NCERT Solutions Class 10 Economics Chapter 4 Globalization And The Indian Economy

NCERT Solutions Class 10 Social Science Chapter 4 Globalization And The Indian Economy have been provided below and is also available in Pdf for free download. The NCERT solutions for Class 10 Social Science have been prepared as per the latest syllabus, NCERT books and examination pattern suggested in Class 10 by CBSE, NCERT and KVS. Questions given in NCERT book for Class 10 Social Science are an important part of exams for Class 10 Social Science and if answered properly can help you to get higher marks. Refer to more Chapter-wise answers for NCERT Class 10 Social Science and also download more latest study material for all subjects. Chapter 4 Globalization And The Indian Economy is an important topic in Class 10, please refer to answers provided below to help you score better in exams

Chapter 4 Globalization And The Indian Economy Class 10 Social Science NCERT Solutions

Class 10 Social Science students should refer to the following NCERT questions with answers for Chapter 4 Globalization And The Indian Economy in Class 10. These NCERT Solutions with answers for Class 10 Social Science will come in exams and help you to score good marks

Chapter 4 Globalization And The Indian Economy NCERT Solutions Class 10 Social Science

Question. Which one of the following statement is true regarding MNCs?
(a) They belong to Europe only.
(b) They are working only in Asian countries.
(c) These must own or control production in least in ten countries.
(d) These own or control production in more than one country.
Answer. D

Question. The most common route for MNC investment is :
(a) Set up production jointly with some of the local companies of these countries.
(b) To buy up local companies and then to expand production.
(c) Place orders for production with small producers then sell these under their own brand names to the customers.
(d) All of the above
Answer. B

Question. Which one of the following was the main aim of World Trade Organisation?
(a) To promote trade in poor countries.
(b) To promote trade in rich countries.
(c) To liberalise international trade.
(d) None of the above.
Answer. C

Question. Which one of the following is not an MNC?
(a) Coca Cola
(b) Toyota
(c) SAIL
(d) Microsoft
Answer. C

Question. Match the following
1. WTO            To attract foreign companies to invest in India.
2. SEZs           Medicines
3. MNCs          To liberalise international trade.
4. Ranbaxy.      A large part of foreign trade is controlled.
Answer. 
1. WTO - To liberalise international trade.
2. SEZs - To attract foreign companies to invest in India.
3. MNCs. - A large part of foreign trade is controlled.
4. Ranbaxy - Medicines

 

Assertion - Reason Type Questions

In the questions given below, there are two statements marked as Assertion ( A ) and Reason ( R ). Read the statements and choose the correct code.
Options:
(A) Both A and R are true, and R is the correct explanation of A.
(B) Both A and R are true, but R is not the correct explanation of A.
(C) A is true but R is false.
(D) A is false but R is true.

Question. Assertion ( A ): Because of the cheaper prices and new designs, Chinese toys become more popular in the Indian markets.
Reason ( R ): Within a year, 70 to 80 percent of the toy shops have replaced Indian toys with Chinese toys.
Answer. A

Question. Assertion ( A ): Large MNCs in the garment industry in Europe and America order their products from Indian exporters.
Reason ( R ) :These large MNCs with worldwide network look for the costliest goods in order to maximise their profits.
Answer. C

Question. Assertion ( A ) : The aim of WTO is to liberalise international trade and it started at the initiative of the developing countries.
Reason ( R ) : Nearly 160 countries of the world are currently members of the WTO (as on June 2014).
Answer. D

Question. Assertion (A) : In general, MNCs set up production where it is close to the markets; where there is skilled and unskilled labour available at low costs.
Reason (R) At times, MNCs set up production jointly with some of the local companies of these countries.
Answer. B

Question. Assertion ( A ) : Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai.
Reason ( R ) : This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks.
Answer. A


Case Study

Read the extract given below and answer the questions that follows:

Having assured themselves of these conditions, MNCs set up factories and offices for production. The money that is spent to buy assets such as land, building, machines and other equipment is called investment. Investment made by MNCs is called foreign investment. Any investment is made with the hope that these assets will earn profits.
At times, MNCs set up production jointly with some of the local companies of these countries. The benefit to the local company of such joint production is two-fold. First, MNCs can provide money for additional investments, like buying new machines for faster production. Second, MNCs might bring with them the latest technology for production.
But the most common route for MNC investments is to buy up local companies and then to expand production. MNCs with huge wealth can quite easily do so. To take an example, Cargill Foods, a very large American MNC, has bought over smaller Indian companies such as Parakh Foods. Parakh Foods had built a large marketing network in various parts of India, where its brand was well-reputed. Also, Parakh Foods had four oil refineries, whose control has now shifted to Cargill. Cargill is now the largest producer of edible oil in India, with a capacity to make 5 million pouches daily!
There’s another way in which MNCs control production. Large MNCs in developed countries place orders for production with small producers. Garments, footwear, sports items are examples of industries where production is carried out by a large number of small producers around the world.

Question. Investment means:
(a) Money to buy equipment.
(b) Money to buy land.
(c) Money to buy buildings.
(d) Money to buy assets.
(e) All of the above
Answer. E

Question. At times, MNCs set up production jointly with some of the local companies and the benefit to the local company is:
(a) MNCs can provide money for additional investments.
(b) MNCs might bring with them the latest technology for production.
(c) Both (a) and (b)
(d) None of the above.
Answer. C

Question. The most common route for MNC investments is:
(a) Set up production jointly with some of the local companies of these countries.
(b) To buy up local companies and then to expand production.
(c) Large MNCs in developed countries place orders for production with small producers.
(d) All of the above
Answer. B

Question. Name the largest producer of edible in India.
(a) Parakh foods
(b) Kargil foods
(c) McCain Foods
(d) Kohinoor Foods
Answer. B

Question. Investments by MNCs are made surely for:
(a) Development of nation.
(b) To generate employment for local youth.
(c) For profit.
(d) All of the above
Answer. D


SHORT ANSWER QUESTIONS 

Question. Why do MNCs set up their offices and factories in those regions where they get cheap labour and other resources?
Answer. 

MNCs set up offices and factories for products in regions where they can get cheap labour and other resources so that—
• the cost of production is low
• the MNCs can earn greater profits.

Question. Why do MNCs set up their offices and factories in those regions where they get cheap labour and other resources?
Answer. World Trade Organisation was set up in 1995 at the initiative of the developed countries. Its aim is to liberalise international trade. Its headquarters is at Geneva. WTO establishes rules regarding international trade among countries of the world in an open,uniform and non-discriminatory manner. In 2006,149 countries of the world were its members.

Question. Differentiate between investment and foreign investment.
Answer. The Indian government put barriers to protect the producers within the country from foreign competition. Industries were just coming up and the competition from imports would not allow the Indian industries to come up.

Question. Why had the Indian Government put barriers to foreign trade and foreign investment after independence? State any two reason.
Answer. Workers are now employed on a temporary basis so that the employers do not have to pay workers for the whole year. Wages are low and workers are forced to work overtime to make both ends meet.


Short Answer Questions 

Question. How did our markets get transformed before emerging MNCs?
OR
How was the trade the main channel for connecting different countries until the middle of the twentieth century?
Answer. Until the middle of the twentieth century, production was largely organised within countries. What crossed the boundaries of these countries were raw materials, food stuff and finished products. Colonies such as India exported raw materials and food stuff and imported finished goods. Trade was the main channel connecting distant countries.

Question. What is an MNC? How do MNCs succeed in spreading production across countries?
Answer. A MNC is a company that owns or controls production in more than one nation. A large MNC, producing industrial equipment, designs its products in research centres in the United States, and then has the components manufactured in China. These are then shipped to Mexico and Eastern Europe where the products are assembled and the finished products are sold all over the world. Meanwhile, the company’s customer care is carried out…….. through call centres located in India.

Question. What are the factors that MNCs take into account before setting up a factory in different countries?
Answer. Availability of cheap labour.
Availability of raw materials and close to the markets.
Policy of the government that protect the interest of MNCs.

Question. What are the various ways in which MNCs set up or control production in other countries? OR
How do MNCs interlink production across the countries? Explain any three points.
Answer. Set up production jointly with some of the local companies.Benefit to the local company - MNCs provide money for buying new machines for faster production and bring the latest technology for production.
The most common route for MNC investments is to buy up local companies and then to expand production. (Eg. Cargill Foods, a very large American MNC, has bought over smaller Indian companies such as Parakh Foods).
Large MNCs in developed countries place orders for production with small producers. Eg. Garments, footwear, sports items then sell these under their own brand names to the customers.

Question. What do you understand by globalisation? Explain in your own words.
Answer. It is the process by which whole world becomes a single market.
It is the process of rapid integration or interconnection between countries through foreign trade and foreign investments.
Globalisation means integrating an economy with the world economy. As a result of globalisation, the different countries of the world become economically interdependent on each other.

Question. Differentiate between investment and foreign investment.
Answer. The money that is spent to buy assets such as land, building, machines etc. is called investment whereas investment made by a MNC to buy such assets is called foreign investment.

Question. What is a trade barrier?
Answer. 
Trade barrier refer to restrictions set by the government in order to regulate foreign trade and investment. For example – a tax on imports is a trade barrier. It is called a barrier because some restriction has been set up.


Long Answer Questions

Question. Mention the working process of Multi National Corporations.
Answer. A MNC is a company that owns or controls production in more than one nation.
b) MNCs set up offices and factories for production in regions where they can get cheap labour and other resources.
c) This is done so that the cost of production is low and the MNCs can earn greater profits.
d) MNC is not only selling its finished products globally, but more important, the goods and services are produced globally.
e) The production process is divided into small parts and spread out across the globe.

Question. Describe any five strategies adopted by the MNCs to earn more and more profit.
Answer. a) MNC is not only selling its finished products globally, but more important, the goods and services are produced globally.
b) MNCs set up offices and factories for production in regions where they can get cheap labour and other resources. This is done so that the cost of production is low and the MNCs can earn greater profits.
c) MNCs set up production where it is close to the markets.
d) MNCs look for government policies that look after their interests to earn more profits.
e) Many of the top MNCs have wealth exceeding the entire budgets of the developing country governments. With such enormous wealth, MNCs have tremendous power to determine price, quality, delivery, and labour conditions.

Question. How has information and communication technology increased the pace of globalisation? Explain.
Answer. Information and communication technology increased the pace of globalisation. Information and communication technology (IT) has played a major role in spreading out production of services.
In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly.
Telecommunication facilities (tele- graph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices.
Computers have now entered almost every field of activity. You might have also ventured into the amazing world of internet, where you can obtain and share information on almost anything we want to know.
IT has created various new opportunities

Question. Describe the major problems created by the globalisation for a large number of small producers and workers.
Answer. 
Lead to widening income inequalities among various countries.
Expansion of unorganised sector
Jobs are no longer secure.
The small manufacturers have been hit hard due to competition and several of the units have shut down rendering many workers jobless.
Workers are denied their fare share of benefits.

Question. What do you understand by globalization? Explain in your own words.
Answer:
 Globalization is a process of integrating the economy of the country with other economies of the world through trade in goods and services, capital flows and technology. Besides the movement of goods and services, investments and technology, globalization also results from the movement of people between countries in search of better income, quality education or better jobs. Globalization results in integration of markets in different countries.

Question. What were the reasons for putting barriers to foreign trade and foreign investment by the government? Why did it wish to remove these barriers?
Answer:
 After independence Indian government had to put barriers to foreign trade and foreign investment in order to protect the domestic producer from foreign competition. At that time new industries were starting up in India and immense competition from foreign imports at that stage would have hampered them badly and also may not even let them to come up. Thus, Indian government allowed imports of only essential goods such as petroleum, machinery, etc. and provided protection to the domestic producers through various means.
The barriers on foreign trade and foreign investment have been removed to a large extent by the Indian government in the process of liberalization.
With the beginning of 1991, some major changes in the India’s policies were made. The Indian government felt the time has come for Indian producers to compete and produce globally. This was done with the objective to improve the performance of producers within the country as they would face huge foreign competition and they would have to improve their quality.
This meant that now the goods can be imported and exported easily and also foreign companies could set up their offices and factories in India.

Question. How would flexibility in labour laws help companies?
Answer:
 The flexibility in labour laws helps in attracting foreign investment and help companies in becoming more competitive and progressive. With flexible labour laws, instead of hiring workers on a regular basis, companies can hire workers ‘flexibly’ for short periods when there is pressure of work. Further companies can negotiate on terms of employment, wages and can terminate employment, depending on market conditions. This will reduce the cost of labour for the company and helps in increasing its competitiveness.

Question. What are the various ways in which MNCs set up, or control, production in other countries?
Answer:

The multinational companies play a major role in the process of globalization. They have spread their production in various countries. MNCs set up offices in regions where they can get cheap labour and other resources to carry the operations. They set up the production units in those places which are quite close to the market and labours are easily available. This is done so that the cost of production can be reduced and they can earn greater profits. MNCs also set up production units jointly with some of the local companies of other countries. MNC’s might also look for government policies that look after their interests.
Also at time, MNC’s place orders for production with small producers in different countries. The products are then supplied to the MNCs, which then sell these under their own brand to end consumers. Footwear, sport items industries are examples of industries where production is carried out by a large number of small producers around the world.

Question. Why do developed countries want developing countries to liberalize their trade and investment? What do you think should the developing countries demand in return?
Answer:
 Developed countries want developing countries to liberalize their trade and investment so that they can expand their markets in other countries. With liberalized trade and investment policies MNCs belonging to developed countries can set up their production units in developing countries where production can take place at low cost, thereby increase their profits. The developing countries should ask the same favour in return from the developed countries. Also they should ask for some sort of protection for their domestic producers from unfair competition from imports.

Question. “The impact of globalization has not been uniform”. Explain the statement.
Answer:
 Critics of the new economic policy say that globalization is a strategy of the developed nations to expand their markets in other countries. It has compromised the welfare and identity of people belonging to poor countries. Market driven globalization has widened the disparities amongst nations. Globalization has posed major challenges for a large number of small producers and workers of developing nations.
Due to intense competition, these days most employers prefer to employ workers on temporary basis. This means job insecurity for the workers.
With increasing imports and tough competition from MNCs, the small manufacturers in industries like batteries, plastic, toys etc. are suffering badly.

Question. How has liberalization of trade and investment policies helped the globalization process?
Answer:
 Liberalization of foreign trade and foreign investment policy has stimulated globalization during the last two decades. When the government of a country removes barriers upon international trade, this process is known as liberalization of foreign trade. Liberalization of foreign investment means removing several restrictions on the inflow of foreign capital in domestic economy. Liberalization of trade in service indicates removing several restrictions on international trade in various services. Example: Vodafone, which is UK’s company, has entered into the telecommunication sector of India for providing mobile phone services. With liberalization of trade businesses are free to make decisions about what they wish to import or export. Liberalization of investment meant that foreign companies could now set up factories and offices more freely. Thus, liberalization of trade and investment policies has helped the globalization process by making foreign trade and investment much easier.

Question. How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.
Answer:
 With the opening of trade, goods travel from one market to another. It creates an opportunity for the producers to reach beyond the domestic market. Producers can sell their products not only within the country but also in the markets of other countries. When foreign goods enter into a market, they have to compete against local products. If they happen to be inferior they will not gain a market. If they happen to be comparatively expensive they may not readily find consumer acceptance. These products will have to adjust, according to the prevailing prices and quality. If the imported product is better than local product, the local producers will try to improve the quality of their products. In either case the price will adjust and finally become equal or near equal or competitive in the two markets. This phenomenon is known as integration of market.
For example Mobile phones and laptops manufactured by the top multinational companies are available in all the markets are of same quality and almost of same price.

Question. Globalization will continue in the future. Can you imagine what the world would be like twenty years from now? Give reasons for your answer.
Answer:
 Twenty years from now, if the globalization process continues in a fair and equitable manner, the entire world will be integrated into one international market. There will be better living conditions, greater access to modern technology and information, increased volume of outputs, more trade and capital flows along with the mobility of labour. The reasons behind the views given above are the positive effects of globalization which includes:
• Increase in availability of quality products and services at competitive prices to the consumers due to globalization.
• Increase in productivity due to investments in new technologies with liberalization policies at place.
• Changes in consumption pattern leading to high standard of living, etc.

Question. Supposing you find two people arguing: One is saying globalization hurt our country’s development. The other is telling, globalization is helping India develop. How would you respond to these arguments?
Answer:
 Every policy has two sides to it, so is with the globalization.
The negative impacts of globalization are:
• Large MNCs by their power to influence price, raw material and labour, they can wipe out local competitors.
• Big corporations take advantage of weak regulatory rules and exploit consumers and make huge profits.
• By virtue of their very large economic capacity and influence, MNCs can exert influence on a country's policies and its international relations.
The positive impacts of globalization in India are as follow:
1. Increased availability of quality products and services at competitive prices to the consumers.
2. Increased productivity due to investments in new technologies.
3. Changed consumption pattern leading to high standard of living.

Question. 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.
Answer: 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 less or 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.

Question. Match the following

(i) MNCs buy at cheap rates from small producers

(a) Automobiles

(ii) Quotas and taxes on imports are used to regulate trade

(b) Garments, footwear, sports items 

(iii) Indian companies who have invested abroad

(c) call centres

(iv) IT has helped in spreading of production of services

(d) Tata motors, Infosys, Ranbaxy

(v) Several MNCs have invested in setting up factories in India for production

(e) Trade barriers

Answer:

(i) MNCs buy at cheap rates from small producers

(b) Garments, footwear, sports items

(ii) Quotas and taxes on imports are used to regulate trade

(e) Trade barriers

(iii) Indian companies who have invested abroad

(d) Tata motors, Infosys, Ranbaxy

(iv) IT has helped in spreading of production of services

(c) call centres

(v) Several MNCs have invested in setting up factories i India for production

(a) Automobiles

Question. 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.
Answer: A

Explanation: Globalisation is a process of integrating the economy of the country with other economies of the world through trade in goods and services, capital flows and technology. Besides the movement of goods and services, investments and technology globalisation also results from the movement of people between countries in search of better income, quality education or better jobs.

Question. 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.
Answer: B

Explanation: The most common route for MNC investment is to buy local companies and then to expand production. For example: Cargill foods an American MNC, has bought over Parakh Foods, a smaller Indian company.

Question. 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
Answer: D

Explanation: Not everyone in a country has benefited from the globalisation. On one hand we have people with education, skills and wealth who have made best use of the new opportunities, on the other hand we have people who have not benefitted by globalisation and are even worse off.

NCERT Solutions for Class 10 Social Science Chapter 4 Globalisation and the Indian Economy Objective Questions

Question. Choose the incorrect option about Globalisation from the given statements.
I. Globalisation causes integration of markets as well as production centres.
II. Globalisation has increased migration of people.
III. It has facilitated new and imporved technology by which even local companies can take benefit.
IV. Globalisation has increased trade restrictions among the regions of the world.
Codes
(a) Only I
(b) Both I and II
(c) Only III
(d) Only IV
Answer: D

Question. What is the major benefit to the local company of a joint production with MNC? Identify the correct option.
(a) Domestic labour gets high wages.
(b) MNC’s can provide money for additional investments.
(c) It helps to reduce production.
(d) Domestic companies started following labour laws.
Answer: B

Question. What do you mean by investment? Choose the correct option.
(a) Money spent on buying assets such as land, building, machines and other equipments.
(b) Money used by owners for luxuries.
(c) Money used for maintaining the factory.
(d) None of the above
Answer: A

Question. Match the following. 

List-I List-II
(a) Quotas and taxes on imports
are used to regulate trade.
1. Automobiles
(b) Indian companies who have
invested abroad.
2. Call centers
(c) IT has helped in spreading of
the production of services.
3. TATA motors,
Infosys, Ranbaxy

(d) Several MNC's have invested
in setting up factories in India
for production.

 

4. Trade barriers

Codes
A B C D
(a) 2 4 3 1
(b) 3 1 2 4
(c) 4 3 2 1
(d) 1 4 3 2
Answer: C

Question. Globalisation does not involve which one of the following?
(a) Rapid integration among the countries.
(b) More goods and services moving between countries.
(c) Increased taxes on imports.
(d) Movement of people between countries for jobs, education, etc.
Answer: C

Question. Enabling producers of one country to sell their goods in other countries is known as
(a) globalisation
(b) trade
(c) foreign trade
(d) None of these
Answer: C

Question. Which among the following example given in the options has the least possibility of globalization?
(a) Selection of labour force
(b) Increase in infrastructure
(c) To manage resources for investment
(d) Location of capital works
Answer: D

Question. With the growing competition, most employers these days prefer to employ workers ………… .
(a) flexibly
(b) selectively
(c) rationally
(d) None of these
Answer: A

Question. Fill in the blank with suitable option.
Globalisation leads to ……… .
(a) lesser competition among the producers.
(b) greater competition among the producers.
(c) no change in the level of competition among the producers.
(d) None of the above
Answer: B

Question. 35 year old Sunil works from 8 am to 8 pm all seven days of the week in a garment exporter firm. He works as a contract labour. His employer does not give him any other facility. He knows that he is employed just for few months of the year but he continues to work as he has no other option.
Analyse the information, considering one of the following correct option.
(a) Ill effects of globalisation
(b) MNC’s creating job opportunities
(c) Workers jobs are no longer secure
(d) People are denied fair share of benefits
Answer: A

Question. Which one of the following types of countries has benefitted most from globalisation?
(a) Rich countries
(b) Developed countries
(c) Developing countries
(d) All of these
Answer: B

Question. World Trade Organisation (WTO) is an organisation whose aim is to liberalise
(a) Internal trade
(b) External trade
(c) National trade
(d) International trade
Answer: D

Question. The Indian government has been following the policy of liberalisation, globalisation and privatisation since ………… .
(a) 1990
(b) 1991
(c) 1992
(d) 1993
Answer: B

Question. Identify the terminology with the help of the following features.
• Through this, businesses are allowed to make decisions freely about import or export.
• It helps to remove restrictions on foreign trade.
Select the appropriate option from the following.
(a) Quotas
(b) Liberalisation
(c) Globalisation
(d) Privatisation
Answer: B

Question. What does fair globalisation means? Choose the correct option
(a) Fair opportunities for all
(b) Fair benefits for all
(c) More support to small producers
(d) All of these
Answer: D

Question. What is the benefit of using containers in transportation of goods? Identify.
(a) Reduction in delays
(b) Reduction in damaged goods
(c) Reduction in port handling costs
(d) All of the above
Answer: D

Question. India’s maximum foreign exchange is spent on which of the following?
(a) Import of food grains
(b) Import of Petroleum Products
(c) Import of Iron and Steel
(d) Import of Technical know how
Answer: B

NCERT Solutions for Class 10 Social Science Chapter 4 Globalisation and the Indian Economy Assertion-Reason MCQs

Directions Each of these questions contains two statements, Assertion (A) and Reason (R). Each of these questions also has four alternative choices, any one of which is the correct answer. You have to select one of the codes (a), (b), (c) and (d) given below.
Codes
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is true, but R is false
(d) A is false, but R is true

Question. Assertion (A) Trade barrier is a restriction on the free international exchange of goods or services.
Reason (R) Quotas are a way of restriction on volume or quantity of goods to be imported or exported.
Answer: B

Question. Assertion (A) Globalisation leads to increased competition in international and domestic markets.
Reason (R) Globalisation makes the consumers better off as they have a wider variety of goods to choose from at lower prices.
Answer: B

Question. Assertion (A) Local businesses may set up joint production process with MNC’s and can earn higher profits.
Reason (R) MNC’s can provide money for additional investments, like buying new machines for faster production.
Answer: A

Question. Assertion (A) MNC’s can exert a strong influence on production at distant locations.
Reason (R) MNC’s can set up partnerships with local companies, use local companies for supplies, compete with the local companies or buy them up.
Answer: A

Question. Assertion (A) Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
Reason (R) Foreign Trade expands the choice of goods beyond what is domestically produced.
Answer: A

NCERT Solutions for Class 10 Social Science Chapter 4 Globalisation and the Indian Economy Case Based MCQs

Read the case/source given and answer the questions that follow by choosing the correct option.
Let us see the effect of Foreign trade through the example of Chinese toys in the Indian markets.
Chinese manufacturers learn of an opportunity to export toys to India, where toys are sold at a high price.
They start exporting plastic toys to India. Buyers in India now have the option of choosing between Indian and the Chinese toys. Because of the cheaper prices and new designs, Chinese toys become more popular in the Indian markets. Within a year, 70 to 80 per cent of the toy shops have replaced Indian toys with Chinese toys. Toys are now cheaper in the Indian markets than earlier. What is happening here?
As a result of trade, Chinese toys come into the Indian markets. In the competition between Indian and Chinese; toys, Chinese toys prove better. Indian buyers have a greater choice of toys and at lower prices. For the Chinese toy makers, this provides an opportunity to expand business. The opposite is true for Indian toy makers. They face losses, as their toys are selling much less.

Question. The Chinese toys have made a global presence in Indian markets too. If India bans Chinese products in their market then what will it imply?
(a) It will decrease the competion in the Indian markets.
(b) It will be an unhealthy business practice.
(c) It will impact economic as well as political relations between the two nations.
(d) Both (b) and (c)
Answer: D

Question. Read the following statements and choose the incorrect statements about the impacts of Chinese goods on Indian goods market.
I. Indian goods are facing crises due to cheap products offered by China into the Indian markets.
II. Chinese goods dominate the Indian markets.
III. Indian goods are less expensive then Chinese goods.
Codes
(a) Both I and II
(b) Only II
(c) Only III
(d) Both II and III
Answer: C

Question. How have markets been transformed in recent years? Infer the correct option with reference to the above context.
(a) Goods become cheaper and have many choices to the user.
(b) Lower job opportunities for people.
(c) High competition among the makers of goods and services
(d) Both (a) and (c)
Answer: D

Question. What will happen if tax is imposed on Chinese toys? Choose the correct option.
(a) Chinese toymakers will benefit.
(b) Indian toymakers will prosper.
(c) Chinese toys will remain cheap
(d) Indian consumers will buy more Chinese toys.
Answer: B

Question. What is the basic function of foreign trade with reference to the given case? Identify the best suitable option from the following:
(a) It connects markets of different countries.
(b) It creates opportunities for only the buyer to approach foreign goods.
(c) It connects markets of two countries only.
(d) Foreign trade connects developed countries only.
Answer: A

Question. How does foreign trade integrate the markets?
With reference to the given context, infer the correct Codes
(a) Producers get an opportunity to go beyond their domestic markets.
(b) Producers can sell their produce in markets all over the world.
(c) Both (a) and (b)
(d) Foreign trade has limited the scope of enhancing trade among the countries.
Answer: C

NCERT Solutions for Class 10 Social Science Chapter 4 Globalisation and the Indian Economy Short Answer Type Questions

Question. What are the various ways in which MNCs set up or control production in other countries? 
Or Explain by giving examples that MNCs are spreading their production in different ways. 
Answer: The way in which MNCs control or spread their production are
• By Buying Local Companies Large MNCs buy companies that are operating locally. By doing this, they get a good customer base and the local company gets latest technology. For example, Cargill Foods (MNC) merged with Parakh Foods (local).
• By Joint Ventures MNCs set-up production units jointly with any company that may be operating in a country. By doing this, MNCs not only increase their production but also get a vast market. For example, Ford Motors set up automobile plant in collaboration with Mahindra and Mahindra.
• By Placing Orders with Small Producers MNCs place orders for their products with small producers in developing countries where the resources are cheap. Then the MNCs sell those products under their own brand. Ex Garments, footwear, jeans, footballs, etc.

Question. “Information and Communication Technology (ICT) has played a major role in spreading out products and services across countries.” Support this statement.
Answer: Information and Communication Technological (ICT) has played a major role in spreading out products and services across countries in the following ways
• Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly and to communicate from remote areas. This has been facilitated by satellite communication devices.
• Computers have started the amazing world of the Internet, where one can obtain and share information on almost anything. It also allows us to send instant electronic mail and
(voice-mail) across the world at negligible costs which boosts trade and commerce.

Question. List the factors that encourage the MNCs to set up their production units at a place.
Or Why do multinational corporations set up their offices and factories in certain areas only?
Answer: The factors that promote the setting up of MNCs or the reason for setting up MNCs at a certain place are
• Availability of skilled and unskilled labour, e.g. India has highly skilled engineers who can understand the technical aspects of production.
• Availability of raw materials at cheap prices e.g. China provides the advantage of being a cheap manufacturing location.
• Well developed infrastructure like roads and railways
• Liberalised governmental policies.
• Closeness to markets e.g. Mexico and Eastern Europe are useful for their closeness to the markets in the US and Europe.
• Safe environment.

Question. Describe any four characteristics of WTO.
Answer: The four characteristics of WTO are
(i) World Trade Organisation (WTO) is a powerful international organisation.
(ii) It aims at liberalising international trade.
(iii) It establishes rules regarding international trade and sees that these rules are obeyed.
(iv) WTO is supposed to allow free trade for all countries. But in practice, it is seen that the developed countries have unfairly retained trade barriers.

Question. ‘Barriers on foreign trade and foreign investment were removed to a large extent in India since 1991. Justify the statement.
Or Why did the Indian Government remove barriers to a large extent on foreign trade and foreign investment? 
Answer: It is true that barriers on foreign trade and foreign investment were removed to a large extent in India since 1991 because
• In 1991, the Government of India liberalised its policy and felt that Indian producers must compete with producers around the world.
• The Government had an opinion that trade competition would improve the performance of the local producers within the country since they will be forced to improve their quality.
• Another reason was the economic crises in India in 1990-91 and support of WTO and IMF led the government to remove trade barriers.

Question. Explain the facilities available in SEZ that are developed by Central and State governments to attract foreign Investment. 
Answer: SEZs are industrial zones set up by the government to promote the establishment of MNCs.
The facilities available in SEZ are
• SEZ are provided with world class facilities electricity, water, roads, transport, storage, recreational and educational facilities.
• Companies operating in SEZ do not have to pay taxes for five years.
• Government has allowed flexibility in the labour laws to attract MNCs.

Question. How has liberalisation of trade and investment policies helped the globalisation process?
Answer: Liberalisation of trade and investment policies has helped in Globalisation in the following ways
• This has helped in the import and export of goods.
This means that goods can be exported and imported easily and also foreign companies could set up factories and offices here.
• Larger foreign investment and larger foreign trade have led to greater integration of production and markets across countries. As a result, more and more companies are
coming closer to each other due to MNCs.
• Latest technology such as ICT is spread throughout the world due to liberalisation.

Question. How does Government attract foreign investment? Explain different ways. 
Answer: Government attracts foreign investment in the following ways
• Special Economic Zones have been set up to have world-class facilities such as cheap electricity, roads, transport, storage, etc.
• The companies setting their units in SEZs are exempted to pay tax for initial period of five years which increases their profit.
• Labour laws are made flexible in SEZs. This has attracted foreign investment.

Question. What is investment? Name the companies which make foreign investment. Write any two benefits which a local company expects from joint production with a Multinational company.
Answer: The money that is spent to buy assets such as land, building, machines and other equipments is called investment.
The companies which make foreign investment in India are Ford Motors, Nike, Coca-Cola, Pepsi, Honda, Nokia, Tata Motors, Infosys, Ranbaxy, Asian Paints, etc.
The benefits that a local company expects from joint production with a multinational company are
(i) To providemoney for additional investments, like buying new machines for faster production.
(ii) To bringwith themthe latest technology for production.

Question. “Globalisation has been advantageous to consumers as well as to producers.” Support the statement with suitable examples.
Answer: Globalisation has benefitted the producers and the consumers in the following ways
• Globalisation has led to an intense increase in industrial competition. As a result, producers are competing over each other to provide better and cheaper services to the consumers. This has also resulted in reduction in the prices.
• With the initiation of globalisation, producers now have relatively free access to international markets. Also, they can now avail more easily of the credit facilities forwarded in terms of capital and technology. This is illustrated by the example of the electronics goods and garments industry.
• Consumers have more choice of goods and services as compared to earlier times specially in modern digital technological equipments like cell phones, cameras etc.

Question. How is stability in jobs for the workers affected due to globalisation?
Answer: The stability in jobs for the workers affected due to globalisation in the following ways
• There is no permanent employment, but workers are employed only when needed, i.e. they are ‘flexible workers’. In the slack season, they are out of work with no compensation.
• Due to globalisation, the MNC’s main objective is to lower costs. To do this, they provide temporary employment only and are given lower wages or they may have to work on per day basis.
• Workers may have to work for longer hours and be laid off from work without any compensation during the slack season.

Question. “The impact of globalisation has not been uniform.” Explain this statement.
Or “The impact of Globalisation has not been uniform.” Explain with examples. 
Answer: The impact of globalisation has not been uniform as
• Globalisation has increased the sale of consumer goods which are demanded by only a small section of people in developing countries like cell phone, automobile, soft
drinks. Large section is still deprived of basic necessities.
• Globalisation increases the concentration of economic power and leads to inequalities. It is mainly beneficial to large capitalists, industries and large companies like google. The small scale producers and workers have suffered as a result of rising competition.
• Globalisation has changed the nature of employment as now workers are hired on temporary basis and their jobs are no longer secure.

Question. How are local companies benefitted by collaborating with multinational companies? Explain with examples. 
Answer: The local companies are benefitted by collaborating with multinational companies in the following ways
(i) MNC’s can finance the additional investments for the local companies like buying new machinery for faster production.
(ii) MNC’s may provide the companies with latest technology for efficient production as MNC’s have an international outreach.
(iii) Local companies will benefit financially through a partnership with an MNC because the production and its efficiency would naturally increase.
Hence, an MNC works at an international level, while local companies have a very small outreach. Therefore, a partnership with such a large company is beneficial for both.

Question. Why had the Indian government put barriers to foreign trade and foreign investments after independence? 
Answer: Indian government put barriers to foreign trade and foreign investments after independence because
• To protect the domestic producers within the country from foreign competition in the form of imports.
• To encourage more production of goods so that more industries can be started.
• During 1950s and 1960s, Indian industries were just coming up, they were not prepared to face challenges from foreign countries.

Question. “Fair globalisation would create opportunities for all and also ensure that benefits of globalisation are shared better.” Support the statement. 
Or How can the government of India play a major role to make globalisation more fair? Explain with examples.
Answer: As fair globalisation would create opportunities for all and also ensure that benefits of globalisation are shared better, the government can play a major role in making globalisation a fair medium in the following ways
• By framing policies that protect the interests of not only the rich and powerful but also the weaker sections of the society.
• By supporting small producers so that they can compete with large manufacturers.
• By ensuring that labour laws are properly implemented and workers get their rights.
• By using trade and investment barriers and negotiating for fairer rules at the WTO.
It can also align with other developing countries with similar interests to fight the domination of developed countries in the WTO.

NCERT Solutions for Class 10 Social Science Chapter 4 Globalisation and the Indian Economy Long Answer Type Questions

Question. How has foreign trade been integrating markets of different countries ? Explain wth examples.
Answer: Foreign trade has been integrating markets of different countries in following ways
• Since historic times foreign trade been the main channel of connecting countries, e.g. Silk route connects India and South Asia to markets both in the East and West. Foreign trade creates an opportunity for producers to reach beyond the domestic markets, i.e. markets of their own countries. Choice of goods in the markets rises. Prices of similar goods in the two markets tend to become equal. Producers in the two countries closely compete against each other even though they are separated by thousands of miles.
• With many MNCs in the market, the consumer has a wide range of products coming from different nations to choose from. Hence, it interlinks various markets across the countries. For example-Volkswagen, a German automobile company, is the biggest German automaker in the world. It came to India in 2007 and had recorded sales of 32,627 vehicles in the year 2010.
• Another example is Indian markets have a number of footwear brands available for customers. A consumer can decide what to purchase either from local footwear brands like Bata, Liberty, Red Chief or International brands like Nike, Skechers, Reebok etc as per his/her choice and need.

Question. How have our markets been transformed in recent years? Explain with examples.
Answer: Our markets have been transformed in recent years due to the process of globalisation in the following ways
• As consumers in today’s world, some of us have a wide choice of goods and services before us. The latest models of digital cameras, mobile phones and televisions made by the leading manufacturers of the world are within our reach.
• Every season, new models of automobiles can be seen on Indian roads. Gone are the days when Ambassador and Fiat were the only cars on Indian roads.
• Today, due to globalisation and foreign trade, Indians are buying cars produced by nearly all the top companies in the world.
• In the similar way, we can see a wide variety of brands in the market place e.g. from shirts to televisions to processed fruit juices and even chocolates and candies.
With the coming of MNCs in India, local companies are now adopting newer technology and production methods.
Due to this changing pattern in production consumers in Indian markets are enjoying a much higher standard of living than ever before.

Question. Why do Multinational Corporations (MNCs) set up their offices and factories in certain areas only? Explain any five reasons. 
Answer: Multinational Corporations set up their offices and factories in certain areas only due to the following reasons
(i) Availability of Labour The MNCs operate in a country to get cheap labour so they set up their factories where there is easy availability of skilled and unskilled labour.
(ii) Availability of Raw Materials The MNCs set up their factories where they get raw materials easily and at cheap prices.
(iii) Well Developed Infrastructure MNCs set up their offices and factories where there is good infrastructural facilities such as roads, railways, regular supply of electricity etc.
(iv) Liberalised Government Policies When the government encourages investment then it liberalises its trade policies so that MNCs could set up their offices at that place. So, MNCs set up in those areas where they get government support.
(v) Closeness to Markets MNCs set up their offices and industries in those places where there are good markets for selling their finished products. This reduces transportation cost also.

Question. How can consumers and producers be benefited from ‘foreign trade’ ? Explain with examples.
Answer: Consumers and producers both are benefitted from ‘foreign trade’ in the following ways
• Foreign trade creates opportunities for the producers to sell their products not only in the domestic markets (within the country) but also all over the world. For example, Cafe Coffee Day which is an Indian MNC, exports its coffee to various countries like USA, Europe and Japan.
• Producers can also buy from the world market where raw material and labour is cheap. Similarly for the buyers, import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced.
• Foreign trade facilitates by opening of trade goods which travel from one market to another. Choice of goods in the market rises.
• Producers in the two countries now closely compete against each other even though, they are far away to each other.
• Prices of similar goods in the two markets tend to become equal due to competition.

Question. What is globalisation? Explain two positive and two negative impact of globalisation.
Answer: Globalisation is the process of integration and interconnectedness between countries.
Positive impacts of Globalisation are
(i) Availability of variety of products with greater choice and quality at affordable price.
(ii) Creation of new jobs and higher standard of living.
Negative impact ofs Globalisation are
(i) Thousands of uneducated and unskilled labourers have become jobless due to closure of domestic units.
(ii) Most of the small industries like toys, tyres, plastics, dairy products are affected due to foreign competition. This results in their closure thereby reducing production.

Question. ‘‘Rapid improvement in technology has stimulated the globalisation process.’’ Explain the statement with examples. 
Answer: Rapid improvement in technology has stimulated the globalisation process in the following ways
• There has been many improvements in transport facilities which help in export and import of goods. This increases trade relations between countries.
• Since technology improves efficiency, the process of exchange has become faster and cheaper.
• Development in information and communication technology has been the most beneficial since information can be now sent in seconds across the world.
• Development in IT also has led to the production of services through outsourcing for example, call centres, online teaching etc.
• Through internet facility, one can obtain and share information on almost anything, it allows to send e-mail and messages across the world at negligible costs.
For example, a news magazine published for London readers is to be designed and printed in Delhi. The magazine is sent through internet to the Delhi office. The designers in Delhi office get orders on how to design the magazine from the office in London using telecommunication facilities. The designing is done on a computer. After printing, the magazines are sent by air to London. Even the payment of money for designing and printing from a bank in London to a bank in Delhi is done instantly through the internet banking.

NCERT Solutions for Class 10 Social Science Chapter 4 Globalisation and the Indian Economy Case Based Questions

1. Read the case given below and answer the following questions. 
Source-A Globalisation and the Indian Economy As consumers in today’s world, some of us have a wide choice of goods and services before us. The latest models of digital cameras, mobile phones and televisions made by the leading manufacturers of the world are within our reach. Every season, new models of automobiles can be seen on Indian roads.

Question. Explain the basic function of Foreign Trade.
Answer: The basic functions of foreign trade is that it creates an opportunity for the producers to reach beyond the domestic markets i.e. markets of their own countries. 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.
Source-C The Struggle for Fair Globalisation In the past few years, massive campaigns and representation by people’s organisations have influenced important decisions relating to trade and investments at the WTO. This has demonstrated that people also can play an important role in the struggle for fair globalisation.

Question. How do people play an important role in the struggle for fair globalisation ? Explain.
Answer: People play an important role in the struggle for fair globalisation as they organise massive campaigns and protests and influence the trade and investment policies
of the World Trade Organisation (WHO) and their own countries as well.

Question. How is the impact of globalisation visible on consumers?
Answer: The impact of globalisation is visible on consumers as due to globalisation there is a greater choice available before consumers who now enjoy improved quality and lower
prices for several products.
Source-B Foreign Trade and Integration ofMarkets Foreign trade creates an opportunity for the producers to reach beyond the domestic markets, i.e. markets of their own countries. 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.
Similarly, for the buyers, import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced.

2. Read the cases/sources given below and answer the questions that follow.
MNC is not only selling its finished products globally, but more important, the goods and services are produced globally. As a result, production is organised in increasingly complex ways. The production process is divided into small parts and spread out across the globe. In the above example, China provides the advantage of being a cheap manufacturing location. Mexico and Eastern Europe are useful for their closeness to the markets in the US and Europe.
India has highly skilled engineers who can understand the technical aspects of production.
It also has educated English speaking youth who can provide customer care services. And all this probably can mean 50-60 per cent cost savings for the MNC!
The advantage of spreading out production across the borders to the multinationals can be truly immense.

Question. To what extent do you agree that SEZs are encouraged by the government for MNCs?
Answer: Government encourage SEZs which is known from the fact that government provides world class facilities like electricity, water, roads, transport, storage, recreational and educational facilities in these industrial zones. SEZs are encouraged so that MNCs set up their factories or offices in SEZs.

Question. Why MNC’s prefer India as their destination for setting business?
Answer: MNC’s prefer India as their destination for setting business due to the following reasons
• India has highly skilled engineers who can understand the technical aspects of production.
• India also has educated English speaking youth. It has cheap labour and resources.

Question. What kind of criterias are looked upon by the MNC’s for Investment?
Answer: MNC look for various criterias before investing such as availability of skilled-unskilled labour, closeness to the markets, government policies that look after their interest, etc.

Contemporary India II Chapter 01 Resources and Development
NCERT Solutions Class 10 Social Science Chapter 1 Resources and development
Contemporary India II Chapter 02 Forest and Wildlife Resources
NCERT Solutions Class 10 Social Science Chapter 2 Forest and Wildlife Resources
Contemporary India II Chapter 03 Water Resources
NCERT Solutions Class 10 Social Science Chapter 3 Water Resources
Contemporary India II Chapter 04 Agriculture
NCERT Solutions Class 10 Social Science Chapter 4 Agriculture
Contemporary India II Chapter 05 Minerals and Energy Resources
NCERT Solutions Class 10 Social Science Chapter 5 Minerals and Energy Resources
Contemporary India II Chapter 06 Manufacturing Industries
NCERT Solutions Class 10 Social Science Chapter 6 Manufacturing Industries
Contemporary India II Chapter 07 Lifelines of National Economy
NCERT Solutions Class 10 Social Science Chapter 7 Lifelines of the National Economy
Democratic Politics II Chapter 01 Power Sharing
NCERT Solutions Class 10 Social Science Chapter 1 Power Sharing
Democratic Politics II Chapter 02 Federalism
NCERT Solutions Class 10 Social Science Chapter 2 Federalism
Democratic Politics II Chapter 03 Democracy and Diversity
NCERT Solutions Class 10 Social Science Chapter 3 Democracy and Diversity
Democratic Politics II Chapter 04 Gender Religion and Caste
NCERT Solutions Class 10 Social Science Chapter 4 Gender Religion and Caste
Democratic Politics II Chapter 05 Popular Struggles and Movements
NCERT Solutions Class 10 Social Science Chapter 5 Popular Struggles and Movements
Democratic Politics II Chapter 06 Political Parties
NCERT Solutions Class 10 Social Science Chapter 6 Political Parties
Democratic Politics II Chapter 07 Outcomes of Democracy
NCERT Solutions Class 10 Social Science Chapter 7 Outcomes of Democracy
Democratic Politics II Chapter 08 Challenges to Democracy
NCERT Solutions Class 10 Social Science Chapter 8 Challenges to Democracy
India and Contemporary World II Chapter 01 The Rise of Nationalism in Europe
NCERT Solutions Class 10 Social Science Chapter 1 The Rise of Nationalism in Europe
India and Contemporary World II Chapter 02 Nationalism in India
NCERT Solutions Class 10 Social Science Chapter 2 Nationalism in India
India and Contemporary World II Chapter 03 The Making of a Global World
NCERT Solutions Class 10 Social Science Chapter 3 The Making of a Global World
India and Contemporary World II Chapter 04 The Age of Industrialisation
NCERT Solutions Class 10 Social Science Chapter 4 The Age of Industrialization
India and Contemporary World II Chapter 05 Print Culture and the Modern World
NCERT Solutions Class 10 Social Science Chapter 5 Print Culture and Modern World
Understanding Economic Development Chapter 01 Development
NCERT Solutions Class 10 Economics Chapter 1 Development
Understanding Economic Development Chapter 02 Sectors of the Indian Economy
NCERT Solutions Class 10 Economics Chapter 2 Sectors Of The Indian Economy
Understanding Economic Development Chapter 03 Money and Credit
NCERT Solutions Class 10 Economics Chapter 3 Money And Credit
Understanding Economic Development Chapter 04 Globalisation and the Indian Economy
NCERT Solutions Class 10 Economics Chapter 4 Globalization And The Indian Economy
Understanding Economic Development Chapter 05 Consumer Rights
NCERT Solutions Class 10 Economics Chapter 5 Consumer Rights

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