Short Answer- Class 10 – Social Science -Economics-Chapter 4 : Globalisation and the Indian Economy

Short Answer- Class 10 – Social Science -Economics-Chapter 4 : Globalisation and the Indian Economy

Q1. 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.

Q2. 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.

Q3. 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.

Q4. 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.

Q5. ‘Barriers on foreign trade and foreign investment were removed to a large extent in India since 1991.’ Justify the statement.

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.

Q6. How have our markets been transformed? Explain with examples.

 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.

Q7.  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.

Q8. What is foreign trade? How does it integrate markets? 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.

Q9. 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  

Q10. What is globalisation? How does globalisation help in interconnection among different 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.

Q11. Explain any three conditions that determine MNCs setting up production in other countries.

Ans :  The three conditions that determine MNCs setting up production in other countries are:

a. They set up their production units where there is easy availability of cheap and skilled labour.

b. They look for the locations from the markets are close so that they will have to pay less transportation cost in supplying the final goods to the consumers.

 c. They set up their business in the countries where the government policies are favourable for them. Such as in India the Indian government has given them the benefit of flexibility in labour laws.