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Globalization And The Indian Economy Class 10 Social Science MCQs Questions with Answers
Refer below for MCQ Class 10 Social Science Chapter 4 Globalization And The Indian Economy with solutions. Solve questions and compare with the answers provided below
Very Short Answer Type Questions
Question. Analyse the contribution of fast transport in globalization.
Answer : Fast transportation has enabled easy reach of goods in the market thereby enabling a high increase in demand. It benefits the economy on a large scale increasing the revenue. With the lower reduction in cost, fast transportation increases profit.
Question. What is the meaning of investment?
Answer : The money that is spent to buy assets such as land, building machines and other equipment is called investment.
Question. What is foreign investment?
Answer : Investment made by MNCs is called foreign investment.
Question. What attracts the foreign investment?
Answer : Infrastructural facilities.
Question. Why had the Indian Government put barriers to foreign trade and foreign investment after Independence?
Answer : To protect the producers within the country from foreign competition.
Question. Why are MNCs setting up their customer care centers in India?
Answer : Due to availability of cheap skilled labour and good English speaking people.
Question. Due to which reason the latest models of different items are available within our reach?
Answer : Due to globalisation
Question. Which is the most common route for investment by MNCs in countries around the world?
Ans. The easiest way for MNCs is to invest around the world is to buy up local companies and then to expand production by controlling the means.
Question. The MNC’s of a country sets up a production jointly with the local company of other country. State any one benefit of this joint production to the local company.
Ans. Benifits of joint Productions
1. MNC can provide money for additional investment.
2. MNC might bring latest technology for production.
Question. Name some Indian companies which are now emerging as Multi National Corporations.
Ans. Tata motors, Infosys, Ranbaxy, Asian paints and Sundaram fasteners are some Indian companies which are spreading their operations worldwide. Explanation: MNCs or Multi National Corporations are companies which are based in various countries and their market and production are both expanded across various countries and continents.
Question. Distinguish between investment and foreign investment.
Ans. When land, assets or buildings are purchased and kept hold of, they are considered as investments, whereas when multinational corporations (MNC’s) invest money or finances in a project of another company in another country, it is considered as foreign investment.
Question. Define the term liberalisation.
Ans. Liberalisation refers to the removal or partial or complete loosening of the restrictions set by the government on foreign investment and trade. It also eases up the process of import and export.
Question. Define globalisation.
Ans. Globalisation is defined as the integration between different countries through foreign trade and foreign investments by various multi-national corporations (MNCs).
Question. How has globalisation enabled the national companies to emerge as Multinational Companies (MNCs)?
Ans. Globalisation enabled the national companies to emerge as MNCs: New opportunities have been provided to the companies/ Helped in collaboration with foreign companies/ Technological and production inputs/ Any other relevant point.
Question. Define the term ‘investment’.
Ans. The money that is spent to buy assets such as land, building, machines and other equipment is called investment.
Question. Due to which reason are the latest models of different items available within our reach?
Ans. The latest models of different items are available within our reach due to ‘globalisation.
Question. Read the source given below and answer the question that follows: In recent years, the central and state governments in India are taking special steps to attract foreign companies to invest in India. Companies who set up production units in the SEZs do not have to pay taxes for an initial period of five years. What are SEZs?
Ans. SEZs are Special Economic Zones or Industrial Zones set up to attract foreign investment by government of India.
Question. Where do MNCs prefer to set up their offices and factories?
Ans. MNCs set up offices and factories for production in regions where they can get cheap labour and other resources.
Short Answer Type Questions
Question. Analyse any three factors that make globalisation fairer.
Ans. Factors that make globalisation fairer are:
(1) Companies are attracted towards regions with cheap labour and often exploit them for this purpose. The government can ensure that labour laws are properly implemented and workers get their rights.
(2) It can support small producers to improve their performance untill they become strong enough to compete.
(3) If necessary, the government can use trade and investment barriers to protect their native producers.
(4) Governments can negotiate at the World Trade Organisation (WTO) for ‘fairer rules’ to help make globalisation equally beneficial to all classes.
(5) Countries can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.
Question. How has technology stimulated the globalisation process? Explain with examples.
Ans. Technology and globalization:
(1) Improvement in transport technology has made faster delivery of goods across long distances at lower costs.
(2) Information and communication technology like computer, internet, and telecommuni-cation has developed.
(3) Telephones (mobiles, fax) are used to contact one another.
(4) Information is being accessed easily even to the remote areas.
(5) Satellite communication devices are of great use.
(6) Any other relevant point.
Question. How has globalisation affected the life of Indians? Explain with examples.
Ans. The impact of globalisation on India is as follows:
(1) It has led to an increment in foreign investment in India.
(2) It has resulted in greater cultural exchange because of greater movement of the people. This has greatly helped the tourism sector in India.
(3) It has led to opening up of the Indian markets to foreign goods.
(4) Increased competition among companies hasd led to improvement of quality and reduction in prices of the products.
(5) Access to newer technology and improved ways of production from the more advanced countries has resulted in eficiency in the local industries.
(6) Globalisation has created new opportunities for Indian companies, particularly by providing services like IT.
Question. How multinational corporations (MNCs) help-ful in connecting distant countries? Explain with examples.
Ans. Multinational corporations (MNCs) are helpful in connecting distant countries in the following ways:
(1) MNCs set up production jointly with local companies in their countries, thus integrating the markets and production units of these countries together.
(2) MNCs acquire local companies and then expand production in their countries.. For example: Cargil Foods, a very large MNC (USA), has bought Parekh- Foods a small Indian company.
(3) The MNCs provide effcient managerial and advanced technology for faster production and effcient use of resources.
(4) Large MNCs in developed countries place orders for production of Garments, footwear, sports items for example with small producers often in developing countries. Through this, they control production in various countries simultaneously, bringing them closer.
(5) MNC’s procure raw materials for their production from local producers which has helped the latter to prosper and grow.
Question. “In a matter of years, Indian markets have been transformed with wide ranging choice of goods.” Support the statement with examples.
Ans. A wide range of goods have become available in the Indian markets as a result of globalisation.
(1) Globalisation has led to large scale integration of the markets around the world. Goods and services provided by different countries are now available in the Indian markets, thus, giving a variety of choices to consumers in India.
(2) Investments by multinational corporations (MNCs) in industries such as cell phones, automobiles, electronics, fast food services, etc. have made the latest variety of various goods easily available.
(3) State of the art better quality products from various developed countries around the world are available at affordable prices for Indians to purchase in their own country. This has affected their demands for other services as well.
Question. Describe the contribution of multinational corporations to promote globalisation.
Ans. The importance of multinational companies (MNCs) in the process of globalisation is as follows:
(1) MNCs sell and produce various products globally. They integrate various countries and their markets by their expanded branches..
(2) It is because of the expansion of these Multi National Corporations that advanced technology reaches the remotest countries across the world.
(3) Greater foreign trade and investment by MNCs help in quicker integration of production and markets across various countries.
(4) MNCs control the production, price, quality, delivery and labour conditions for producers across various countries, this brings markets and producers in different countries closer.
(5) MNCs help boost businesses in developing and underdeveloped countries, and provide employment opportunities to their citizens.
(6) MNCs help to move more goods and services across various countries easily.
Question. Assess any three advantages of multinational corporations.
Ans. Advantages of MNCs:
(1) MNCs have provided improved quality and lower prices goods.
(2) New jobs have been created by MNCs.
(3) MNCs are bringing advantages to consumers in the form of cell phones in automobiles, fast food and other services.
(4) They invest in new technology and new methods of production.
(5) Host of services like accounting, administrative task , engineering are now being done cheaply due to MNCs efforts.
(6) People enjoy high standards of living and facilities due to MNCs
(7) Any other relevant point
Question. Examine any three conditions which should be taken care of by multinational companies to set up their production units.
Ans. Factors that encourage the multinational corporations (MNCs) to set-up their production units in a particular place are:
(1) Proximity to the markets as it helps them to sell their products easily.
(2) Availability of skilled and unskilled labourers at cheap rate which helps them in cutting costs and aids in production work.
(3) Presence of favourable government policies looking after their interest or which could support their operations.
(4) Availability of other factors of production such as raw materials, water, electricity and transport also matters, as it eases the production and transportation of finished goods.
(5) Presence of standard safety measures for assured production as it helps them to grow and stay assured
Question. “Globalisation has been advantageous to consumers as well as to producers.” Support the statement with suitable examples.
Ans. Globalisation has been advantageous to consumers as well as to producers in the following ways:
(1) Consumers now enjoy numerous alternatives and choices as well as better uality of products due to the increase in competition among international and domestic producers. Their lifestyles have improved as a result.
(2) Competition among companies has lowered the prices on various goods.
(3) Numerous jobs have been created due to the expansion of companies by the work of the multinational companies (MNCs). Local companies collaborating with them have earned huge profits.
(4) MNCs and the Integration of markets have brought with them newer and more effective technology.
(5) Many domestic companies have improved technology and production methods due to competition from MNCs.
(6) More employment and innovation opportunities have opened up new avenues for economic development for producers.
Question. Describe any three steps taken by the central and state governments to attract foreign investment in India.
Ans. Steps taken by the central and state governments to attract foreign investment in India are:
(1) The government has set up industrial zones called Special Economic Zones (SEZs). SEZs provide world class facilities, such as electricity, water, roads, transport, storage recreational and educational facilities.
(2) Companies who set up production units in SEZs do not have to pay taxes for an initial period of five years.
(3) The government has also allowed flexibility in labour laws to attract foreign investment.
(4) Companies can now employ workers ‘flexibly for short periods when there is intense pressure of work. This helps to reduce the cost of labour for the companies.
Question. ‘Globalisation has created new opportunities for companies providing services in India.’ Explain.
Ans. (1) Globalisation has created new opportunities for companies providing services particularly those involving IT.
(2) The Indian company producing a magazine for the London based company and call centres are some examples of it.
(3) Besides, a host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in countries such as India and are exported to the developed countries.
Question. Analyse the impact of globalisation on multi-national corporations (MNCs) in India.
Ans. The impact of globalisation on multi national corporations (MNCs) in India is as follows:
(1) Globalisation has given Indian businesses access to markets that would have been difficult to reach in the past.
(2) Globalisation has helped Indian companies establish their branches and production units in various countries around the world.
(3) Multiple big companies like Ranbaxy, Tata Steel, Reliance Private Limited, Infosys, Asian Paints, etc. are now maintaining business relations and partnerships with various MNCs and local companies of different countries, which benefits the Indian economy.
Question. Critically examine the impact of globalization in India.
Ans. Impact of Globalization in India:
(1) Stiff competition for local producers and manufacturers.
(2) No job security
(3) Workers are denied their fair share of benefit
(4) Long working hours and low wages to the worker.
(5) Expansion of unorganized sector.
(6) New opportunities for IT sector
(7) Increase in investment and foreign trade
(8) Any other relevant point
Question. How has competition benefitted people in India? Give any three points.
Ans. Competition has benefitted people in India in the following ways:
(1) People have a greater choice as consumers. They can afford to buy products of improved quality and lower prices.
(2) More jobs have been created in different sectors such as cell phones, automobiles, fast foods and banking and insurance.
(3) Small companies have got new technology and improvised methods of production working with MNCs. As a result, their production standard has improved.
Question. Evaluate the role of MNCs in the economic development of a country.
Ans. Role of MNCs in the economic development:
(1) MNCs place order for production with small producers
(2) MNCs are setting up partnerships with local companies.
(3) They are interlinking markets all over the world.
(4) Any other relevant point.
Question. How do large companies with huge wealth and power control production across countries? Explain with examples.
Ans. Large companies control production across countries:
(1) Large companies buy up local companies for expanding production.
(2) Large companies place orders for production with small producers.
(3) Large companies sell products under their own brand names.
(4) They set up partnership with local companies.
(5) They determine price, quality, delivery and labour condition
Question. ‘‘Foreign trade integrates the markets in different countries.’’ Support the statement with arguments.
Ans. Foreign trade integrates the market in different countries because
(1) Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
(2) Producers can sell their produce not only in markets located within the country but also can compete in markets located in other countries of the world.
(3) 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.
(4) Choice of goods in the markets rises.
(5) Prices of similar goods in the two markets tend to become equal.
(6) Producers in the two countries now closely compete against each other.
(7) Any other relevant point.
Question. Read the source given below and answer the questions that follow: People with education, skill and wealth have made the best use of the new opportunities. On the other hand, there are many people who have not shared the benefits. Since globalisation is not a reality, the question is how to make globalisation more ‘fair’? Fair globalisation would create opportunities for all, and also ensure that the benefits of globalisation are shared better. The government can play a major role in making this possible. What is globalisation? How can the government ensure fair globalisation to its people? Give two points.
Ans. Globalisation means unification or integration of the domestic economy with the world economy through trade, capital, cultural, social and technology flows. Government can ensure fair globalisation to its people in the following ways:
(1) Government needs to support indigenous producers to improve their performance by providing them technical advancement, easy credit facilities. It should formulate better labour laws.
(2) Government can negotiate with world trade organisation for fairer rules and can against the domination of developed countries in trade markets as supply sources.
Question. Read the source given and answer the question that follows: Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each, should come into the country. The Indian government, after Independence, had put barriers to foreign trade and foreign investment. Why had the Indian government put barriers to foreign trade and foreign investments after independence?
Ans. Indian Government had put barriers against foreign trade and investments after independence because:
(1) Indian products and producers needed pro-tection against cheaper foreign alternatives.
(2) As Indian industries were just coming up in 1950’s and 1960s, the competition from further developed foreign industries at that stage would not have allowed these industries to comeup.
(3) To stabilize its economy, India needed to export more and import less. Putting barriers discouraged the people from buying imported goods thus helping India to make it Balance of Trade less negative.
Long Answer Type Questions
Question. Define globalisation. Describe any four benefits of globalisation to the Indian economy.
Ans. Globalisation is defined as the integration of different countries through foreign trade and foreign investments by various multi-national corporations (MNCs). The impact of globalisation on the Indian economy is as follows:
(1) It has led to an increment in foreign investment in India.
(2) It has resulted in greater cultural exchange because of greater movement of the people. This has greatly helped the tourism sector in India.
(3) It has opened up the Indian markets to foreign goods.
(4) Increased competition among companies has lead to improvement of quality with reduction in prices of the products.
(5) Access to newer technology and improved ways of production from the more advanced countries has resulted in to effciency in the local industries.
(6) Globalisation has created new opportunities for Indian companies, particularly by providing services like IT.
Question. ‘‘International trade is considered the economic barometer of a country.’’ Justify the statement with arguments.
Ans. When trade takes place between two countries it is known as international trade. It is very important for the development of a country because:
(1) Income earned from international trade constitues a major part of the nation’s net national income.
(2) As the resources of a country are space bound, it can not survive without international trade. It enables a country to earn foreign exchange which is needed to import essential goods. (3) The balance of trade of a country is the difference between its export and import. When the value of exports exceeds the value of imports, it is called a favourable balance of trade. On the contrary, when the value of imports exceeds the value of exports, it is called an unfavourable balance of trade.
(4) International trade is an indicator of the role of the country’s economy in a globalised world trade. scenario. (5) Large international trade leads to revival of domestic economy.
Question. Describe any five ways by which multinational companies are spreading their products across the world.
Ans. Ways by which multinational companies (MNCs) are spreading their products across the world are:
(1) MNCs set-up their production units in those areas where skilled and unskilled labour is easily available at low cost, which increases production rate.
(2) They set-up these units near to the market so that distribution is easier.
(3) They also choose such areas where required facilities are available.
(4) They also set up production jointly with some of the local companies. Sometimes, they buy local companies and then expand their production.
(5) Sometimes, they place orders for production with small producers and provide them money for their requirements. MNCs provide to the local companies their latest technology for better and speedy production.
Question. Read the sources given below and answer the questions that follows:
Source A – Production across countries Until the middle of the twentieth century, production was largely organised within countries. What crossed the boundaries of these countries were raw material, 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. This was before large companies called multinational corporations (MNCs) emerged on the scene.
Source B – Foreign trade and integration of markets 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.
Source C – Impact of globalisation in India Globalisation and greater competition among producers – both local and foreign producers – has been of advantage to consumers, Particularly the well-off sections in the urban areas. There is greater choice before these consumers who now enjoy improved quality and lower prices for several products. As a result, these people today, enjoy much higher standards of living than was possible earlier. Source A – Production across countries
(A) How are MNCs a major force in connecting the countries of the world?
Source B – Foreign trade and integration of markets
(B) How does foreign trade become a main channel in connecting countries?
Source C – Impact of globalisation in India
(C) How is globalisation beneficial for consumers?
Ans. (A) MNCs act as a major force in connecting various countries of the world. They interact with local producers in various counties across the globe to expand their production and markets which results in connection of widely dispersed locations on countries.
(B) Foreign trade helps to integrate various markets with one another through the means of domestic and international producers who sells the same product in domestic and international markets. The markets of all countries garner similar products and are integrated together.
(C) Globalisation is beneficial for consumers in the following ways:
(1) High quality goods are available at lower prices.
(2) A wide range of choice is available for the consumers.
Question. How have our markets been transformed in recent years? Explain with examples.
Ans. Our markets have been transformed in recent years in the following ways:
(1) We have a wide choice of goods and services before us.
(2) The latest models of digital cameras, mobile phones and televisions made by the leading manufacturers of the world are within our reach now. Examples new models of automobiles can be seen on Indian roads in every season.
(3) Today, Indians are buying goods produced by nearly all the top companies in the world. Examples An explosion of brands can be seen in the market for a variety goods, from shirts to televisions to processed fruit juices.
(4) Producers from any country can sell their produce in another country and hence, the markets are linked worldwide by trade and purchase. Examples online shopping services such as amazon, flipkart.
Question. Analyse the importance of multinational companies in the globalisation process.
Ans. The importance of multinational companies (MNCs) in the process of globalisation is as follows:
(1) MNCs sell and produce various products globally. They integrate various countries and their markets by their expanded branches.
(2) It is because of expansion of these MNCs that advanced technology reaches the remotest of countries across the world.
(3) Greater foreign trade and investment by MNCs help in quicker integration of production and markets across various countries.
(4) MNCs control the production, price, quality, delivery and labour conditions for producers across various countries, this brings markets and producers in different countries closer.
(5) MNCs help boost business in developing and underdeveloped countries and provide employment opportunities to their citizens.
(6) MNCs help to move more goods and services across various countries easily.
Question. Mention some steps that can be taken by the government to make globalisation ‘fairer’?
Ans. The government can play a major role in making globalisation ‘fair’ by taking following steps:
(1) Its policies must protect the interests, not only of the rich and powerful, but all the people in the country.
(2) The government can ensure that labour laws are properly implemented and the workers get their rights.
(3) The government can support small producers to improve their performance till the time they become strong enough to compete. If necessary, the government can use trade and investment barriers
(4) The government can negotiate at the WTO for ‘fairer rules.’
(5) It can also align with similar interests to fight against the domination of developed countries in the WTO.
Question. Describe the role of technology in promoting globalisation process.
Ans. Technology: Rapid improvement in technology has stimulated the globalisation process.
(1) This has made much faster delivery of goods across long distances possible at lower costs.
(2) Even more remarkable have been the developments in information and communication technology.
(3) Technology in the areas of telecommunications, computers, Internet has been changing rapidly.
(4) 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.
(5) This has been facilitated by satellite communication devices.
(6) Any other relevant point.
Question. What are the various ways in which MNCs set up, or control production in other countries? Explain.
Ans. An MNC is a company that owns or controls production in more than one nation and control production in other countries in the following ways:
(1) MNCs set up offices and factories for production in regions where they can get cheap labour and other resources.
(2) In general, MNCs set up production where it is close to the market, where skilled and unskilled labour available at low costs and where the availability of other factors of production is assured and where government policies are favourable.
(3) MNCs set up production jointly with some of the local companies of these countries.
(4) Sometimes MNCs buy up local companies and then to expand production. For example, Cargill Foods-a very large American MNC, has bought over smaller Indian companies such as Parakh Foods.
(5) MNCs in developed countries place orders for production with small producers who supply the products to the MNCs which then sell these under their brand names to the customer.
Question. What is globalisation? Describe the role of multinational corporations (MNCs) in promoting the globalisation process.
Ans. Globalisation is a process of rapid interdependence and interconnectedness amongst the countries of the world. The multinational corporations (MNCs) have played a major role in promoting the process of globalisation in the following ways:
(1) MNCs are not only selling their products globally but they are also producing them globally.
(2) The production part is spread into small parts or units and is spread across the globe.
(3) Greater foreign trade and investment has resulted in greater integration of production and markets across various countries.
(4) More and more goods and services, investments and technology, etc. are being between countries
(5) Technology has made the process of transporting goods cheaper and faster.
Question. Describe the major problems created by the globalisation for a large number of small producers and workers.
Ans. The major problems created by globalisation for a large number of small producers and workers are as follows:
(1) It may lead to widening of income inequalities among various countries.
(2) Workers, jobs are no longer secure because imports from outside country can take over their work.
(3) It leads to expansion of the unorganised sector.
(4) Small manufacturers have been hit hard due to severe competition because they can’t afford huge machines and advanced technology.
(5) Several units have been shut down rendering many workers jobless.
(6) Workers are denied their fair share of benefits because of strong market competition. 68. How do we feel the impact of globalization on our daily life? Explain with examples. Ans. Impact of Globalization: (i) Globalization and greater competition among producers has been of advantage to consumers.
(ii) Greater choice before consumers.
(iii) Availability of standard quality products at lower price.
(iv) Improvement in living standard.
(v) Foreign investments have increased in many areas like cell phones, auto mobiles, electronics, soft drinks etc.
(vi) New job have been created. (vii) Several of the units have shut down rendering many workers jobless.
(viii) Globalization has also created insecurity of job.
(ix) Any other relevant point. (Any 5 points to be mentioned.)
Question. “The impact of globalisation has not been uniform.” Explain with examples.
Ans. Not every sector has benefited from globalisation, atleast not equally. This can be said so because: Multinational corporations (MNCs) have been fascinated by industries like automobiles, electronics, soft drinks, fast food, communication, transportation and hospitality. In these industries and services, employment has increased due to their investment. Local companies supplying things such as raw materials, etc. to these industries have prospered. However, for other industries and individual craftsmen, globalisation has increased competition and even destroyed income sources for some since their products are unable to compete with goods made by machines in terms of quality and prices. Their livelihood has been snatched and they have been forced to look for menial jobs. Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are some examples. Consumers have benefitted with availability of better quality of goods at lesser prices. Many Indian industries and companies have benefitted immensely and emerged as MNCs themselves.
Question. ‘‘Globalisation and greater competition among producers has been advantageous to consumers.’’ Support the statement with examples.
OR
How can consumers and producers be benefited by foreign trade? Explain with examples.
Ans. Globalisation and greater competition among producers has been advantages to consumers :
(1) Globalisation and greater competition among producers both local and foreign has been of advantage to consumers, particularly the well off sections of urban areas.
(2) There is greater choice before these consumers who now enjoy improved quality and lower prices for several products.
(3) People enjoy higher standards of living.
(4) But the impact of globalization has not been uniform among producers and workers.
(5) Services of the top Indian companies have been able to benefit from the increased competition.
(6) They have invested in newer technology and production methods and raised their production standards.
(7) Wide ranging choice of goods in our markets is a recent phenomenon and have brought changes in lives of people.
(8) Any other relevant point
Question. Read the sources given below and answer the questions related to them :
Source A – Globalisation and the Indian economy An 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.
Source B – Foreign trade and integration of markets 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, the import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced.
Source C – The struggle for fair globalisation In the past few years, massive campaigns and representation by people’s organisations has influenced important decisions relating to trade and investments at the World Trade Organisation. This has demonstrated that people can also play an important role in the struggle for fair globalisation.
Source A – Globalisation and the Indian economy
(A) How is the impact of globalisation visible on consumers?
Source B – Foreign trade and integration of markets
(B) How does foreign trade integrate markets? Explain.
Source C – The struggle for fair globalisation
(C) How do people play an important role in the struggle for fair globalisation? Explain.
Ans. (A) Greater availability of alternatives in almost all products, lower prices, refined quality and improved lifestyles are the clearly visible effects of globalisation. Globalisation has helped consumers improve their choices in terms of products used.
(B) Foreign trade helps local producers to access foreign markets, reach beyond domestic markets and influence markets of other countries with their products. The expansion of choices beyond what is domestically produced, facilitated by foreign trade, joins one country and its markets to another. Both markets thrive on similar products despite being miles away. (C) Various campaigns led by people’s organisation have influenced the investment criteria of companies. They have positively affected trade and other important decisions of investors (through the route of democratic or judicial struggle) at the World Trade Organisation.
Question. Describe any five factors that promote multinational corporations (MNCs) to setup their production units at a particular place.
Ans. Factors that promote multinational corporations (MNCs) to set-up their production units at a particular place are:
(1) Proximity to the markets as it helps them to sell their products easily.
(2) Availability of skilled and unskilled labourers at cheap rate which help them in cutting costs and aiding in production work.
(3) Presence of favourable government policies looking after their interest or which could support their functioning.
(4) Availability of other factors of production such as raw materials, water, electricity and transport, as it eases the production and transportation of finished goods.
(5) Presence of standard safety measures for assured production as it helps them to grow and stay assured.
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