Extra 20 long-answer questions from the chapter "Globalisation and the Indian Economy" for Class 10 CBSE Economics:
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1-5: Introduction to Globalisation
1. What is globalisation? Explain its main features.
Answer: Globalisation refers to the process of increasing economic, social, and cultural interdependence among countries through trade, investment, and technology.
Integration of economies through trade and foreign investment.
Free movement of goods, services, capital, and technology.
Rapid advancements in communication and transportation.
Growth of multinational corporations (MNCs).
Outsourcing of services to countries with cheaper labor.
Expansion of international trade and foreign direct investment (FDI).
2. Explain the factors that have facilitated globalisation.
Answer: Several factors have contributed to the rise of globalisation:
Technological advancements: Internet, mobile phones, and digital communication.
Improved transportation: Faster and cheaper movement of goods and people.
Trade liberalisation: Reduction in import duties and trade barriers.
Role of WTO: Encourages free trade and resolves trade disputes.
Foreign direct investment (FDI): Investment from MNCs in different countries.
Government policies: Economic liberalisation reforms in India (1991).
3. What is the impact of globalisation on the Indian economy?
Answer: Globalisation has had both positive and negative effects on India:
Increased foreign investment: Many MNCs have set up businesses in India.
Growth of IT and services sector: BPOs and IT industries have flourished.
Greater choice for consumers: Availability of international brands and goods.
Job creation: More employment in industries like IT, telecom, and manufacturing.
Competition for small businesses: Local industries struggle against MNCs.
Cultural changes: Influence of Western culture on Indian lifestyle.
4. Explain the role of technology in globalisation.
Answer: Technology has played a key role in increasing global connectivity:
Better communication: Internet and mobile phones enable instant global communication.
Faster transportation: Ships, planes, and trains reduce trade barriers.
E-commerce growth: Online shopping platforms connect global buyers and sellers.
Automation in industries: Advanced machines increase production efficiency.
Digital banking: Online transactions facilitate global financial exchanges.
Media influence: International media spreads cultural trends across countries.
5. What are the advantages of globalisation?
Answer: Globalisation has several benefits:
Expansion of trade and investment: Increases foreign capital inflow.
Access to new markets: Helps businesses grow beyond national borders.
Employment opportunities: More jobs in MNCs and service sectors.
Improved quality of goods and services: Due to global competition.
Technological advancement: New innovations in industries.
Better standard of living: Due to access to modern goods and services.
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6-10: Role of MNCs and Foreign Trade
6. What is a multinational corporation (MNC)? How do MNCs expand production?
Answer: MNCs are companies that operate in multiple countries. They expand production through:
Setting up factories in different countries.
Acquiring local companies to expand their presence.
Joint ventures with local firms for easier market entry.
Using cheap labor and resources to reduce costs.
Investing in research and development (R&D) to improve products.
Advertising and branding to attract more customers.
7. How does foreign trade lead to integration of markets?
Answer: Foreign trade connects economies by:
Expanding consumer choices through imported goods.
Encouraging local producers to sell in international markets.
Increasing competition which improves quality and reduces prices.
Facilitating exchange of technology and skills between nations.
Creating interdependence among countries for raw materials and goods.
Developing global supply chains where production happens across multiple nations.
8. What is foreign direct investment (FDI)? What are its effects on the Indian economy?
Answer: FDI is when foreign companies invest in Indian businesses. Its effects include:
More job opportunities in various sectors.
Improved infrastructure due to foreign capital.
Better technology and skills brought by foreign firms.
Increased competition leading to better-quality products.
Growth of industries like automobiles, telecom, and IT.
Challenges for local businesses due to competition with MNCs.
9. Explain the role of WTO in globalisation.
Answer: The World Trade Organization (WTO) promotes global trade by:
Encouraging free trade among member countries.
Reducing trade barriers like tariffs and import duties.
Resolving trade disputes between nations.
Ensuring fair competition in global markets.
Helping developing countries integrate into the global economy.
Promoting transparency in international trade policies.
10. How do trade barriers affect globalisation?
Answer: Trade barriers restrict globalisation by:
Increasing costs of imported goods.
Reducing availability of foreign products.
Protecting domestic industries from foreign competition.
Limiting market access for businesses.
Slowing economic growth due to restricted trade.
Encouraging illegal trade like smuggling.
11. What are the impacts of globalisation on Indian agriculture?
Answer: Globalisation has both positive and negative effects on Indian agriculture:
1. Increased competition: Indian farmers face competition from cheap imported agricultural products.
2. Access to better technology: Farmers can use modern equipment and high-yield seeds.
3. Price fluctuations: Global market prices affect the income of Indian farmers.
4. Shift to cash crops: Farmers focus on export-oriented crops like cotton and spices.
5. Corporate farming: Large agribusinesses enter the sector, impacting small farmers.
6. Dependence on global markets: Any international crisis can affect Indian agriculture.
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12. How does globalisation affect small industries in India?
Answer: Small-scale industries face several challenges due to globalisation:
1. Increased competition: MNCs produce goods at lower prices, reducing demand for local products.
2. Loss of traditional industries: Handloom, handicrafts, and cottage industries decline.
3. Lack of financial resources: Small businesses struggle to modernise due to limited funds.
4. Job losses: Many workers lose jobs as industries shut down.
5. Need for government support: Policies like subsidies and tax benefits are required.
6. Some opportunities: E-commerce and global trade allow niche products to find markets.
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13. What role does outsourcing play in globalisation?
Answer: Outsourcing is a key feature of globalisation where companies hire external firms for services.
1. Reduces costs: Companies outsource to countries with cheaper labor, such as India.
2. Increases efficiency: Specialized firms handle tasks like IT, customer support, and data entry.
3. Boosts employment: India’s IT and BPO (Business Process Outsourcing) sectors have grown.
4. Expands global business: Companies operate in multiple locations.
5. Technological advancements: Improved communication systems support outsourcing.
6. Challenges: Sudden job losses if outsourcing shifts to other nations.
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14. Explain the impact of globalisation on employment in India.
Answer: Globalisation has led to both job creation and job losses in India:
1. Growth in IT and service sector: Many jobs in BPO, software, and call centers.
2. Rise in FDI: MNCs set up industries, creating employment.
3. Job losses in small industries: Many traditional jobs disappear due to competition.
4. Better skill development: Employees get exposure to international work standards.
5. Casual and contract jobs: Many jobs are temporary with low job security.
6. Migration for work: Many people move to cities or abroad for better opportunities.
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15. What are the effects of globalisation on Indian culture?
Answer: Globalisation has led to cultural exchanges, but also challenges to traditions:
1. Western influence: Changes in clothing, food habits, and lifestyle.
2. Media and entertainment: Indian youth watch global movies, music, and shows.
3. Fusion of cultures: Mix of Indian and foreign traditions in festivals, weddings, and fashion.
4. Growth of fast food industry: International chains like McDonald's, KFC, and Domino’s expand.
5. English as a global language: More emphasis on learning English for jobs and education.
6. Preservation of heritage: Increased global interest in Indian yoga, Ayurveda, and traditional arts.
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16. What are the disadvantages of globalisation?
Answer: Globalisation has some negative impacts on developing countries like India:
1. Loss of local industries: Small businesses cannot compete with MNCs.
2. Job insecurity: Many jobs are temporary or based on contract work.
3. Widening income gap: The rich benefit more, while the poor struggle.
4. Cultural erosion: Traditional practices are influenced by foreign trends.
5. Environmental damage: Increased industrialisation leads to pollution.
6. Economic dependence: Developing countries rely on foreign investment.
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17. Why are small farmers in India unable to compete in the global market?
Answer: Small farmers face many challenges due to globalisation:
1. High costs of production: Small farmers cannot afford advanced technology.
2. Price fluctuations: Dependence on global markets leads to unstable incomes.
3. Lack of government support: Inadequate subsidies and financial aid.
4. Competition from imports: Cheap foreign agricultural products flood the market.
5. Limited access to markets: Small farmers cannot directly export their products.
6. Dependency on middlemen: Profits go to traders rather than farmers.
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18. How has globalisation affected the automobile industry in India?
Answer: The automobile sector has grown due to foreign investment and global trade:
1. Entry of foreign car brands: Companies like Hyundai, Toyota, and Honda set up factories.
2. Improved technology: Use of advanced manufacturing techniques.
3. Increased competition: Domestic companies like Tata and Mahindra face global rivals.
4. More job opportunities: Employment in manufacturing, sales, and servicing.
5. Cheaper vehicles: Competition has led to better affordability.
6. Export growth: India exports cars to many countries.
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19. What policies can the Indian government implement to protect small businesses?
Answer: The government can take several measures to help small industries:
1. Subsidies and financial aid: Providing low-interest loans to small businesses.
2. Tax benefits: Reducing taxes to help small industries grow.
3. Encouraging local products: Promoting 'Make in India' and 'Vocal for Local' campaigns.
4. Trade restrictions: Imposing tariffs on imported goods to protect local businesses.
5. Technology support: Providing training and infrastructure to modernize small industries.
6. Access to global markets: Helping small businesses export their products.
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20. What steps can be taken to ensure fair globalisation?
Answer: Fair globalisation ensures that all sections of society benefit equally:
1. Government regulations: Protecting small businesses and workers.
2. Labor rights: Ensuring fair wages and job security.
3. Reducing trade barriers selectively: Supporting local industries while promoting fair trade.
4. Environmental protection: Enforcing laws to prevent industrial pollution.
5. Supporting education and skill development: Preparing workers for global jobs.
6. Balanced economic policies: Ensuring that profits from globalisation are shared fairly.
