Question

SST
Globalization and the Indian economy worksheet
1. What do you mean by the term Globalization?
2. Define investment and foreign investment.
3. What factors do MNCs consider while choosing locations for their production centres?
4. What is the basic function of foreign trade?
5. How does foreign trade affect local producers and consumers?
Long ans type questions
6. How does foreign trade integrate markets across countries?
7 What are MNC's? How do MNC's organize production and why?
8. Explain the complex production process of MNC's. Why do they do so?
9. Explain the ways in which MNC's operate in different countries and interlink production
across countries.
10. Differentiate between foreign trade and foreign investment
11. Explain the factors that have enabled Globalization.
12. What are trade barriers? In what forms did trade barriers exist prior to 1991?
13. Why were these restrictions removed in 1991?
14. What is Liberalisation? How has it helped in the process of globalisation?
15 What is the role of WTO in the liberalisation of foreign policies of countries across the
16. Why do developed countries want developing countries to liberalize?
17. Discuss the positive and negative impact of Globalization in India.
18. What is the role of governments is creating conditions for fair Globalization?
19. What are the steps to attract foreign investment?
20. How has competition in international markets benefited people in India?
production units affected by raising competition among producer​

Answer 1

Answer:

1. Globalization is the word used to describe the growing interdependence of the world's economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.
2. The money that is spent to buy assets such as land, building, machines and other equipment is called investment. Investment made by MNCs in another country is called foreign investment.
3. THE FIVE FACTORS AFFECTING THE LOCATION OF A INDUSTRY ARE:
4. *AVAILABILITY OF RAW MATERIAL.
5. *AVAILABILITY OF CHEAP LABOUR.
6. *AVAILABILITY OF CAPITAL AND BANK FACILITIES.
7. *PROXIMITY TO MARKETS.
8. *AVAILABILITY OF ADEQUATE TRANSPORT LIKE:RAILWAYS ,WATERWAYS ,ROADWAYS ETC.
9. Foreign trade creates an opportunity for the produces to reach beyond the domestic markets.
10. foreign trades brings many new technologies with them which helps the producers. producers got a chance to compete not only in there own markets but also in the markets of other countrys.
11. Foreign trade leads to integration of markets across countries by the processes of imports and exports.
12. MNCs establish their factories and offices in regions where cheap labour, raw material and other resources are readily available. This minimizes the cost of production and increases the profit.
13. MNC stands for Multinational Company. They are companies which own or control their production in more than one country. ... They spread their production process so that the overall cost is low.
14. MNCs interlink production across countries in the following ways: ... Large MNCs in developed countries place orders for production with small producers.
15. Foreign trade implies the trade of goods, services and capital between two countries of the world. Foreign investment refers to an investment made in a company from a source outside the country.
16. Factors that supported globalisation in India are as follows : (a) Reduction of trade barriers with a view to allowing free flow of goods to and from other countries. (b) Involvement of various local producers with MNCs in various ways. ... emerged as MNCs and start working globally.
17. Prior to 1991, the Indian government had put barriers to foreign trade and foreign investment. India allowed imports of only essential items such as machinery, fertilisers, petroleum,etc
18. In New Economic Policy in 1991, the government wished to remove these barriers because it felt that domestic producers were ready to compete with foreign industries.
19. Liberalisation of trade and investment policies has helped the globalisation process by making foreign trade and investment easier. ... Thus, liberalisation has led to a further spread of globalisation because now businesses are allowed to make their own decisions on imports and exports
20. The main role of World Trade Organization in the foreign liberalization of the policies all across the countries is to fast-track the trading system in the terms of products and sectors that can help in benefiting the institution of the power.
21. Developed countries want developing countries to liberalised their trade and investment because then the MMCs belonging to the developed countries can set up factories in less expensive developing nations,and thereby increase profits, with lower manufacturing costs and the small scale price.
22. Globalization has led to increased production for businesses in order to meet global demand. Increased production means more natural resources are used and this can be used up before they are regenerated leading to a negative impact on the environment.
23. The government can play a major role in making globalisation fair: (i) By making policies that protect the interests not only of the rich and the powerful but of all the people in the country. (ii) It can ensure that labour laws are properly implemented and the workers get their rights.
24. The steps taken to attract foreign investment are: Allowing the foreign companies as tax free for the first five years in the industrial zones. Industrial zones called SEZs(Special Economic Zones) are set up with world class facilities. Allowing flexibility in labour laws.
25. Small-scale producers have been adversely affected by globalisation because they are not able to compete with MNCs or other big producers. (ii) These small-scale producers could not keep their cost of production low and hence, they lost their markets.

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