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

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Question

What are the harmful effects of MNC՚s to a host country? Give three examples.

Solution

The harmful impacts of MNCs to a host country are:

  • They can hamper the growth of local industries by giving them tough competition.
  • They generally use capital intensive techniques which may not be suitable for a developing country like India, where unemployment is a big problem.
  • They may misuse the environment of the host country by over exploiting its natural resources.

Question

What is the meaning of SEZ? Mention any two features of SEZ.

Solution

  • SEZ means Special Economic Zones. These are designated areas in a region set up by government to attract foreign companies to invest in their countries.
  • The features of Special Economic Zones are:
  • The companies who set up production units in these areas are exempted from paying taxes for an initial period of five years.
  • These areas are provided with best infrastructural facilities like roads, water, transportation, communication, markets etc.

Question

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

Solution

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

  • They provide money to the local companies for additional investments like buying new machines to replace the old ones.
  • They bring the latest technology for production.
  • They may build new stores and office buildings, thus providing employees with modern surroundings.

Question

“Globalization and greater competition among producers has been of advantages to consumers.” Justify the statement with examples.

Solution

Globalization and greater competition among producers has been of advantageous to consumers in the following ways:

  • Consumers in today՚s world have a wide variety of goods and services to choose from. The latest models of digital cameras, mobile phones and televisions made by the leading manufacturers are available to them.
  • Consumers now enjoy better and improved quality at lower prices.
  • It has resulted in higher standards of living.
  • There has been a varying impact on producers and workers.
  • Many top India n companies have been able to establish themselves as multi- ′ national corporations.
  • Latest technology and production methods have raised production standards.