NCERT Solution For Class 10 Economics Chapter 4 – Globalisation and the Indian Economy
NCERT Solution For Class 10 Economics Chapter 4
- What do you understand by globalisation? Explain in your own words.
Answer: Globalisation can be characterised as the process of countries becoming more integrated through international trade and investments made by multinational corporations (MNCs). The phenomenon of globalisation is attributed to various factors such as a rise in international trade, population migration, capital finance flows, and foreign investments, both public and private.
NCERT Solution For Class 10 Economics Chapter 4
- What were the reasons for putting barriers to foreign trade and foreign investment by the Indian government? Why did it wish to remove these barriers?
Answer: The primary rationale behind the Indian government’s imposition of trade and investment barriers was to safeguard domestic producers and small industrialists from foreign competition.
However, it was eventually acknowledged by the government that increased trade and higher-quality domestic production would result from the removal of these barriers, and that foreign competition would motivate Indian industrialists to raise the calibre of their goods.
NCERT Solution For Class 10 Economics Chapter 4
- How would flexibility in labour laws help companies?
Answer: Labour law flexibility benefits businesses by assisting in the attraction of foreign investment. Rather than recruiting employees on a regular basis, businesses employ employees on a contract basis for brief periods of time during periods of high workload. The purpose of this is to lower labour costs for the business. Still unsatisfied, foreign businesses are calling for more latitude in labour regulations. Foreign companies will be unable to achieve their targeted profit levels in the face of growing market competition if the government does not permit flexibility with these laws.
NCERT Solution For Class 10 Economics Chapter 4
- What are the various ways in which MNCs set up, or control, production in other countries?
Answer: MNCs heavily invest in a nation’s economy in order to establish and manage production. In order to obtain cheaper labour, it locates production facilities close to the market. MNCs work with a few local businesses to boost production because the rate of increase in production happens quickly. MNCs typically expand their production by purchasing local businesses. By putting orders for production with small and local producers, they also control the production process. By utilising heavy machinery and technology, they aid in production, increasing productivity and efficiency.
NCERT Solution For Class 10 Economics Chapter 4
- Why do developed countries want developing countries to liberalise their trade and investment? What do you think should the developing countries demand in return?
Answer: Because MNCs can establish industries in small and developing nations that are less expensive and can yield higher profits, developed countries want developing countries to liberalise trade and investment. Increased profit is the outcome of lower labour and manufacturing costs. Additionally, there is more competition when companies and industries are established in developed nations. To safeguard their own industries, the developing nations should, in turn, demand that trade barriers be fairly removed.
NCERT Solution For Class 10 Economics Chapter 4
- “The impact of globalisation has not been uniform.” Explain this statement.
Answer: Due to the fact that only developed nations have benefited financially from globalisation, its effects have not been uniform. The developed countries make all of the profits; developing nations are only used to establish industries and provide cheaper labour. In developing nations, small businesses and industries have always faced obstacles in making a profit and getting their products onto the market.
- How has liberalisation of trade and investment policies helped the globalisation process?
Answer: Due to the removal of trade barriers, the liberalisation of investment and trade policies aided in the process of globalisation. It has facilitated investment and trade abroad. The buyers’ options have increased as well because they can now select goods made by both domestic and foreign businesses. Product prices have decreased as a result of trade competition. Globalisation has accelerated due to liberalisation, which has given businessmen the ability to decide what to import and export.
NCERT Solution For Class 10 Economics Chapter 4
- How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.
Answer: Markets across nations have become more integrated as a result of foreign trade. The ability of producers to compete and export their goods to foreign markets is a result of foreign trade. Both the seller and the buyer have the opportunity to purchase goods from outside of their own nation. They can now choose products made by both domestic and foreign companies, which has increased their options.
Due to increased competition in the market, the price of these goods has decreased. It is now possible for producers from various nations to compete not only with domestic rivals but also with international ones. Nowadays, goods from all over the world are available at reasonable prices on the Indian market instead of an abundance of goods manufactured in India.
NCERT Solution For Class 10 Economics Chapter 4
- Globalisation will continue in the future. Can you imagine what the world would be like twenty years from now? Give reasons for your answer.
Answer: Future waves of globalisation are certain to come. In twenty years, there will be more competitiveness in the market, more efficient manufacturing, obvious advancements in all fields, and a rise in both the quantity and quality of products produced. As more opportunities are made available to them, the number of small businesses and entrepreneurs will rise.
NCERT Solution For Class 10 Economics Chapter 4
- Supposing you find two people arguing: One is saying globalisation has hurt our country’s development. The other is telling, globalisation is helping India develop. How would you respond to these arguments?
Answer: There are several benefits and drawbacks to globalisation. Advantages of increased globalisation include more employment opportunities due to large-scale industries and better trade opportunities. The country’s economy has experienced growth in both the profit market and imports and exports. Goods manufactured all over the world are available for less money.
Globalization’s drawbacks include a disproportionate rise in the wealth of the affluent and a corresponding fall in the income of the poor as small-scale local industrialists struggle to make ends meet. hence escalating the disparity in income.
NCERT Solution For Class 10 Economics Chapter 4
- Fill in the blanks.
Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of ______________. Markets in India are selling goods produced in many other countries. This means there is increasing ______________ with other countries. Moreover, the rising number of brands that we see in the markets might be produced by MNCs in India. MNCs are investing in India because _____________ ___________________________________________ . While consumers have more choices in the market, the effect of rising _______________ and ______________has meant greater _________________among the producers.
Answer:
Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of globalisation. Markets in India are selling goods produced in many other countries. This means there is increasing trade with other countries. Moreover, the rising number of brands that we see in the markets might be produced by MNCs in India. MNCs are investing in India Because of the cheaper production costs. While consumers have more choices in the market, the effect of rising demand and purchasing power has meant greater competition among the producers.
NCERT Solution For Class 10 Economics Chapter 4
- Match the following.
| (i) MNCs buy at cheap rates from small | (a) Automobiles producers |
| (ii) Quotas and taxes on imports are used to regulate trade items | (b) Garments, footwear, sports |
| (iii) Indian companies who have invested abroad | (c) Call centres |
| (iv) IT has helped in spreading of production of services | (d) Tata Motors, Infosys, Ranbaxy |
| (v) Several MNCs have invested in setting up factories in India for production | (e) Trade barriers |
Answer:
| (i) MNCs buy at cheap rates from small producers | (b) Garments, footwear, sports items |
| (ii) Quotas and taxes on imports are used to regulate trade | (e) Trade barriers |
| (iii) Indian companies who have invested abroad | (d) Tata Motors, Infosys, Ranbaxy |
| (iv) IT has helped in spreading of production of services | (c) Call centres |
| (v) Several MNCs have invested in setting up factories in India for production | (a) Automobiles producers |
NCERT Solution For Class 10 Economics Chapter 4
- Choose the most appropriate option.
- The past two decades of globalisation have seen rapid movements in
- goods, services and people between countries.
- goods, services and investments between countries.
- goods, investments and people between countries.
Answer: c. goods, services and investments between countries
- The most common route for investments by MNCs in countries around the world is to
- set up new factories.
- buy existing local companies.
- form partnerships with local companies.
Answer: c. buy existing local companies
- Globalisation has led to improvement in living conditions
- of all the people
- of people in developed countries
- of workers in the developing countries
- none of the above
Answer: d. none of the above
NCERT Solution For Class 10 Economics Chapter 4
For the Next Chapter Solution Click Below
CHAPTER 2 – Sectors of the Indian Economy
CHAPTER 4 – Globalisation and the Indian Economy
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