NCERT Solutions for Class 10 Social Science Economics Chapter 4 Globalization and the Indian Economy

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By referring to these solutions, students can effectively prepare for their examinations. Additionally, they can explore the NCERT Solutions for Class 10 Social Science, encompassing exercises and answers from the chapters of History, Geography, Political Science, and Economics, further facilitating their exam readiness.

1. What do you understand by globalisation? Explain in your own words.

Ans. Globalization refers to the process of increased interconnectedness and integration among countries on a global scale. It involves the exchange of goods, services, ideas, and information across national boundaries. This phenomenon is driven by various factors, such as advancements in technology, international trade, foreign investments, and the flow of capital and labor across borders.

Globalization can also be understood as the breaking down of barriers between nations, enabling them to interact and collaborate more extensively. It allows for the seamless movement of goods and services between countries, fostering economic integration and interdependence. Moreover, globalization facilitates the sharing of knowledge and cultural practices, promoting diversity and cross-cultural understanding.

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

Ans. The Indian government initially put barriers to foreign trade and investment to protect our country’s producers and small industrialists from foreign competition. However, they later realized that foreign competition could actually motivate Indian industrialists to enhance the quality of their products. They also recognized that removing these barriers would boost trade and improve the quality of products made in the country.

3. How would flexibility in labour laws help companies?

Ans. Companies benefit from flexibility in labor laws as it attracts foreign investments. Instead of hiring workers on a permanent basis, companies can employ them for short periods during busy times, reducing labor costs. However, foreign companies are requesting even more flexibility in labor laws. Market competition is growing, and if the government doesn’t allow this flexibility, foreign companies may struggle to achieve their desired profit levels.

4. What are the various ways in which MNCs set up, control or produce in other countries?

Ans. Multinational corporations (MNCs) invest significant capital in a country’s economy to establish and oversee production. They often choose locations near the market to take advantage of lower labor costs. To boost production, MNCs often collaborate with local companies, leading to a rapid increase in production capacity. In many instances, MNCs acquire local companies and expand their production operations. Another method they employ is placing orders with small, local producers to control production. They enhance productivity and efficiency by providing technology and heavy machinery for production.

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

Ans. Developed countries encourage developing nations to liberalize their trade and investment policies because multinational corporations (MNCs) can establish industries in these smaller and developing countries, which are more cost-effective and can generate higher profits for them. The reduction in labor and manufacturing costs leads to increased profitability. Moreover, the establishment of factories and industries by MNCs in developing countries intensifies competition. As a result, developing countries should also request the fair elimination of trade barriers to safeguard their own industries.

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

Ans. The effects of globalization have not been equal for all countries. Developed nations have primarily benefited from globalization, while developing countries have mainly served as sources for setting up industries and providing cheaper labor. The majority of the profits are earned by the developed countries. Small industries and companies in developing nations have consistently encountered difficulties in earning profits and accessing the market for their goods.

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

Ans. The liberalization of trade and investment policies has played a crucial role in facilitating the process of globalization by removing trade barriers and simplifying foreign trade and investment. This has broadened the options available to buyers, who can now choose products not only from domestic companies but also from foreign ones. Increased competition among traders has led to lower prices for products. Liberalization has further promoted globalization by empowering businessmen with the decision-making authority regarding imports and exports.

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

Ans. Foreign trade has played a significant role in integrating markets across countries. It has enabled producers to compete and export their goods to markets in other countries. This not only benefits the sellers but also provides opportunities for buyers to access goods from outside their own country. The expanded choices allow consumers to select products not only from domestic companies but also from foreign ones.

Competition in the market has led to a decrease in the prices of these goods. Producers from various countries can now compete not only with local competitors but also with those worldwide. As a result, the Indian market is no longer saturated solely with goods made in India, but with products from around the world, available at affordable prices.

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.

Ans. Globalization is expected to persist in the future as well. Looking ahead twenty years, there will be greater efficiency in the production of goods, a rise in market competition, noticeable advancements in various fields, and an overall increase in the quality and quantity of goods manufactured. This will create more opportunities for small industries and entrepreneurs to thrive and expand their operations.

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 arguments?

Ans. Globalization has both advantages and disadvantages. On the positive side, increased globalization brings improved trade opportunities and a rise in employment due to the establishment of large-scale industries. It expands the profit market and boosts imports and exports in the national economy. Moreover, people can access goods manufactured worldwide at lower prices, enhancing consumer choices.

However, globalization also has its downsides. One disadvantage is the disproportionate increase in the income of the wealthy, accompanied by a corresponding decrease in the income of the poor. This occurs because small-scale local industrialists struggle to earn substantial profits, leading to an increase in income inequality.

11.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.

Ans. Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of globalisation. 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.

12.Match the following.

Ans. 

13. Choose the most appropriate option.
(i) The past two decades of globalisation has seen rapid movements in
(a) goods, services, and people between countries.
(b) goods, services, and investments between countries.
(c) goods, investments, and people between countries.

Ans. (c) goods, investments and people between countries.

(ii) The most common route for investments by MNCs in countries around the world is to
(a) set up new factories.
(b) buy existing local companies.
(c) form partnerships with local companies.

Ans. (b) buy existing local companies.

(iii) Globalisation has led to improvement in living conditions
(a) of all the people
(b) of people in the developed countries
(c) of workers in the developing countries
(d) none of the above

Ans. (d). none of the above