important questions with answers from chapter 4 globalisation and the indian economy economics class 10
Answers
Explanation:
what are the effects of globalisation in India ?
Answer:
Question 1.
Differentiate between investment and foreign investment.
Answer:
The money that is spent to buy assets such as land, building, machines etc. is called investment whereas investment made by a MNC to buy such assets is called foreign investment.
Question 2.
Why do MNCs set up their offices and factories in those regions where they get cheap labour and other resources?
Answer:
MNCs set up their offices and factories in those regions where they get cheap labour and other resources because they bring down the cost of production and ensure more profits for themselves.
Question 3.
Due to what reason are the latest models of different items available within our reach?
Answer:
Globalisation
Short Answer Type Questions [3 Marks]
Question 4
‘Barriers on foreign trade and foreign investment were removed to a large extent in India since 1991.’ Justify the statement.
Answer:
In 1991, the Indian government decided that the time has come for Indian producers to compete with producers around the world. It felt that foreign competition would improve the quality of goods produced by Indian producers within the country.
Thus, barriers on foreign trade and foreign investment were removed to a large extent. It meant goods could be imported or exported easily and foreign companies could set up factories and offices in India.
Question 5.
“A wide ranging choice of goods are available in the Indian markets.” Support the statement with examples in context of globalisation.
Answer:
The Indian market has been trAnswer:formed in recent years. The consumers have a wide variety of goods and services to choose from, which were not available earlier. For example:
The latest models of mobile phones, television, digital cameras of leading manufacturers and other well known brands of the world are easily available in the markets.
New models of cars and automobiles are launched every season.
The top companies in the world have introduced their popular brands in India for various products like shirts, fruit juices, cosmetics, toys, furniture, stationery etc.
All this has been possible only due to globalisation.
Question 6.
“Globalisation and greater competition among producers has been of advantageous
to consumers.” Justify the statement with examples.
Answer:
Globalisation and greater competition among producers has been of advantageous to consumers in the following ways:
Consumers in today’s world have a wide variety of goods and services to choose from. The latest models of digital cameras, mobile phones and televisions made by the leading manufacturers are available to them.
Consumers now enjoy better and improved quality at lower prices.
It has resulted in higher standards of living.
There has been a varying impact on producers and workers.
Many top Indian companies have been able to establish themselves as multi¬national corporations.
Latest technology and production methods have raised production standards.
Question 7.
Why had the Indian government put barriers to foreign trade and foreign
investment after independence? Analyse the reasons.
Answer:
The Indian government put barriers on foreign trade and foreign investment after independence because:
(a) It was considered necessary to protect the producers within the country from foreign competition.
(b) In 1950s and 1960s, the industries were in nascent stage and competition from imports at that stage would not have allowed these industries to develop.
(c) Therefore, India allowed the imports of only essential items like machinery, fertilizers, petroleum etc.
Question 8.
Explain by giving examples how Multinational Corporations (MNCs) are spreading their products in different ways.
Answer:
Multinational Corporations (MNCs) are spreading their production in different ways. Some of them are:
By buying local companies and, then expanding production. For example, Cargill Foods, a very large American MNC, purchased small Indian company, Parakh foods. Cargill Foods is, now, the largest producer of edible oil in India with a capacity making 5 million pouches daily.
By placing orders for production with small producers. Garments, footwears, sports items are examples where production is carried out by small producers for large MNCs around the world.
By producing jointly with some of the local companies. It benefits the local company in two ways.
A MNC can provide money for additional investments.
A MNC can bring latest technology for production.
For example, Ford Motors set up a large plant near Chennai, in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks.
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