Read the following passage carefully and answer the
following questions:
There has been quite a fuss about banning Chinese products and
curbing the influx of cheap Chinese goods into the Indian markets.
But, how did China, our neighbouring country, become such a big
manufacturing hub? Today, most of the things that we use are made
in China. China is undoubtedly the world's factory, but it didn't start
that way
Under the leadership of Mao Zedong in the mid 20th century, China
was a communist country. This meant that only the government was
allowed to do business. Private industries and manufacturing were
prohibited. This went on for almost three decades. However, after his
demise, the Chinese government opened up its economic policies. Just
in a few years, factories mushroomed in every nook and corner of
China.
Some multinational companies noted this development. Within a
short span of time, most of the big American and other brands had
their manufacturing units set in China.
The companies were making great profits as their costs had reduced
considerably. Just to make the picture clear, a week's wages of a
Chinese worker working in such factories is almost equivalent to the
amount of money an American worker makes in an hour. This is a
huge incentive for the companies to manufacture their goods in
China
On the basis of the above reading, answer the following questions:-
A.
was a mid 20th century Chinese communist
leader.
(1 mark)
B. For how many years, Private industries and manufacturing in China
were prohibited? (1 mark)
C. What was the scenario of business in China during the mid of 20th
century?
(3 marks)
D. Why China became the first choice for the various brands and
manufacturing units? (3 marks)
Answers
Answer:
A. Mao Zedong
B. Private industries and manufacturing were
prohibited for almost three decades.
C. Under the leadership of Mao Zedong in the mid 20th century, China
was a communist country. This meant that only the government was
allowed to do business. Private industries and manufacturing were
prohibited. This went on for almost three decades. However, after his
demise, the Chinese government opened up its economic policies. Just in a few years, factories mushroomed in every nook and corner of China.
Some multinational companies noted this development. Within a
short span of time, most of the big American and other brands had
their manufacturing units set in China.
D. China became the first choice for the various brands and manufacturing units because the companies were making great profits as their costs had reduced considerably. Just to make the picture clear, a week's wages of a Chinese worker working in such factories is almost equivalent to theamount of money an American worker makes in an hour. This is a huge incentive for the companies to manufacture their goods in China.