NCERT Economics Class 10 Chapter 4 Globalization and Indian Economy CBSE Board Sample Problems Long T Answer (For CBSE, ICSE, IAS, NET, NRA 2022)

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Question

What is a foreign trade? How does it lead to integration of markets across countries?

Solution

  • Foreign trade is exchange of goods - purchase and sale – across geographical boundaries of countries.
  • Goods travel from one market to another.
  • Choice of goods available in the market increases.
  • Prices of similar goods in different markets tend to become equal.
  • Producers in two countries closely compete against each other even though they are separated by geographical distances.

Question

Explain any five positive effects of globalization on Indian economy?

Solution

  • Globalization and greater competition among producers have been of advantage to consumers, in terms of wider choice, improved quality and lower prices.
  • Enormous increase in foreign investment through MNCs.
  • Several of the top Indian companies have been able to benefit from globalization as they got newer technology and collaboration with foreign companies.
  • Some large companies emerged as MNC5 Ex. Tata Motors, Infosys.
  • New opportunities are created for companies providing services especially those involving IT.
  • It has enabled the third world countries to get better technology at a cheaper rate.

Question

What is a trade barrier? Why did the Indian government put up trade barriers after Independence? Explain.

Solution

  • Tax on imports is an example of trade barrier. It is called a barrier because some restrictions have been set up.
  • Government can use trade barriers to increase or decrease foreign trade and to decide what kind of goods and how much of each should come into the country.

Reasons for putting barriers:

  • Trade barriers were used to protect the domestic industries from foreign competition. E. g. Tax on imports.
  • It was considered necessary to protect producers within the country from foreign competition.
  • The competition from foreign competitors could have crippled the new born industries in India.

Question

What measures can be taken by the government to make globalization fair?

Solution

  • The policies of the government must focus on protecting the interests of all sections of the people.
  • Government should ensure that labour laws are properly implemented and workers get their rights.
  • Government should support small industries to face competitions.
  • In certain situations, trade and investment barriers should be imposed.
  • The government should negotiate at the WTO for fairer rules.

Question

How do MNCs interlink production across countries?

Solution

  • MNC՚s set up their production units in those areas which are quite close to the markets.
  • It sets up production jointly with some of the local companies of the selected countries
  • Sometimes large MNCs place orders for production with small producers and provide them money for additional investments.
  • Sometimes MNCs buy local companies and then expand their production
  • Provide latest technology for better and speedy production

Question

How are Multinational Corporations (MNCs) controlling and spreading their productions across the world? Explain.

Solution

The ways in which MNCs are controlling and spreading their productions across the world are:

  • By directly setting up factories and offices for production.
  • By setting up production jointly with some of the local companies of other countries.
  • By buying up local companies and then expand production.
  • By placing orders for production with small producers of the countries such as garments, footwear.
  • By buying mass produced goods of domestic industries and, then selling them under their own brand name at much higher rates in foreign countries.

Question

What is globalization? Describe the role of Multinational Corporation (MNC) in promoting globalization process.

Solution

  • Globalization means: integrating the economy of a country with the economies of other countries under conditions of free flow of trade and capital and movement of persons across borders.
  • MNCs play an important role in promoting globalization process in the following ways:
    • They serve as agents for the transfer of superior technology.
    • They have provided advanced technology, manufacturing process and improved skills to underdeveloped countries.
    • They help in the transfer of capital from countries where it is abundant to where it is scarce.
    • They help in building up knowledge base and development of human resources, they help in creating large scale employment opportunities by setting up their branches and subsidiaries.
    • The operations of MNCs have a favourable effect on the balance of payments account of the host country.

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