Question 1

Q1: What do you understand by globalisation? Explain in your own words.

Accepted Answer

Globalisation is the process of rapid integration or interconnection between countries. This process is driven by greater foreign trade and foreign investment. Multinational Corporations (MNCs) play a crucial role by spreading their production and services across the world. Globalisation involves th...

Question 2

Q10: Supposing you find two people arguing: One is saying globalisation has hurt our country's development. The other is telling, globalisation is helping...

Accepted Answer

I would respond by acknowledging that both arguments hold some truth, as the effects of globalisation have been mixed and have not impacted everyone in the same way.  To the person arguing that globalisation has hurt the country's development, I would say: "You are right to be concerned. Globalisati...

Question 3

Q11: Fill 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 ______...

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 foreign trade with other countries. Moreover, the rising numb...

Question 4

Q12: Match the following. (i) MNCs buy at cheap rates from small producers (ii) Quotas and taxes on imports are used to regulate trade (iii) Indian compani...

Accepted Answer

(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 o...

Question 5

Q13: Choose the most appropriate option. (i) The past two decades of globalisation has seen rapid movements in (a) goods, services and people between count...

Accepted Answer

(i) The most appropriate option is (b) goods, services and investments between countries. The chapter notes that while these have moved rapidly, the movement of people has been comparatively restricted. (ii) The most appropriate option is (b) buy existing local companies. The chapter explicitly stat...

Question 6

Q2: What were the reasons for putting barriers to foreign trade and foreign investment by the Indian government? Why did it wish to remove these barriers?

Accepted Answer

The Indian government put barriers to foreign trade and foreign investment after Independence for the following reasons: 1.  To Protect Domestic Industries: In the 1950s and 1960s, Indian industries were just starting to develop. The government wanted to protect these nascent industries from foreign...

Question 7

Q3: How would flexibility in labour laws help companies?

Accepted Answer

Flexibility in labour laws helps companies, especially MNCs, to reduce their operational costs and increase profits. Instead of hiring workers on a permanent basis with benefits like provident fund and health insurance, companies can hire workers 'flexibly' on a temporary basis for short periods, pa...

Question 8

Q4: What are the various ways in which MNCs set up, or control, production in other countries?

Accepted Answer

MNCs use several methods to set up and control production in other countries: 1.  Joint Ventures: They set up production jointly with a local company. This helps the local company with additional investment and access to the latest technology. 2.  Acquisitions: The most common method is to buy up ex...

Question 9

Q5: Why do developed countries want developing countries to liberalise their trade and investment? What do you think should the developing countries deman...

Accepted Answer

Developed countries want developing countries to liberalise their trade and investment policies so that their large multinational corporations (MNCs) can gain access to the vast markets in these countries. Liberalisation allows MNCs to sell their goods and services without facing high tariffs or res...

Question 10

Q6: "The impact of globalisation has not been uniform." Explain this statement.

Accepted Answer

The statement "The impact of globalisation has not been uniform" is correct because different groups of people have been affected differently.  Positive Impacts:    Consumers: Well-off consumers in urban areas have benefited significantly. They now have a wider choice of high-quality goods and servi...

Question 11

Q7: How has liberalisation of trade and investment policies helped the globalisation process?

Accepted Answer

Liberalisation of trade and investment policies has been a key factor in facilitating the globalisation process. Liberalisation involves removing government-imposed barriers and restrictions on foreign trade and investment, such as import taxes (tariffs) and quotas. This helps globalisation in the f...

Question 12

Q8: How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.

Accepted Answer

Foreign trade leads to the integration of markets across countries by connecting producers and consumers who are geographically distant. It creates a common marketplace for goods, leading to competition and price convergence. The key mechanisms are: 1.  Expansion of Choice: For buyers, imports expan...

Question 13

Q9: Globalisation 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

Imagining the world twenty years from now, it is likely that globalisation will lead to an even more interconnected and integrated world.  Possible Future Scenario:    Greater Integration: Technology, especially in communication and logistics, will make physical distances even less significant. We m...

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