CBSE Class 10 SST Economics Globalisation and The Indian Economy
①Globalisation refers to the integration of the domestic economy with the economies of the world.② An MNC is a company that owns and controls production in more than one nation.
③ Foreign Investment is an investment made by MNCs.
④ Liberalisation means the removal of barriers and restrictions set by the government on foreign trade.
⑤ Around 1991, government India adopted the policy of liberalisation.
⑥ World Trade Organization (WTO) was started at the initiative of the developed countries.
⑦ Its main objective is to liberalize international trade.
⑧ Privatisation means the transfer of ownership of property from the public sector to private sector.
⑨ Governments use trade barriers to increase or decrease (regulate) foreign trade to protect the domestic industries from foreign competition. Eg. Tax on imports.
⑩ Business Process Outsourcing (BPO) is the contracting of non-primary business activities and functions to a third-party service provider.
⑪ Multilateral Agreement is an agreement entered by a group of countries.
⑫ Mixed economy is a system in which private and public sector works together.
⑬ Economic Reforms or New Economic Policy is a policy adopted by the Government of India since July 1991. Its key features are Liberalization, Privatisation and Globalisation (LPG).
⑭ Special Economic Zones are set up by the central and state governments to attract foreign capital investment.
Q1: What were the reasons for putting barrier to trade?
Answer:
Answer:
- Indian government had put barriers on foreign trade in order to protect domestic trade and produce from foreign industries.
- Later it was felt that competition would improve the performance and quality of domestic producers as they would have to improve their quality by adopting the new economic policy.
- It was also felt the domestic manufacturers would invest more in research and development and would become capable of selling their products at international market by competing with their foreign counter parts.
Q2(CBSE 2011): Which one of the following is a major benefit of joint production between a local company and a Multi-National Company ?(a) MNC can bring latest technology in the production
(b) MNC can control the increase in the price
(c) MNC can buy the local company
(d) MNC can sell the products under their brand name
Q3(CBSE 2011): Which one of the following is not true regarding the World Trade Organization?
(a) It allows free trade to all countries without any trade barriers.
(b) Its aim is to liberalise international trade.
(c) It establishes rules regarding international trade.
(d) WTO rules have forced the developing countries to remove trade barriers.
Q4(CBSE 2011): Rapid integration or inter connection between countries is known as
(a) Privatisation
(b) Globalisation
(c) Liberalisation
(d) Socialisation
Q5(CBSE 2011): Which one of the following has benefited least because of globalisation in India?
(a) Agriculture Sector
(b) Industrial Sector
(c) Service Sector
(d) Secondary Sector
Q6: Till 1950, globalisation meant
(a) only foreign trade
(b) only foreign investment
(c) both (a) and (b)
(d) none of these
Q7: Which of the following has played a big role in organizing production across the coutries?
(a) WTO
(b) Domestic companies
(c) Information technology
(d) Consumers
Answers:
2: (a) MNC can bring latest technology in the production
3: (a) It allows free trade to all countries without any trade barriers.
4: (b) Globalisation
5: (a) Agriculture Sector
6: (a) only foreign trade
7: (c) Information technology
(b) MNC can control the increase in the price
(c) MNC can buy the local company
(d) MNC can sell the products under their brand name
Q3(CBSE 2011): Which one of the following is not true regarding the World Trade Organization?
(a) It allows free trade to all countries without any trade barriers.
(b) Its aim is to liberalise international trade.
(c) It establishes rules regarding international trade.
(d) WTO rules have forced the developing countries to remove trade barriers.
Q4(CBSE 2011): Rapid integration or inter connection between countries is known as
(a) Privatisation
(b) Globalisation
(c) Liberalisation
(d) Socialisation
Q5(CBSE 2011): Which one of the following has benefited least because of globalisation in India?
(a) Agriculture Sector
(b) Industrial Sector
(c) Service Sector
(d) Secondary Sector
Q6: Till 1950, globalisation meant
(a) only foreign trade
(b) only foreign investment
(c) both (a) and (b)
(d) none of these
Q7: Which of the following has played a big role in organizing production across the coutries?
(a) WTO
(b) Domestic companies
(c) Information technology
(d) Consumers
Answers:
2: (a) MNC can bring latest technology in the production
3: (a) It allows free trade to all countries without any trade barriers.
4: (b) Globalisation
5: (a) Agriculture Sector
6: (a) only foreign trade
7: (c) Information technology
Q: Define Globalisation.Answer: Globalisation is an integration among the countries through foreign trade and foreign investments by MNCs. Its a linkage of nation's markets with global markets.
Q: What is MNC? Give two examples.
Answer: Multinational Corporation or MNC is a business firm operating in several countries but centrally managed from one (home) country.
Examples of MNCs in India: Nokia, Ford, L&T, Oracle
Q: List three factors for globalisation.
Answer: Factors for globalisation are:
Ⓐ Liberalisation of trade and investment policies.
Ⓑ Improvement in Technology
Ⓒ Influence from international organizations.
Q: What are the positive impacts of Globalisation?
Answer:
① Lower prices
② Improvment in quality
③ Beneficial for top Indian Companies
④ Greater choice for consumers especially in urban area
⑤ Entry of MNCs and foreign investments in new technology like cell phones, automobiles etc.
Q: What are the factors that enabled Globalisation?
Answer:
ⓐ Information and Communication Technology
ⓑ Technology Improvement
ⓒ Liberalisation of foreign investment policy
Q: Is Equality goal of globalisation?
Answer: No
Q: What are the negative impacts of globalisation?
Answer:
① Temporary employment
② Environmental damage and pollution.
③ Income inequality
④ More profits for MNCs
⑤ Cultural losses
⑥ Denial of benefits to workers
Q: What are the salient features of MNCs?
Answer:
① Giant Size
② Worldwide operations
③ Professional Management
④ Production is organised in increasingly complex ways
⑤ Production processes are divided into small parts and spread out across globe.
⑥ Use of latest and advanced technology.
Q: What are the uses of Information Technology in Globalisation?
Answer:
① Helps in communication across the world at minimal/negligible cost.
② Transfer of voice, data and other information.
③ Links markets worldwide
④ Transfer for money across countries
⑤ Setup consumer care centres
Q: Which technology allows us to send emails?
Answer: Internet
Q: Define Privatisation. What are the initiatives taken by the government in this regard?
Answer: Privatisation means transforming all economic activities from public sector to private sector. It also refers to the setting up of private units in public utility services.
Initiatives taken by the government to promote privatisation:
① Number of industries reserved for public sector has been reduced from 17 to 3.
② Private companies can enter into core sector industries like ship building, transportation, communication, iron and steel, electricity etc.
③ To promote investment many imposed restrictions such as licensing, permission to import raw materials, regulation of prices etc. were removed
④ Process of disinvestment has been initiated by the govenrment for sick public sector units.
⑤ FERA restrictions removed. Foreign exchange transactions have been made smooth by new FEMA policy.
Q: What is MNC? Give two examples.
Answer: Multinational Corporation or MNC is a business firm operating in several countries but centrally managed from one (home) country.
Examples of MNCs in India: Nokia, Ford, L&T, Oracle
Q: List three factors for globalisation.
Answer: Factors for globalisation are:
Ⓐ Liberalisation of trade and investment policies.
Ⓑ Improvement in Technology
Ⓒ Influence from international organizations.
Q: What are the positive impacts of Globalisation?
Answer:
① Lower prices
② Improvment in quality
③ Beneficial for top Indian Companies
④ Greater choice for consumers especially in urban area
⑤ Entry of MNCs and foreign investments in new technology like cell phones, automobiles etc.
Q: What are the factors that enabled Globalisation?
Answer:
ⓐ Information and Communication Technology
ⓑ Technology Improvement
ⓒ Liberalisation of foreign investment policy
Q: Is Equality goal of globalisation?
Answer: No
Q: What are the negative impacts of globalisation?
Answer:
① Temporary employment
② Environmental damage and pollution.
③ Income inequality
④ More profits for MNCs
⑤ Cultural losses
⑥ Denial of benefits to workers
Q: What are the salient features of MNCs?
Answer:
① Giant Size
② Worldwide operations
③ Professional Management
④ Production is organised in increasingly complex ways
⑤ Production processes are divided into small parts and spread out across globe.
⑥ Use of latest and advanced technology.
Q: What are the uses of Information Technology in Globalisation?
Answer:
① Helps in communication across the world at minimal/negligible cost.
② Transfer of voice, data and other information.
③ Links markets worldwide
④ Transfer for money across countries
⑤ Setup consumer care centres
Q: Which technology allows us to send emails?
Answer: Internet
Q: Define Privatisation. What are the initiatives taken by the government in this regard?
Answer: Privatisation means transforming all economic activities from public sector to private sector. It also refers to the setting up of private units in public utility services.
Initiatives taken by the government to promote privatisation:
① Number of industries reserved for public sector has been reduced from 17 to 3.
② Private companies can enter into core sector industries like ship building, transportation, communication, iron and steel, electricity etc.
③ To promote investment many imposed restrictions such as licensing, permission to import raw materials, regulation of prices etc. were removed
④ Process of disinvestment has been initiated by the govenrment for sick public sector units.
⑤ FERA restrictions removed. Foreign exchange transactions have been made smooth by new FEMA policy.
Q: What is WTO?
Answer: World Trade Organisation (WTO) is an organisation which deals with the rules of trade among the nations. It may also be known as Multilateral trading system. Its main aim is to liberalise international trade.
