Globalization And The Indian Economy Questions | Class 10 | Social Science 2024

Last updated on July 14th, 2024 at 05:03 pm

Globalization And The Indian Economy Questions 

Below are some of the very important NCERT Class 10 Social Science Unit 4 Chapter 4  Globalization And The Indian Economy Questions . These Class 10 Manufacturing Industries Important Questions have been prepared by expert teachers and subject experts based on the latest syllabus and pattern of term 2. Questions with Answers to help students understand the concept.

These Questions for Class 10 Social Science Globalization And The Indian Economy Questions  with answers are very important for the latest CBSE term 2 pattern. These class 10 notes,  Q and A are very important for students who want to score high in CBSE Board.

We have put together these NCERT  Questions of Class 10 Social Science unit 4 chapter 4 Globalization And The Indian Economy Questions for practice on a regular basis to score high in exams. Refer to these Questions with Answers here along with a detailed explanation.

Short Answer (SA) Type Questions

1. What is investment? Name the companies which  make foreign investments. Write any two benefits which a local company expects from joint production with a Multinational company. 

2. How are local companies benefited by collaborating  with multinational companies? Explain with examples.

3. What are the various ways in which MNCs set up or control production in other countries?
Or
Explain by giving examples that MNCs are spreading  their production in different ways.

4. List the factors that encourage the MNCs to set up their production units at a place.
Or
Why do multinational corporations set up their  offices and factories in certain areas only?

5. ‘Barriers on foreign trade and foreign investment were removed to a large extent in India since 1991. Justify the statement.  
Or
Why did the Indian Government remove barriers to a large extent on foreign trade and foreign  investment?

6. “Information and Communication Technology (ICT) has played a role in spreading out products and services across countries.” Support this statement.

7. How does the Government attract foreign investment? Explain different ways.   

8. Why had the Indian government put barriers to foreign trade and foreign investments after independence? Analyze the reason. 

9. Explain the facilities available in SEZ that are developed by Central and State governments to attract foreign Investment. 

10, “Globalization has been advantageous to eonsunners as well to producers”, Support the statement with suitable examples.

11. Describe any four characteristics of WTO.

12. How is stability in jobs for the workers affected due to globalization?

13. “The impact of globalization has not  been uniform.” Explain this statement. 
Or
“The impact of Globalization has not been uniform.  Explain with examples.

14. How has liberalization of trade and investment policies helped the globalization process?

15. “Fair globalization would create opportunities for all  and also ensure that benefits of globalization are shared better.” Support the statement.
Or
How can the government of India play a major role to make globalization more fair? Explain with examples.

Short Answer Type Question Answers

Ans. 1

The money that is spent to buy assets such as land, building, machines and other equipment is called investment. 

The companies which make foreign investment in India are Ford Motors, Nike, Coca-Cola, Pepsi, Honda, Nokia, Tata Motors, Infosys, Ranbæxy, Asian Paints, etc. 

The benefits that a local company expects from joint  production with a multinational company are :-

(a) To provide money for additional investments, like  buying new machines for faster production.
(b) To bring with them the latest technology for production.     

Ans. 2

The local companies are benefited by collaborating with multinational companies in the following ways :-

(a) MNC’s can finance the additional investments for the local companies like buying new machinery for faster production.
(b) MNC’s may provide the companies with the latest technology for efficient production as MNCs have an  international outreach.
(c) Local companies will benefit financially through a partnership with an MNC because the production and its efficiency would naturally increase. 

Hence, an MNC works at an international level, while local companies have a very small outreach. Therefore, a partnership with such a large company is beneficial for both.

Ans. 3

The way in which MNCs control or spread their production 

By Buying Local Companies Large MNCs buy companies that are operating locally. By doing this, they  get a good customer base and the local company gets the latest technology. For example, Cargill Foods (MNC) merged with Parakh Foods (local).

By Joint Ventures MNCs set-up production units jointly with any company that may    be operating in a country. By doing this, MNCs not only increase their production but also get a vast market. For example, Ford Motors set up an automobile plant in collaboration with Mahindra and Mahindra. 

By Placing Orders with Small Producers MNCs place orders for their products with small producers in developing countries where the resources are cheap. Then the MNCs sell those products under  their own brand. Ex: Garments, footwear, jeans,  footballs, etc.

Ans. 4

The factors that promote the setting up of MNCs or the reason for setting up MNCs at a certain place are  

• Availability of skilled and unskilled labor, e.g. India  has highly skilled engineers who can understand the  technical aspects of production.
• Availability of raw materials at cheap prices e.g. China provides the advantage of being a cheap manufacturing location.
• Well developed infrastructure like roads and railways 
• Liberalized governmental policies.
• Closeness to markets e.g. Mexico and Eastern Europe are useful for their closeness to the markets in the US and Europe.
• Safe environment

Ans. 5

It is true that barriers on foreign trade and foreign  investment have been removed to a large extent in India  since 1991 because     

• In 1991, the Government of India liberalized its policy  and felt that Indian producers must compete with   producers around the world.

• The Government had an opinion that trade competition would improve the performance of the  local producers within the country since they will be  forced to improve their quality.

• Another reason was the economic crises in India in 1990-91 and support of WCO and IMF lcd thc government to remove trade barriers.

Ans. 6

Information And Communication Technology (ICT) has played a role in spreading out products and services across countries in the following ways:

• Telecommunication facilities (Telegraph, telephone including mobile phones, 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.

• Computers have started the amazing world of the Internet, where one can obtain and share information on almost anything. It also allows us to send instant electronic mail and (voice-mail) across the world at negligible costs which boosts trade and commerce.

Ans. 7

Government attracts foreign investment in the following ways:

• Special Economic Zones have been set up to have world-class facilities such as cheap electricity, roads, transport, storage, etc.
• The companies setting their units in SEZs are exempted from paying tax for an initial period of five years which increases their profit.
• Labor laws are made flexible in SEZs. This has attracted foreign investment.

Ans. 8

Indian government put barriers to foreign trade and foreign investments after independence because

• To protect the domestic producers within the country from foreign competition in the form of imports.
• To encourage more production of goods so that more industries can be started.
• During the 1950s and 1960s, Indian industries were just coming up, they were not prepared to face challenges from foreign countries.

Ans. 9

SEZs are industrial zones set up by the government to promote the establishment of MNCs.

The facilities available in SEZ are:

• SEZ are provided with world class facilities: electricity, water, roads, transport, storage, recreational and educational facilities.  
• Companies operating in SEZ do not have to pay taxes for five years.
• Government has allowed flexibility in the labor laws to attract MNCs.

Ans. 10

Globalization has benefited the producers and the consumers in the following ways: 

• Globalization has led to an intense increase in industrial competition as a result producers are competing over each other to provide better and cheaper services to the consumers this has also resulted in reduction in the prices.

• With the initiation of globalization, producers now have relåilively free access to international markets. Also, they can now avail more easily of the credit facilities fomarcled in terms of capital and technology. 

This is illustrated by the example of the electronics goods and garments industry.

• Consumers have more choice of goods and services, as compared to earlier times specially in modern digital technological equipments like cell phones, cameras etc.

Ans. 11

The four characteristics of WTO are:

(i) World Trade Organization (WTO) is a powerful international organization.

(ii) It aims at liberalizing international trade.

(iii) It establishes rules regarding international trade and sees that these rules are obeyed.

(iv) The WTO is supposed to allow free trade for all countries. But in practice, it is seen that the developed countries have unfairly retained trade barriers.

Ans. 12

The stability in jobs for the workers affected due to globalization in the following ways:

• There is no permanent employment, but workers are employed only when needed, i.e. they are ‘flexible workers’. In the slack season, they are out of work with no compensation.
• Due to globalization, the MNC’s main objective is to lower costs. To do this, they provide temporary employment only and are given lower wages or they may have to work on a per day basis.
• Workers may have to work for longer hours and be laid off from work without any compensation during the slack season.

Ans. 13

The impact of global isalion has not been uniform as 

• Globalization has increased the sale of consumer goods which are demanded by only a small section of people in developing countries like cell phones, automobiles, and soft drinks. Large section is still deprived of basic necessities.
• Globalization increases the concentration of economic power and leads to inequalities, It is mainly beneficial to large capitalists, industries and large companies like  google. The small scale producers and workers have suffered as a result of rising competition.
• Globalization has changed the nature of employment as now workers are hired on a temporary basis and their jobs  are no longer secure.

Ans. 14

Liberalization of trade and investment policies has helped in Globalization in the following ways:

• This has helped in the import and export of goods. This means that goods can be exported and imported easily and also foreign companies could set up factories and offices here.
• Larger foreign investment and larger foreign trade have led to greater integration of production and markets across countries. As a result, more and more companies are coming closer to each other due to MNCs.
• Latest technology such as ICT is spread throughout the  world due to liberalization.

Ans. 15

As fair globalization would create opportunities for all and also ensure that benefits of globalization are shared better,

the government can play a major role in making globalization a fair medium in the following ways

• By framing policies that protect the interests of not only the rich and powerful but also the weaker sections of the society.
• By supporting small producers so that they can compete with large manufacturers. 
• By ensuring that labor laws are properly implemented and workers get their rights.
• By using trade and investment barriers and negotiating for fairer rules at the WTO.
•  It can also align with other developing countries with similar interests to fight the donnination of’ developed countries’ in the WTO.

Long Answer (LA) Type Questions

1. Why do Multinational Corporations (MNCs) set up their offices and factories in certain areas only? Explain any five reasons.  

2. How has foreign trade been integrating markets of different countries? Explain with examples.

3. How has our market being transformed in recent years? Explain with examples.

4. “Rapid improvement in technology has stimulated the globalization process.” Explain the statement with examples. 

5. How can consumers and producers benefit from ‘foreign trade’? Explain with examples. 

6. What is globalization? Explain two positive and two negative impacts of globalization.

Long Answer Type Question Answers

Ans. 1

Multinational Corporations set up their offices and factories in certain areas only due to the following reasons:

(i) Availability of Labor The MNCs operating in a country get cheap labor so they set up their factories where there is easy availability of skilled and unskilled labor.

(ii) Availability of raw materials The MNCs set up their factories where they get raw material easily and at cheap prices.

(iii) Well Developed Infrastructure MNCs set up their offices and factories where there are good infrastructural facilities such as roads, railways, regular supply of electricity etc.

(iv) Liberalized Government Policies When the  government encourages investment then it liberalizes its trade policies so that MNCs could set up their offices at that place. So, MNCs set up in those areas where they get government support.

(v) Closeness to Markets MNCs set up their offices and industries in those places where there are good markets for selling their finished products. This reduces transportation cost also.

Ans. 2

Foreign trade has been integrating markets of different countries in following ways:

• Since historic times foreign trade has been the main channel of connecting countries, e.g, Silk route  connects India and South Asia to markets both in the East and West. 

Foreign trade creates an opportunity for producers to reach beyond the domestic markets, i.e. markets of their own countries. 

Choice of goods in the markets rises. Prices of similar goods in the two markets tend to become equal. Producers in the two countries closely compete against each other even  though they are separated by thousands of miles.

• With many MNCs in the market, the consumer has a   wide range of products coming from different nations to choose from. Hence, it interlinks various markets   across the countries. For example-Volkswagen, a German automobile company, is the biggest German automaker in the world. It came to India in 2007 and had recorded sales of 32,627 vehicles in the year 2010.
• Another example is the Indian market has a number of footwear brands available for customers. A consumer can decide what to purchase either local  brands like Bata, Iiberly, Red Chief or international brands like Nikes Skcehers, Reelbok etc as per his choice and need

Ans. 3

Our markets have been transformed in recent years due to the process of globalization in the following ways:

As consumers in today’s world some of us have a wide choice of goods and services before us. The latest model of digital cameras, mobile phones and televisions made by the leading manufacturers of the world are within our reach.

Every season, new models of automobiles can be seen on Indian roads. Gone are the days when Ambassador and Fiat were the only cars on Indian roads.

Today, due to globalization and foreign trade, Indians are buying cars produced by nearly all the top  companies in the world.

In the similar way, we can see a wide variety of brands in the marketplace e.g„ from shirts to televisions to processed fruit juices and even chocolates and candies.  With the coming of MNCs in India, local companies are now adopting newer technology and production methods.

Due to this changing pattern in production consumers in  Indian markets are enjoying a much higher standard of  living than ever before. 

Ans. 4 

Rapid improvement in technology has stimulated the globalization process in the following ways:

• There have been many improvements in transport facilities which help in export and import of goods. This increases trade relations between countries. 
• Since technology improves efficiency, the process of exchange has become faster and cheaper. 
• Development in information and communication  technology has been the most beneficial since information can be now sent in seconds across the  world. 
• Development in IT also has led to the production of services through outsourcing for example, call centers, online teaching etc.
• Through internet facilities, one can obtain and share information on almost anything, it allows one to send e-mail and messages across the world at negligible costs.

For example, a news magazine published for London readers is to be designed and printed in Delhi. The magazine is sent through the internet to the Delhi office, designers in the Delhi office get orders on how to design the magazine from the office in London using telecommunication facilities.

The designing is done on a computer. After printing, the magazines are sent by air to London. Even the payment of money for designing and printing from a bank in London to a bank in Delhi is done instantly through the internet banking. 

Ans. 5

Consumers and producers both are benefited from ‘foreign trade’ in the following ways:

• Foreign trade creates opportunities for the producers to sell their products not only in the domestic markets (within the country) but also all over the world. 

For example, Cafe Coffee Day, which is an Indian MNC, exports its coffee to various countries like the USA, Europe and Japan.

• Producers can also buy from the world market where raw material and labor is cheap. Similarly for the buyers, impon of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced.
• Foreign trade facilitates the opening of trade goods which travel from one market to another. Choice of goods in the market rises.
• Producers in the two countries now closely compete against each other even though they are far away from each other.
• Prices of similar goods in the two markets tend to become equal due to competition.

Ans. 6

Globalization is the process of integration and interconnectedness between countries.

Positive impacts of Globalization are

(a) Availability of a variety of products with greater choice and quality at affordable price.
(b) Creation of new jobs and higher standard of living.

Negative impact of Globalization are     

(a) Thousands of uneducated and unskilled laborers have become jobless due to closure of domestic units. 
(b) Most of the small industries like toys, tires, plastics, dairy products are affected due to foreign competition. This results in their closure thereby  reducing production.

Case-Study Based Questions

1. Read the following passage and answer accordingly.   

Source-A Globalization and the Indian Economy 

As consumers in today’s world, some of us have a wide choice of goods and services before us, Thc latest models ol’ digital cameras, mobile phones and televisions made by the leading manufacturers of the world are within our reach. Every season, new models of automobiles can be seen on Indian roads,

(i) How is the impact of globalization visible on consumers? 

Source-B Foreign Trade and Integration of Markets

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 produce not only in markets located within the country but can also compete in markets located  in other countries of the world. 

Similarly, for the buyers, import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced.

(ii) Explain the basic function of Foreign Trade.

Source-C The Struggle for Fair Globalization 

In the past few years, massive campaigns and representation by people’s organizations have influenced important decisions relating to trade and investments at the WTO. This has demonstrated that people also can play an important role in the  struggle for fair globalization.

(iii) How do people play an important role in the struggle for fair globalization ? Explain.

2. Read the following passage and answer accordingly.

MNC is not only selling its finished products globally, but more importantly, the goods and services are produced globally. As a result, production is organized in increasingly complex ways. 

The production process is divided into small  parts and spread out across the globe. In the above example, China provides the advantage of being a  cheap manufacturing location. Mexico and Eastern Europe are useful for their closeness to the markets in the US and Europe.

India has highly skilled engineers who can   understand the technical aspects of production. It also has educated English speaking youth who can provide customer care services. 

And all this probably  can mean 50-60 per cent cost savings for the MNC!  The advantage of spreading out production across the borders to the multinationals can be truly immense.

(i) Why do MNCs prefer India as their destination for setting up business?

(ii) What kind of criterias are looked upon by the  MNC’s for Investment?

(iii) To what extent do you agree that SEZs are  encouraged by the government for MNCs?

Case-Study Based Answers 

Ans. 1

(i)

The impact of globalization is visible on consumers as due to globalization there is a greater choice available before  consumers who now enjoy improved quality and lower prices for several products.     

(ii)

The basic functions of foreign trade is that it creates an opportunity for the producers to reach beyond   the domestic markets i.e. markets of their own countries. 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)

People play an important role in the struggle for fair globalization as they organize massive campaigns and protests and influence the trade and investment policies of the World Trade Organization (WTO) and their own countries as well.

Ans. 2

Ans. (i)

MNC’s prefer India as their destination for setting business due to the following reasons 

• India has highly skilled engineers who can understand the technical aspects of production.

• India also has educated English speaking youth. It has cheap labor and resources.

Ans. (ii)

MNC look for various criterias before investing such as availability of skilled-unskilled labor, closeness to the markets, government policies that look after their interest, etc.

Ans. (iii)

Government encourages SEZs which is known from the fact that the government provides world class facilities like  electricity, water, roads, transport, storage, recreational  and educational facilities in these industrial zones. SEZs are encouraged so that MNCs set up their factories or omces in SEZs.

Final Words

From the above article, you have practiced Class 10 Social Science unit 4 chapter 4 Globalization And The Indian Economy Questions. We hope that the above-mentioned notes, Q & A for term 2 will surely help you in your exam. 

If you have any doubts or queries regarding Class 12 Social Science unit 4 chapter 4 Globalization And The Indian Economy Questions feel free to reach us and we will get back to you as early as possible.