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

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Question

What is the most common route for investments by MNCs in countries around the world?

Solution

To buy up local companies

Question

What is SEZ?

Solution

Special Economic Zone

Question

What do you mean by EDT?

Solution

Foreign Direct Investment.

Question

What is meant by trade barrier?

Solution

It refers to the various restrictions which are used by the government of a country to increase or decrease foreign trade such as tax on imports.

Question

Why had the Indian Government put barriers to foreign trade and foreign investment after independence? State any one reason.

Solution

To protect the producers within the country from foreign competition.

Question

Why do MNC՚s set up their offices and factories in those regions where they get cheap labour and other resources?

Solution

MNC՚s set up their offices and factories in those regions where they get cheap labour and other resources because they bring down the cost of production and ensure more profits for themselves.

Question

Differentiate between investment and foreign investment.

Solution

The money that is spent to buy assets such as land, building, machines etc. is called investment whereas investment made by a MNC to buy such assets is called foreign investment.

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