RBSE Class 10 Social Science Important Questions Economics Chapter 4 Globalisation and the Indian Economy

Rajasthan Board RBSE Class 10 Social Science Important Questions Economics Chapter 4 Globalisation and the Indian Economy Important Questions and Answers. 

RBSE Class 10 Social Science Important Questions Economics Chapter 4 Globalisation and the Indian Economy

Objective Type Questions 

Question 1. 
Investment made by MNCs are termed as-
(a) Indigenous investment 
(b) Foreign investment 
(c) Government investment
(d) International investment 
Answer:
(b) Foreign investment 

Question 2. 
The major aim of MNCs is-
(a) To earn profit 
(b) To expand business in foreign countries 
(c) To sell their goods and services in other nations 
(d) All the above 
Answer:
(d) All the above

Question 3. 
By which point of view, multinational companies are quite prosperous from-
(a) Technical point of view 
(b) Finance point of view 
(c) Quality of goods and services
(d) All the above 
Answer:
(d) All the above

Question 4. 
Which of the following is India's MNC ?
(a) Tata Motors 
(b) Ford Motors
(c) Chevrolet 
(d) Suzuki 
Answer:
(a) Tata Motors

Question 5. 
Which of the following is not the reason for globalisation ? 
(a) Rapid advancement in technology 
(b) Use of tax and quota on imports 
(c) Liberalisation of trade and investment policies 
(d) International organisations like WTO.
Answer:
(b) Use of tax and quota on imports 

Question 6. 
What is the process of rapid integration or interconnection between countries ? 
(a) Liberalisation 
(b) Industrialisation 
(c) Globalisation
(d) Urbanisation 
Answer:
(c) Globalisation

Question 7. 
Who can send instant electronic mail(E-mail) ? 
(a) By air Transport 
(b) By post-office
(c) By Internet 
(d) By Fax 
Answer:
(c) By Internet

Question 8. 
Who have been most affected under the pressure of globalisation and competition ? 
(a) Labour 
(b) Multinational Companies 
(c) Landlord
(d) None of the above 
Answer:
(a) Labour

Question 9. 
For fair globalisation, the government, should ensure-
(a) Labour laws are properly implemented. 
(b) Support small producers to improve their performance. 
(c) Use trade and investment barriers. 
(d) All of the above
Answer:
(d) All of the above

Fill in the blanks 

1. Any................is made with the hope that these assets will earn profits. 
2. MNCs are playing a major role in the.........process. 
3. Tax on imports is an example of ...................
4. Starting around.............., some far-reaching changes in policy were made in India. 
5. At present................countries of the world are currently members of the WTO.
Answer:
1. investment 
2. globalisation 
3. trade barrier 
4. 1991 
5. 164.

Very Short Answer Type Questions

Question 1. 
What do we call the business which take place between two nations ?
Answer:
The trade between two nations is called foreign trade.

Question 2. 
What do we call the company which has control on production in more than one nations ?
Answer:
Multinational company.

Question 3. 
List any one demerits of India due to globalisation.
Answer:
Downfall of small scale and cottage industries.

Question 4. 
List any one positive impact of MNCs on Indian economy.
Answer:
Increase in foreign investment.

Question 5. 
What was the nature of foreign trade during British period ?
Answer:
During British period India was exporter of raw material and importer of finished goods.

Question 6. 
Name any one MNC of India. 
Answer:
Ranbaxy. 

Question 7. 
Explain any two aims of MNCs.
Answer:

1. To maximise their profit
2. To expand their business in foreign countries.

Question 8. 
Name any two MNCs working in India.
Answer:

1. Hindustan Lever Limited
2. Coca-Cola.

Question 9. 
Name any two products produced by MNCs in India.
Answer:
Colgate toothpaste, Samsung T.V. 

Question 10. 
What is a foreign investment ?
Answer:
Investment done by MNCs is known as foreign investment.

Question 11. 
What do you understand by a foreign trade ?
Answer:
The sale and purchase of goods and services between two or more nations is known as foreign trade.

Question 12. 
What do you understand by multinational company?
Answer:
A country that owns or controls production in more than one nation.

Question 13. 
Explain the characteristics of multinational companies.
Answer:
MNCs have the characteristics of affecting the prices of goods, quality of goods and to determine and affect the conditions of labour.

Question 14. 
List any two methods of investment by multinational companies in other nations.
Answer:

1. To buy local companies
2. To collaborate in production with local companies.

Question 15. 
List any benefit of foreign trade.
Answer:
Foreign trade is helpful in integrating markets of different nations.

Question 16. 
Explain the meaning of globalisation.
Or 
What is meant by globalisation ?
Answer:
The process of integrating the economy of a country with the economies of the world is known as globalisation.

Question 17. 
List out any one merit of globalisation.
Answer:
Globalisation leads to free flow of trade, capital and labour among nations.

Question 18. 
Name any two factors which make globalisation possible.
Answer:

1. Rapid development of technology.
2. Development of information and communication technology.

Question 19. 
Who are not equally benefitted by globalisation ?
Answer:
Producers and labourers

Question 20. 
Which laws are made flexible in order to attract foreign trade ?
Answer:
Labour laws. 

Question 21. 
What do you mean by import quota ?
Answer:
In import quota government decides the quantity of goods to be imported, government do not allow to import more than fixed quantity.

Question 22. 
Why was WTO established ?
Answer:
WTO was established to encourage free trade among member nations.

Question 23. 
What is the main function of WTO ?
Answer:
The main function of WTO is to determine that the nations should follow the rules of international trade.

Question 24. 
What do you mean by liberalisation ?
Answer:
Liberalisation means the process of reducing and removing trade restrictions from foreign trade and investment.

Question 25. 
Define privatisation.
Answer:
Privatisation means allowing the private sector to set-up more and more of such industries as were previously reserved for public sector. Under it, existing enterprises of public sector are either wholly or partially sold to private sector.

Question 26. 
What is meant by trade barrier?
Answer:
Trade barriers are those restrictions put by government which regulate foreign trade. 

Short Answer Type Questions (Type-I)

Question 1. 
Explain the changes taken place in last few years in Indian markets.
Answer:
After 1991, India adopted the policy of liberalisation, globalisation and privatisation. After new economic policy there has been increase in foreign trade and foreign investment. Consumers are able to get good quality of goods at lower prices.

Question 2. 
Write a short note on MNCs.
Answer:
MNCs are those companies which owns or controls production in more than one nation. The main aim of MNCs is to expand their business by leaps and bounds and to earn maximum profit.

Question 3. 
Which points are to be taken care by MNCs before investing in other nations. Explain any two points.
Answer:

1. Availability of market, availability of skilled and unskilled labour at lesser wages and availability of other factors of production.
2. MNCs take care whether the government policies are favourable for them or not.

Question 4. 
How do MNCs invest in other countries ?
Answer:
Ways in which MNCs make investment-

• Directly set-up factories and offices for production.
• Set-up production jointly with some of the local companies of these countries.
• Buy local companies and than expand production.

Question 5. 
What do you understand by globalisation ?
Answer:
It means integrating the economy of a country with the economies of other countries under condition of free flow of trade and capital and movement of persons across borders.

Question 6. 
List any two merits of foreign trade.
Answer:

1. Availability of variety of products which enabled the consumers to have greater choice and enjoy improved quality and lower prices for several products.
2. Producers can sell their products in international market and earn profit. 

Question 7. 
Explain any two positive effects of globalisation on Indian economy.
Answer:

1. More availability of investible funds in the form of FDI.
2. Increased volume of output, income and employment.

Question 8. 
Explain any two negative effects of globalisation on Indian economy.
Answer:

1. It may lead to aggravation of income inequalities within country/among various countries.
2. It may lead to loss of autonomy.

Question 9. 
How does information and technology make globalisation possible ?
Answer:
Telecommunication facilities are used to contact one another around the world to access information instantly, and to communicate from remote areas. Through the use of internet, computers, one can communicate across the world at negligible costs. 

Short Answer Type Questions (Type-II)

Question 1. 
Explain the role of information and communication technology in globalisation on any three bases.
Answer:
Role of Information and Communication Technology in Globalisation-

• In recent times, technology in the areas of telecommunications, computers, internet has been changing rapidly. Telecommunication facilities are used to contact one another around the world.
• Computers have now entered almost every field of activity. Through the use of internet, one can communicate across the world at negligible cost.
• These devices help us in various ways. Transfer of money across the countries has become easy. We can place order for a variety of things through the phone or the internet and goods are delivered at our home.
• Using internet, we can obtain and share information on almost anything we want to know. Internet also allows us to send instant electronic mail (e-mail).

Thus information and communication technology has played a major role in globalisation.

Question 2. 
Describe any three impacts of globalisation on Indian economy.
Or
What is a globalisation ? Write any two effects of globalisation on India.
Or 
Explain any three effects of globalisation on India.
Answer:
Globalisation: It is a process of integrating one country's economy with international economy. Under globalisation all markets of world works as the one market.

Effects of Globalisation on India:

1. Due to globalisation MNCs invested in India which leads to increase in employment opportunities.
2. Many Indian companies increase their size and they become MNCs, for example, Tata Motors, Infosys etc.
3. Due to increase in competition because of globalisation small units are closed and there is increase in unemployment.

Question 3. 
Explain two factors which stimulate globalisation.
Answer:
1. Development of Information Technology: Information technology has shown remarkable development. Telecommunications, computers, internet, e-mail, voice-mail etc. are used intensively to connect one another around the world, to access information instantly and to communicate remote areas. Example, Call centres running in Gurgaon use this technology to satisfy their customers abroad or provide outsourcing service while sitting in India.

2. Transportation Technology: This has made much faster delivery of goods across long distances possible at lower costs, e.g., use of containers have led to huge reduction in part handling costs and increased the speed with which exports can reach markets. It has stimulated the globalisation process.

Question 4.
Explain the liberalisation of foreign trade.
Answer:
Liberalisation of foreign trade means by removing the unnecessary restrictions from foreign trade and make it more competitive. The traders are free to take decisions regarding exports and imports and government become liberalize in this context. Under liberalization of foreign trade, not only restrictions are reduced domestic business is also encouraged for foreign trade, government. provides many facilities for the same.

Question 5. 
Write a short note on World Trade Organisation.
Answer:
WTO is an international organisation whose main aim is to liberalise trade. It decides the rules regarding international trade and removes the hurdles in field of international trade. Through which foreign trade can be increased. WTO provides the facility of free trade to all the member countries. At present 164 countreis of the world are currently members of the WTO.

Question 6. 
Explain the concept of fair Globalisation.
Answer:
Fair Globalisation means that globalisation should benefit equally to all the people and backward section of nation should be provided protection. Efforts should be done to reduce negative impacts of globalisation and to provide protection to small scale and cottage industries. It has been taken care under fair globalisation that the benefits of globalisation should not be only concentrated towards rich section of society and benefits should be distributed to poorer section of society also. Labour should be implemented in such a way that labourers can be protected.

Question 7. 
Why is 'tax' on imports known as trade barriers? Why did the India government impose barriers to foreign trade and foreign investment after independence ? Give three reasons.
Answer:
Tax on imports is known as a trade barrier because government can use it to increase or decrease (regulate) foreign trade.

Reasons behind imposition of barriers to foreign trade and foreign investment after independence-

• To protect the producers within the country from foreign competition.
• To safeguard the industries which were just coming up in the 1950s and 1960s from competition from imports.
• To allow imports of only essential items such as machinery, fertilisers, petroleum etc.

Question 8. 
“Globalisation and competition among producers has been of advantage to the consumers.” Give arguments in support of this statement.
Answer:
There is a greater choice before the consumers particularly the well off sections in the urban areas. Consumers now enjoy quality and lower prices for several products. Therefore, people today enjoy higher standards of living than possible earlier.
It has also resulted in increased volume of output, income and employment.

Long Answer Type Questions

Question 1. 
What do you understand by MNCs ? Explain the role of MNCs in India.
Answer:
Multinational Corporation is a company that owns or controls production in more than one nation. Their main aim is to earn profit and these companies produce in those nations where raw material and cheap labour is available in abundance.

Role of MNCs in Indian Economy:
The role of MNCs can be understood by following points

• Increase in Foreign Investment: Due to MNCs there has been increase in foreign investment in India and new industries have been set-up.
• Industrial Development of the Nation: Due to increase in foreign investment, new industries have been set-up which lead to industrial development of India.
• Introduction of new Technology: MNCs use latest technology which leads to better utilisation of resources.
• Increase in Employment Opportunities: Due to set-up of new industries in India, there has been increase in employment opportunities.
• Benefits to Consumers: Due to MNCs Indian consumers have a wide choice of goods and services at lesser price with better technology.

Question 2. 
What do you understand by foreign trade? Explain the role of foreign trade.
Answer:
Foreign Trade: It refers to exchange of goods-purchase and sale across geographical boundaries of the countries. Under foreign trade a nation sells its excess production to other nations and purchase goods of its requirement from other nations.

Role/Benefits of Foreign Trade:
The role of foreign trade can be explained through following points-
1. Integration of Markets: Foreign trade provides an opportunity for both producers and sellers to reach beyond the markets of their own countries. Goods travel from one country to another. There is a huge competition among producers of one country to the producer of another country. Thus foreign trade leads to integration of markets across countries.

2. Benefits to Producers: Due to foreign trade the domestic producers get chance to sell their products in other nations. So by selling their products in other nations they can earn huge profits.

3. Industrial Development of the Nations: Due to foreign trade, producers can export goods to other nations. It leads to setup of newer industries in nation so industrial development of the country takes place.

4. Benefits to Consumers: Due to competitions buyers can easily get good variety of quality products of different countries at reasonable price.

5. Other Benefits:

• There has been increase in employment opportunities in the nation.
• Living standard of the masses can be increased
• Availability of goods have increased through new technology.
• The income of producers are increased.
• There has been increase in income of the government.

Question 3. 
“The effects of globalisation are not same.” Explain this statement in your words.
Or
Explain positive and negative impacts of globalisation.
Or 
What do you understand by globalisation ? Explain the positive and negative impacts of globalisation on Indian economy.
Answer:
Meaning of Globalisation: Globalisation means integrating the one's economy with the international economy. It has three aspects-

• Free flow of trade among nations. 
• Free movement of labours among nations.
• Free movement of technology among nations.

Effects of Globalisation: The effect of globalisation is not same for the people. Some sectors are benefitted by globalisation but some are not.

Positive Effects of Globalisation:

• Increase in volume of trade in goods and services.
• Inflow of private foreign capital and export orientation of the economy.
• More availability of investible funds in the form of foreign direct investment.
• Helps in development and strengthening of domestic economies of India.

Negative Impacts of Globalisation:

• It may lead to widening of income inequalities among various countries.
• It may lead to loss of autonomy.
• It may lead to greater dependence of the underdeveloped countries on advanced countries.
• It may lead to aggravation of income inequalities within country.

Question 4. 
What do you understand by MNCs ? How MNCs control production in other countries ?
Answer:
MNC is a company that owns or controls production in more than one nation with a view to earn profit. 

Control on Production in other Nations:
Following are the various ways to control production by MNCs in other nations-
(i) By Setting up Partnership with Local Companies: At times MNCs set up production jointly with some of the local companies. The benefits to the local companies of such production is two fold. First MNCs can provide money for additional investments and MNCs might bring with them the latest technology for production.

(ii) By Closely Competing with Local Companies or Buying them-up: The most common route for MNC's investments is to buy-up local companies and to expand production. With their huge wealth they can easily do so.

(iii) By Using Local Companies for Supply: Large MNCs in developed countries place orders for production with small producers. For example, garments, footwears, sports etc. The products are supplied to MNCs which then sell these under their own brand names to the customers.