Question 1

Question 5Why do developed countries want developing countries to liberalise their trade and investment? What do you think should the developing countries demand in return?

Accepted Answer

Developed nations aim to gain access to the markets of developing countries. By encouraging liberalisation, they can export their goods and services more easily. Foreign companies, especially multinational corporations (MNCs), can establish factories and offices in less expensive developing nations. This allows them to increase profits by leveraging lower manufacturing and labour costs.Developing countries should demand the free and fair movement of their labour force. Facilitating temporary migration for work opportunities can be mutually beneficial. Developing nations can advocate for a reduction in subsidies provided by developed countries to their agricultural sectors. These subsidies distort global markets and affect developing countries’ agricultural exports. Developed countries should follow ethical practices, avoiding unfair competition that harms developing economies. Also, there should be removal of tariffs on goods exported from developing countries.

Question 2

Question 6“The impact of globalisation has not been uniform.” Explain this statement.

Accepted Answer

“The impact of globalisation has not been uniform.” It highlights the fact that globalisation affects different countries, regions, and social groups in diverse ways:Globalisation has led to economic growth in some countries while leaving others behind. Developed nations often benefit more than developing nations due to their advanced infrastructure, technology, and access to global markets.Within countries, globalisation can exacerbate income inequality. Skilled workers and capital owners may gain, while low-skilled workers face job displacement and wage stagnation.Globalisation drives resource extraction and consumption. Developing countries often bear the environmental costs (e.g., deforestation, pollution) to meet global demand.Increased trade and transportation contribute to climate change. Developed countries historically emit more greenhouse gases, affecting the entire planet.Globalisation shifts jobs from high-cost to low-cost regions. While it creates employment in export-oriented sectors, it can lead to job losses in others.

Question 3

Question 7How has liberalisation of trade and investment policies helped the globalisation process?

Accepted Answer

Trade liberalisation refers to the removal or reduction of restrictions on the free exchange of goods between nations. These barriers include tariffs (duties and surcharges) and non-tariff barriers (such as licensing rules and quotas).Removal of these barriers helps in reduction of cost of goods. This reduction in regulatory costs benefits consumers and businesses alike.Trade liberalisation fosters competition from abroad. As foreign goods enter the market, domestic firms face competition and become more efficient and produce goods at lower costs. This competition can lead to greater efficiency and innovation making them future exporters.The outcome of trade liberalisation is greater integration among countries, which is a fundamental aspect of globalisation. As trade barriers are reduced, countries become more interconnected economically.

Question 4

Question 8How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.

Accepted Answer

Foreign trade plays a significant role in integrating markets across countries. When countries engage in foreign trade, domestic firms face competition from foreign firms. This competition forces firms to become more efficient, innovate, and offer better products at competitive prices. As a result, markets become more integrated as consumers have access to a wider variety of goods and services from different countries. They can choose from both domestic and imported products. Availability of products creates a competition in market leading to close alignment of prices. Also, trade agreements and policies facilitate easier access to foreign markets for goods and services. This access allows firms to sell their products to a broader consumer base beyond their domestic market. As markets become more accessible, they become more integrated economically.For example, during Diwali season China made lights and bulbs are available in Indian market. During this festive time, buyers have choices when it comes to decorative lights and bulbs. They can opt for Indian-made decorative lights or go for the Chinese-made ones. Both are available in the market at competitive prices.

Question 5

Question 9Globalisation will continue in the future. Can you imagine what the world would be like twenty years from now? Give reasons for your answer.

Accepted Answer

If globalisation continues in the future with same rate, world may be changed as follows:Rapid advancements in technology, particularly in fields like artificial intelligence, robotics, biotechnology, and renewable energy, will likely reshape industries and economies globally.Globalisation will likely deepen interconnectedness among countries through trade, investment, and information flows.Addressing climate change and environmental sustainability will be critical. Efforts towards renewable energy adoption, sustainable practices in industries, and global cooperation on environmental policies may become more prevalent.Emerging economies, particularly in Asia and Africa, could continue to rise, influencing global trade patterns and geopolitical relations.Advances in healthcare, genetics, and biotechnology could lead to breakthroughs in treating diseases and enhancing human capabilities.

Question 6

Question 10Supposing 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?

Accepted Answer

Globalisation is a complex phenomenon with both positive and negative impacts. In the case of India it has undoubtedly brought opportunities for economic growth, job creation, and technological advancement, particularly in sectors that have become India's strengths such as IT and services. However, it has also posed challenges such as income inequality, environmental degradation, and vulnerabilities to global economic fluctuations. To address these concerns and maximize the benefits of globalisation, India needs to pursue policies that promote inclusive growth, sustainable development, and resilience against external shocks.

Question 7

Question 11Fill 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.

Accepted 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 cheaper cost of production . While consumers have more choices in the market, the effect of rising demand and purchasing power has meant greater competition among the producers.

Question 8

Question 12Match the following.Column AColumn B(i) MNCs buy at cheap rates from small producers(a) Automobiles(ii) Quotas and taxes on imports are used to regulate trade(b) Garments, footwear, sports items(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

Accepted Answer

Column AColumn B(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

Question 9

Question 13(i)The past two decades of globalisation has seen rapid movements ingoods, services and people between countries.goods, services and investments between countries.goods, investments and people between countries.

Accepted Answer

goods, services and investments between countries.

Source: This question is from Globalisation and The Indian Economy, Economics &mdash; Class 10, CBSE Board.
Key Concepts CoveredThis question tests your understanding of the following concepts from the chapter Globalisation and The Indian Economy: Question, Past, Decades, Globalisation, Seen, Rapid. These are fundamental topics in Economics that students are expected to master as part of the CBSE Class 10 curriculum.A thorough understanding of these concepts will help you answer similar questions confidently in your CBSE examinations. These topics are frequently tested in both objective and subjective sections of Economics papers. We recommend revising the relevant section of your textbook alongside practising these solved examples to build a strong foundation.
How to Approach This QuestionRead the question carefully and identify what is being asked. Break down complex questions into smaller parts. Use the terminology and concepts discussed in this chapter. Structure your answer logically — begin with a definition or key statement, then provide supporting details. Review your answer to ensure it addresses all parts of the question completely.
Key Points to RememberRead the question carefully and identify all parts before answering.
Use the terminology specific to this subject and chapter.
Review the textbook content for this chapter before attempting questions.
Practice writing concise, well-structured answers within time limits.
Related Questions from Globalisation and The Indian EconomyQ1: Question 1 In what ways has competition affected workers, Indian exporters and foreign MNCs in the...
Q10: Question 10 Supposing you find two people arguing: One is saying globalisation has hurt our...
Q11: Question 11 Fill in the blanks. Indian buyers have a greater choice of goods than they did two...
Q12: Question 12 Match the following. Column A Column B (i) MNCs buy at cheap rates from small producers...
Q14: Question 13(ii) The most common route for investments by MNCs in countries around the world is to...
Practice more questions from Globalisation and The Indian Economy &mdash; Economics, Class 10 CBSE

Question 10

Question 13(ii)The most common route for investments by MNCs in countries around the world is toset up new factories.buy existing local companies.form partnerships with local companies.

Accepted Answer

buy existing local companies

Source: This question is from Globalisation and The Indian Economy, Economics &mdash; Class 10, CBSE Board.
Key Concepts CoveredThis question tests your understanding of the following concepts from the chapter Globalisation and The Indian Economy: Question, Common, Route, Investments, Mncs, Countries. These are fundamental topics in Economics that students are expected to master as part of the CBSE Class 10 curriculum.A thorough understanding of these concepts will help you answer similar questions confidently in your CBSE examinations. These topics are frequently tested in both objective and subjective sections of Economics papers. We recommend revising the relevant section of your textbook alongside practising these solved examples to build a strong foundation.
How to Approach This QuestionRead the question carefully and identify what is being asked. Break down complex questions into smaller parts. Use the terminology and concepts discussed in this chapter. Structure your answer logically — begin with a definition or key statement, then provide supporting details. Review your answer to ensure it addresses all parts of the question completely.
Key Points to RememberRead the question carefully and identify all parts before answering.
Use the terminology specific to this subject and chapter.
Review the textbook content for this chapter before attempting questions.
Practice writing concise, well-structured answers within time limits.
Related Questions from Globalisation and The Indian EconomyQ1: Question 1 In what ways has competition affected workers, Indian exporters and foreign MNCs in the...
Q10: Question 10 Supposing you find two people arguing: One is saying globalisation has hurt our...
Q11: Question 11 Fill in the blanks. Indian buyers have a greater choice of goods than they did two...
Q12: Question 12 Match the following. Column A Column B (i) MNCs buy at cheap rates from small producers...
Q15: Question 13(iii) Globalisation has led to improvement in living conditions of all the people of...
Practice more questions from Globalisation and The Indian Economy &mdash; Economics, Class 10 CBSE

Question 11

Question 13(iii)Globalisation has led to improvement in living conditionsof all the peopleof people in the developed countriesof workers in the developing countriesnone of the above

Accepted Answer

none of the aboveReason — Globalisation has benefited well-off consumers and also producers with skill, education and wealth, many small producers and workers have suffered as a result of the rising competition.

Question 12

Question 1In what ways has competition affected workers, Indian exporters and foreign MNCs in the garment industry?

Accepted Answer

Job Security — Workers have lost their permanent jobs. Faced with growing competition most employers prefer to employ workers ‘flexibly’. It means that jobs are no longer secure. Wages are low and workers have to put in long hours of work. Workers are denied their fair share of the benefits.Cost cutting — India’s exporters are facing tough competition and try hard to cut down their cost of production to remain in competition. The intense competition compels exporters to offer competitive prices, which affects their profit margins. As cost of raw materials cannot be reduced, exporters try to cut labour costs by employing workers on temporary basis and making them work very long hours during the peak season.Maximizing profit — MNCs in Europe and America source their products from Indian exporters. They seek the cheapest goods to maximize profits. While competition allows MNCs to make substantial profits, it often comes at the expense of workers and smaller businesses.

Question 13

Question 2What can be done by each of the following so that the workers can get a fair share of benefits brought by globalisation?(a) government(b) employers at the exporting factories(c) MNCs(d) workers.

Accepted Answer

(a) Government — Governments can enact and enforce labour laws that protect workers’ rights, including fair wages, safe working conditions, and reasonable working hours. Unemployment benefits and healthcare benefits should be provided. This helps mitigate the risks faced by workers during economic transitions.(b) Employers at the exporting factories — Employers should pay fair wages that reflect the value of workers’ contributions. Providing stable employment rather than relying solely on temporary contracts ensures job security for workers.(c) MNCs — MNCs should choose suppliers based not only on cost but also on ethical practices, worker welfare, and environmental sustainability. MNCs should be transparent about their supply chains, allowing scrutiny and accountability.(d) Workers — Workers can organize themselves into unions or associations to collectively advocate for their rights and negotiate with employers. Being informed about their rights and labour laws empowers workers to demand fair treatment.

Question 14

Question 4Why do you think the company wants to develop India as a base for manufacturing car components for its global operations? Discuss the following factors:(a) cost of labour and other resources in India(b) the presence of several local manufacturers who supply autoparts to Ford Motors(c) closeness to a large number of buyers in India and China

Accepted Answer

Developing India as a base for manufacturing car components for global operations involves considering several strategic factors:(a) Cost of Labour and Other Resources in India — India offers a significant cost advantage when it comes to labour and other resources compared to developed countries. The cost of skilled and semi-skilled labour in India is lower than in many Western countries, which helps in reducing the overall cost of manufacturing. Additionally, the cost of land, utilities, and regulatory expenses can also be comparatively lower in India.(b) Presence of Several Local Manufacturers Supplying Autoparts to Ford Motors — India has local manufacturers that supply automotive components and parts. These manufacturers often provide high-quality parts at competitive prices. By leveraging these local suppliers, Ford Motors can streamline its supply chain and lower logistics costs. This local presence also allows Ford to quickly adapt to market demands and changes in product specifications, enhancing flexibility and responsiveness.(c) Closeness to a Large Number of Buyers in India and China — India and China are two of the largest and fastest-growing automotive markets globally. By manufacturing car components in India, Ford Motors can reduce transportation costs and delivery times to these important markets.

Question 15

Question 3Recent studies point out that small producers in India need three things to compete better in the market(a) better roads, power, water, raw materials, marketing and information network(b) improvements and modernisation of technology(c) timely availability of credit at reasonable interest rates.Can you explain how these three things would help Indian producers?Do you think MNCs will be interested in investing in these? Why?Do you think the government has a role in making these facilities available? Why?Can you think of any other step that the government could take? Discuss.

Accepted Answer

The three things mentioned above will help Indian producers in the following ways:Efficient transportation facilitates the movement of goods and reduces costs and delivery times.Reliable electricity, raw material supply and access to clean water are essential for production processes. Uninterrupted power ensures smooth operations of industries.Access to markets and information networks enables producers to reach customers, understand demand, and adapt their products accordingly.Improvements and modernisation of technology helps in cost efficient production.Timely availability of credit at reasonable interest rates empowers Indian producers to thrive and sustain through ups and downs in the business.MNCs will not be interested in investing in these because these would not fetch them direct profit. Also, these improvements will help Indian producers and thus increase their competition.Yes, the government plays a crucial role in building and maintaining infrastructure. Investment in roads, ports, power plants, and water supply benefits all producers. Government usually develops these infrastructure to promote own producers as well as to attract foreign investments through MNCs.Government can take following additional steps:Invest in vocational training and skill development programs. A skilled workforce enhances productivity and competitiveness.Encourage research and innovation.Facilitate exports by simplifying procedures, providing incentives, and negotiating trade agreements.

Globalisation and The Indian Economy

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