Class 10 Economics Globalisation and The Indian Economy Questions Answers - FREE PDF Download
Globalisation and The Indian Economy Class 10 Questions Answers explains the impact of globalisation on India's economy. It explains how globalisation has increased connections between countries, affecting trade, investment, and technology. The chapter explores the role of multinational corporations, changes in production methods, and the effects on different sectors of the Indian economy.
Table of Content
Class 10 Economics NCERT Solutions Chapter 4 provides clear answers to all the textbook questions, helping students understand these topics and prepare for their exams. These solutions aim to clarify the important economic changes that globalisation has introduced, and for more refer to Class 10 Social Science Syllabus.
Glance on NCERT Solutions for Class 10 Economics Chapter 4 Globalisation and the Indian Economy
Globalisation and Indian Economy Class 10 examines how globalisation influences trade dynamics between countries, impacting India's import and export markets significantly.
It explores how globalisation attracts investments from international companies, shaping India's economic landscape through foreign capital inflows.
Factors of Globalisation Class 10 delves into how globalisation facilitates the exchange of technology, fostering innovation and modernization across various sectors of India's economy.
It analyses the operational strategies of multinational corporations within India, highlighting their impact on local industries, job markets, and economic growth.
The discussion covers the transformation in manufacturing practices and supply chains as a result of globalisation, impacting productivity and sectoral growth in India.
This chapter explores how globalisation influences income distribution, employment patterns, and socio-economic disparities within Indian society.
FAQs on NCERT Solutions for Class 10 Social Science Economics Chapter 4 Globalisation and The Indian Economy
1. How should you answer the NCERT question on the various ways MNCs set up or control production in other countries?
To provide a complete answer as per the NCERT solutions, you should explain the primary methods MNCs use:
- Partnerships: Setting up production jointly with local companies to leverage their knowledge of the domestic market.
- Acquisitions: Buying up local companies and then expanding production using the MNC's brand and technology. A prominent example is Cargill Foods buying Parakh Foods.
- Outsourcing: Placing large orders for production with smaller, independent producers. The MNC then markets these products under its own brand name. This is common in industries like garments and footwear.
- Foreign Direct Investment (FDI): Directly setting up new factories and offices, known as greenfield investments.
2. What is the correct method to explain the integration of markets through foreign trade as per the Class 10 Economics Chapter 4 solutions?
The correct method is to first define foreign trade as the exchange of goods and services across countries. Then, explain its role in market integration by highlighting two key effects:
- It provides an opportunity for producers to reach beyond their domestic markets and sell their goods globally.
- It gives consumers a wider choice of goods, often at more competitive prices.
A good example from the textbook is the availability of Chinese toys in Indian markets, which forces Indian toy makers to compete on price and quality, thereby integrating the two markets.
3. How do you solve the question on why the Indian government imposed trade barriers after independence and why it removed them later?
For a step-by-step solution, structure your answer in two parts:
- Reason for Imposing Barriers: After 1947, the government used trade barriers, such as high taxes on imports, to protect domestic industries from foreign competition. This was crucial for newly emerging sectors in the 1950s and 1960s to grow without being overwhelmed by established international companies.
- Reason for Removing Barriers: Starting around 1991, the government removed these barriers because it felt that Indian producers were ready to face global competition. The belief was that competition would force domestic companies to improve the quality of their products and become more efficient, a key aspect of the policy of liberalisation.
4. According to the NCERT solutions, what are the key factors that have enabled the process of globalisation?
The NCERT solutions for Class 10 Economics Chapter 4 highlight two main factors that have enabled globalisation:
- Technology: Rapid improvements in transportation technology have made the delivery of goods across long distances faster and cheaper. Similarly, advancements in information and communication technology (ICT), like the internet and computers, allow for instant communication and the sharing of information, which is vital for managing global production.
- Liberalisation of Policies: The removal of barriers or restrictions set by the government on foreign trade and foreign investment is called liberalisation. This policy change allows goods to be imported and exported easily and enables foreign companies to set up operations in India, accelerating globalisation.
5. How should you explain the statement “The impact of globalisation has not been uniform” for the NCERT exercise?
To explain this statement effectively, you should provide examples of both the beneficiaries and those negatively affected by globalisation. Mention that the impact has been uneven across different sections of society:
- Positive Impact: It has benefited well-off consumers in urban areas with a wider choice of quality goods. Producers who could invest in new technology and compete globally have also gained.
- Negative Impact: Many small producers and workers have been hit hard. Small manufacturers face stiff competition from cheaper imports, leading to business closures. Workers often face uncertain employment as companies seek flexibility in labour laws.
6. What is the role of the World Trade Organisation (WTO) in the globalisation process, as per the Class 10 NCERT textbook?
According to the NCERT textbook, the World Trade Organisation (WTO) is an international body whose primary purpose is to liberalise international trade. It sets and enforces rules for trade between nations, aiming to ensure that trade flows smoothly, predictably, and freely. By advocating for the removal of trade barriers, the WTO plays a direct role in promoting and accelerating the process of globalisation among its member countries.
7. For a HOTS question, how would you analyse what the Indian economy might look like if the 1991 liberalisation policies were never implemented?
To solve such a higher-order thinking question, you should argue that without liberalisation, the Indian economy would have remained largely a closed economy. This would likely have resulted in:
- Less Foreign Investment: MNCs would not have the incentive or ability to invest in India, limiting capital inflow.
- Slower Technological Progress: Access to advanced foreign technology would be minimal, making domestic industries less efficient.
- Limited Consumer Choice: Consumers would have fewer products to choose from, and prices would likely be higher due to lack of competition.
- Uncompetitive Industries: Protected from foreign competition, domestic industries would have little pressure to improve quality or innovate.
Overall, India's economic growth and its integration with the world economy would have been significantly slower.
8. How can you address the common misconception that globalisation only benefits large, multinational corporations?
To address this misconception, you should provide a balanced answer based on the NCERT solutions. While large MNCs are indeed major beneficiaries, you should explain that other groups also gain:
- Skilled Professionals: Globalisation has created new opportunities and high-paying jobs for educated and skilled workers, especially in sectors like IT and business process outsourcing (BPO).
- Consumers: The average consumer benefits from a wider variety of goods and services at lower prices due to increased competition.
- Successful Indian Companies: Several Indian companies have used the opportunities provided by globalisation to become multinationals themselves (e.g., Tata Motors, Infosys).
It is important to conclude by acknowledging that the benefits are not uniform and that small producers and unskilled workers often face significant challenges.
9. How does technology act as a more powerful driver of globalisation than policy liberalisation?
This is an analytical question. A good answer would argue that while liberalisation policies permit globalisation, technology is what fundamentally enables and accelerates it. You can make the following points:
- Scale and Speed: Technology, especially in IT and logistics, allows for the management of complex global supply chains in real-time. This scale of operation was impossible before the internet and modern transport.
- Irreversibility: A government can reverse its liberalisation policies, but it is nearly impossible to undo the integration brought about by technology. Once communication networks and knowledge are shared globally, they cannot easily be withdrawn.
- Cost Reduction: Technology drastically reduces the cost of transportation and communication, making global trade more profitable and feasible than policy changes alone can achieve.
10. What steps does Chapter 4 suggest can be taken to ensure a “fairer” globalisation?
The NCERT solutions suggest that to make globalisation fairer and ensure its benefits are shared more widely, several steps can be taken:
- Government Policies: The government must create policies that protect the interests of all its citizens, not just the wealthy and powerful.
- Labour Laws: Proper implementation of labour laws is crucial to protect workers' rights and ensure they get fair wages and social security.
- Support for Small Producers: The government can support small producers by helping them improve their performance, technology, and quality until they are strong enough to compete.
- Trade Negotiations: The government can negotiate with the WTO for fairer rules that do not disadvantage developing countries.
