NCERT Class 10 Social Science Economics Solutions: Chapter 4-Globalisation and the Indian Economy Part 2

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Question 6:

“The impact of globalisation has not been uniform”. Explain this statement.

Answer:

“The impact of globalisation has not been uniform”. It has only benefitted skilled and professional person in urban not the unskilled persons. The industrial and service sector has much gained in globalisation than in agriculture. It benefitted MNCs on domestic producers and the industrial working class. Small producers of goods such as batteries, capacitors, plastics, toys, tyres, dairy products and vegetable oil have been hit hard by competition from cheaper imports.

Question 7:

How has liberalisation of trade and investment policies helped the globalisation process?

Answer:

Liberalisation of trade and investment policies has helped the globalisation process by making foreign trade and investment easier. Earlier, several developing countries had placed barriers and restrictions on imports and investments from abroad to protect domestic production. However, to improve the quality of domestic goods, these countries have removed the barriers. Thus, liberalisation has led to a further spread of globalisation because now businesses are allowed to make their own decisions on imports and exports. This has led to a deeper integration of national economies into one conglomerate whole.

Question 8:

How does foreign trade lead to integration of markets across countries? Explain with an example.

Answer:

Foreign trade provides opportunities for both producers and buyers to reach beyond the markets of their own countries. Goods travel from one country to another. Competition among producers of various countries as well as buyers prevails. Thus foreign trade leads to integration of markets across countries.

For example, during Diwali season, buyers in India have the option of choosing between Indian and Chinese decorative lights and bulbs. So this provides an opportunity to expand business.

Question 9:

Globalisation will continue in the future. Can you imagine what the world would be like twenty years from now? Give reasons for your answer.

Answer:

After twenty years, world would undergo a positive change which will possess the following features - healthy competition, improved productive efficiency, increased volume of output, income and employment, better living standards, greater availability of information and modern technology.

Reason for the views given above: These are the favorable factors for globalisation:

  • Availability of human resources both quantity wise and quality wise.

  • Broad resource and industrial base of malar countries.

  • Growing entrepreneurship.

  • Growing domestic market.

Question 10:

Supposing you find two people arguing: One is saying globalisation has hurt our country’s development. The other is telling, globalisation is helping India develop. How would you respond to these organisations?

Answer:

Benefits of globalisation of India:

  • Increase in the volume of trade in goods and services.

  • Inflow of private foreign capital and export orientation of the economy.

  • Increases volume of output, income and employment.

Negative Impact / Fears of Globalisation.

  • It may not help in achieving sustainable growth.

  • It may lead to widening of income inequalities among various countries.

  • It may lead to aggravation of income inequalities within countries.

Whatever may be the fears of globalisation, I feel that it has now become a process which is catching the fancy of more and more nations. Hence we must become ready to accept globalisation with grace and also maximise economic gains from the world market.