CBSE Class 10 Globalisation and the Indian Economy Notes - Download FREE PDF
Vedantu's notes for Class 10 Economics Chapter 4, "Globalisation and the Indian Economy," explains how globalisation affects India’s economy. This chapter covers the process of globalisation, which involves increasing international trade, investment, and movement of people. It examines how globalisation has led to growth in industries, improved technology, and expanded job opportunities in India. Refer Class 10 Economics Revision Notes for easy understanding of Class 10 Economics.
Table of Content
Vedantu notes are designed to simplify complex ideas, making it easier for you to grasp key concepts and prepare effectively for your exams according to the CBSE Class 10 Economics Syllabus. Students will learn about both the benefits, such as increased economic development, and the challenges, like competition and inequality.
FAQs on Globalisation and the Indian Economy Class 10 Notes: CBSE Economics Chapter 4
1. What is a good way to summarise the concept of globalisation for a quick revision?
Globalisation is the process of rapid integration or interconnection between countries. This process is driven by Multinational Corporations (MNCs) and involves increased movement of goods, services, investments, and technology across nations. Essentially, it's about the world becoming a single, interconnected global village, primarily through economic activities.
2. What is the main role of Multinational Corporations (MNCs) in the globalisation process?
MNCs are the primary drivers of globalisation. Their main role is to own or control production in more than one country. They achieve this by setting up offices and factories where they can find cheap labour and resources, allowing them to reduce production costs and maximise profits. By investing in different countries (foreign investment), they link economies and integrate markets globally.
3. How has technology been a key factor in enabling globalisation?
Rapid advancements in technology have been a major catalyst for globalisation. Key developments include:
- Transportation Technology: Improvements in transport have made it faster and cheaper to move goods across long distances, facilitating global trade.
- Information and Communication Technology (ICT): The internet, telecommunications, and computers have made it possible to access information instantly and communicate across the world at a very low cost, enabling the spread of services and coordinated production.
4. What are trade barriers, and why did the Indian government remove them as part of liberalisation?
A trade barrier is a restriction imposed by the government on foreign trade, such as a tax on imports. Initially, after independence, India used trade barriers to protect its domestic producers from foreign competition. However, around 1991, the government decided that Indian producers were ready to compete globally. Removing these barriers, a process called liberalisation, allowed for goods to be imported and exported easily, encouraging foreign trade and investment.
5. For revision, what is the key function of the World Trade Organisation (WTO)?
The main function of the World Trade Organisation (WTO) is to liberalise international trade. It establishes and enforces rules for trade among its member nations, aiming to ensure that trade flows as smoothly, predictably, and freely as possible. Its goal is to remove trade barriers and create a rules-based system for global commerce.
6. Can you summarise the main positive and negative impacts of globalisation on India?
Globalisation has had both positive and negative effects on the Indian economy.
- Positive Impacts: Greater choice and better quality goods for consumers, increased foreign investment (FDI), creation of new jobs (especially in the services sector), and the growth of successful Indian companies that became multinational themselves.
- Negative Impacts: Small producers and workers have faced immense challenges from foreign competition, leading to job losses in some sectors. It has also led to widening inequalities between skilled and unskilled labour.
7. How exactly do MNCs control production in other countries, besides setting up their own factories?
MNCs use several strategies to control production globally, which is a key concept to revise. These include:
- Partnerships with Local Companies: They often form joint ventures with local firms, providing capital for new technology and modern machinery.
- Acquiring Local Companies: A common method is to buy out successful local companies to instantly gain access to an established production and marketing network.
- Placing Orders with Small Producers: Large MNCs in industries like garments or footwear place large orders with small producers worldwide, controlling the quality, price, and delivery, and then selling the products under their own brand name.
8. Why is 'fair globalisation' considered necessary, and what is the government's role in achieving it?
Fair globalisation is necessary because the benefits of globalisation have not been shared equally. While it has created opportunities for some, it has negatively affected many small producers and workers. Fair globalisation aims to create opportunities for all and ensure a more equitable distribution of benefits. The government can play a crucial role by:
- Protecting workers' rights and ensuring labour laws are implemented.
- Supporting small producers to improve their performance until they are strong enough to compete.
- Using trade and investment barriers strategically if required.
- Negotiating at the WTO for fairer rules that protect the interests of developing countries.
9. Beyond technology, what other critical factors have driven the integration of world markets?
While technology is a major driver, it's crucial for revision to remember other factors. The most significant one is the liberalisation of foreign trade and investment policies by many countries. By removing barriers like import taxes and restrictions on foreign investment, governments have actively encouraged the integration of their economies with the global economy, allowing for a much freer flow of goods and capital.
10. How does foreign trade lead to the integration of markets? Explain with an example.
Foreign trade connects markets by creating opportunities for producers to sell their goods beyond their domestic boundaries. For consumers, it provides a wider choice of goods. For example, when Chinese toys are imported into India, they compete with Indian toys. This competition forces Indian toymakers to improve quality or lower prices. As a result, the price of toys in both markets tends to converge, and producers in both countries are directly competing, effectively integrating the two markets for toys. This is a core concept of market integration.
