Samacheer Kalvi Class 10 Social Science Solutions Chapter 2 Globalization and Trade

Tamilnadu Samacheer Kalvi 10th Social Science Solutions Economics Chapter 2 Globalization and Trade

Samacheer Kalvi 10th Social Science Globalization and Trade Text Book Back Questions and Answers

I. Choose the correct answer

 

Question 1. Who is the head of the World Trade Organisation (WTO)?
(a) Ministerial conference
(b) Director General
(c) Deputy Director General
(d) None of the options
Answer: (b) Director General
In simple words: The World Trade Organization (WTO) is led by a Director General, who is responsible for managing its daily operations and guiding its policies. This person acts as the chief spokesperson and representative for the organization.

🎯 Exam Tip: Remember key leadership roles in international organizations like WTO, IMF, and World Bank for general knowledge and specific subject questions.

 

Question 2. How many countries were membership in WTO at present?
(a) 159
(b) 164
(c) 148
(d) 128
Answer: (b) 164
In simple words: Currently, 164 countries are members of the World Trade Organization, meaning they follow its rules for global trade. Each new member goes through a long process to join.

🎯 Exam Tip: When dealing with numbers related to international bodies, always check for the most recent data as these figures can change over time.

 

Question 3. Colonial advent in India:
(a) Portuguese, Dutch, English, Danish, French
(b) Dutch, English, Danish, French
(c) Portuguese, Danish, Dutch, French, English
(d) Danish, Portuguese, French, English, Dutch
Answer: (a) Portuguese, Dutch, English, Danish, French
In simple words: European colonial powers came to India in a specific order: first the Portuguese, then the Dutch, followed by the English, Danish, and finally the French. They arrived for trade and later established control.

🎯 Exam Tip: Listing historical events in chronological order is crucial. For such questions, remembering the sequence of arrivals of different colonial powers is key.

 

Question 4. Who first came to India for trading purpose?
(a) Roman Empire
(b) Portuguese
(c) Dutch
(d) Danish
Answer: (b) Portuguese
In simple words: The Portuguese were the first Europeans to come to India specifically for trading purposes. Vasco da Gama's arrival marked the beginning of this era.

🎯 Exam Tip: Focus on the very first event or group when the question asks "Who first...". Historical precedence is often tested.

 

Question 5. When did Portuguese colonize India?
(a) 1600 BC
(b) 1602 BC
(c) 1498 BC
(d) 1616 BC
Answer: (c) 1498 BC
In simple words: The Portuguese started their colonization of India in 1498 BC. This was when Vasco da Gama first arrived in Calicut, opening up a sea route to India and leading to European control.

🎯 Exam Tip: Pay close attention to dates, especially for significant historical events. Always double-check BC vs. AD as it changes the context entirely.

 

Question 6. GATT's first round held in
(a) Tokyo
(b) Uruguay
(c) Torquay
(d) Geneva
Answer: (d) Geneva
In simple words: The first meeting of the General Agreement on Tariffs and Trade (GATT) took place in Geneva. This initial gathering set the stage for future international trade negotiations.

🎯 Exam Tip: Knowing the locations of important international conferences or agreements can be crucial. Link the organization with its founding city or primary meeting place.

 

Question 7. India signed the Dunket proposal in:
(a) 1984
(b) 1976
(c) 1950
(d) 1994
Answer: (d) 1994
In simple words: India signed the Dunkel proposal in 1994, which was a very important agreement that helped set up the World Trade Organization (WTO). This signing was a major step towards new trade rules.

🎯 Exam Tip: Understand the significance of dates related to major international trade agreements for India, as they often mark shifts in economic policy.

 

Question 8. Who granted the English "golden Fireman" in 1632?
(a) Jahangir
(b) Sultan of Golconda
(c) Akbar
(d) Aurangazeb
Answer: (b) Sultan of Golconda
In simple words: In 1632, the Sultan of Golconda gave a "golden fireman" to the English, which was a special order allowing them to trade freely in his kingdom. This made it easier for the English to do business.

🎯 Exam Tip: Specific grants and their issuers are often asked in history. Identify the ruler or authority who issued the decree and the year it happened.

 

Question 9. Foreign investment policy (FIR) announced in
(a) June 1991
(b) July 1991
(c) July-Aug-1991
(d) Aug 1991
Answer: (c) July-Aug-1991
In simple words: India's new Foreign Investment Policy, which aimed to attract more money from other countries, was officially announced between July and August of 1991. This was part of a bigger economic change in India.

🎯 Exam Tip: For policies announced over a span of months, providing the full range (e.g., July-August) is often the most accurate answer.

 

Question 10. Indian government was introduced in ............. 1991.
(a) Globalization
(b) World Trade Organisation
(c) New Economic Policy
(d) none
Answer: (c) New Economic Policy
In simple words: The Indian government started its New Economic Policy in 1991. This policy brought big changes like opening up the economy, which helped India grow faster.

🎯 Exam Tip: The year 1991 is very significant for India's economic history, linked directly to the New Economic Policy and its pillars of Liberalization, Privatization, and Globalization (LPG).

II. Fill in the Blanks

 

Question 1. The Dutch captured Pondicherry in ............
Answer: 1693
In simple words: The Dutch took control of Pondicherry in the year 1693. This was a notable event in the colonial history of India.

🎯 Exam Tip: Precise dates for colonial captures are important; ensure you remember the year correctly.

 

Question 2. A better economy Introduce rapid development of the ............
Answer: Capital market
In simple words: When an economy improves, it usually leads to quick growth in the capital market. A strong capital market is where businesses can get money to grow and expand.

🎯 Exam Tip: Understand the connection between a healthy economy and the growth of its financial sectors, particularly the capital market which funds long-term investments.

 

Question 3. The East India Company built fortified factory in Madras which known as ............
Answer: Fort St. George
In simple words: The East India Company built a strong, protected trading post in Madras, which became known as Fort St. George. This fort was important for their trade and defense.

🎯 Exam Tip: Key historical landmarks like forts are often associated with specific trading companies or colonial powers. Identify the correct name for the structure.

 

Question 4. WTO agreement came into force from ............
Answer: January 1, 1995
In simple words: The World Trade Organization's agreements officially began on January 1, 1995. This date marked the start of new global trade rules.

🎯 Exam Tip: Precise dates for the establishment of major international bodies like the WTO are important. Remember the exact day, month, and year.

 

Question 5. The term globalization Invented by ............
Answer: Prof. Theodore Levitt
In simple words: The idea of "globalization" as we know it was first made popular by Professor Theodore Levitt. He helped people understand how businesses were becoming more international.

🎯 Exam Tip: Associating important concepts with their key proponents or originators is good for demonstrating deeper understanding.

 

Question 6. French East India company established second factory at ............
Answer: Pondicherry
In simple words: The French East India Company set up its second trading post in Pondicherry. This location became a very important center for French activities in India.

🎯 Exam Tip: Know the locations of major factories or trading posts established by European companies, especially their main strongholds like Pondicherry for the French.

III. Choose the correct statement

 

Question 1.
(i) The East Indian Company especially to participate in the East Indian Spice Trade and later added cotton, silk, indigo.
(ii) Merchants of the Dutch East India Company first established at Calicut
(iii) Nanadesis were a guild of traders at the time of Hoysala Empire
(a) (i) is correct
(b) (ii) and (iii) are correct
(c) (i) and (in) are correct
(d) (i), (ii) and (iii) are correct
Answer: (c) (i) and (in) are correct
In simple words: Statements (i) and (iii) are correct. The East India Company initially focused on spices and later expanded to other goods like cotton. Nanadesis were indeed a group of traders during the Hoysala period. Statement (ii) is incorrect because the Dutch established their first factory at Masulipatnam, not Calicut.

🎯 Exam Tip: When evaluating multiple statements, carefully check each one for historical accuracy. Even a single incorrect detail makes the entire statement wrong.

IV. Match the following

 

Question 1. Match the Column I with Column II.

Answer:
A. (iii) GATT
B. (iv) 1994
C. (vi) NEP
D. (i) Globalisation
E. (ii) TRIPs
In simple words: This match identifies important terms related to global trade. The Uruguay Round led to GATT, the Dunkel proposals were finalized in 1994, LPG is part of the New Economic Policy (NEP), Foreign Direct Investment (FDI) promotes globalization, and Patent Rights are part of TRIPs.

🎯 Exam Tip: For match the following questions, clearly identify the connection between each term. Understanding acronyms and their related concepts is crucial.

V. Give Short Answers

 

Question 1. What is globalization?
Answer: Globalization is when different countries' economies become connected and work together. This happens without many rules stopping the free movement of goods, services, new ideas, money, and even people between countries. It makes the world feel more like one big market.
In simple words: Globalization means countries becoming more connected through trade, technology, and movement of people, breaking down old barriers.

🎯 Exam Tip: When defining terms like globalization, include its key aspects: integration of economies and free flow of goods, services, technology, capital, and labor.

 

Question 2. Write the types of globalization?
Answer: The types of Globalization are:
1. Economic Globalization: This is when countries link their economies together.
2. Social Globalization: This involves sharing information and ideas across the world.
3. Political Globalization: This means countries work together more closely on political matters.
In simple words: Globalization can be seen in three main ways: countries linking their economies, sharing ideas and culture, and working together politically.

🎯 Exam Tip: Clearly categorize and define each type of globalization, using simple language to explain how each aspect connects countries.

 

Question 3. Write short note on Multinational corporation.
Answer: A Multinational Corporation (MNC) is a large company that owns or controls factories and provides services in at least one other country besides its home country. These companies are also called Transnational Corporations (TNCs) or Multinational Enterprises (MNEs). Many MNCs today are from major exporting countries like the USA, UK, France, and Germany. They help spread technology and jobs globally.
In simple words: An MNC is a big company that operates in many countries, not just its own, by owning production or offering services.

🎯 Exam Tip: Define MNC clearly by its core characteristic (operating in multiple countries) and list its alternative names and common originating countries for a complete answer.

 

Question 4. Short note: The Dutch in South India.
Answer: The Dutch East India Company was set up in 1602. They built trading posts in places like Masulipatnam, Pettapoli, and Devanampattinam in South India. With the help of the King of Chandragiri, they also had a factory in Pulicat. The Dutch mainly exported goods like indigo, saltpeter, and raw silk from Bengal. In 1659, they took over Nagapattinam from the Portuguese, showing their growing power.
In simple words: The Dutch arrived in South India in 1602, setting up many trading posts and exporting goods like indigo and silk, and even took over areas from the Portuguese.

🎯 Exam Tip: When writing about colonial powers, mention their arrival year, key trading posts, major exports, and any significant territorial acquisitions for a comprehensive answer.

 

Question 5. What are the reforms made to adopt globalization?
Answer: To embrace globalization, India made several important changes. These included ending the need for industrial licenses for most businesses and reducing the number of industries only for the government. They also made the rupee's exchange rate more realistic for exports and adjusted foreign exchange rules. Additionally, the Statutory Liquidity Ratio (SLR) was lowered to encourage more bank lending.
In simple words: India made reforms like reducing licenses, changing foreign exchange rules, and lowering bank reserve requirements to help its economy join the global market.

🎯 Exam Tip: List specific economic reforms such as industrial delicensing, forex reforms, and SLR adjustments when asked about adapting to globalization.

 

Question 6. What is fair trade?
Answer: Fair trade is a business approach that helps small farmers stay active in the world market. It gives consumers the power to buy products that support good values. This ensures that farmers get fair prices for their goods, improving their living conditions.
In simple words: Fair trade is a business model that helps small farmers get fair prices and connects consumers with ethical purchasing choices.

🎯 Exam Tip: Emphasize the two main goals of fair trade: supporting small producers and empowering consumers, as these are its defining features.

 

Question 7. Write any five principles of Fair Trade Practices.
Answer: Five key principles of Fair Trade Practices are:
1. Creating chances for producers who are economically disadvantaged.
2. Making sure business is transparent and accountable.
3. Practicing fair trading and giving a fair price for goods.
4. Ensuring there is no child labor or forced labor.
5. Showing respect for the environment in all operations. Fair trade aims to create a more equitable and sustainable global economy.
In simple words: Fair trade means helping poor producers, being open and honest in business, paying fair prices, avoiding child labor, and protecting the environment.

🎯 Exam Tip: When listing principles, ensure each point is distinct and directly relates to the core values of fair trade, covering economic, social, and environmental aspects.

 

Question 8. What is the main objective of WTO?
Answer: The main goal of the World Trade Organization (WTO) is to create and enforce rules for international trade. It also helps solve trade disagreements between countries and offers a platform for nations to discuss and oversee trade policies. This promotes smoother global commerce.
In simple words: The WTO's main goals are to make and enforce global trade rules, help solve trade fights, and provide a place for countries to talk about trade.

🎯 Exam Tip: Key objectives of the WTO include rule enforcement, dispute resolution, and providing a platform for trade negotiations. Mention all three for a complete answer.

 

Question 9. Write short note on TRIPs and TRIMs.
Answer: TRIPs stands for Trade-Related Aspects of Intellectual Property Rights. It's an international agreement under the World Trade Organization (WTO) that sets minimum standards for how national governments regulate intellectual property, like patents and copyrights, for foreign nationals. This agreement was negotiated during the Uruguay Round of GATT between 1989 and 1990 and is managed by the WTO.
TRIMs stands for Trade-Related Investment Measures. This agreement, also from the Uruguay Round, refers to specific rules or restrictions a government might put on foreign investments in its country. These measures are designed to help local industries grow.
In simple words: TRIPs are international rules about protecting new ideas and inventions (intellectual property). TRIMs are rules about how foreign money can be invested in a country, often to help local businesses.

🎯 Exam Tip: Clearly define the acronyms (TRIPs and TRIMs) and explain their purpose in international trade, highlighting that both emerged from the Uruguay Round of GATT.

 

Question 10. Write the positive impact of Globalization.
Answer: Globalization brings many good things. It helps the economy grow faster by developing the capital market and improves people's living standards. It also leads to more trade, which means more jobs. New technologies are introduced, and scientific research patterns advance. As a result, a country's GDP increases, and there is a freer flow of goods and foreign investments (FDI).

• A better economy introduces rapid development of the capital market
• Standard of living has increased
• Better trade, therefore more employment
• Introduction of new technologies
• New scientific research patterns
• Increases GDP of a country
• Increase free flow of goods and
• Increase FDI – Foreign Direct Investment

In simple words: Globalization boosts the economy, improves living standards, creates jobs through better trade and new technologies, and increases foreign investment.

🎯 Exam Tip: When discussing positive impacts, cover economic benefits like GDP growth, market development, employment, and technological advancements to provide a well-rounded answer.

VI. Brief Answer

 

Question 1. Write briefly the history of Globalization.
Answer: Professor Theodore Levitt first introduced the term Globalization. The history of globalization can be understood in three main parts:
1. Archaic Globalization: This was an early form of global economies and cultures, seen during the Hellenistic Age. Older trade links included connections between Sumeria and the Indus Valley Civilization, Greek culture spreading to India, and trade across the Roman and Parthian empires. The Mongol empire also helped people travel along the silk road, boosting trade. These early exchanges are known as Pre-modern phases of global interaction.
2. Proto Globalization: This period began with European maritime empires in the 16th and 17th centuries, involving the Portuguese, Spanish, Dutch, and British. The British East India Company in the 17th century and the Dutch East India Company are considered some of the first multinational companies.
3. Modern Globalization: This stage happened mainly in the 19th and 20th centuries. The 19th century saw a big rise in global trade and money investment. In the 20th century, there was more trade in manufactured goods, global services, and an increase in production, often helped by new technologies. Agreements like GATT and WTO also helped reduce transport costs, making trade easier.
In simple words: Globalization's history has three stages: early times with ancient trade routes, a middle period with European empires expanding trade by sea, and the modern era with huge global trade, investments, and technology driven by big companies and agreements like WTO.

🎯 Exam Tip: Structure your answer chronologically, clearly defining each stage (Archaic, Proto, Modern Globalization) and providing distinct examples or characteristics for each period.

 

Question 2. Briefly explain the evolution of MNC and its advantages and disadvantages.
Answer: Multinational companies (MNCs) first began by working in industries that extract raw materials, controlling resources in host countries during the 1920s. After the 1950s, they moved into manufacturing and service sectors. Most MNCs today come from four major exporting countries: the USA, UK, France, and Germany, with America historically being the largest. For example, in 1971, American Corporations held 52% of global foreign direct investment.
Advantages of MNCs:

• MNCs can produce goods of the same quality at a lower cost without high transaction fees.
• They can reduce prices for consumers, increasing their buying power globally.
• They are good at using tax rules to their advantage.
• They help create jobs in the local economy.

Disadvantages of MNCs:

• MNCs have often caused smaller, local businesses to fail.
• When companies move offices and operations to other countries, it can threaten jobs for people in developed nations.
• MNCs often invest in developing countries to use cheaper labor. They prefer places with relaxed labor laws and where people need jobs, allowing them to demand lower wages and fewer health benefits.

In simple words: MNCs started by extracting raw materials, then moved into manufacturing and services. They offer benefits like lower costs and job growth but can harm local businesses and exploit cheap labor.

🎯 Exam Tip: Ensure you describe both the historical evolution and a balanced view of advantages and disadvantages for MNCs, using bullet points for clarity.

 

Question 3. Explain the trade and traders in South India.
Answer: In South India, trade guilds were formed by merchants to organize and expand their trading activities. The Chola dynasty primarily controlled trade, which later shifted to the Pallavas. Various trade guilds operated in medieval South India, such as the Gatrigas, Nakaras, Mummuridandas, Settis, Birudas, and Gavaras.
In earlier times, Kalinga traders brought red decorative stones and cotton textiles to Southeast Asia for trade. The discovery of a new sea route from Europe to India via the Cape of Good Hope by Vasco-da-Gama greatly boosted trade in India. However, Europeans eventually took over India's coastal and sea trade. This expansion of European trading activities ultimately led to European companies coming to India and establishing their presence.
In simple words: South India had many trade groups and strong rulers like the Cholas who controlled trade. Kalinga traders dealt in goods like stones and textiles. The discovery of sea routes by Europeans like Vasco da Gama brought more trade but also led to European control over India's sea trade.

🎯 Exam Tip: When discussing historical trade, focus on the key players (guilds, dynasties), major trade items, significant routes or discoveries, and the impact of foreign involvement.

 

Question 4. Write about the World Trade Organisation.
Answer: The World Trade Organization (WTO) is the only global international body that sets the rules for trade between countries. Its core is made up of agreements negotiated and signed by most countries worldwide and approved by their parliaments. The WTO began operating on January 1, 1995, after the Uruguay Round of trade negotiations (1986-94) was completed.
The WTO has six key objectives:
1. To create and enforce rules for international trade.
2. To provide a place for countries to discuss and monitor further trade liberalization.
3. To help resolve trade disputes.
4. To make decision-making more open and clear.
5. To work with other big international economic groups involved in managing the global economy.
6. To help developing countries get the most benefit from the global trading system.
In simple words: The WTO is the global body that sets and enforces trade rules, solves trade disputes, and helps countries talk about trade. It started in 1995 and aims to make global trade fair and open, especially for developing countries.

🎯 Exam Tip: For the WTO, clearly state its role as a global rule-making body for trade, its founding date, and at least three of its main objectives, such as dispute resolution and trade liberalization.

 

Question 5. Write the challenges of Globalization.
Answer: Globalization presents several challenges:
1. It means linking the home economy with the world economy, which can be complex.
2. While it's believed that globalization benefits all countries, this doesn't happen automatically; some countries might benefit more than others.
3. There is a constant worry that globalization could make the developing world unstable.
4. It has increased competition globally, especially for industries.
5. This competition can lead to a "race to the bottom" in labor rights and employment practices among industrial nations.
6. It might cause global imbalances, where some regions grow much faster than others.
7. It can result in negative activities like child labor and slavery.
8. It might also affect public health, as people are tempted to consume more unhealthy fast food.
9. It could harm the environment because increased use of disposable products and packed items can affect nature and our survival.
In simple words: Globalization has challenges like unequal benefits for countries, economic instability, increased competition, potential for child labor, health issues from junk food, and environmental damage from more waste.

🎯 Exam Tip: When discussing challenges, cover a range of issues: economic disparities, social impacts (labor, health), and environmental concerns to demonstrate a comprehensive understanding.

VII. Activity and Project

 

Question 2. Students are collect the images regarded to the globalization and make the album, (south Indian trade and traders images, and silk route map, spice route map, and kalinga trade map, etc).
Answer: Students should collect pictures of South Indian traders and make them into an album. Students can use Google to search for "ancient South Indian Traders" images and other relevant information.
Silk route map: The Silk Route was an ancient network of trade paths that connected the East and the West, linking Asia, Europe, and Africa. It was mainly used to transport silk, but other goods and ideas also traveled along it.
Spice route map: The Spice Route is the name given to the sea routes through which spices like cinnamon, ginger, pepper, and turmeric were traded. These routes connected Asia, Europe, and Africa.
In simple words: Students should gather images of old South Indian traders and maps of the Silk and Spice routes to make an album. The Silk Route was a land path for silk trade between continents, and the Spice Route was a sea path for spice trade.

🎯 Exam Tip: For activity-based questions, provide clear instructions for collection and presentation. Also, add concise descriptions of any historical concepts mentioned, like trade routes.

 

Question 3. Students are collect the picture of various Multinational corporation companies in India and its products pictures.
Answer: Students should collect pictures of different multinational companies. They can find a list of these companies and their products in their textbook. After finding the pictures, they should paste them to create an album. This activity helps in understanding the global reach of businesses.
In simple words: Students need to find and paste pictures of many global companies and what they sell, making a picture album.

🎯 Exam Tip: For activity-based questions, explain the steps clearly and mention the purpose of the activity for full marks.

 

Additional Important Questions and Answers

I. Choose the correct answer

 

Question 1. The supporting pillars of NEP, 1991 of India is .............
(a) LPG
(b) WTO
(c) IMF
(d) None
Answer: (a) LPG
In simple words: LPG stands for Liberalization, Privatization, and Globalization. These were the main ideas that supported India's new economic policy in 1991.

🎯 Exam Tip: Remember the full forms and significance of key economic terms like LPG, WTO, and IMF for a complete understanding.

 

Question 2. The Danes sold all their Indian settlements to .............
(a) the British
(b) the French
(c) the Portuguese
(d) none
Answer: (a) the British
In simple words: The Danish traders, who had settlements in India, eventually sold all their properties and trading posts to the British.

🎯 Exam Tip: Knowing which European powers traded in India and how their presence evolved is important for history questions.

 

Question 3. The term ............ refers to the integration of the domestic economy with the rest of the world.
(a) Privatisation
(b) Liberalisation
(c) Globalization
(d) World trade
Answer: (c) Globalization
In simple words: Globalization means connecting a country's economy with the economies of other countries around the world.

🎯 Exam Tip: Understand the distinct meanings of Privatization, Liberalization, and Globalization, as they are often confused.

 

Question 4. Which among the following was the largest MNC in India in 2018?
(a) Pepsi Company
(b) Tata Group
(c) Microsoft Corporation
(d) Sony Corporation
Answer: (d) Sony Corporation
In simple words: In 2018, Sony Corporation was considered the biggest multinational company operating in India.

🎯 Exam Tip: Stay updated on current economic facts, as they can change over time. Pay attention to specific years mentioned in questions.

 

Question 5. The term Globalization was introduced by .............
(a) Simon Kuznets
(b) Theodore Levitt
(c) Marshall
(d) Adam Smith
Answer: (b) Theodore Levitt
In simple words: The idea or word "Globalization" was first used by Theodore Levitt.

🎯 Exam Tip: Knowing the pioneers or key figures associated with economic concepts can help in theoretical questions.

 

Question 6. A company that owns or controls production in more than one nation is called .............
(a) Foreign Company
(b) Multinational Company
(c) Local Company
Answer: (b) Multinational Company
In simple words: A company that makes or sells goods and services in many countries, not just its own, is called a multinational company.

🎯 Exam Tip: Define key terms precisely, especially when comparing different types of companies or economic entities.

 

Question 7. Archaic Globalization is the ............. stage of Globalization.
(a) one
(b) two
(c) three
(d) four
Answer: (a) one
In simple words: Archaic Globalization is the first or earliest stage in the history of globalization.

🎯 Exam Tip: When studying historical processes, understanding the stages and their order is crucial for accurate answers.

 

Question 8. Which one of the following is not an MNC?
(a) Reebok shoes
(b) SAIL
(c) Infosys
Answer: (b) SAIL
In simple words: SAIL (Steel Authority of India Limited) is a company owned by the Indian government and operates mainly in India, so it is not a multinational company.

🎯 Exam Tip: Distinguish between domestic companies (especially public sector undertakings) and multinational corporations based on their operational scope.

 

Question 9. Proto Globalization is the ............. stage of Globalization.
(a) one
(b) two
(c) three
(d) four
Answer: (b) two
In simple words: Proto Globalization is the second stage in the historical development of globalization.

🎯 Exam Tip: Make sure to correctly identify the sequence of different historical stages of globalization, as they represent distinct periods.

 

Question 10. WTO is dominated by countries like .............
(a) US and UK
(b) China and France
(c) India and Japan
Answer: (a) US and UK
In simple words: The World Trade Organization (WTO) is largely influenced and controlled by economically powerful nations such as the United States and the United Kingdom.

🎯 Exam Tip: Understand the power dynamics within international organizations like the WTO and which countries hold significant influence.

 

Question 11. The 17th century Globalization became ............. business phenomenon.
(a) Government
(b) Private
(c) Domestic
(d) Foreign
Answer: (b) Private
In simple words: During the 17th century, globalization mainly became something driven by private businesses, not governments. This shows how trade expanded due to individual companies.

🎯 Exam Tip: Focus on the driving forces behind historical events; for 17th-century globalization, the role of private enterprises was significant.

 

Question 12. ............. is an example for a multinational trade agreement.
(a) GATT
(b) WTO
(c) Both (a) and (b)
(d) MNC
Answer: (c) Both (a) and (b)
In simple words: Both GATT (General Agreement on Tariffs and Trade) and WTO (World Trade Organization) are examples of agreements that allow many countries to trade with each other.

🎯 Exam Tip: Identify the correct category for agreements; GATT was a precursor to WTO, both serving as frameworks for multilateral trade.

 

Question 13. South India trade ............. were formed by merchants in order to organize and expand their trade activities.
(a) routes
(b) guilds
(c) organisation
(d) Both (b) and (c)
Answer: (b) guilds
In simple words: In South India, traders formed groups called guilds to manage and grow their business and trading.

🎯 Exam Tip: Recognize historical terms related to trade and social organization, such as 'guilds', which were common in ancient and medieval India.

 

Question 14. The olden days Kalinga is the present day .............
(a) Tamil Nadu
(b) Orissa
(c) M.P.
(d) Delhi
Answer: (b) Orissa
In simple words: The ancient region known as Kalinga is now called Orissa in modern India.

🎯 Exam Tip: Be aware of the historical names of places and their modern equivalents, especially for regions of India.

 

Question 15. Chettiars in Tamil Nadu are examples of early .............
(a) people
(b) Traders
(c) nationalists
(d) Bankers
Answer: (b) Traders
In simple words: The Chettiars community in Tamil Nadu were well-known as early traders, showing how important trade was in the region.

🎯 Exam Tip: Remember specific communities known for their historical roles, such as the Chettiars for trade and banking.

 

Question 16. The arrival of Alvarez cabral in India in 1500 A.D. led to the establishment of trading station at .............
(a) Cochin
(b) Calcutta
(c) Both (a) and (b)
(d) None
Answer: (c) Both (a) and (b)
In simple words: When Alvarez Cabral came to India in 1500 A.D., it led to setting up trading posts in both Cochin and Calcutta.

🎯 Exam Tip: Link important historical figures with the significant events and locations associated with them.

 

Question 17. ............. was the headquarters of the Dutch in India.
(a) Portuguese
(b) Dutch
(c) Arabia
(d) Pulicut
Answer: (d) Pulicut
In simple words: The main office or center for the Dutch in India was located in Pulicut.

🎯 Exam Tip: Memorize the major headquarters of various European trading companies in India, as they indicate their centers of power.

 

Question 18. The Sultan of Golconda granted the English the "Golden Fireman" in .............
(a) 1634
(b) 1632
(c) 1631
(d) 1630
Answer: (b) 1632
In simple words: The English received the special permission called "Golden Fireman" from the Sultan of Golconda in the year 1632.

🎯 Exam Tip: Key dates and significant grants are important historical facts that often appear in exams.

 

Question 19. In 1639, English build a fortified factory in Madras which was known as .............
(a) Fort Pulicut
(b) Fort St. George
(c) Fort Masulipatnam
(d) Fort Pettapoli
Answer: (b) Fort St. George
In simple words: In 1639, the English built a strong factory in Madras, which was given the name Fort St. George. This fort was important for their trade and defense.

🎯 Exam Tip: Learn the names of important forts and trading posts built by European powers, as they signify their presence and influence.

 

Question 20. The first French factory in India was established in ............. by obtaining permission from the Sultan of Golconda.
(a) 1634
(b) 1668
(c) 1693
(d) 1642
Answer: (b) 1668
In simple words: The first French trading post in India was set up in 1668, after they got permission from the Sultan of Golconda. This marked the start of French influence in India.

🎯 Exam Tip: Note the timeline of European settlements in India, especially the establishment of initial factories and the permissions obtained.

 

Question 21. Pondicherry was the headquarters of the .............
(a) British
(b) Spanish
(c) French
(d) Dutch
Answer: (c) French
In simple words: Pondicherry served as the main center and base for the French in India for a long time.

🎯 Exam Tip: Associate key colonial territories with the European powers that controlled them, such as Pondicherry with the French.

 

Question 22. Initially Pondicherry was captured by the ............. and later handed over to the French.
(a) British
(b) Dutch
(c) Spaniards
(d) Sultan of Golconda
Answer: (b) Dutch
In simple words: Pondicherry was first taken over by the Dutch, but then they gave it to the French later on. This shows how control changed hands.

🎯 Exam Tip: Understand the shifts in power and control over important colonial settlements between different European nations.

 

Question 23. Pondicherry became the headquarters of the France in the year .............
(a) 1664
(b) 1693
(c) 1700
(d) 1701
Answer: (d) 1701
In simple words: Pondicherry officially became the main headquarters for French operations in India in the year 1701.

🎯 Exam Tip: Specific dates for administrative milestones, such as headquarters establishment, are significant for historical accuracy.

 

Question 24. India signed the Dunkel draft in the year .............
(a) 1664
(b) 1993
(c) 1994
(d) 1893
Answer: (c) 1994
In simple words: India officially agreed to the Dunkel draft, which was an important step towards global trade rules, in the year 1994.

🎯 Exam Tip: Connect major international agreements like the Dunkel draft with the specific year they were signed by India.

 

Question 25. One of the reform made to adopt Globalization was .............
(a) Abolition of Industrial licensing
(b) Reduction of Public Sector
(c) Foreign exchange regulations
(d) All the options
Answer: (d) All the options
In simple words: To embrace globalization, India made several changes, including removing industrial licenses, reducing government-owned businesses, and updating foreign money rules. All these steps helped open up the economy.

🎯 Exam Tip: When a question asks for reforms, remember that economic policies often involve a package of changes, not just one. Listing multiple reforms demonstrates comprehensive knowledge.

 

Question 26. Multinational corporations are also called as .............
(a) Transnational corporation
(b) Multi-national Enterprise
(c) MNCs
(d) All the options
Answer: (d) All the options
In simple words: Multinational corporations can also be called Transnational corporations, Multi-national Enterprises, or simply MNCs. These are all different names for the same type of global company.

🎯 Exam Tip: Be familiar with synonyms and alternative terms for important economic concepts, as questions might use different phrasing.

 

Question 27. ............. country has the largest multinational companies in the world.
(a) USA
(b) UK
(c) France
(d) Germany
Answer: (a) USA
In simple words: The United States of America (USA) has the most multinational companies compared to any other country in the world. This shows its strong global economic presence.

🎯 Exam Tip: Economic dominance often correlates with the number of multinational corporations; understand which countries lead in this aspect.

 

Question 28. Of the below given choices, find out, which is a multinational corporation.
(a) Tata Group
(b) Nettle
(c) IBM
(d) All the options
Answer: (d) All the options
In simple words: Tata Group, Nettle (likely Nestle, a typo in source), and IBM are all examples of multinational corporations. They operate in many countries around the globe.

🎯 Exam Tip: Be able to identify real-world examples of multinational corporations to illustrate your understanding of the concept.

 

Question 29. GATT was established in .............
(a) 1946
(b) 1945
(c) 1947
(d) 1948
Answer: (c) 1947
In simple words: The General Agreement on Tariffs and Trade (GATT), which set rules for world trade, was created in 1947.

🎯 Exam Tip: Exact dates for the formation of key international agreements and organizations are frequently tested.

 

Question 30. Eighth round of GATT was known as ............. Round.
(a) Tokyo
(b) Uruguay
(c) Torquay
(d) Geneva
Answer: (b) Uruguay
In simple words: The eighth important meeting for GATT was called the Uruguay Round. This round led to the creation of the WTO.

🎯 Exam Tip: Remember the names of significant rounds of trade negotiations, especially the Uruguay Round, due to its importance in establishing the WTO.

 

Question 31. ............. countries participated in the eighth round of GATT.
(a) 127
(b) 117
(c) 167
(d) 107
Answer: (b) 117
In simple words: A total of 117 countries took part in the eighth meeting of GATT, also known as the Uruguay Round. This shows wide global involvement.

🎯 Exam Tip: Specific numbers related to participation or membership in international events can be asked, so keep track of them.

 

Question 32. The eighth round of Talks of GATT took place in the year .............
(a) 1983
(b) 1984
(c) 1985
(d) 1986
Answer: (d) 1986
In simple words: The eighth series of discussions for GATT, known as the Uruguay Round, started in the year 1986.

🎯 Exam Tip: Distinguish between the start year of a round of talks and the year its final act was signed, as they can differ.

 

Question 33. Uruguay Round final Act was signed by the member nations in the year .............
(a) 1986
(b) 1990
(c) 1992
(d) 1994
Answer: (d) 1994
In simple words: The final agreement from the Uruguay Round of trade talks was signed by all the countries involved in 1994. This agreement then led to the creation of the WTO.

🎯 Exam Tip: Note the year when major international agreements are finalized and signed, as this is a common test item.

 

Question 34. The Headquarters of WTO is in .............
(a) Geneva
(b) Scotland
(c) America
(d) Holland
Answer: (a) Geneva
In simple words: The main office for the World Trade Organization (WTO) is located in Geneva, Switzerland.

🎯 Exam Tip: Learn the headquarters locations of major international organizations, as they are fundamental geographical facts.

 

Question 35. G7 countries means ............. countries of the world.
(a) Developed
(b) Developing
(c) Under developed
(d) Less developed
Answer: (a) Developed
In simple words: G7 countries are a group of seven big developed economies in the world. They are known for their strong economies.

🎯 Exam Tip: Understand the classification of countries into categories like developed, developing, and least developed, and which groups (like G7) represent them.

 

Question 36. GATT was signed by ............. countries in 1947.
(a) 22
(b) 23
(c) 21
(d) 117
Answer: (b) 23
In simple words: When GATT first started in 1947, it was signed by 23 countries. This group laid the foundation for global trade rules.

🎯 Exam Tip: The initial number of signatories to foundational agreements is a detail that can be asked in tests.

 

Question 37. TRIPs include the following areas of .............
(a) Trade Secrets
(b) Copy rights
(c) patents
(d) All the options
Answer: (d) All the options
In simple words: TRIPs (Trade-Related Aspects of Intellectual Property Rights) covers many things like protecting trade secrets, copyrights, and patents. It ensures that ideas and inventions are safeguarded.

🎯 Exam Tip: Know the different categories of intellectual property rights covered under the TRIPs agreement, as it's a comprehensive framework.

 

II. Fill In The Blanks

 

Question 1. LPG is the supporting pillar of India's ....................
Answer: LPG is the supporting pillar of India's New Economic Policy. This policy brought big changes to the Indian economy.
In simple words: LPG (Liberalisation, Privatisation, Globalisation) are the main parts of India's New Economic Policy.

🎯 Exam Tip: Remember LPG as the three key ideas that formed India's new economic plans in 1991.

 

Question 2. .................... means integration of the international market for goods and services.
Answer: Globalization means integration of the international market for goods and services. It connects economies worldwide.
In simple words: Globalization is when countries connect their markets to buy and sell things easily.

🎯 Exam Tip: When defining Globalization, always mention the free flow of goods, services, and capital across borders.

 

Question 3. The term Globalization was introduced by Prof ....................
Answer: The term Globalization was introduced by Prof Theodore Levitt. He first used the idea to talk about global markets.
In simple words: Professor Theodore Levitt was the first person to use the word "Globalization."

🎯 Exam Tip: Knowing the person who introduced a concept helps in understanding its historical context.

 

Question 4. The History of Globalization can be studied under .................... stages.
Answer: The History of Globalization can be studied under three stages. These stages show how globalization changed over time.
In simple words: The story of how countries became connected through trade has three main parts.

🎯 Exam Tip: Remember these stages: Archaic, Proto, and Modern Globalization, as they explain its long history.

 

Question 5. The first stage of the history of Globalization is called .................... Globalization.
Answer: The first stage of the history of Globalization is called Archaic Globalization. This refers to very early global connections.
In simple words: The very first stage of countries connecting globally is known as Archaic Globalization.

🎯 Exam Tip: Archaic Globalization covers ancient trade routes and early cultural exchanges before modern times.

 

Question 6. The third stage of the history of Globalization is called .................... Globalization.
Answer: The third stage of the history of Globalization is called Modern Globalization. This stage happened in recent centuries.
In simple words: Modern Globalization is the newest stage where countries are very connected.

🎯 Exam Tip: Modern Globalization is marked by advancements in technology and faster global trade.

 

Question 7. The Proto Globalization is the .................... stage of the history of Globalization.
Answer: The Proto Globalization is the second stage of the history of Globalization. It came after Archaic Globalization.
In simple words: Proto Globalization is the middle stage in the history of global connections.

🎯 Exam Tip: Proto Globalization saw the rise of European maritime empires and early multinational companies.

 

Question 8. The Archaic Globalization existed during the .................... Age.
Answer: The Archaic Globalization existed during the Hellenistic Age. This period saw large empires and trade networks.
In simple words: Archaic Globalization was happening a long time ago, during the Hellenistic Age.

🎯 Exam Tip: The Hellenistic Age marks a period of Greek influence spreading widely, linking different parts of the ancient world.

 

Question 9. The Dutch East India Company was founded in the year ....................
Answer: The Dutch East India Company was founded in the year 1602. It was a powerful trading company.
In simple words: The Dutch trading company started in the year 1602.

🎯 Exam Tip: Many European East India Companies were formed around this time to control trade routes to Asia.

 

Question 10. The expansion of GATT is ....................
Answer: The expansion of GATT is General Agreement on Tariffs and Trade. It was an important global trade agreement.
In simple words: GATT stands for General Agreement on Tariffs and Trade.

🎯 Exam Tip: GATT was a key international agreement before the formation of the World Trade Organization (WTO).

 

Question 11. The .................... is the expansion for WTO
Answer: The World Trade Organisation is the expansion for WTO. It helps manage global trade rules.
In simple words: WTO stands for World Trade Organisation.

🎯 Exam Tip: WTO's main role is to ensure smooth, predictable, and free global trade.

 

Question 12. South Indian trade was dominated by the .................... and replaced by the ....................
Answer: South Indian trade was dominated by the Cholas and replaced by the Pallavas. These were powerful dynasties in the region.
In simple words: The Cholas first controlled trade in South India, then the Pallavas took over.

🎯 Exam Tip: Identifying dominant dynasties helps understand the historical power shifts in trade and governance.

 

Question 13. Kalinga traders brought .................... coloured stone decorative objects for trade.
Answer: Kalinga traders brought red coloured stone decorative objects for trade. These items were highly valued.
In simple words: Traders from Kalinga mainly traded in red stones for decoration.

🎯 Exam Tip: Focusing on the specific goods traded provides insight into the economy and resources of a region.

 

Question 14. India's coastal and maritime trade was monopolized by the ....................
Answer: India's coastal and maritime trade was monopolized by the Europeans. They gained control over sea routes.
In simple words: European countries took over most of India's trade done by sea.

🎯 Exam Tip: European powers sought to control maritime trade to access valuable goods and raw materials from Asia.

 

Question 15. The Portuguese under the leadership of Vasco do Gama landed at Calicut in ....................
Answer: The Portuguese under the leadership of Vasco do Gama landed at Calicut in 1498. This was a significant moment in history.
In simple words: Vasco da Gama, a Portuguese explorer, arrived in Calicut in the year 1498.

🎯 Exam Tip: Vasco da Gama's arrival opened a new sea route to India, changing global trade forever.

 

Question 16. .................... was the early capital of Portuguese in India.
Answer: Cochin was the early capital of Portuguese in India. It served as their main trading hub.
In simple words: Cochin was the first main city for the Portuguese in India.

🎯 Exam Tip: Early capitals often reveal the strategic locations preferred by foreign powers for trade and defense.

 

Question 17. The Sultan of Golconda granted the English the .................... in 1632.
Answer: The Sultan of Golconda granted the English the Golden Fireman in 1632. This gave them special trading rights.
In simple words: In 1632, the Sultan of Golconda gave the English a special order called the "Golden Fireman."

🎯 Exam Tip: Such firmans (royal decrees) were crucial for European companies to establish and expand their trade in India.

 

Question 18. In 1639, English build a fortified factory in Madras which is known as ....................
Answer: In 1639, English built a fortified factory in Madras which is known as Fort St.George. This fort protected their trade.
In simple words: The English built a strong trading post in Madras in 1639, called Fort St.George.

🎯 Exam Tip: Fortified factories were essential for protecting goods and personnel during colonial trade rivalries.

 

Question 19. .................... was the headquarters of Danes in India
Answer: Triangular was the headquarters of Danes in India. It was their main center.
In simple words: The main office for the Danes in India was in Triangular.

🎯 Exam Tip: Understanding the main trading posts of European powers helps map their influence in India.

 

Question 20. The first French factory was established in ....................
Answer: The first French factory was established in 1668. This marked their entry into Indian trade.
In simple words: The first French trading post in India was set up in 1668.

🎯 Exam Tip: Note the timeline of different European powers establishing their presence in India.

 

Question 21. The first French factory was established with the permission from the Sultan of ....................
Answer: The first French factory was established with the permission from the Sultan of Golconda. This was a key political approval.
In simple words: The French got permission from the Sultan of Golconda to open their first factory.

🎯 Exam Tip: Royal permissions were vital for European traders to set up operations and avoid conflicts with local rulers.

 

Question 22. .................... was the headquarters of the French.
Answer: Pondicherry was the headquarters of the French. It became their main base in India.
In simple words: Pondicherry was the main center for the French in India.

🎯 Exam Tip: Each European power typically had one main headquarters from which they managed their operations.

 

Question 23. Pondicherry became the headquarters of the French in the year ....................
Answer: Pondicherry became the headquarters of the French in the year 1701. This was when they officially established their main office there.
In simple words: The French made Pondicherry their main base in the year 1701.

🎯 Exam Tip: Specific dates for establishing headquarters highlight periods of consolidation and expansion for colonial powers.

 

Question 24. Recently the Government of India has set up .................... to boost exports.
Answer: Recently the Government of India has set up Special Economic Zones to boost exports. These zones help businesses export more goods.
In simple words: India has created Special Economic Zones to help businesses sell more products to other countries.

🎯 Exam Tip: Special Economic Zones offer benefits like tax breaks and easy regulations to encourage trade and investment.

 

Question 25. India signed the Dunkel Draft in the year ....................
Answer: India signed the Dunkel Draft in the year 1994. This was part of global trade negotiations.
In simple words: India agreed to the Dunkel Draft plan in 1994.

🎯 Exam Tip: The Dunkel Draft was a key proposal that led to the formation of the World Trade Organization (WTO).

 

Question 26. When India was in crisis in 1990's India mortgaged 40 tons of gold to the Bank of ....................
Answer: When India was in crisis in the 1990s, India mortgaged 40 tons of gold to the Bank of England. This was done to get emergency funds.
In simple words: In the 1990s, when India had financial problems, it gave 40 tons of gold to the Bank of England as a guarantee for a loan.

🎯 Exam Tip: This event highlighted India's severe economic crisis in the early 1990s, prompting major economic reforms.

 

Question 27. The New Economic Policy was put forth in the year ....................
Answer: The New Economic Policy was put forth in the year 1991. This policy aimed to liberalize India's economy.
In simple words: India's New Economic Policy started in 1991.

🎯 Exam Tip: The 1991 New Economic Policy marked a significant shift from a closed economy to a more open, market-oriented one.

 

Question 28. The .................... is a corporate organisation operates in many countries other than home country.
Answer: The MNC is a corporate organisation that operates in many countries other than its home country. These companies have a global reach.
In simple words: An MNC is a big company that works in many different countries, not just its own.

🎯 Exam Tip: MNC stands for Multinational Corporation, a key player in globalization.

 

Question 29. Multinational Corporations are also called as ....................
Answer: Multinational Corporations are also called as Multinational Enterprise. This is another term for companies operating worldwide.
In simple words: Multinational Corporations are also known as Multinational Enterprises.

🎯 Exam Tip: Other common terms for MNCs include Transnational Corporations (TNCs) or Global Corporations.

 

Question 30. Of the MNC .................... is the largest, holding a major share of the FDI
Answer: Of the MNC, America is the largest, holding a major share of the FDI. Many large global companies come from America.
In simple words: America has the most big multinational companies and gets a large part of foreign investment.

🎯 Exam Tip: The US has historically been a leading source and recipient of Foreign Direct Investment (FDI).

 

Question 31. India announced the Foreign Investment policy in the year ....................
Answer: India announced the Foreign Investment policy in the year 1991. This policy encouraged foreign companies to invest in India.
In simple words: India started its new plan for foreign investment in 1991.

🎯 Exam Tip: The Foreign Investment Policy was a crucial part of India's economic liberalization reforms.

 

Question 32. The growth of MNC may lead to the downfall of smaller local .................... of the host country.
Answer: The growth of MNC may lead to the downfall of smaller local Business of the host country. Big companies can outcompete smaller ones.
In simple words: When large global companies grow, small local businesses in a country can sometimes close down.

🎯 Exam Tip: This highlights a common concern about MNCs: their potential negative impact on local industries.

 

Question 33. The expansion of FCRA is ....................
Answer: The expansion of FCRA is Foreign Contribution Regulation Act. This law regulates foreign funding.
In simple words: FCRA stands for Foreign Contribution Regulation Act.

🎯 Exam Tip: The FCRA is important for ensuring that foreign funds received in India are used for intended purposes and do not harm national interests.

 

Question 34. GATT was signed in the year ....................
Answer: GATT was signed in the year 1947. This agreement laid the groundwork for global trade rules.
In simple words: The GATT agreement was first signed in 1947.

🎯 Exam Tip: The year 1947 is a key date in the history of international trade agreements.

 

Question 35. Initially, GATT was signed by .................... countries.
Answer: Initially, GATT was signed by 23 countries. This group started the global trade system.
In simple words: At first, 23 countries signed the GATT agreement.

🎯 Exam Tip: The initial number of signatories for GATT shows the foundational group that began multilateral trade negotiations.

 

Question 36. In the seventh round of GATT .................... countries participated.
Answer: In the seventh round of GATT, 99 countries participated. This shows growing global engagement in trade talks.
In simple words: 99 countries took part in the seventh discussion round of GATT.

🎯 Exam Tip: The increasing number of participating countries in GATT rounds reflected its growing importance in global trade governance.

 

Question 37. GATT's primary purpose was to increase International Trade by reducing ....................
Answer: GATT's primary purpose was to increase International Trade by reducing various tariffs. Tariffs are taxes on imported goods.
In simple words: GATT's main goal was to make international trade bigger by lowering taxes on goods from other countries.

🎯 Exam Tip: Reducing tariffs makes imported goods cheaper, which encourages more international trade.

 

Question 38. The headquarters of GATT is in ....................
Answer: The headquarters of GATT is in Geneva. This city is a major center for international organizations.
In simple words: The main office for GATT is located in Geneva.

🎯 Exam Tip: Geneva is a significant city for international diplomacy and houses many global organizations, including the WTO.

 

Question 39. The Eighth round of GATT is called as ....................
Answer: The Eighth round of GATT is called as Uruguay Round. This round led to major changes in global trade.
In simple words: The eighth meeting of GATT was known as the Uruguay Round.

🎯 Exam Tip: The Uruguay Round was particularly important because it led to the creation of the World Trade Organization (WTO).

 

Question 40. The signing of GATT in 1994 paved the way for the setting up of ....................
Answer: The signing of GATT in 1994 paved the way for the setting up of WTO. This new body took over from GATT.
In simple words: After GATT was signed in 1994, it led to the creation of the WTO.

🎯 Exam Tip: The transition from GATT to WTO marked a stronger, more institutionalized approach to global trade governance.

 

Question 41. Intellectual property right may be defined as ....................
Answer: Intellectual property right may be defined as information with a commercial value. This includes inventions and creative works.
In simple words: Intellectual property rights protect valuable ideas and creations that can be sold.

🎯 Exam Tip: Intellectual property rights protect things like patents, copyrights, and trademarks, encouraging innovation and creativity.

 

Question 42. The expansion of TRIPs is ....................
Answer: The expansion of TRIPs is Trade Related Intellectual Property Rights. This agreement covers global rules for intellectual property.
In simple words: TRIPs stands for Trade Related Intellectual Property Rights.

🎯 Exam Tip: TRIPs is a WTO agreement that sets minimum standards for how countries protect intellectual property.

 

Question 43. The expansion of TRIMs is ....................
Answer: The expansion of TRIMs is Trade Related Investment Measures. This agreement relates to rules for foreign investment.
In simple words: TRIMs stands for Trade Related Investment Measures.

🎯 Exam Tip: TRIMs is another WTO agreement, focusing on conditions that governments can place on foreign investors.

 

Question 44. One of the negative effect of .................... is that it may lead to slavery and Child labour.
Answer: One of the negative effect of Globalization is that it may lead to slavery and Child labour. This is a serious concern for many.
In simple words: A bad side of globalization is that it can sometimes cause child labor and unfair working conditions.

🎯 Exam Tip: Critical analysis of globalization includes discussing its negative social impacts like exploitation of labor.

 

Question 45. The Trade Secret is an agreement covered under ....................
Answer: The Trade Secret is an agreement covered under TRIPs. It is part of intellectual property protection.
In simple words: Trade secrets are protected under the TRIPs agreement.

🎯 Exam Tip: Trade secrets are valuable confidential business information that companies try to protect from competitors.

 

III. Choose The Correct Statement

 

Question 1. (i) Globalization has led to environmental degradation. (ii) GATT was signed by 73 countries in 1949 (iii) TRIPs and TRIMs are a part of WTO (iv) It takes only a few hours to transport goods between continents today.
(a) (i), (iii), (iv) is correct
(b) (i), (ii), (iv) is correct
(c) (i), (ii) is correct
(d) (ii), (iv) is correct
Answer: (a) (i), (iii), (iv) is correct
In simple words: Statements (i), (iii), and (iv) are true. Globalization causes environmental harm. TRIPs and TRIMs are part of the WTO. Today, goods can be shipped between continents very quickly.

🎯 Exam Tip: Carefully evaluate each statement for its factual accuracy and relevance to the topic before selecting the correct combination.

 

Question 2. (i) Proto Globalization was characterized by the rise of maritime European Empires. (ii) The pre-modern phase of global exchange are sometimes known as Proto Globalization. (iii) The Kalinga traders brought Red coloured stone decorative objects for trade (iv) The Danes formed an East India Company and arrive in India in 1616.
(a) (i), (iii), (iv) is correct
(b) (i), (ii), (iv) is correct
(c) (i), (ii), (ii) is correct
(d) (iii), (iv) is correct
Answer: (a) (i), (iii), (iv) is correct
In simple words: Statements (i), (iii), and (iv) are correct. Proto Globalization was when European empires expanded by sea. Kalinga traders sold red stones. The Danes came to India in 1616 and set up their own East India Company.

🎯 Exam Tip: Distinguish between the different stages of globalization (Archaic, Proto, Modern) and the key characteristics of each.

 

Question 3. (i) The MNC first started their activities in controlling the industries of the host countries. (ii) Indian Government mortgaged 40 tons of gold to the Bank of England prior to 1991. (iii) To boost exports, recently, the Government of India announced Demonetisation and Goods and Services Tax.
(a) (i) is correct
(b) (ii) and (iii) are correct
(c) (i) and (iii) are correct
(d) (i), (ii) is correct
Answer: (d) (i), (ii) is correct
In simple words: Statements (i) and (ii) are true. Multinational companies started by controlling industries in other countries. The Indian government did pledge gold to the Bank of England before 1991 due to a crisis.

🎯 Exam Tip: Focus on historical facts and the initial roles of economic entities; recent policies like demonetisation are not relevant to pre-1991 events.

 

Question 4. (i) The main reason for the growth of MNC is on the account of technological superiorities. (ii) An MNC is able to take advantage of tax variation. (iii) WTO provides a forum for negotiating and monitoring trade liberalisation. (iv) The agreement of the final act of Uruguay Round was agreed by 104 member countries.
(a) (i), (ii), (iii) are correct
(b) (i),(ii),(iii) and (iv) are correct
(c) (i), (ii), (iii) are wrong
(d) (i) is correct
Answer: (b) (i), (ii), (iii) and (iv) are correct
In simple words: All four statements are correct. MNCs grow because of better technology and can use different tax rules. The WTO helps with trade talks. The Uruguay Round agreement was accepted by 104 countries.

🎯 Exam Tip: When all statements are factually correct, ensure you select the option that includes all of them to get full marks.

 

IV. Assertion And Reason

 

Question. Assertion (A): After 1991, there was a spurt of foreign collaborations in India and increase flow of FDI-Foreign Direct Investment. Reason (R): The liberalized Foreign Investment Policy (FIP) was announced in India in July-August 1991.
(a) A is correct and R is the correct explanation to A
(b) A is correct and R is not the correct explanation to A
(c) Both A and R are wrong
(d) A is wrong, but R is correct
Answer: (a) A is correct and R is the correct explanation to A
In simple words: Both the statement (A) and reason (R) are true, and (R) correctly explains why (A) happened. India's new investment policy in 1991 led to more foreign money coming into the country.

🎯 Exam Tip: For Assertion-Reason questions, first check if both statements are true individually. Then, check if the Reason actually explains the Assertion.

 

Question. Assertion (A): The introduction of MNC into a host country's economy may lead to the downfall of small, local business. Reason (R): Spurring job growth in the local economies.
(a) A is correct and R is the correct explanation to A
(b) A is correct and R is not the correct explanation to A
(c) Both A and R are wrong
(d) A is wrong, but R is correct
Answer: (b) A is correct and R is not the correct explanation to A
In simple words: Statement (A) is true because big multinational companies can sometimes harm small local businesses. Reason (R) is also true, as MNCs do create jobs. But (R) does not explain why (A) happens. They are separate facts.

🎯 Exam Tip: An assertion and a reason can both be true, but the reason may not be the direct cause or explanation for the assertion.

 

Question. Assertion (A): India's coastal and maritime trade was monopolized by the Europeans. Reason (R): Trade guilds were channels through which Indian Culture was exported to other lands.
(a) A is correct and R is the correct explanation to A.
(b) A is correct and R is not the correct explanation to A
(c) Both A and R are wrong
(d) A is wrong, but R is correct.
Answer: (b) A is correct and R is not the correct explanation to A
In simple words: Statement (A) is true; Europeans took control of India's sea trade. Reason (R) is also true; trade groups helped share Indian culture abroad. However, the reason does not explain the assertion.

🎯 Exam Tip: Understand the separate impacts of trade: economic control by foreign powers versus cultural exchange facilitated by local groups.

 

V. Match The Following

 

Question 1. Match the Column I with Column II.

Answer:
A. (iii) GATT (Uruguay Round was a major round of GATT negotiations)
B. (iv) 1994 (Dunkel Draft was signed in 1994)
C. (vi) NEP (LPG are the pillars of New Economic Policy)
D. (i) Globalisation (FDI is a key component of Globalization)
E. (ii) TRIPs (Patent Rights are covered under TRIPs agreement)
In simple words: We connect each item in Column I to its matching fact or related concept in Column II. For example, the Uruguay Round is part of GATT, and LPG relates to the New Economic Policy.

🎯 Exam Tip: Ensure you understand the relationship between each pair of terms before matching, as some connections might be indirect (e.g., a round of talks related to an organization).

 

Question 2. Match the Column I with Column II.

Answer:
A. (v) WTO (GATT paved the way for WTO)
B. (i) 164 (WTO has 164 member countries)
C. (vi) Product innovation (MNCs are known for product innovation)
D. (ii) Globalisation (Theodore Levitt introduced the term Globalization)
E. (iii) Orissa (Kalinga is the old name for Orissa)
In simple words: We connect each item from the first column to its correct pair in the second column. For example, GATT eventually led to the WTO, and Kalinga is the ancient name for Orissa.

🎯 Exam Tip: Pay close attention to historical relationships and modern facts when matching. For example, GATT was a predecessor, not identical, to WTO.

 

VI. Give Short Answers

 

Question 1. What is the Foreign Contribution (Regulation) Act, 2010?
Answer: The Foreign Contribution (Regulation) Act, 2010 (FCRA) is a law made by the Parliament. It helps control how foreign money and help are received and used by people, groups, or companies. This law also stops foreign contributions that could harm India's national interest. The government uses it to ensure transparency in foreign funding. Its main purpose is to prevent foreign funds from being used for activities against the country's interests.
In simple words: The FCRA 2010 is a law that manages how foreign money or help comes into India. It ensures these funds are used correctly and don't harm the country.

🎯 Exam Tip: When defining Acts, specify the full name, year, and its core purpose or objective.

 

Question 2. How did India's NEP emerged?
Answer: India's New Economic Policy (NEP) came about when the country was in a serious financial crisis. In July 1991, the government presented a budget that included many policy changes. These changes focused on opening up the economy, allowing private businesses, and connecting more with the world. This approach was a big shift for India's economy. These reforms aimed to stabilize the economy and boost growth. This package of reforms became known as India's New Economic Policy.
In simple words: India's New Economic Policy started in 1991 because the country faced a big economic crisis. The government introduced new plans for liberalisation, privatisation, and globalisation to fix it.

🎯 Exam Tip: Mentioning the 1991 economic crisis and the core principles of liberalisation, privatisation, and globalisation (LPG) is key to explaining the NEP's emergence.

 

Question 3. What came to be known as India's new economic policy? How was this policy strengthened?
Answer: India's new economic policy refers to the set of major reforms introduced in 1991. These reforms were strengthened due to a severe financial crisis. India's credit rating was falling, and foreign investors were pulling their money out. To avoid bankruptcy, the government had to mortgage 40 tons of gold to the Bank of England. In response, the government presented a budget in July 1991 with policy changes focusing on liberalisation, privatisation, and globalisation. These changes helped to open up the economy and attract investments. This bold step stabilized India's economy and put it on a path of growth.
In simple words: India's new economic policy started in 1991 after a financial crisis. The government had to mortgage gold. The policy became stronger by making big changes like opening the economy, allowing more private companies, and connecting with global markets.

🎯 Exam Tip: Highlight the 1991 economic crisis and the mortgaging of gold as critical triggers for the strengthening and implementation of the NEP.

 

Question 4. Write a note on SEZ?
Answer: SEZ stands for Special Economic Zones. These are specific areas in a country that have different economic laws than the rest of the nation. The Indian government has recently set up many SEZs, especially in southern states like Tamil Nadu, Andhra Pradesh, Karnataka, and Kerala. The main aim of SEZs is to boost exports. Businesses in these zones often get benefits like tax exemptions and simpler regulations. These zones act as economic engines, attracting foreign investment and generating employment.
In simple words: SEZ means Special Economic Zones. These are special areas where rules are different to help businesses export more goods. India has many of them, especially in the southern states.

🎯 Exam Tip: When describing SEZs, focus on their purpose (boosting exports, attracting investment) and the benefits they offer (relaxed regulations, tax incentives).

 

Question 5. How are producers beneficiaries of fair trade?
Answer: Producers benefit from fair trade in several important ways:

• Fair trade ensures stable prices for producers that cover the costs of making their products in a sustainable way.
• It gives producers better market access, allowing them to sell their goods when they might otherwise be excluded from bigger markets.
• Fair trade promotes partnerships, meaning producers are involved in decisions that affect their future, giving them more control over their businesses.

These practices help small producers improve their living conditions and plan for the long term.
In simple words: Fair trade helps producers by giving them steady prices for their goods, access to markets, and a say in decisions. This makes their businesses stronger and their lives better.

🎯 Exam Tip: List the benefits clearly with bullet points. Focus on tangible advantages for producers, such as pricing, market access, and decision-making power.

 

Question 6. Write any type of subsidies the WTO offers to its member countries?
Answer: The WTO does not directly offer subsidies. Instead, it regulates the types of subsidies that member countries can provide to their industries without distorting international trade. However, within WTO rules, governments may use certain subsidies to support their economies. These typically include:

1. Tax concessions such as exemptions, credits, or deferrals, which reduce the tax burden on businesses.
2. Cash subsidies such as grants, which are direct payments to producers.

The goal is to prevent subsidies from unfairly affecting trade, while allowing members to support certain sectors.
In simple words: The WTO rules allow member countries to give subsidies like tax breaks (exemptions or credits) or direct money payments (grants) to help their industries. These are regulated to keep trade fair.

🎯 Exam Tip: Clarify that the WTO *regulates* subsidies rather than *offers* them. Then, list specific examples of subsidies that fall within WTO guidelines.

 

Question 7. What was the idea behind developing SEZ in India?
Answer: The main idea behind developing Special Economic Zones (SEZs) in India was to attract foreign companies to invest in India. By offering special rules and benefits, SEZs aim to create a business-friendly environment that draws in international capital. These zones also help boost exports by providing incentives for production and trade. The goal is to stimulate economic growth and create employment opportunities through increased industrial activity. It's a way to make India a more appealing destination for global businesses.
In simple words: The main reason for creating SEZs in India was to get foreign companies to invest money here. This helps India's economy grow and exports increase.

🎯 Exam Tip: Emphasize "attracting foreign investment" and "boosting exports" as the core objectives of SEZs.

 

VII. Brief Answer

 

Question 1. What is fair trade? Who are the beneficiaries of fair trade practices? How?
Answer: Fair trade is a system designed to help producers in developing countries achieve better trading conditions. It focuses on offering better prices, decent working conditions, and fair terms of trade for farmers and workers. Under fair trade, everyone benefits: consumers, traders, and producers.

• Consumers: They benefit by getting information about social justice and ethical production. Fair trade allows them to buy products that match their values, supporting responsible businesses.
• Traders/Companies: Since 2002, the fair trade mark has become a well-known label. It offers companies a trustworthy way to show that their trade positively impacts the people at the end of the supply chain. This helps build consumer trust.
• Producers: Fair trade offers unique benefits to producers, such as:
  1. Stable prices that cover the costs of making goods in a sustainable way.
  2. Market access that allows buyers to trade with producers who might otherwise be unable to sell their products.
  3. Partnerships, which involve producers in decisions that affect their future.
  4. Empowerment, giving farmers and workers more control over their lives and businesses.

Fair trade aims to create a more just and equitable global trading system for all involved.
In simple words: Fair trade is a way of doing business that helps producers in poorer countries get good prices and fair working conditions. Everyone benefits: buyers get ethical products, companies look good, and producers earn enough to live better and have a say in their work.

🎯 Exam Tip: Break down the answer by defining fair trade and then detailing the benefits for each beneficiary group (consumers, traders, producers) with clear sub-points.

 

Question 2. Write a note on the beneficiaries of Fair Trade practices.
Answer: Fair Trade practices aim to provide better prices, decent working conditions, and fair terms of trade for farmers and workers. The beneficiaries of these practices include:

• Consumers:
  1. Consumers are key beneficiaries as they can advocate for and compare goods based on wider international trading rules.
  2. They can choose from a growing range of ethical products.
  3. Consumers support producers by buying fair trade labeled products, helping those who are working to improve their lives.
• Traders (or) companies:
  1. Fair Trade offers companies a credible way to ensure they have a positive impact.
  2. Since its launch in 2002, the Fair Trade mark has become a widely recognized social and development label worldwide.
• Producers:
  1. Fair trade gives farmers and producers a sense of empowerment.
  2. It provides stable prices that cover the cost of sustainable production.
  3. Buyers can easily access the market and trade with producers, which helps boost production and economic stability.

These practices build a more responsible and equitable global supply chain.
In simple words: Fair trade helps consumers buy ethical goods, allows companies to show they are responsible, and empowers producers by giving them better prices and market access.

🎯 Exam Tip: Structure your answer with clear headings for each beneficiary group and use numbered or bulleted lists for clarity.

 

Question 3. What are the factors that multinational companies take into account before setting up a factory in different countries?
Answer: Before setting up a factory in different countries, multinational companies (MNCs) carefully consider several important factors:

• Availability of cheap labor and other resources: MNCs often set up offices and factories in various parts of the world where they can find affordable labor and other necessary resources easily. This helps them increase their profits.
• Partnership with local companies: MNCs might choose to partner with local companies or even buy them. This helps them compete better with local businesses and ensures their operations are well-connected across many locations.
• Favorable government policy: MNCs prefer countries with friendly government policies. For instance, flexible labor laws can lower production costs. If MNCs can hire workers on short-term contracts or casual wages instead of permanent ones, it significantly reduces their labor expenses and increases profit margins.

These factors help MNCs decide where to invest and operate to maximize their benefits.
In simple words: Before building a factory in another country, big global companies look for cheap workers and resources, chances to work with local businesses, and government rules that help them save money and make more profit.

🎯 Exam Tip: When listing factors, provide a brief explanation for each point to demonstrate your understanding of why MNCs prioritize these aspects.

 

Question 4. What are the reasons for the growth of MNC?
Answer: Multinational Corporations (MNCs) grow for several reasons, including:

• Expansion of Market: Large firms naturally expand beyond their home country to reach new markets, selling more products and services worldwide.
• Marketing Superiorities:
  1. MNCs easily build a good reputation in the market.
  2. They face fewer problems when selling products because of their established brand and reach.
  3. They can use very effective advertising methods.
  4. All these factors help them promote their sales successfully.
• High Level of Financial Resources:
  1. MNCs have significant financial resources, allowing them to make large investments efficiently.
  2. They can easily access money from global financial markets.
  3. They can gather more international funds to improve production and reduce costs.
• Advancement in Technology:
  1. The advanced technology of MNCs attracts them to participate in industrial development in various countries.
  2. This technology helps them offer products at lower prices, making them more competitive.
• Product Innovation:
  1. MNCs constantly develop new products.
  2. They create new designs for existing products.
  3. They also design products that help new generations use and apply their knowledge.

These advantages allow MNCs to thrive and expand their global presence.
In simple words: Big global companies grow because they sell to many countries, have strong marketing, lots of money, and use new technology and ideas to make better products.

🎯 Exam Tip: Organize your answer by categorizing the reasons for growth (e.g., market, finance, technology, innovation) and use numbered lists for sub-points.

 

Question 4. What are the reasons for the growth of MNC?
Answer: Multinational Corporations (MNCs) grow for several key reasons:
- **Market Expansion:** Large companies expand their business beyond their home country to reach more markets globally.
- **Marketing Strengths:** MNCs easily build a strong brand name. They face less trouble selling products and use effective advertising to promote sales.
- **Abundant Funds:** MNCs have a lot of money to use. They can easily get funds from global capital markets and raise international resources to improve what they produce. This financial strength helps them greatly.
- **Technological Progress:** Their high level of technology helps them join in industrial growth and offer products at low prices.
- **New Product Ideas:** They are able to create new products and new designs for existing ones. These new designs also help future generations apply their knowledge.
In simple words: MNCs grow because they expand to many markets, have strong marketing, possess a lot of money, use advanced technology, and constantly create new products.

🎯 Exam Tip: Focus on how MNCs leverage scale, resources, and innovation to explain their global growth and competitive advantage.