CBSE Class 10 - Economics - Globalisation and Indian Economy

Globalisation and Indian Economy

Q & A based on NCERT Chapter

Q: Define Globalisation.

Answer: Globalisation is an integration among the countries through foreign trade and foreign investments by MNCs. Its a linkage of nation's markets with global markets.


Q: What is MNC? Give two examples.

Answer: Multinational Corporation or MNC is a business firm operating in several countries but centrally managed from one (home) country.
Examples of MNCs in India: Nokia, Ford, L&T, Oracle


Q: List three factors for globalisation.

Answer:  Factors for globalisation are:

Ⓐ Liberalisation of trade and investment policies.
Ⓑ Improvement in Technology
Ⓒ Influence from international organizations.




Q: What are the positive impacts of Globalisation?

Answer:
① Lower prices
② Improvment in quality
③ Beneficial for top Indian Companies
④ Greater choice for consumers especially in urban area
⑤ Entry of MNCs and foreign investments in new technology like cell phones, automobiles etc.


Q: What are the factors that enabled Globalisation?

Answer:
ⓐ Information and Communication Technology
ⓑ Technology Improvement
ⓒ Liberalisation of foreign investment policy



Q: Is Equality goal of globalisation?

Answer: No


Q: What are the negative impacts of globalisation?

Answer:
① Temporary employment
② Environmental damage and pollution.
③ Income inequality
④ More profits for MNCs
⑤ Cultural losses
⑥ Denial of benefits to workers



Q: What are the salient features of MNCs?

Answer:
① Giant Size
② Worldwide operations
③ Professional Management
④ Production is organised in increasingly complex ways
⑤ Production processes are divided into small parts and spread out across globe.
⑥ Use of latest and advanced technology.


Q: What are the uses of Information Technology in Globalisation?

Answer:
① Helps in communication across the world at minimal/negligible cost.
② Transfer of voice, data and other information.
③ Links markets worldwide
④ Transfer for money across countries
⑤ Setup consumer care centres


Q: Which technology allows us to send emails?

Answer: Internet


Q: Define Privatisation. What are the initiatives taken by the government in this regard?

Answer: Privatisation means transforming all economic activities from public sector to private sector. It also refers to the setting up of private units in public utility services.

Initiatives taken by the government to promote privatisation:
① Number of industries reserved for public sector has been reduced from 17 to 3.

② Private companies can enter into core sector industries like ship building, transportation, communication, iron and steel, electricity etc.

③ To promote investment many imposed restrictions such as licensing, permission to import raw materials, regulation of prices etc. were removed

④ Process of disinvestment has been initiated by the govenrment for sick public sector units.

⑤  FERA restrictions removed. Foreign exchange transactions have been made smooth by new FEMA policy.


Q: What is WTO?

Answer: World Trade Organisation (WTO) is an organisation which deals with the rules of trade among the nations. It may also be known as Multilateral trading system. Its main aim is to liberalise international trade.