CBSE Class 12 Social Science The Making of a global world Assignment

More Questions and Answers for NCERT Class 10 The Making of a Global World

1. Elucidate any three factors that let to the Great Depression.

Answer : (i) Agricultural overproduction remained a problem and it was made worse by falling agricultural prices.

(ii) As prices slumped and agricultural incomes declined, farmers tried to expand production and bring a large volume of produce to the market but it pushed down prices.

(iii) In the mid 1920s, many countries financed their investments through loans from the US, it was extremely easy to raise loans in the US when the going was good.

(iv) But in the first half of the 1920’s, countries that depended crucially on US loan faced an acute crisis.

(v) The withdrawal of the US loans affected the rest of the world in different ways. In Europe, it led to the failure of small major banks and the collapse of currencies, such as the British Pound Sterling.

2. The multinational companies (MNCs) choose China as an alternative location for investment? Explain the statement.

Answer : (i) Since the revolution in 1949, China gradually came in the field of world economy. It attracted the foreign MNC’s because of its economic structure.

(ii) Wages were relatively low.

(iii) China has the largest population besides labour, that formed a larger consumer base.

3. Explain why economy of USA was strong in the early 1920s? Would you agree that the roots of the Great Depression lay in the ‘boom’? Give reasons for your answer.

Answer : (i) Mass production became a characteristic feature of industrial production in the USA.

(ii) Mass production lowered costs and prices of engineered goods.

(iii) There was a spurt in the purchase of refrigerators, washing machines, etc., through hire purchase.

(iv) It was fuelled by a boom in house construction and home ownership, financed once again by loans. Yes, the roots of the Great Depression lies in this boom because of the overproduction in industrial and agricultural sector and liberal credit facility.

4. Mention three reasons for the creation of International Monetary Fund and the World Bank.

Answer : (i) The International Monetary Fund and the World Bank were created to meet the financial needs of the industrial countries.

(ii) When Japan and Europe rapidly rebuilt economies, they became less dependent on the IMF and the World Bank. 

(iii) Thus, from the late 1950s the Bretton Woods institutions, WB and IMF, began to turn their attention towards newly developing countries.

(iv) The newly independent countries facing problems of poverty came under the guidance of international agencies dominated by the former colonial powers.

5. Describe the social and economic effects of the World War on England and USA.

Answer : Social Effects : (i) Most of the killed and maimed people were of the working age and this affected the work force in England.

(ii) Household income declined and women stepped in to take up jobs usually done by men.

(iii) Role and position of women changed forever in England. Economic Effects :

(i) Economic links between some of the major economic powers of the world were snapped.

(ii) England borrowed large sums of money from the US Banks.

(iii) USA emerged as an international creditor. (iv) USA owned more assets in foreign countries than foreign countries owned in the USA.

6. How did the use of technology transform food availability in Europe?

Answer : (i) Faster railway, lighter wagons and larger ships helped food to reach more cheaply and quickly from far away farms to markets.

(ii) Earlier the animals were shipped live from America to Europe, many died on the way or became unfit to eat. Thus meat became expensive.

(iii) Refrigerated ships : The animal could be slaughtered at the starting point of America, Australia or New Zealand and transported to Europe as frozen meat.

(iv) This reduced the shipping cost and lowered prices in Europe.

(v) The poor could add variety to their food and it improved their living condition.

7. How did the Great Depression of 1929 affect the Indian trade? Explain

Answer : The Great Depression affected the Indian trade in many ways.

(i) India’s exports and imports were halved between 1928 and 1934.

(ii) As international prices crashed, prices in India also plunged.

(iii) Peasants and farmers suffered more than urban dwellers.

(iv) Peasants producing for the world market were the worst hit.

(v) Town-dwelling land owners and middle-class salaried employees found themselves better off as everything cost less for them.

8. Which one of the following groups of the countries was known as the 'Central Powers' in Europe? (a) Germany, Russia and France (b) Russia, Germany and Britain (c) Germany, Austria-Hungary and ottoman- Turkey (d) Britain, Germany and Russia

Answer : (c) Germany, Austria-Hungary and Ottoman Turkey

9. Explain the three impacts of the first World War on the British economy.

Answer : (i) After the war, Britain found it difficult to recapture its earlier position of dominance in the colonial market.

(ii) To finance war expenditures, Britain had borrowed from the U.S. At the end of the war Britain was burdened with huge external debts.

(iii) The war had led to a huge increase in demand, production and employment. 

(iv) The government reduced bloated war expenditures to bring them at par with peace time revenues.

(v) These developments led to huge job losses. In 1921, one in every five British worker was out of work.

10. Why did most of the developing countries organise themselves as a group - the Group of 77 (G-77)?

Answer : (i) The developing countries came under the guidance of IMF and World Bank which were dominated by the former colonial powers in order to uplift their economies.

(ii) Former colonial powers exploited the natural resources of developing nations through IMF and World Bank.

(iii) The developing nations organised themselves into G-77 so as to gain real control over their natural resources, to get more development assistance and fairer prices for raw materials.

(iv) They also wanted a better opportunity for their manufactured good in the markets of developing nations.

11. Describe any three effects of the Great Depression of 1929 on the Indian economy.

Answer : (i) India’s exports and imports nearly halved.

(ii) As international prices crashed, prices in India also plunged.

(iii) Wheat prices in India fell by 50 percent. (iv) Peasants and farmers suffered more than urban dwellers.

(v) The colonial government refused to reduce revenue demands. (vi) India’s peasants’ indebtedness increased.

(vii) They used up their savings and sold jewellery and precious metals. The Great Depression helped the urban people, especially the fixed income earners.

12. The relocation of industry to low-wage countries stimulated world trade and capital flows. Justify the statement.

Answer : (i) MNCs shifted their production units to Asian countries because of cheap labour and low wages.

(ii) Availability of raw materials and a large market.

(iii) Effects : It stimulated world trade and flow of capital. Countries like India, China and Brazil underwent rapid economic transformation. It generated employment opportunities and introduced competition in the domestic markets.

13. What is Group 77? Why did Group 77 countries demand a New International Economic Order? Explain.

Answer : As colonies, many of the less developed regions of the world had been part of Western empires. As newly independent countries facing urgent pressures to lift their populations out of poverty, they came under the guidance of international agencies that was dominated by the former colonial powers. The former colonial powers still controlled vital resources such as minerals and land in many of their former colonies.

Even the large corporations of other powerful countries, for example the US, also often managed to secure rights to exploit developing countries’ natural resources very cheaply.

At the same time, most developing countries did not benefit from the fast growth the Western economies experienced in the 1950s and 1960s. Therefore, they organised themselves as a group – the Group of 77 (or G-77) – to demand a new international economic order (NIEO). By the NIEO they meant a system that would give them real control over their natural resources, more development assistance, fairer prices for raw materials. and better access for their manufactured goods in developed countries’ markets.

14. China becomes an attraction destination for investment by foreign MNCs in the 19th and 20th century. Justify the statement.

Answer :(i) Since the revolution in 1949, China gradually came in the field of world economy. It attracted the foreign MNC’s because of its economic structure.

(ii) Wages were relatively low.

(iii) China has the largest population besides labour, that formed a larger consumer base.