Globalisation and the Indian Economy Class 10 Economics Chapter 4 NCERT Solution

Class 10 Economics Chapter 4 is “Globalisation and the Indian Economy”. Get here the latest updated NCERT Solutions of Globalisation and the Indian Economy Class 10 Economics Chapter 4 as per latest CBSE syllabus.

Class 10 Economics Chapter 4 : Globalisation and the Indian Economy

“Globalisation and the Indian Economy” is the fourth chapter in the economics book of Social Science Subject for Class 10. This chapter includes the End Exercise and Intext questions related to – PRODUCTION ACROSS COUNTRIES, INTERLINKING PRODUCTION ACROSS COUNTRIES, FOREIGN TRADE AND INTEGRATION OF MARKETS, GLOBALISATION, FACTORS THAT HAVE ENABLED GLOBALISATION, etc.

Globalisation and the Indian Economy Class 10 Economics Chapter 4 [ NCERT Solutions ]

Chapter Chapter 4 : Globalisation and the Indian Economy
SubjectEconomics – Social Science
Class 10
Study MaterialNCERT Solution ( Intext and End Exercise )
Number of QuestionsTotal 13 Questions
Text Book NameUnderstanding Economics Development
( NCERT Text Book in Economics for Class 10 )

End Exercise Questions Ncert Solutions

Class 10 Economics Chapter 4 Question 1 :
What do you understand by globalisation? Explain in your own words.

Answer :
Globalisation is the process of rapid integration or interconnection between countries . Globalisation allows a free flow of trades, capital and human resources across the borders. After Globalisation, More and more goods , technology and capital are moving among the world market.

Class 10 Economics Chapter 4 Question 2 :
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?

Answer :
The government has put barriers to protect the producers within the country from foreign competition. During that period , the Indian Industry was at an initial stage of development , and competitions from imports at that stage would not have allowed these industries to come up.

These barriers were removed because :
1. to make the Indian companies more efficient.
2. to improve the performance of the producers within the country.
3. to enable the Indian industry to import new technology and raw material.
4. The decision was supported by the powerful international organisations like World Trade Organisation.

Class 10 Economics Chapter 4 Question3 :
How would flexibility in labour laws help companies ?

Answer :
The flexibility in Labour laws would help the companies in the following ways :-
1. Now companies can hire workers for a short period and also on contract basis.
2. It would reduce the cost of labour for the company
3. Now, Companies need not to follow many rules which protect the workers.

Class 10 Economics Chapter 4 Question 4 :
What are the various ways in which MNCs set up, control or produce in other countries?

Answer :
The various ways in which MNCs setup or control production on other countries are given below :-
1. By Joint Venture : At time MNCs setup production units jointly with local companies in the country.
It benefits the local company in two ways. First , MNC can provide money for additional investment like new machines for faster production. Second, MNCs can might bring with them latest technology for producing goods.

2. By buying local companies : The most common route for MNC investment is to buy up local companies and then to expand production. MNC’s with huge wealth can quite easily do so.

3. By Placing Orders to small producers : Many MNCs control production in developing countries by placing orders with small producers . Garments, footwear, sports items, etc are the examples of such industries where production is carried out by small producers around the world.

Class 10 Economics Chapter 4 Question 5 :
Why do developed countries want developing countries to liberalise their trade and investment? What do you think should the developing countries demand in return?

Answer :
The developed countries want the developing countries to liberalise their trade investment because :-
1. They want to invest in developing countries to earn high rate of return.
2. They think trade barriers are harmful as they hinder the growth of trade and investment.

The developed countries want that the developing countries should liberate their trade but they themselves had retained trade barriers. The developing country with similar interest to fight against the domination of the developed countries. They should negotiate with the WTO and other organisation for “fairer rules”.

Class 10 Economics Chapter 4 Question 6 :
“The impact of globalisation has not been uniform.” Explain this statement.

Answer :
Yes, the statement is true . The globalisation has affected the different groups of people differently . It can be explained with the help of following facts :-
1. Globalisation has benefited the well-off section in the urban areas. This group of people enjoys improved quality and lower prices for several products. As a result, their living standards has improved.
2. Although it has created many jobs in some industries like automobiles, cellphones , electronic , IT , etc. But it has failed to help the poor.

3. Some top companies have been able to benefit from the globalisation. But there are some smaller manufacturers who have to shut down their industries, Example Batteries, Vegetable Oil, etc
4. After allowing flexibility by the government of development countries MNCs are not following rules and regulations. It affects the workers adversely.

5. Noe they don’t have work security. Only rich and educated class have befitted from Globalisation.
6. Globalisation has widened the gap between the rich and the poor.

Class 10 Economics Chapter 4 Question 7 :
How has liberalisation of trade and investment policies helped the globalisation process?

Answer :
The liberalisation of trade and investment policies helped the globalisation in following ways :-
1. Under this policy trade barriers were removed which increased import and export of goods and services.
2. As a result of liberalisation of investment, many MNCs are investing in banking, infrastructure, soft drinks, automobiles ,etc in India. Even Indian government is also helping the MNs to invest in India by providing facilities of infrastructure, electricity, education, etc through SEZ ( Special Economic Zone)

3. As a result of liberalisation new technology , new technology has reached India.
4. Information and Communication Technology has played an important role in spreading out production of services across the country.

Class 10 Economics Chapter 4 Question 8 :
How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.

Answer :
1. Foreign trade enables the producers to reach beyond their domestic market. Now producers can sell their products in markets of other countries and they can compete there with the local producers.
2. Similarly, the buyers in different countries get chances to buy production of different brands from foreign countries market.
3. In Simple words we can say , ‘ through foreign trade producers export their goods to other countries and importers can imports good of other countries into their countr’.

For example : 20 years ago, when foreign trade was slow in India because of trade barriers , buyers in India has little choices in automobiles. But, now trade barriers have been removed hence companies like Suzuki and Hyundai are manufacturing cars in India. Now Indian buyers have many choices in automobiles. These companies are also exporting cars out of Indian to other countries. In this way foreign trade is integrating the world market.

Class 10 Economics Chapter 4 Question 9 :
Globalisation will continue in the future. Can you imagine what the world would be like twenty years from now? Give reasons for your answer

Answer :
Globalisation will continue in the future. It will make the cost of goods at low prices and quality of goods will be high. Globalisation will also help to strengthen the relation between the countries .

Class 10 Economics Chapter 4 Question 10 :
Supposing you find two people arguing: One is saying globalisation has hurt our country’s development. The other is telling, globalisation is helping India develop. How would you respond to these arguments?

Answer :
I will agree with the point that globalisation has helped India to develop. We can see the many varieties in automobiles. All the companies try to get best in their cars as compared to other. We get the best quality products.

Class 10 Economics Chapter 4 Question 11 : 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 _______________. Markets in India are selling goods produced in many other countries. This means there is increasing _______________ with other countries. Moreover, the rising number of brands that we see in the markets might be produced by MNCs in India. MNCs are investing in India because _______________ . While consumers have more choices in the market, the effect of rising _______________ and ______________has meant greater _________________among the producers.

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 number of brands that we see in the markets might be produced by MNCs in India. MNCs are investing in India because they find India as a vast market and availability of factors of production at low coast . While consumers have more choices in the market, the effect of rising foreign trade and foreign investment has meant greater competition among the producers.

Class 10 Economics Chapter 4 Question 12 : Match the following.

(i) MNCs buy at cheap rates from small producers(a) Automobiles
(ii) Quotas and taxes on imports are used to regulate trade(b) Garments, footwear, sports items
(iii)Indian companies who have invested abroad(c) Call centres
(iv) IT has helped in spreading of production of services(d) Tata Motors, Infosys, Ranbaxy
(v) Several MNCs have invested in setting up factories in India for production(e) Trade barriers

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 of services(c) Call centres
(v) Several MNCs have invested in setting up factories in India for production(a) Automobiles

Class 10 Economics Chapter 4 Question 13 : Choose the most appropriate option.
(i) The past two decades of globalisation has seen rapid movements in
(a) goods, services and people between countries.
(b) goods, services and investments between countries.
(c) goods, investments and people between countries.
Answer : Option [ b ] “ goods, services and investments between countries is correct .

(ii) The most common route for investments by MNCs in countries around the world is to
(a) set up new factories.
(b) buy existing local companies.
(c) form partnerships with local companies.
Answer : Option [ b ] “buy existing local companies is correct .

(iii) Globalisation has led to improvement in living conditions
(a) of all the people
(b) of people in the developed countries
(c) of workers in the developing countries
(d) none of the above
Answer : Option [ d ] “none of the above is correct .