Extra 30 short-answer questions (2-3 marks each) from the chapter "Globalisation and the Indian Economy" for Class 10 CBSE Economics:
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1-10: Basic Concepts of Globalisation
1. What is globalisation?
Answer: Globalisation refers to the integration of economies worldwide through trade, investment, technology, and cultural exchange. It allows goods, services, and capital to move freely across borders.
2. What role does technology play in globalisation?
Answer: Technological advancements in transportation, communication, and the internet have made global trade and investment faster, cheaper, and more efficient, enabling businesses to operate across multiple countries.
3. What is liberalisation?
Answer: Liberalisation is the process of reducing government-imposed restrictions on trade, investment, and business operations, allowing private companies and foreign investors to participate freely in the economy.
4. What is privatisation?
Answer: Privatisation refers to the transfer of ownership and management of public sector enterprises to private individuals or companies to improve efficiency and profitability.
5. What is a Multinational Corporation (MNC)?
Answer: An MNC is a company that operates in multiple countries, setting up production or business facilities in different parts of the world to take advantage of resources, markets, and cheap labor.
6. Give two reasons why MNCs set up their businesses in developing countries like India.
Answer:
Availability of cheap labor and raw materials
Large market potential for their goods and services
7. How does globalisation help consumers?
Answer: Globalisation provides consumers with a wider variety of goods and services at competitive prices, improved quality, and access to international brands.
8. How has globalisation affected the Indian IT sector?
Answer: Globalisation has led to a boom in India's IT and software industry, with many foreign companies outsourcing services to Indian firms, creating employment opportunities and boosting economic growth.
9. What is the impact of globalisation on small producers in India?
Answer: Small producers often face intense competition from large MNCs, leading to loss of business, lower profits, and sometimes even closure of small-scale industries.
10. What is meant by foreign direct investment (FDI)?
Answer: FDI refers to investment by foreign companies in another country by setting up businesses, factories, or acquiring local firms to expand operations and earn profits.
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11-20: Role of MNCs and WTO
11. What is the role of WTO in globalisation?
Answer: The World Trade Organization (WTO) promotes free trade by removing barriers, setting global trade rules, and resolving disputes between countries.
12. What are trade barriers? Give an example.
Answer: Trade barriers are government-imposed restrictions on the import and export of goods. Example: Import duties (tariffs) that make foreign goods expensive to protect domestic industries.
13. What is outsourcing?
Answer: Outsourcing is when companies hire services from external firms, often in another country, to reduce costs and improve efficiency. Example: Foreign companies outsourcing IT services to India.
14. How does foreign trade lead to integration of markets?
Answer: Foreign trade connects markets by allowing goods, services, and capital to move freely between countries, making local markets part of a global network.
15. Mention two ways in which MNCs expand production in different countries.
Answer:
By setting up factories and offices in different countries
By buying or partnering with local companies
16. How has globalisation improved employment opportunities in India?
Answer: It has led to the growth of industries such as IT, BPO, and manufacturing, creating job opportunities, especially in urban areas.
17. What is the impact of globalisation on Indian agriculture?
Answer: Globalisation has increased competition for Indian farmers as cheaper imported agricultural products reduce their market share and profitability.
18. Why do governments impose trade barriers?
Answer: Trade barriers protect domestic industries from foreign competition, safeguard employment, and ensure economic stability.
19. What is the impact of globalisation on Indian manufacturers?
Answer: While some manufacturers benefit from access to international markets, others face challenges due to competition from global brands and cheaper imports.
20. How does globalisation affect Indian culture?
Answer: Globalisation introduces global lifestyles, fashion, food, and entertainment to India, leading to a blend of traditional and modern cultures.
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21-30: Effects and Challenges of Globalisation
21. Explain one positive and one negative impact of globalisation on India.
Answer:
Positive: Increased foreign investment and job opportunities
Negative: Closure of small-scale industries due to competition
22. Why are small-scale industries in India facing challenges due to globalisation?
Answer: They struggle to compete with large MNCs that have better technology, branding, and lower production costs, leading to loss of business.
23. What is meant by global trade?
Answer: Global trade refers to the buying and selling of goods and services between countries, connecting economies worldwide.
24. Mention two factors that enabled globalisation in India.
Answer:
Technological advancements in communication and transport
Economic liberalisation policies introduced in 1991
25. How does globalisation affect rural workers in India?
Answer: Many rural workers lose traditional jobs due to competition but may find new opportunities in urban industries and the service sector.
26. What is the role of communication technology in globalisation?
Answer: Faster internet, mobile networks, and digital platforms have made international business and trade more accessible and efficient.
27. How does globalisation influence multinational companies (MNCs)?
Answer: It allows MNCs to expand their operations, increase profits, and access global talent and resources.
28. Why do developed countries support globalisation?
Answer: Developed countries benefit from global markets, outsourcing, and access to cheaper labor and raw materials in developing nations.
29. How has globalisation affected Indian consumers?
Answer: Consumers now have access to a variety of international brands, better quality products, and competitive prices.
30. What steps can the government take to protect Indian industries from the negative effects of globalisation?
Answer: The government can impose tariffs, provide subsidies, promote local businesses, and implement policies to support small-scale industries.
