?
Choose the correct option.
(a) Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
(b) Producers can sell their produce not only in market located within the country but also compete in markets located in other countries of the world.
(c) Impact of the goods produced in another country is also one of the way is expanding the choice of goods.
(d) All of the above
Answer : (d) All of the above
Question. Read the information given below and select the correct option.
35 year old Sushila has spent many years as a worker in garment export industry of Delhi. She was employed as a ‘permanent worker’ entitled to health i nsurance, provident fund, over time at a double rate, when Sushila’s factory closed in the late 1990s. After searching for a job for six months, she finally got a job 30 km. away from where she lives. Even af ter workin g i n thi s factory for several years, she is a temporary worker and earns less than half of what she was earning earlier. Sushila leaves her house every morning, seven days a week at 7:30 a.m. and returns at 10 p.m. A day off from work means no wage. She has none of the benefits she used to get earlier. Factories closer to her home have widely fluctuating orders and therefore pay even less.
(i) After 1990s, what happened with Sushila.
(a) She lost his job due to factory closed.
(b) Now, she is a temporary worker and earns less than half of what she was earning earlier.
(c) Now, she has none of the benefits she used to get earlier.
(d) All of the above
Answer : (d) All of the above
(ii) According to the passage, which of the following conditions about work has been described?
(a) Most worker are employed in the unorganised sector.
(b) Moreover, increasingly conditions of work in the organised sector have come to resemble the unorganised sector.
(c) Worker in the organised sector such as Sushila no longer get the protection and benefits that they enjoyed earlier.
(d) All of the above
Answer : (d) All of the above
Very Short Answer Type Questions
Question. Due to which reason the latest models of different items are available within our reach?
Answer : Due to globalisation, the latest models of digital camera, mobile phone, TV, etc. are available with us.
Question. How would flexibility in labour laws help companies?
Answer : Government has given the permission to the MNCs to hire the workers flexibly i.e. hiring the workers on temporary basis and also ignoring the labour laws. This is what we call flexibility in labour laws. It will help the MNCs in reducing their labour cost and the total cost of production.
Question. What do you mean by liberalisation of foreign trade?
Answer : Removing trade barriers set by the government is called liberalisation.
Question. What are SEZs? Write about them in brief.
Answer : SEZs or Special Economic Zones are industrial areas with world class facilities.
(i) Companies who set up units in SEZs are exempted from tax for 5 years.
(ii) They are set up to attract foreign investment.
Question. Analysis the contribution of communication technology in globalisation.
Answer : Communication technology has played a major role in outspread of products and services across countries through its arms such as telecommunications (mobile, fax etc.), computers and internet. These have helped the people in communicating with each other living in different geographical locations.
Question. What is the main channel connecting the world?
Answer : Foreign trade is the main channel the connecting the world. It is so because foreign trade connects the markets or integration of markets in different countries.
Question. Would you say Ford Motors is a MNC? Why?
Answer : Yes, Ford Motors is a MNC because it is having its production spread over 26 countries over the world.
Short Answer Type Questions
Question. How does foreign trade integrate the markets of different countries? Explain with examples.
OR
How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.
OR
“Foreign trade integrates the markets in different countries.” Support the statement with arguments.
OR
How does foreign trade connect the markets of different countries? Explain with example.
OR
Explain with an example how foreign trade leads to integration of markets across economies.
Answer : (i) Through trade, goods can travel from one market to another.
(ii) Choice of goods in the markets rises and prices become equal.
(iii) Producers compete closely with each other
Question. What is a tariff? Why is it imposed on goods?
Answer : A tariff is a tax imposed on goods when they are moved across a political boundary. Mostly, they are imposed on imported commodities.
Tariffs are imposed on goods because:
(i) To protect infant industries of the home country.
(ii) To prevent the dumping of foreign countries.
(iii) A source of revenue.
Question. How have our markets been transformed? Explain with examples.
OR
In recent years how our markets have been transformed? Explain with examples.
OR
“Our market has been transformed in a matter of decades”. Justify the statement.
Answer : Transformation of our markets:
(i) There is relatively a wide choice of goods and services before us in the market. The latest models of digital cameras, mobile phones and televisions made by the leading manufacturers of the world are within our reach.
(ii) Every season new model of automobile can be seen on Indian roads and the Indian are buying vehicles produced by the top companies of the world.
(iii) A similar explosion of brands can be seen for many other goods: from shirts to televisions to processed fruit juices.
Question. Write the functions of foreign market.
Answer : Functions of foreign market are:
(i) Foreign trade creates an opportunity for the producers to reach beyond the domestic market, i.e. market of their own countries.
(ii) Producers 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 the buyers, import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced.
(iv) With the opening of trade, goods travel from one market to another. Choice of goods in the market rises. Prices of similar goods in the two markets tend to become equal.
(v) With the help of foreign trade, producers in the two countries now closely compete against each other even though they are separated by thousands of miles.
Question. Should more Indian companies emerge as MNCs? How would it benefit the people in the country?
Answer : Yes, more Indian companies should emerge as MNCs. It would benefit the people in the country in the following ways:
(i) New job opportunities would be created by the emergence of Indian companies as MNCs.
(ii) Local companies that provide raw materials and other services to these companies to get prospered.
(iii) It would also lead to rise in production standards, and improvement in the standard of living of the people.
Question. What are the various ways in which countries can be linked?
Answer : The various ways in which countries can be interlinked are in process of production done by MNCs:
(i) Goods and services are produced at global level and sold at global level.
(ii) Investments, technology and people are moving between countries.
(iii) It gives opportunity to the local producers to reach beyond the domestic market.
(iv) MNCs by their foreign trade connects/integrates the markets in the world.
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.
Question. Discuss the effects of foreign trade through the example of Chinese toys in the Indian markets.
Answer : Chinese toy manufacturers got an opportunity to sell their toys in the Indian market. They sell their toys at cheaper prices and with newer designs. Indian buyers got greater choices than before. Chinese toy makers expanded their business and flourishing in the market. The Indian toy shops were replaced by the Chinese toys which sell more due to better quality and low prices.
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 goods:
(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. Differentiate between foreign trade and foreign investment.
Answer :
Question. Explain with three examples how top Indian companies have been benefited from globalisation.
OR
What do you understand by globalisation? Explain in your own words.
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 lnfosys.
Question. What is globalisation? Explain.
Answer : (i) Globalisation is a process of rapid integration or interconnection between countries through foreign trade and foreign investments by multinational companies (MNCs).
(ii) More and more goods and services, investments and technology are moving between countries.
(iii) Globalisation is the integration between countries through foreign trade and foreign investments by Multinational companies (MNCs).
Question. How can the benefits of globalisation be shared better? Explain.
Answer : Fair globalisation would create opportunities for all and also ensure that benefits of globalisation are shared better due to:
(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 steps should be taken to make trade more fair between the countries?
Answer : The following steps should be taken:
(i) Before imposing trade barrier interest of the developing countries should be taken care.
(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 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. “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.
Question. Assess any three advantages of globalisation.
Answer : Advantages of globalisation:
(i) Globalisation has also created new opportunities for companies providing services, particularly those involving IT.
(ii) Consumers now enjoy numerous choices, better quality and lower prices for most of the products.
(iii) Numerous jobs have been created by the work of the MNCs and local companies collaborating with them also have earned huge profits.
(iv) Many top Indian companies have improved technology and production methods due to competition. Some of them have become MNCs themselves like Infosys and Ranbaxy.
Long Answer Type Questions
Question. Explain any five facilities available in the economic zones developed by the central and state government to attract foreign investment.
Answer : In the recent years, the Indian Government has taken special steps to attract foreign companies to invest in India:
(i) The government has set up industrial zones called SEZs (Special Economic Zones).
(ii) SEZs provide world class facilities, i.e. electricity, water, roads, transport, storage recreational and educational facilities.
(iii) Companies who set up production units in the SEZs do not have to pay taxes for an initial period of five years.
(iv) The government has also allowed flexibility in the labour laws to attract foreign investment.
(v) The companies can now lower workers ‘flexibly’ for short period when there is intense pressure of work. This is done to reduce the cost of labour for the companies.
Question. Where do MNCs set up their production units? Explain.
OR
Describe any five factors that promote the Multinational Companies (MNCs) to set up their production units in a particular place.
Answer : Factors that promotes 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. How has globalisation been an advantageous to both producers and consumers?
Answer : Globalisation has been advantageous to producers in the following ways:
(i) The producers now have access to the international markets.
(ii) Globalisation has also enabled free movement of capital, i.e., via electronic transfers, etc.
(iii) Globalisation has enabled access to foreign investment in capital and technology via Foreign Direct Investment, etc.
Globalisation has been advantageous to consumers in the following ways:
(i) It has led to employment generation, as a result, beneficial to the consumers.
(ii) Globalisation has also given rise to intense competition due to opening up of markets to foreign companies. As a result, this has led to the increase in product quality and decrease in the prices of the products.
(iii) The consumers have benefited from the arrival of MNCs as they have now larger choice in the goods that are available to them in the market.
Question. How are Multinational Companies (MNCs) controlling and spreading their productions across the world? Explain.
Answer : The Multinational Companies (MNCs) are controlling and spreading their production across the world in the following ways:
(i) MNCs set up their production units close to market.
(ii) MNCs set up 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 productions 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. What is the role of MNCs in the globalisation process?
Answer : Globalisation means unification or integration of the domestic economy with the world economy through trade, capital and technology flows.
MNCs play an important role in the globalisation process.
(i) MNCs control production in more than one country.
(ii) They complete with the local producers directly even after being miles apart, thus integrating the markets.
(iii) Their working leads to exchange of investments and products which leads to interconnection between diverse countries.
Countries get linked when movement of goods, people, investment and services between different countries takes place. They can be linked as producers or consumers of same products or one can be a producer and the other consumer. The recent advancement in technology, transport and communication systems has enhanced globalisation.
Question. What are the various ways in which MNCs set up, or control production in other countries?
OR
Explain by giving examples that Multinational Companies (MNCs) are spreading their productions in different ways.
OR
How do MNCs manage to keep the cost of production of their goods low? Explain with examples.
OR
How do Multinational Companies (MNCs) interlink production across countries? Explain with examples.
OR
The MNCs of a country sets up a production jointly with the local company of other country. State any one benefit of this joint production to the local company.
Answer : Multinational companies are spreading their productions in different ways:
(i) By providing money for additional investment.
(ii) By bringing latest technology for production.
(iii) By setting up partnership with local companies.
(iv) By placing orders with local companies. For example, garments, footwear, sports items, etc.
(v) By closely competing with the local companies.
(vi) By buying local companies. To take an example, Cargill Foods, a very large American MNCs has bought over smaller Indian companies such as Parakh foods. Parakh food had built a large marketing network in various part of India, where its brand was well-reputed.
Question. How has foreign trade been integrating markets of different countries? Explain with examples.
Answer : Foreign trade has been integrating markets of different countries in following ways:
(i) Foreign trade creates an opportunity for the producers to reach beyond the domestic market, i.e. market of their own countries.
(ii) Producers 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 the buyers, import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced.
(iv) With the opening of trade, goods travel from one market to another. Choice of goods in the market rises. Prices of similar goods in the two markets tend to become equal.
(v) With the help of foreign trade, producers in the two countries now closely compete against each other even though they are separated by thousands of miles.
Question. Describe the impacts of globalisation on Indian economy with examples.
Answer : Impacts of globalisation 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 greater choice before the consumers who now enjoy 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 produces 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.
Question. “Globalisation and greater competition among producers has been advantageous to consumers”. Support the statement with examples.
Answer : Globalisation and greater competition among producers has been advantageous to consumers:
(i) Globalisation and greater competition among producers both local and foreign has been of advantageous to consumers particularly the well off sections of urban areas.
(ii) There is greater choice before these consumers who now enjoy improved quality and lower prices for several products.
(iii) People enjoy higher standards of living.
(iv) But the impact of globalisation has not been uniform among producers and workers.
(v) Services of the top Indian companies have been able to benefit from the increased competition.
(vi) They have invested in newer technology and production methods and raised their production standards.
(vii) Wide ranging choice of goods in our markets is a recent phenomenon and have brought changes in lives of people.
Case Based Questions
Question. Read the source given below and answer the questions by choosing the most appropriate option.
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.
(i) It creates an opportunity for the producers to reach beyond the domestic markets. What does it refer to?
(a) Technology
(b) Investments
(c) Globalisation
(d) Trade Barriers
Answer : (c) Globalisation
(ii) How is globalisation beneficial for consumers?
(a) Greater choice before the consumers and improved quality
(b) Lower prices for several products
(c) People enjoying higher standards of living than was possible earlier
(d) All of the above
Answer : (d) All of the above
(iii) Mention the negative impact of globalisation.
Answer : Rising competition has led to shutting down of many units.
(iv) Describe the factors that helped in the process of globalisation?
Answer : Information and technology, and liberalisation of foreign trade and foreign investment have helped in the process of globalisation.
