CBSE Class 10 Social Science Economics Globalization and the Indian Economy Assignment Set 02

Question. what are MNCS?
Answer: 1) A MNC is a company that owns or controls production in more than one nation.

Question. Examine the functioning of MNCS
Answer:
1) MNCs set up offices and factories for production in regions where they can get cheap labour and other resources.
2) This is done so that the cost of production is low and the MNCs can earn greater profits.

Question. Where do MNCS mostly set up production?
Answer:
1) In general, MNCs set up production where it is close to the markets;
2) Where there is skilled and unskilled labour available at low costs; and
3) where the availability of other factors of production is assured. In addition,
4) MNCs might look for government policies that look after their interests.

Question. List out different ways as to how MNCS set up production
Answer:
1) MNCs set up production jointly with some of the local companies of these countries.
2) buying up local companies and then to expand production. Cargill Foods, a very large American MNC, has bought over smaller Indian companies such as Parakh Foods.
3) Large MNCs in developed countries place orders for production with small producers. Garments, footwear, sports items are examples of industries.
4) They set up their own production units in a new country through foreign investment.

Question. What is globalisation?
Answer:
1) Globalisation is this process of rapid integration or interconnection between countries.
2) More and more goods and services, investments and technology are moving between countries.

Question. Distinguish between foreign trade and foreign investment.
Answer:
1) foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
2) Producers can sell their produce not only in markets located within the country but can also compete in markets located in other countries of the world.
3) Investment made by MNCs is called foreign investment.
4) Any investment is made with the hope that these assets will earn profits.

Question. Differentiate between investment and foreign investment.
Answer:
1) The money that is spent to buy assets such as land, building, machines and other equipment is called investment.
2) Investment made by MNCs is called foreign investment. Any investment is made with the hope that these assets will earn profits.

Question. What are the various ways in which countries can be linked?
Answer:
1) Besides the movements of goods, services, investments and technology, there is one more way in which the countries can be connected. This is through the movement of people between countries. People usually move from one country to another in search of better income, better jobs or better education.

Question. How does technology help in the process of globalisation?
Answer:
1) Rapid improvement in technology has been one major factor that has stimulated the globalisation process. For instance, the past fifty years’ have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs.

Question. What are tax barriers?
Answer:
1) Tax on imports is an example of trade barrier. It is called a barrier because some restriction has been set up. Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each, should come into the country

Question. What do you understand by liberalisation of foreign trade?
Answer:
1) Removing barriers or restrictions set by the government is what is known as liberalisation
2) With liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export.

Question. What do you think can be done so that trade between countries is more fair?
Answer:
1) Its policies must protect the interests, not only of the rich and the powerful, but all the people in the country.
2) the government can ensure that labour laws are properly implemented and the workers get their rights.
3) It can support small producers to improve their performance till the time they become strong enough to compete.
4) If necessary, the government can use trade and investment barriers.
5) It can negotiate at the WTO for ‘fairer rules’.
6) It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.

Question. Explain how production is organised in increasingly complex way?
Answer:
1) The production process is divided into small parts and spread out across the globe. example,
2) China provides the advantage of being a cheap manufacturing location.
3) Mexico and Eastern Europe are useful for their closeness to the markets in the US and Europe.
4) India has highly skilled engineers who can understand the technical aspects of production.
5) It also has educated English speaking youth who can provide customer care services.

Question. What is the basic function of foreign trade?
Answer:
1) foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
2) Producers can sell their produce not only in markets located within the country but can also compete in markets located in other countries of the world.

Question. What factors helped in the process of globalisation?
Answer:
1) Technology
2) Liberalisation of foreign trade and foreign investment policy

Question. How is information technology connected with globalisation? Would globalisation have been possible without expansion of IT?
Answer:
1) In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly.
2) Telecommunication facilities (telegraph,telephone including mobilephones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas.
3) Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.

Question. Suppose the Indian government puts a tax on import of Chinese toys. What would happen?
Answer:
1) Cost of the toys would increase, less sale and less import.

Question. The Indian government, after Independence, had put barriers to foreign trade and foreign investment. Why was it necessary?
Answer:
1) This was considered necessary to protect the producers within the country from foreign competition
2) Industries were just coming up in the 1950s and 1960s, and competition
3) from imports at that stage would not have allowed these industries to come up.

Question. Barriers on foreign trade and foreign investment were removed to a large extent around 1990. Give reasons.
Answer:
1) Around 1990 The government decided that the time had come for Indian producers to compete with producers around the globe.
2) It felt that competition would improve the performance of producers within the country since they would have to improve their quality.
3) Thus, barriers on foreign trade and foreign investment were removed to a large extent. This meant that goods could be imported and exported easily and also foreign companies could set up factories and offices here.

Question. What is WTO? What are its main functions?
Answer:
1) World Trade Organisation (WTO) is one such organisation whose aim is to liberalise international trade. Started at the initiative of the developed countries, WTO establishes rules regarding international trade,and sees that these rules are obeyed.149 countries of the world are currently members of the WTO (2006).

Question. Briefly describe the negative and positive impact of globalisation in India
Answer:
Negative impact-
1) .Small producers of goods such as batteries, capacitors, plastics, toys, tyres, dairy products and vegetable oil have been hit hard by competition from cheaper imports.
2) Also, workers are appointed on temporary basis to avoid payment of provident fund and other benefits. This has reduced their job security.
3) creation of special economic zones has led to displacement of the tribal’s and submergence of their land leaving them without any jobs.
Positive impact-
1) It has benefitted the MNCs and has enabled some companies such as Tata motors and Infosys to emerge as large MNCs.
2) It has also benefitted the companies providing services in the field of information and communication technologies, data entry, accounting, and engineering
3) In industries such as cell phones, automobiles, electronics and soft drinks new jobs have been created in the developing countries.
4) There is greater choice before these consumers who now enjoy improved quality and lower prices for several products. As a result, these people today, enjoy much higher standards of living.