Students should refer to Worksheets Class 10 Social Science Globalisation and the Indian Economy Chapter 4 provided below with important questions and answers. These important questions with solutions for Chapter 4 Globalisation and the Indian Economy have been prepared by expert teachers for Class 10 Social Science based on the expected pattern of questions in the class 10 exams. We have provided Worksheets for Class 10 Social Science for all chapters on our website. You should carefully learn all the important examinations questions provided below as they will help you to get better marks in your class tests and exams.
Globalisation and the Indian Economy Worksheets Class 10 Social Science
ONE MARK QUESTIONS
Question. What is a Multinational Corporation?
Ans : MNC : Multinational Corporations is a company owning and or controlling production in more than one nation.
Question. Why do MNCs setup their offices and factories in those regions where they get cheap labour and other resources?
Ans : MNCs setup their offices and factories in those regions where they get cheap labour and other resources so that they can reduce their cost of production and maximize the profit.
Question. Why had the Indian government put barriers to foreign trade and foreign investment after independence? State any one reason.
Ans : The Indian government put barriers to foreign trade and foreign investment after independence in order to protect the industries in India from the foreign competition as they were in the infancy stage.
Question. What is SEZ?
Ans. A special economic zone is an area in which the business and trade laws are different from teh rest of teh country.
Question. What is liberalization?
Ans. Liberalization refers to elimination of government regulation or restrictions on private busniess and trade.
Question. What is Globalization?
Ans. Globalisation is a process of international integration arising from the interchange of world views, products ideas and other aspects of a culture.
Question. Define Investment.
Ans. An investment is an asset or item accured with the goal of generating income or recognition.
Question. Define M.N.C.
Ans. A multinational corporation is a corporate organization that owns or controls production of goods or services in at least one country other than its home country.
Question. Differentiate between investment and foreign investment.
Ans : Investment can be defined as money spent for buying the inputs for the production like land, buildings, machines etc. whereas foreign investment is the investment done by a investor from abroad or MNC is termed as foreign investment.
Question. Due to what reason are the latest models of different items available within our reach?
Ans : It is due the policy of liberalisation, privatization and globalisation the latest models of different goods are available within our reach.
Question. SEZ refers to ……………………
Ans. Special economic zone
Question. ……………. has been bought by cargill foods and MNC.
Ans. Parakh foods
Question. Removing barriers or restrictions set by goverment is called …………..
Ans. Liberalisation
Question. Ford motor was established in india in the year …………….
Ans. 1995
Question. Which of the following is an example of a trade barrier?
(a) Foreign investment
(b) Delay or damage of goods
(c) Tax on inputs
(d) None of these.
Ans. (c) Tax on inputs
THREE MARKS QUESTIONS
Question. What is the meaning of SEZ? Mention any two features of SEZ.
Ans : SEZ means special economic zone. The two features of SEZ are:
a. Governments are creating SEZs where they provide world class facilities for electricity, roads, water, transport, recreational and educational facilities to the MNCs.
b. MNCs will not have to pay taxes for the initial period of five years if they set up their production units in the SEZs.
Question. How do large companies often manipulate the markets? Explain with an example.
Ans : It is very true to say that the large companies often manipulate the markets. They do this by influencing the price of the products, labour and the market conditions. They are able to do this because they have huge wealth, low cost of production, and better technology.
For example, Chinese products in the Indian markets. Due to the low prices of the Chinese products in the Indian market they are able to expand their market in India. They have good number of buyers as they sell the products at cheap rate.
Question. How do Multi-National Corporations (MNCs) interlink production across countries? Explain with examples.
Ans : Interlinking of production is one of the important feature of the MNCs. For example: An MNC from USA producing the industrial equipment is designing its product in the research centres of the US, its components are manufactured in China, the assembling and the export work is done from Mexico and Eastern Europe and its call centres are there in India.
Question. ‘Barriers on foreign trade and foreign investment were removed to a large extent in India since 1991.’ Justify the statement.
or
Why have the barriers on foreign trade and foreign investment been removed to a large extent by the Indian government? Explain.
Ans : Barriers on foreign trade and foreign investment were removed to a large extent in India since 1991. Indian government decided to remove trade barriers due to the following reasons:
a. The Indian government wanted the domestic producers to face the global competition.
b. By this competition, the Indian producers j will also get a chance to improve their quality.
c. Removal of trade barriers will allow the producers of different countries to trade with India.
Question. How have our markets been transformed? Explain with examples.
or
In recent years how our markets have been transformed? Explain with examples.
or
“A wide ranging choice of goods are available in the Indian markets.” Support the statement with examples in context of globalisation.
Ans : It is true to say that now there is wide ranging choice of goods are available in the Indian markets.
It is possible due to the policy of liberalisation, privatization and globalisation followed by India since 1991. Before 1990, we had limited brands and limited variety of products in the market but now the market is flooded with variety of brands. For example, earlier we had just Ambassador and Fiat cars on the Indian roads but now we have so many brands from all over the world. The same happened in the field of TV, mobile phones, garments etc.
Question. Examine any three conditions which should be taken care of by Multinational Companies to set up their production units.
Ans : The three conditions which should be taken care of by Multinational Companies to set up their production units are:
a. Labour: There should be easy availability of cheap and skilled labour for the industries. This will help in reducing in the cost of production and maximizing the profit.
b. Market: The markets should be close to the production units so that there should be less expenditure on the transport cost.
c. Government policies: The government policies of that particular countries should be in favour of the company such as flexibility in labour laws etc.
Question. “Globalisation and greater competition among producers has been advantageous to consumers.” Justify the statement with examples.
Ans : It is true to state that Globalisation and greater competition among producers has been of advantageous to consumers. The consumers are getting advantage in the following ways:
a. They get different brands of the product.
b. They get the goods and services at cheaper rate.
Question. How do large companies manipulate the market? Explain with examples.
Ans : It is very true to say that the large companies often manipulate the markets. They do this by influencing the price of the products, labour and the market conditions. They are able to do this because they have huge wealth, low cost of production, and better technology.
For example, Chinese products in the Indian markets. Due to the low prices of the Chinese products in the Indian market they are able to expand their market in India. They have good number of buyers as they sell the products at cheap rate.
Question. “Foreign trade integrates the markets in different countries.” Support the statement with arguments.
Ans : Foreign trade integrates the markets in different countries through the following ways:
a. Goods and services and produced at global level.
b. Goods and services are sold at global level.
c. Investments, technology and people are moving between countries.
d. Production process is complex but organized.
e. It gives opportunity to the local producers to reach beyond the domestic market.
f. Buyers get different choice, price and quality.
g. MNCs by the foreign trade connects/ integrates the markets in the world. For example: Chinese toys in India.
Question. What measures can be taken by the government of India to make globalisation fairer? Explain.
Ans : The various measures that can be taken by the government of India to make globalisation fairer are:
a. Labour laws should be implemented properly and the workers get equal rights.
b. Government should use trade barriers if required.
c. Government should negotiate at the WTO for fairer rules.
Question. Why did Ford Motors want to develop Ford India as a component supplying base for its other plants across the globe? Explain.
or
How are local companies benefitted by collaborating with multinational companies? Explain with examples.
Ans : Joining hand with local companies is also one of the way through which the MNCs spread production. Sometimes the MNCs join hands with the local companies and do the production. In this process, the local companies get twin benefits:
a. They get foreign investment.
b. MNCs provide newer technology to them for the production.
For example: In 1995 Ford Motors an American company joined hand with the Indian company called Mahindra and Mahindra (manufacturer of jeeps and trucks) due to the following reasons:
1. Availability of cheap and skilled labour.
2. Close to the markets.
Question. How does foreign trade connect the markets of different countries? Explain with example.
Ans : Foreign trade integrates the markets in different countries through the following ways:
For example: Chinese toys in India. In this process the Goods and services and produced and sold at global level. There is movement of technology and people between the countries. It gives opportunity to the local producers to reach beyond the domestic market. Buyers get different choice, price and quality.
An MNC from USA producing the industrial equipment is designing its product in the research centres of the US, its Components are manufactured in china, the assembling and the export work is done from Mexico and Eastern Europe and its call centres are there is India.
Question. What is globalisation? How does globali¬sation help in interconnection among dif¬ferent countries? Explain with examples.
Ans : It can defined as the process of rapid interconnection or integration between the markets. The following are the different ways through which globalisation help in inter-connection among different countries:
a. By producing goods and services which are produced at global level.
b. Goods and services are sold at global level.
c. Investments, technology and people are moving between countries.
d. It gives opportunity to the local producers to reach beyond the domestic market.
e. MNCs by the foreign trade connects/ integrates the markets in the world.
Question. How are MNCs spreading their production across countries? Explain with an example.
Ans : An MNC from USA producing the industrial equipment is designing its product in the research centres of the US, its Components are manufactured in China, the assembling and the export work is done from Mexico and Eastern Europe and its call centres are there is India.
Question. Why had the Indian government put barriers to foreign trade and foreign investment after independence? Analyse the reasons.
Ans : Indian government put trade barriers after the independence on foreign trade and foreign investments to protect the domestic producers from the foreign competition. At that time in 1950s and 1960s Indian industries were just coming up, so were not in a position to compete with the foreign producers.
Question. What is foreign trade? How does it integrate markets? Explain with examples.
or
How does foreign trade integrate the markets of different countries? Explain with examples.
Ans : Foreign trade means trade with other countries. When we trade with other countries then we connect with the markets of different countries. For example, Chinese toys in the Indian market. In this process the goods and services are produced and sold at global level. There is movement of technology and people between the countries. It gives opportunity to the local producers to reach beyond the domestic market. Buyers get different choice, price and quality.
An MNC from USA producing the industrial equipment is designing its product in the research centres of the US, its components are manufactured in China, the assembling and the export work is done from Mexico and Eastern Europe and its call centres are there in India.
Question. What is the main aim of the world trade organisation? Explain its functions.
Ans : The main aim of WTO is to liberalise international trade.
The various functions of the World Trade Organisation are:
a. It makes rules regarding international trade and checks that these rulds are followed.
b. WTO says that there should be no trade barriers i.e. members of WTO should liberalise their trade policies and trade between countries should be free.
c. But in practice it can be seen that developing countries follow these rules whereas the developed countries have not liberalized their trade policies.
Question. How did Cargill Foods became the largest producer of the edible oils in India? Explain.
Ans : Cargill Foods, an American MNC has bought Indian company named Parakh Food. Now the control on the large marketing network and the four oil refineries has shifted to the Cargill Food. ? Cargill Food has now become the largest producer of edible oil in India.
Question. How is foreign trade interlinking markets of different countries? Explain with example.
Ans : Foreign trade means trade with other countries. When we trade with other countries then we connect with the markets of different countries.
For example, Chinese toys in the Indian market. In this process, the goods and services are produced and sold at global level. There is movement of technology and people between the countries. It gives opportunity to the local producers to reach beyond the domestic market. Buyers get different choice, price and quality.
Question. How has globalisation been advantageous to both the producers as well as the consumers in India? Explain.
Ans : This is true to state that Globalisation been advantageous to both the producers as well as the consumers in India. Producers: there are two types of producers. Large producers and small producers. The big producers who join hands with the MNCs are getting the profit but the small producers face loss because they are not able to compete with the large producers. The large producers manipulate the market. They influence the price, labour, working conditions etc. So in many cases they have to shut down their business.
Consumers:
a. They get different brands of the product.
b. They get the goods and services at cheaper rate.
c. They get better quality products.
FIVE MARKS QUESTIONS
Question. Explain the role of MNCs in the globalisation process.
Ans : Globalisation can defined as the process of rapid interconnection or integration between the markets.
MNCs play a vital role in promoting globalisation process as:
a. By producing goods and services at global level.
b. Goods and services are sold at global level.
c. Investments, technology and people are moving between countries.
d. It gives opportunity to the local producers to reach beyond the domestic market.
e. MNCs by the foreign trade connects/ integrates the markets in the world.
Question. “Globalisation has been advantageous to both consumers as well as producers.” Support the statement with suitable examples.
Ans : Yes, it is true to say that the Globalisation has been advantageous to both consumers as well as producers because:
Consumers:
a. They get different brands of the product.
b. They get the goods and services at cheaper rate.
c. They get better quality products.
Producers:
a. The local producers joining hands with MNCs get a chance to expand their business.
b. They get the newer technology from the MNCs.
c. They get the investment done by MNCs in their companies.
For example: In 1995 Ford Motors an American company joined hand with the Indian company called Mahindra and Mahindra (manufacturer of jeeps and trucks).
Question. Describe the contribution of technology in promoting the process of globalization.
or
How has improvement in technology stimulated the globalisation process? Explain.
or
Explain the role of technology in stimulating globalisation process.
Ans : It is true to say that the Information and Communication Technology has stimulated the globalisation process and played a major role in spreading our production of services across countries. Technological development: development in technology is one of the most important factor that has enabled the process of globalization. It can be studied under two different headings:
a. Developments in transport technology: The world has done tremendous improvements in the field of transportation technology. Now we have different fastest means of transport with the help of which we can reach to different parts of the world in less time and can control trade and integrate the markets easily.
b. Developments in ICT (Information and Communication Technology): It includes telephones, mobile phones, computers, internet, fax, e-mails etc. A remarkable development can be seen in the field of ICT throughout the world. Now the world is just a click away. With the help of ICT we can share and obtain information instantly across the globe at negligible cost.
Question. What is liberalization? Describe any four effects of liberalization on the Indian economy.
Ans : Removing trade barriers set by the government is termed as liberalisation. If the country uses the policy of liberalisation then it means that it allows other countries to interact, which will lead to globalisation. The four effects of liberalisation on the Indian economy are:
a. The MNCs of other countries started coming to India.
b. The Indian producers got an opportunity to reach beyond the domestic market.
c. The Indian producers got foreign investment and newer technologies from the MNCs.
d. The Indian buyers are getting variety of brands with quality at cheaper rates.
Question. How has foreign trade been integrating markets of different countries? Explain with examples.
Ans : Foreign trade means trade with other countries. When we trade with other countries then we connect with the markets of different countries.
For example, Chinese toys in the Indian market. In this process the goods and services and produced and sold at global level. There is movement of technology and people between the countries. It gives opportunity to the local producers to reach beyond the domestic market. Buyers get different choice, price and quality.
An MNC from USA producing the industrial equipment is designing its product in the research, centres of the US, its components are manufactured in china, the assembling and the export work is done from Mexico and Eastern Europe and its call centres are there is India.
Question. Describe any three ways by which multinational companies are spreading their products across the world.
Ans : The following are the three ways in which multinational corporations are spreading their products in different ways:
a. Buying up the local companies: This is most common route for MNC investment and expanding production. MNCs can do so because they have huge wealth. For example: Cargill foods an American MNC has bought Indian company named Parakh Food. Now the control on the large marketing network and the four oil refineries has shifted to the Cargill Food. Cargill Food has now become the largest producer of edible oil in India.
b. Joining hand with local companies: Sometimes the MNCs join hands with the local companies and do the production. In this process, the local companies get twin benefits:
(a) they get foreign investment and
(b) MNCs provide newer technology to them for the production.
For example: In 1995 Ford Motors an American company joining hand with the Indian company called Mahindra and Mahindra (manufacturer of jeeps and trucks).
c. By placing orders: Sometimes MNCs just place orders with small producers around the world for the production of garments, footwear and sports items. After that, the products are supplied to the MNCs and sold under the brand name of the MNCs.
Question. Describe the major problems created by the globalisation for a large number of small producers and workers.
Ans : The major problems created by the globalisation for a large number of small producers and workers are:
Small producers: The local small producers are not able to compete with the MNCs and they have to shut down their business. It is mainly due to the following factors:
a. Lack of newer technology.
b. MNCs have huge wealth to influence the price and market condition.
Workers:
a. Due to the globalisation the MNCs don’t hire the workers on permanent basis.
b. They use flexibility in labour law policy.
Question. Explain any three ways by which MNCs exercise control on production.
Ans : The following are the three ways in which multinational corporations are spreading their products in different ways –
a. Buying up the Local Companies: This is most common route for MNC investment and expanding production. MNCs can do so because they have huge wealth. For example: Cargill Foods an American MNC has bought Indian company named Parakh Food. Now the control on the large marketing network and the four oil refineries has shifted to the Cargill Food. Cargill Food has now become the largest producer of edible oil in India.
b. Joining hand with local companies: Sometimes the MNCs join hands with the local companies and do the production. In this process, the local companies get twin benefits:
(i) they get foreign investment and
(ii) MNCs provide newer technology to them for the production.
For example: In 1995 Ford Motors an American company joined hand with the Indian company called Mahindra and Mahindra (manufacturer of jeeps and trucks).
c. By placing orders: Sometimes MNCs just place orders with small producers around the world for the production of garments, footwear and sports items. After that, the products are supplied to the MNCs and sold under the brand name of the MNCs.
Question. How is foreign trade interconnecting the markets in different countries? Explain with examples.
Ans : Foreign trade means trade with other . countries. When we trade with other countries then we connect with the markets of different countries.
For example, Chinese toys in the Indian market. In this process the goods and services and produced and sold at global level. There is movement of technology and people between the countries. It gives opportunity to the local producers to reach beyond the domestic market. Buyers get different choice, price and quality.
An MNC from USA producing the industrial equipment is designing its product in the research centres of the US, its components are manufactured in China, the assembling and the export work is done from Mexico and Eastern Europe and its call centres are there is India.
Question. How are MNCs controlling and spreading their productions across the world? Explain.
Ans : The following are the three ways in which multinational corporations are controlling and spreading their production across the world:
a. Buying up the local companies: This is most common route for MNC investment and expanding production. MNCs can do so because they have huge wealth. For example: Cargill Foods an American MNC has bought Indian company named Parakh Food, Now the control on the large marketing network and the four oil refineries has shifted to the Cargill Food. Cargill Food has now become the largest producer of edible oil in India.
b. Joining hand with local companies: Sometimes the MNCs join hands with the local companies and do the production. In this process, the local companies get twin benefits:
(i) they get foreign investment and
(ii) MNCs provide newer technology to them for the production.
For example: In 1995 Ford Motors an American company joining hand with the Indian company called Mahindra and Mahindra (manufacturer of jeeps and trucks).
c. By placing orders: Sometimes MNCs just place orders with small producers around the world for the production of garments, footwear and sports items. After that, the products are supplied to the MNCs and sold under the brand name of the MNCs.
