Globalization and The Indian Economy Class 10 Social Science Exam Questions

Exam Questions Class 10

Very Short Answer Type Questions

Question. How can we identify that we are living in a globalised world ?
Answer : The latest models of digital cameras, mobile phones and televisions made by the leading manufacturers of the world are within our reach. This is an indicator of a globalised world.

Question. What are the ways to interconnect countries ?
Answer : (i) Foreign trade, (ii) Foreign investments, and (iii) Movement of people.

Question. Give example of an industry where number of small producers produce goods.
Answer : Garments/Footwear.

Question. How can import of Chinese toys in India be reduced ?
Answer : The import of Chinese toys in India can be reduced by imposing import duty or tax on them. This way the toys will become costlier and their demand will fall.

Question. Which areas are suitable for MNCs to invest ?
Answer : Regions which provide cheap raw material, cheap quality labour, good infrastructure, proximity to markets and better governance policies are suitable areas for MNCs to invest.

Question. When is money called an investment ?
Answer : The money that is spent to buy assets such as land, building, machines and other equipment is called investment.

Question. Suppose the Indian government puts a tax on import of a commodity. What would happen ?
Answer : Those who wish to import this commodity would have to pay tax on this. Because of the tax, buyers will have to pay a higher price on imported goods. This may lead to reduced demand for the commodity.

Question. What do you understand by globalisation? Explain in your own words.
Answer : MNC, transfer technology, development in foreign trade etc.

Question. What is foreign investment ?
Answer : An investment made by MNCs is called foreign investment.

Question. What are the ways in which an MNC can start operating in a country ?
Answer : An MNC can start operating in a country either by directly establishing its own factory or by acquiring some running factory or by the way of joint association or joint venture with some existing company.

Question. What is meant by trade barrier ?
Answer : Trade barrier refers to the restriction imposed by the government to stop or reduce the export/import of the specified commodities.

Question. World Trade Organisation (WTO) is an organisation whose aims is ______.
Answer : to liberalise international trade.

Question. Correct the following statement and rewrite it.
Removing barriers or restrictions by the government is known as globalisation. 
Answer : Removing barriers or restrictions by the government is known as liberalisation.

Question. Correct the followaing statement and rewrite it.
International Monetary Fund (IMF) is an organisation whose aim is to liberalise international trade.
Answer : World Trade Organisation (WTO) is an organisation whose aim is to liberalise international trade.

Short Answer Type Questions

Question. What are the characteristics of a MNC ?
Answer : Following are the characteristics of a MNC :
(i) A MNC may have research and development facility in one country.
(ii) It may have production facility in another country.
(iii) It may source raw materials from other countries.
(iv) It then sells products all over the world.

Question. Mention three factors responsible for globalization.
Answer : (i) Growth of MNCs.
(ii) Growth of technology.
(iii) Development in transport and communication technology.

Question. Mention three factors responsible for globalization.
Answer : (i) Growth of MNCs.
(ii) Growth of technology.
(iii) Development in transport and communication technology

Question. “Globalisation has been advantageous to both consumers as well as producers.” Support the statement with suitable examples.
Answer : Advantages of globalisation for consumers:
(a) They have greater choice.
(b) Better quality of products are available for consumption due to competition.
(c) It has reduced the cost of goods and services considerably.
Advantages of globalisation to producers:
(a) They now have access to international markets for their products.
(b) They have easier access to foreign investment to enhance their production,
(c) Collaboration with MNCs have added up their performance and profits.

Question. In spite of Globalization, creating good quality products and expanding market, how is it affecting the stability in jobs for the workers?
Answer : 1 Employment of ‘flexible workers.’
2. Increased competition, objective to lower costs, the axe falls on the ‘labour costs’—temporary jobs given.
3. Longer working hours for labour to get suitable salaries.

Question. How MNCs can spread their production?
Answer : MNCs can spread their production by:-
1. Setting up joint production units with local companies.
2. To Buy up local companies and expanding its production base.
3. Placing orders with small producers

Question. How would flexibility in labour laws help companies?
Answer : Flexibility in labour laws will help companies in being competitive and progressive. By easing up on labour laws, company heads can negotiate wages and terminate employment, depending on market conditions. This will lead to an increase in the company’s competitiveness.

Question. How are Multinational Corporations (MNCs) controlling and spreading their productions across the world? Explain.
Answer : • By directly setting up factories and offices for production.
• By setting up production jointly with some of the local companies of other countries.
• By buying up local companies and then expand productivity
• By placing orders for production with small producers of the countries such as garments, footwear.
• By buying mass produced goods of domestic industries and, then sell it under their own brand name at much higher rates in foreign countries.

Question. How have ‘local companies’ benefited by collaborating with ‘multinational companies’ ? Evaluate any three benefits.
Answer : The local companies has been benefited by collaborating with ‘‘Multinational Companies’’ in the following ways :
(i) MNCs provide money for additional investments like buying new machines for faster production. (ii) MNCs bring with them the latest technology for production. (iii) The collaboration with MNCs also bring new market for the finished goods/product. (iv) With the increase in production, Indian companies made good earnings. (v) Most of the Indian companies have gained from successful collaboration with foreign companies.

Long Answer Type Questions

Question. Explain in what ways has competition affected workers, Indian exporters and foreign MNCs in the garment industry?
Answer : Competition has affected workers, Indian exporters and foreign MNCs in the garment industry in a very significant manner in the following ways: Workers: (i) The workers in the garment industry feel insecure as far as their jobs are concerned. Most of them work on temporary basis. (ii) They work on very less wages without any social security. (iii) They have to work for undue longer hours. Indian exporters: (i) They get orders from MNCs at lower price. (ii) They are working as outsourcing firms. (iii) They cannot compete with international brands on global level. Foreign MNCs: (i) Global brands have entered the Indian market. (ii) They have secured a large market share from domestic producers. (iii) They are making huge profits in Indian market.

Question. Describe any five factors that promote the Multinational Corporations (MNCs) to setup their production units in a particular place.
Answer : Following are the various factors:
(i) MNCs establish their production facilities in such areas where they get cheap raw material.
(ii) MNCs establish their production facilities in such areas where they get cheap but quality labour.
(iii) MNCs always establish their production facility near to market which helps them to keep their transportation cost low.
(iv) MNCS establish production units in those areas where the availability of electricity is sufficient and predictable.
(v) MNCs establish the production facilities in those areas where there is rule of law and crime rate is very low.

Question. Why do you think that the Chinese toys are more popular in Indian market ? What would happen if Indian government impose heavy import duties on Chinese toys ?
Answer : Chinese toys are more popular in Indian markets because they are cheaper in comparison to Indian toys. Other reasons for Chinese toys’ popularity are their better make and design. Now almost all the toy shops are selling Chinese toys in large numbers. It seems that Chinese toys have almost replaced the Indian toys. This is a very serious situation for Indian toys manufacturers in terms of their income and employment. If the Indian government imposes heavy import duty on Chinese toys, it will increase their cost and hence the prices in the Indian market. This will decrease their demand in the market. This will lead to more demand of Indian toys and fall in the imports of Chinese toys. This will happen only when their prices become higher than the prices of Indian toys due to import duties. So if even after imposing the import duty, the Chinese products remain cheaper in comparison to Indian toys than their imports will not fall.

Question. ‘‘The impact of globalisation has not been uniform.” Explain with examples.
Answer : The impact of globalisation has not been uniform because :
(i) Globalisation has been beneficial only for developed countries. It had a bad impact on the underdeveloped and developing countries.
(ii) Developed countries took resources from underdeveloped countries at cheap rate and exported costly finished products to underdeveloped countries.
(iii) The developed countries are rich in machinery and finance. They exploits resources of the underdeveloped countries.
(iv) Competition from companies in developed countries also cripple industries of under developed and developing countries.
(v) Small manufacturers have been hard hit due to globalisation.
(vi) Many illiterate and poor people lost their jobs due to closure of small units.

Question. How has foreign trade been integrating markets of different countries? Explain with examples.
Answer : Introduction foreign trade has been important thing the market by.
Product from 1 country and beyond the market domestic and pleat globally.
Producer from different countries come in in close contact and closely packed with each other.
Price of similar good in different market train to become equal.
Manufacturing by multinational companies apart production across various country thus linking the consumers and producers.

Globalization and The Indian Economy Class 10 Social Science Exam Questions