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NCERT Class 10 Social Science Globalisation and the Indian Economy: Exercise Solutions

Point-by-point answers for every question of End-of-chapter exercises in NCERT's Class 10 Social Science book, chapter “Globalisation and the Indian Economy”, written by Shishya. Each question is in our own short words; open the NCERT chapter for the exact wording and figures.

1. Exercises Q1

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

   1. Globalisation is the process of rapid integration between different countries.
   2. This integration happens through foreign trade and foreign investment.
   3. Multinational corporations play a major role in connecting distant regions.
   4. Technology and liberalisation of trade policies have facilitated this process.

   Answer: Globalisation is the rapid integration of countries through foreign trade, investment, and the activities of multinational corporations.

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2. Exercises Q2

   Why did the Indian government put barriers on foreign trade and foreign investment, and why did it want to remove them?

   1. After Independence, the government imposed barriers to shield domestic producers from foreign competition.
   2. This protection was essential because Indian industries were just emerging in the 1950s and 1960s and could not survive against imports.
   3. By 1991, the government decided that Indian producers needed to compete globally to improve their quality and performance.
   4. Removing these barriers allowed goods to move freely and permitted foreign companies to establish factories and offices in India.

   Answer: Barriers were initially put to protect new industries from foreign competition, but were later removed to improve producer quality through global competition and allow foreign investment.

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3. Exercises Q3

   How would flexible labour laws help companies?

   1. Companies can hire workers for short periods during times of intense work pressure.
   2. This flexible hiring allows companies to reduce their overall labour costs.
   3. The government has allowed this flexibility to attract more foreign investment.

   Answer: Flexible labour laws help companies by allowing them to hire workers temporarily for short periods, which reduces labour costs and attracts foreign investment.

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4. Exercises Q4

   In what ways do MNCs set up, control or produce in other countries?

   1. MNCs establish new factories and offices in locations with low labor costs and close markets.
   2. They acquire existing local companies to expand production and utilize established networks.
   3. MNCs form joint production partnerships with local firms to ensure supply and access technology.
   4. They place orders with small local producers for goods like garments and footwear.
   5. MNCs exert control by determining prices, quality, and labor conditions for distant producers.

   Answer: MNCs set up, control, or produce in other countries by establishing new factories, buying local companies, forming partnerships, and ordering from small producers.

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5. Exercises Q5

   Why do developed countries want developing countries to liberalise trade and investment? What should developing countries ask for in return?

   1. Developed countries want developing nations to remove trade barriers so their products can enter these markets freely.
   2. This allows MNCs from rich nations to access cheap labor and resources in developing regions for production.
   3. Developing countries should demand that developed nations also remove their own hidden trade barriers.
   4. They must ask for fairer rules in the WTO to ensure equal treatment in international trade negotiations.
   5. Developing nations should align with other similar countries to counter the dominance of rich nations in global trade bodies.

   Answer: Developed countries seek liberalization for market access and cheap production, while developing countries should demand reciprocal barrier removal and fairer WTO rules.

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6. Exercises Q6

   "The impact of globalisation has not been uniform." Explain.

   1. Globalisation has created a divide where people with education, skills, and wealth have gained the most benefits.
   2. Conversely, many small producers and workers have suffered due to the rising competition from global markets.
   3. Thus, the process has not provided equal opportunities or shared benefits for all sections of society.
   4. Fair globalisation is needed to ensure that everyone has a chance to benefit and that gains are distributed more evenly.

   Answer: The impact of globalisation is uneven because skilled and wealthy individuals have prospered while small producers and workers have faced hardship due to increased competition.

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7. Exercises Q7

   How has liberalisation of trade and investment policies helped globalisation?

   1. Liberalisation removed government barriers that previously restricted the flow of goods, services, investments, and technology between nations.
   2. The World Trade Organisation pressured developing countries to eliminate trade restrictions, ensuring that international commerce could proceed freely.
   3. By allowing MNCs to operate without limits, liberalisation enabled the rapid movement of capital and production across borders, integrating global markets.
   4. Greater foreign contact facilitated by these open policies led to the interconnection of countries, which is the core definition of globalisation.

   Answer: Liberalisation helped globalisation by removing barriers to trade and investment, allowing free movement of goods, capital, and technology, and enabling MNCs to integrate production and markets across countries.

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8. Exercises Q8

   How does foreign trade integrate markets across countries? Explain with an example.

   1. Foreign trade serves as the main channel that connects different countries by allowing goods and services to move freely.
   2. This movement creates opportunities for producers to reach customers beyond their own national borders.
   3. Such integration results in a rapid interconnection of production systems and markets across the globe.
   4. An example is the Ford Motors plant in India, which manufactures cars for local use and also exports vehicles and parts to other nations.

   Answer: Foreign trade integrates markets by enabling the cross-border flow of goods, services, and investments, as seen in Ford Motors exporting cars from India to other countries.

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9. Exercises Q9

   Globalisation will continue. What might the world be like twenty years from now? Give reasons.

   1. MNCs will continue to seek cheaper locations worldwide for production, further integrating global supply chains.
   2. Technology, especially IT, will keep improving, making it easier to organize production across distant countries.
   3. WTO pressures will push more developing nations to liberalize trade and investment policies.
   4. The world will see deeper economic interdependence, with goods and services moving more freely between nations.
   5. However, without fair policies, small producers and workers may continue to suffer from rising competition.

   Answer: Twenty years from now, the world will be more interconnected through MNCs, technology, and liberalized trade, but fair sharing of benefits remains a challenge.

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10. Exercises Q10

    One person says globalisation has hurt India's development; another says it is helping India develop. How would you respond?

    1. Globalisation has helped India develop by increasing consumer choice and integrating markets through foreign trade.
    2. It has also hurt development by exposing small producers to intense competition from multinational corporations.
    3. Therefore, globalisation has both positive and negative impacts on the Indian economy.

    Answer: Globalisation has both helped and hurt India's development by increasing consumer choice while intensifying competition for producers.

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11. Exercises Q11

    Fill in the blanks in the passage: Indian buyers have more choice than two decades ago because of the process of ___; markets sell goods from many countries, so there is growing ___ with other countries; MNCs invest in India because ___; while consumers have more choice, rising ___ and ___ have meant greater ___ among producers.

    1. First blank: buyers have more choice because of the process of globalisation.
    2. Second blank: goods from many countries in Indian markets mean growing foreign trade with other countries.
    3. Third blank: MNCs invest in India because it offers cheap labour and other resources and a large market.
    4. Fourth and fifth blanks: rising foreign trade and foreign investment.
    5. Sixth blank: this has meant greater competition among producers.

    Answer: globalisation; foreign trade; India offers cheap labour and other resources and a large market; foreign trade and foreign investment; competition

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12. Exercises Q12

    Match: (i) MNCs buy cheaply from small producers (ii) quotas and taxes on imports regulate trade (iii) Indian companies that have invested abroad (iv) IT has helped spread the production of services (v) several MNCs have set up factories in India — with (a) automobiles (b) garments, footwear, sports items (c) call centres (d) Tata Motors, Infosys, Ranbaxy (e) trade barriers.

    1. MNCs purchase goods like garments, footwear, and sports items at low rates from small producers.
    2. Quotas and taxes on imports act as trade barriers to regulate the flow of foreign goods.
    3. Indian companies that have invested abroad include Tata Motors, Infosys, and Ranbaxy.
    4. Information Technology has facilitated the spread of service production through call centres.
    5. Several MNCs have set up factories in India for the production of automobiles.

    Answer: (i)-(b), (ii)-(e), (iii)-(d), (iv)-(c), (v)-(a)

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13. Exercises Q13(i)

    MCQ: the last two decades of globalisation have seen rapid movement of (a) goods, services and people (b) goods, services and investments (c) goods, investments and people — between countries

    1. The text states that in the past two to three decades, foreign investment by MNCs has been rising.
    2. It also mentions that foreign trade between countries, which includes goods and services, has been rising rapidly.
    3. While people do move between countries, the text notes that there has not been much increase in this movement due to various restrictions.

    Answer: (b) goods, services and investments

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14. Exercises Q13(ii)

    MCQ: the most common route for MNC investment around the world is to (a) set up new factories (b) buy existing local companies (c) form partnerships with local companies

    1. The text states that the most common route for MNC investments is to buy up local companies.
    2. This method allows MNCs to expand production easily using their wealth.
    3. Buying existing companies is preferred over setting new factories or forming partnerships.

    Answer: (b) buy existing local companies

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15. Exercises Q13(iii)

    MCQ: globalisation has improved living conditions (a) of all people (b) of people in developed countries (c) of workers in developing countries (d) none of the above

    1. Globalisation has not improved the living conditions of every single person in the world.
    2. The benefits have mainly reached well-off consumers and skilled producers rather than all workers.
    3. Many small producers and workers in developing countries have actually suffered due to rising competition.

    Answer: (d) none of the above

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