NCERT Solutions For Class 10 Economics Chapter 4 Globalisation And The Indian Economy

NCERT Books Solutions For Class 10 Economics Chapter 4 Globalisation And The Indian Economy

NCERT Solutions For Class 10 Economics Chapter 4 Globalisation And The Indian Economy is the first stepping stone for a student in the competitive world. With the introduction of the CBSE Board Exam for class 10 a few years back, this has become an important gateway for a student. Based on the results of class 10th a student selects his future stream of Science, Commerce or Arts suiting his interest.

Takshila Learning provides you with detailed and well explained NCERT Solutions for Class 10 Social Science of each chapter of each subject for NCERT Class 10. These NCERT Solutions help you to easily understand every concept so that you can score high in your CBSE Class 10 Board Exams.

Below you can find the NCERT solution for Class 10 Economics. You can get a Solution for the all-important question of “Globalisation and the Indian Economyt”

Q1. What do you understand by globalization? Explain in your own words.

Answer: Integration between countries is defined as globalization through foreign trade and foreign investment by multinational corporations (MNCs). Increase in foreign trade, migration of people from one country to another, flow of capital finance from one country to another and private and public investment from abroad all contribute to globalization.

Q2. What were the reasons for putting barriers to foreign trade and foreign investments by the Indian government? Why did it wish to remove these barriers?

Answer: The main reason for the Government of India hindering foreign trade and foreign investment was to protect the interest earned by the producers and small industrialists of our country from foreign competition.But later it was accepted by the government that foreign competition would encourage Indian industrialists to improve the quality of their products and removing these barriers would increase the trade and quality of the products produced in the country.

Q3. How would flexibility in labor laws help companies?

Answer: Flexibility in labor law helps companies because it helps attract foreign investments. Instead of hiring workers on a regular basis, companies tend to hire workers flexibly for a short period when there is intense work pressure.This is done to reduce the cost of labor for the company. However, still not satisfied, foreign companies are demanding more flexibility in labor laws. Competition in the market is increasing every day and if the government does not allow flexibility with these laws, they will not reach their desired profit level.

Q4. What are the various ways in which MNCs set up or control production in other countries?

Answer: Controls the establishment or production of MNC by investing heavily in a country’s economy. It sets up production units close to the market so that they get cheaper labor. To increase production, MNC collaborates with some local companies as the production rate will increase rapidly. In most cases, the MNC purchases local companies and expands its production. The second way in which they control production is to order for production with small and local producers. They help in production using technology and heavy machinery which makes the work more efficient and productive.

Q5. Why do developed countries want developing countries to liberalize their trade and investment? What do you think should the developing countries demand in return?

Answer: Developed countries want developing countries to liberalize their trade and investment as multinationals can set up industries in small and developing countries, which are less expensive and make more profit from them. Labor costs decrease, manufacturing costs decrease and their profit increases. In addition, the establishment of factories and industries in developed countries increases competition. In turn, developing countries should ask for the removal of trade barriers to protect their own industries.

Q6. “The impact of globalization has not been uniform.” Explain this statement.

Answer: The impact of globalization has not been uniform since only developed countries have gained due to globalization. Developing countries are only a source of setting up industries and getting cheaper labor and the entire profit is earned by developed countries. Small industries and companies in developing countries continue to face challenges in terms of making profits and bring their goods to the market.

Q7. How has liberalization of trade and investment policies helped the globalisation process?

Answer: Liberalization of trade and investment policies helped in the globalization process as it helped to remove trade barriers. This has made foreign trade and investment easier. Buyers’ choice has also expanded as they now have to choose not only domestic companies but also products manufactured by foreign companies. The price of products has become cheaper as a result of competition among merchants.Liberalization has spread the decision-making power of export and import into the form of globalization, which is now held by traders themselves.

Q8. How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.

Answer: Foreign trade has led to the integration of markets across the country. Due to foreign trade, manufacturers are now able to compete and export their goods to the markets of other countries. Opportunities are provided not only for the seller, but also for the buyer to receive goods outside his country. Their choice has expanded as they now have to choose products manufactured not only by domestic companies, but also by foreign companies.The price of these goods have come down due to market competition. Manufacturers from different countries are now able to compete not only with competitors in their own country but also worldwide. The Indian market today is not filled with goods made in India, but with goods from all over the world at a cheaper price.

Q9. Globalization will continue in the future. Can you imagine what the world would be like twenty years from now? Give reasons for your answer.

Answer: Globalization will continue in the future as well. Twenty years from now, the production of goods will be more efficient, competition in the market will increase, progress will be evident in every field and the quality and quantity of goods produced will also increase. Small industries and entrepreneurs will grow as they will be given more opportunities.

Q10. Supposing you find two people arguing: One is saying globalization has hurt our country’s development. The other is telling, globalization is helping India develop. How would you respond to these arguments?

Answer: Globalization has its pros and cons and there are various advantages and disadvantages of increasing globalization in the country. Benefits of increased globalization include that business opportunities have improved, employment has improved due to the establishment of small scale industries. The profit market has increased and the increase in imports and exports has boosted the nation’s economy. People can buy goods made around the world at cheap prices.The disadvantages of globalization include that globalization has increased the income of the rich and decreased the income of the poor as small scale local industrialists are unable to make more profit. Due to which inequality in income is increasing.

Q11. Fill in the blanks.

Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of ______________. Markets in India are selling goods produced in many other countries. This means there is increasing ______________ with other countries. Moreover, the rising number of brands that we see in the markets might be produced by MNCs in India. MNCs are investing in India because _____________ ___________________________________________ . While consumers have more choices in the market, the effect of rising _______________ and ______________has meant greater _________________among the producers.

Answer:

Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of globalization. Markets in India are selling goods produced in many other countries. This means there is increasing trade with other countries. Moreover, the rising number of brands that we see in the markets might be produced by MNCs in India. MNCs are investing in India Because of the cheaper production costs. While consumers have more choices in the market, the effect of rising demand and purchasing power has meant greater competition among the producers.

Q12. Match the following.

Answer:

Q13. Choose the most appropriate option.

1. The past two decades of globalisation has seen rapid movements in

1. goods, services and people between countries.
2. goods, services and investments between countries.
3. goods, investments and people between countries.

Answer: c. – goods, services and investments between countries

2. The most common route for investments by MNCs in countries around the world is to

1. set up new factories.
2. buy existing local companies.
3. form partnerships with local companies.

Answer: c. – buy existing local companies

3. Globalization has led to improvement in living conditions

1. of all the people
2. of people in the developed countries
3. of workers in the developing countries
4. none of the above

Answer: d. – none of the above