AP 10th Class Social Economics 4th Lesson Important Questions Globalisation and the Indian Economy

These AP 10th Class Social Important Questions Economics 4th Lesson Globalisation and the Indian Economy will help students prepare well for the exams.

Globalisation and the Indian Economy AP 10th Class Social Economics 4th Lesson Important Questions

AP 10th Class Social Economics 4th Lesson Important Questions: 8 Marks

Question 1.
How do Multi-National Corporations (MNCs) interlink production across countries? Explain with examples.
Answer:
Multinational Corporations (MNCs) interlink their production across countries in following ways:

• MNCs set up offices and factories for production in regions of other country where they can easily get cheap labour and other resources. This minimise the cost of production end to maximise the profit.
• The production process is divided into small parts and spread out across the globe.
• The MNCs not only sell its finished products globally, but more importantly, the goods and services are produced globally.
• Also, MNCs control production by placing orders around the world with a large number of small producers of items, like garments, footwear, sports items, etc. Then MNC sells these products under its brand name.
• The common route for MNC investments is to buy local companies and then to expand production.
  For example: Cargill Foods an American MNC had bought over an Indian company Parakh Foods which had their large marketing network in various parts of India and also has a good reputation.
• With this advantage, Cargill is now the largest producer of edible oil in India.

Question 2.
Examine the steps taken by the Central and State governments to attract foreign companies to invest in India.
Answer:
The steps taken by the central and state governments to attract foreign companies to invest in India are:

• Sezs: Spherical economic zones have been developed in the country.
• They are to have world-class facilities of water, electricity, education, labour etc.
• Industries established in these regions do not have to pay taxes for an initial period of five years.
• Flexibility in Labour laws: Governments allowed flexibility in labour laws i.e., workers were employed on a temporary basis. This meant that workers jobs were no longer secure.
• They had to put in long working hours and nights shifts during the peak season.
  Their income was meagre and the working conditions were poor.
• Liberalisation: Standing around 1991 some far reaching change, were made in the trade policy of India, which attracted foreign investment.

Question 3.
Why did the developing countries organize the G-77? Give three reasons.
Answer:

• The G-77 is the largest intergovernmental organization of developing countries in the United Nations.
• India is a member of this group. The developing countries of the world organise the G-77 because: .
  a) Developing countries are getting nothing from the growth and development of western economy along with the World bank and International Monetary Fund (IMF). So, they need to organize them as G-77 group.
  b) Another organization New International Economic Order (NIEO) provides . developing countries a right to control their own resources, helps in the development and the fair pricing of their raw materials and develops market to access the manufacturing goods.
  c) G-77 wanted a change in the international financial system which was proposed by Bretton Woods Conference. There was no work done for the eradication of poverty and there was ho development in their colonies.

Question 4.
How,are our markets transformed in recent years? Explain with examples.
Answer:
The markets have been transformed in the following ways:

• The markets of the entire world are interlinked. For example, we can buy any goods & services from other countries by just clicking on our devices.
• Perishable products of other countries are available in local markets in no time due to faster and better transportation network.
• Market has grown multifold and the transactions are happening more on virtual mode.
• We now have a wide variety of products to choose in the market.
• MNCs organise the production, distribution process globally in a complex way. For example Tata Motors, Coca-Cola or Tesla have unique styles of investment plans for different countries.

Question 5.
How has foreign trade been integrating markets of different countries? Explain with examples.
Answer:

• The foreign trade provides an opportunity for both producers and buyers to reach beyond the markets of their own country.
• There is a huge competition among producers of one country and producers of other country. Since goods transported from one country to another.
• Now there ‘is competition among buyers they have more choice of goods, over domestically produced goods.
• With the opening of trade, goods travel from one market to another and varieties of goods on the markets rises. Price of similar goods in two markets tend to become stabilise.
• For Example, During Diwali season, buyers in India have the option of choosing between Indian and Chinese lights and bulbs,
• Chinese lights manufacturers gets an opportunity to expand their business as these lights are cheap and available in larger quantities.

Question 6.
‘Technology is the vital force in the modern form of globalisation.” Explain the statement with suitable examples.
Answer:

1. Technology has led to the emergence of the global village. For example, th 3 world wide web has reduced the barriers of time and place in business dealings.
2. Technology has made much faster delivery of goods and services across long distances possible at lower costs.
3. Technology in the areas of telecommunications, computers and Internet is used to contact one another around the world, to access information and to commi/nicate from remote areas.
4. Communication between different countries has been revolutionised because of technology.
5. Satellite communication devices are used very rapidly.
6. Buyers and sellers can now make transactions at any time and in any part of the globe.

Question 7.
Describe the contribution of technology in promoting the process of globalisation.
Answer:
The technology has contributed immensely in promotion the process of globalisation in the following ways:

• Faster made delivery of goods faster across long distances possible at cheaper costs.
• The technology in the areas of telecommunication, computers, internet, mobiles has changed rapidly. It technology has facilitated the satellite communication devices;
• Telecommunication facilities are used to make contact with one another around the world at any time.
• The facility of video conferencing or one to one video calling has become common in present days.
• It also allows us to send instant electronic mail (e-mail), and voice mail across the world at negligible costs.

Question 8.
How has improvement in technology stimulated the globalisation process? Explain with five examples.
Answer:

• Technical equipment as cell pbpne, internet, telephone and microchip have contributed to globalization by exchanging ideas, capital and people to make convenient to move from one place to another as a fast pace to stimulate the process of globalization.
• With the help of internet we can find anything on single click.
• Transportation technology has stimulated the globalization process in the following ways: Faster trains connecting every nook and corner of a country and faster planes that cover the distance within a few hours have enabled the faster delivery of goods.
• Globalization is defined as the set of processes (economic, social, cultural, technological, and institutional) that contribute to the relationship between societies and individuals around the world.

Question 9.
Explain any five steps taken by the Central and State. Governments to attract foreign investments.
Answer:
The Central and the State governments Eire taking special steps to attract foreign – companies to invest in India.

1. Special Economic Zones are being set up.
2. Special Economic Zones are to have world class facilities in the field of electricity, water, roads, transport, storage recreational and educational facilities.
3. Companies which set up production units in the SEZS, do not have to pay taxes for an initial period of five years.
4. Government has allowed flexibility in the labour laws. In recent years, the government has allowed companies to ignore many of rules and regulations
5. Companies can hire workers for short periods when there is intense pressure of work. This is done to reduce the cost of labour for the company.

Question 10.
‘The impact of globalisation has not been uniform.” Explain the statement with suitable examples.
Answer:

• Due to the ushering in of new technologies, output increases, but employment opportunities are limited, especially in rural areas, where over 60% of the population lives. This has a negative impact on employment and real wages.
• Globalisation is mainly beneficial to large capitalists, industries and large companies.
• The small-scale industries are not able to compete with large players such as multinational corporations.
• Globalisation mainly allows developing and underdeveloped economies to supply raw material to developed countries.
• On the one hand, it has increased the GDP investment, and volume of trade, which in turn gives employment to millions and facilitates the expansion of companies like Tata Motors, etc. However, on the other hand, it has increased income inequality, increased the contractualization of labour, and shifted hazardous industries to developing countries. This shows the uneven impact of globalisation.

Question 11.
Assess the impact of globalization on India and its people.
Answer:

• In all areas of development, there has been a tremendous increase in foreign investment in the nation.
• The social, financial, cultural, and political spheres are all significantly impacted by globalisation.
• Due to improvements in transportation and information technology, globalisation has taken a giant leap.
• Due to the skill and knowledge a foreign company offers, Indian firms are increasing their compensation, which indirectly has a positive impact on globalisation.
• Both the economy and the standard of living have improved in India.
• Numerous cities are seeing improvements in their lifestyles, business growth, and living standards.

Question 12.
The impact of globalisation has hot been uniform.” Explain with examples.
Answer:
The impact of globalisation has not been uniform because:

• Small manufacturers and retailers have been hard hit due to globalisation.
• Many illiterate and poor people lost their jobs due to closure of small units and change in technology.
• The developed countries exploits resources from underdeveloped countries.
• Competition from companies in developed countries also cripple industries of under developed and developing countries.
• Developed countries took resources from underdeveloped countries at cheap rate and exported costly finished products to underdeveloped countries.
• Globalisation has been beneficial only for developed countries. And had a bad impact on the underdeveloped and developing countries.

Question 13.
Analyse any five positive effects of globalisation on the Indian economy.
Answer:
The positive impacts of globalisation on Indian economy are:

• The improvements in the transportation technology has made much faster delivery – of goods across long distances possible lower rates.
• New jobs have been created in industries where MNCs have invested such as electronics, cell phones etc.
• The invention and use of computer, internet, mobile phone, fax, etc., has made contact with each other around the world quite easy.
• Now these exists a wide choice of goods and services in the market.
• The latest models of digital cameras, mobile phones and television made by the leading manufactures of the world are available in the markets.
• These products are affordable as well as within reach of the people.
• Some Indian companies have become multinational by due to globalisation, such as Tata Motors, Ranbaxy, Infosys etc.

Question 14.
“Globalization and greater competition among producers has been advantageous to consumers. Support the statement with examples.
Answer:
Globalization and greater competition among producers- both local and foreign, has been of advantage to consumers in the following ways:

• Consumer can enjoy improved quality at lower prices for several products. This has led to higher standard of living.
• Companies have invested in new technologies to raise their production quality to compete with the MNCs thus, ensuringthat consumers get better quality products get satisfied.
• Indian companies has collaborated with MNCs to produce more functional and advanced products, thus, benefitting the consumers.
• There is great choice available to the consumers in goods.
• The quality Of goods has been improved and due to the competition the prices of various products has decreased.

Question 15.
“Globalisation has been advantageous to consumers as well as to producers.” Support the statement with suitable examples.
Answer:

• Globalization allows companies to find lower-cost ways to produce their products.
• It also increases global competition, which drives prices down and creates a larger variety of choices for consumers.
• Lowered costs help people in both developing and already-developed countries live better on less money.
• They have greater choice. Better quality of products is available for consumption due to competition.
• It has reduced the cost of goods and services considerably.
• Producers now have access to international markets for their products.

Question 16.
How do multinational corporations contribute to the process of globalisation?
Answer:
1) Multinational corporations (MNCs) contribute to the process of globalisation by spreading their production to other countries and setting up factories and offices where they can find cheap labour and resources.

2) MNCs play a major role in the integration of production and markets across countries, as they engage in foreign trade and foreign investment.

3) MNCs buy at cheap rates from small producers in different countries and control a large part of foreign trade.

4) MNCs invest in countries around the world, either by setting up new factories, buying existing local companies, or forming partnerships with local companies.

5) MNCs contribute to globalisation by exporting goods and services, as well as by promoting technology transfer and investment between countries.

6) MNCs have enabled some large Indian companies to become multinational themselves, expanding their operations worldwide.

7) MNCs have created new opportunities for companies providing services, particularly in the IT sector, as tasks like data entry, accounting, and engineering can be done cheaply in countries like India and exported to developed countries.

Question 17.
What are the major drivers of globalisation and how do they enable integration of geographically distant economies?
Answer:

1. Rapid growth in multinational corporations seeking global presence and operational flexibility,
2. Developments in transportation technology like container shipping and air freight reducing cost of trade,
3. Dramatic improvements in communication technology like internet, mobile and video conferencing,
4. Liberalisation of trade and investment policies by governments across the world,
5. Growth of global organisations like WTO which formulate rules and agreements to promote trade,
6. Pressure from developed countries and IMF – IWorld Bank to open up developing country markets.

Question 18.
How are multinational companies facilitating integration of production and markets across borders? Explain.
Answer:

1. Setting up manufacturing facilities and service operations in multiple locations worldwide,
2. Outsourcing and partnering with local companies taking advantage of resources, skills and markets,
3. Intra – company trade within the MNC network accounts for significant part of global trade flows,
4. Transfer of capital, technology, ideas and people on a global scale within MNC networks,
5. Fragment production across locations based on cost, resources and expertise available.
6. Investments in developing nations to tap low cost workforce and serve growing local markets.

Question 19.
What are the different ways in which multinational corporations exert control over operations in host countries?
Answer:

1. Set up wholly owned subsidiaries giving them full control over operations.
2. Take oyer established local companies to acquire their technology, brands and distribution network.
3. Form joint ventures and partnerships with local companies to access their market knowledge.
4. Outsource manufacturing to local contractors and suppliers to lower costs of production.
5. Control marketing of products through advertising and influence buyer preferences.
6. Dictate terms like price, quality, delivery schedule for outsourced production.

Question 20.
How does foreign trade lead to integration of markets across countries? Explain the process.
Answer:

1. Imports allow access to goods and services from different countries thereby expanding choice for domestic consumers.
2. Exports provide an opportunity for domestic producers to reach consumers in oversea? markets beyond geographical limits.
3. Producers have to become more competitive as they now cater to both domestic and global markets simultaneously.
4. Generates competition among producers across borders forcing upgrades in quality, technology and efficiency.
5. Prices of traded goods produced in different countries tend to converge as markets get integrated.

Question 21.
What are the arguments in favour of and against imposing trade barriers on imports? Discuss.
Answer:
Arguments in favour

1. Protects domestic infant industries from more efficient foreign producers till they gain competitiveness.
2. Prevents sudden surges in imports that can destabilise local producers and employment.
3. Generates tariff revenue which can be used for development purposes.
4. Ensure self reliance in strategic products like defence equipment, food etc.

Arguments against:

1. Reduces choice for consumers who have topay higher prices due to trade barriers.
2. Domestic producers lack incentive to improve efficiency and quality in absence of competition.
3. Other countries may also impose barriers restricting exports and growth prospects.
4. Many developing countries impose barriers due to political pressures ignoring economic logic.

Question 22.
How has outsourcing of services to India impacted the country and the companies abroad? Discuss.
Answer:

1. Enabled India to export IT, back office, call centre, medical diagnostic services etc. to developed countries.
2. Generated employment especially for educated, English speaking youth concentrated in urban centres.
3. Fueled prosperity of cities like Bangalore, led to rapid growth of these high skill service sectors.
4. However, concerns regarding labour practices, overdependence on foreign demand exists.
5. Helped foreign companies reduce costs and improve efficiency by shifting work to skilled manpower in India.
6. But fueled anxieties in their home countries about job losses and competition from low cost locations.

Question 23.
What strategies can the government follow to ensure the gains from globalisation are shared widely and inclusively?
Answer:

1. Invest heavily in health, education and skill development to enhance employability.
2. Strengthen infrastructure benefiting remote areas and disadvantaged communities.
3. Implement labour laws thoroughly to ensure decent working conditions for all.
4. Use trade policy tools more actively to protect people from unfair foreign competition;
5. Negotiate proactively at WTO and -multilateral forums- to shape rules favourably for developing Countries.
6. Make special efforts to upgrade technology, infrastructure for vulnerable sections like small enterprises, artisans etc.

Question 24.
How has the information technology revolution contributed to the process of globalisation?
Answer:

1. Dramatic improvements in communication technology like internet, mobile telephony connecting remote corners.
2. Enabled real time contact, sharing of data, ideas and coordination of activities across long distances.
3. Outsourcing of services like software development, medical diagnostics, call centres etc. to overseas locations.
4. Allows new production methods such as just in time inventory, better supplier integration in value chains.
5. Facilitated spread of information & convergence of aspirations across cultures especially among younger demographics.
6. Provided opportunities for ecommerce, gaming, social media and other new business models transcending borders.

Question 25.
How is India benefiting from greater integration with the global economy? What are some of the risks involved?
Answer:
Benefits:

1. India’s share in world exports has doubled since the 1990s signalling its growing global integration.
2. Access to larger markets abroad creating opportunities for Indian companies in sectors like IT, pharma, automobiles where India is competitive.
3. Provides opportunity to absorb advanced technologies, skills and management expertise from abroad.
4. Attract greater foreign capital inflows into the economy stimulating investment and growth.

Risks:

1. India faces competition from countries like China in areas like light manufacturing, apparels/electronics etc.
2. Over dependence on foreign capital inflows that are volatile and reversible.
3. Adverse impact on income distribution as unskilled labour bears the brunt of rising competition and uncertainty.
4. Risk of losing policy autonomy as global headwinds transmit rapidly in integrated economies.

Question 26.
How do Special Economic Zones promote exports and integrate India with global production networks?
Answer:

1. Provide excellent infrastructure like roads, power, water, communication facilities.
2. Streamlined procedures, faster clearances and minimal red tape,
3. Lbwer faxes, duties and simplified customs procedures compared to rest of country.
4. Foster cluster development of supporting industries in the zone vicinity.
5. Special incentives for foreign investors like tax holidays, logistics support.
6. Simplified labour regulations allow flexibility in hiring and retrenchment of workers.
7. Units can be set up quickly for assembling inputs or products catering to export markets.

Question 27.
What are the arguments made by critics against uncontrolled liberalisation by developing countries?
Answer:

1. Opening up must happen in staged manner, not an indiscriminate blanket liberalisation.
2. Need for adequate safeguards against volatility and economic shocks.
3. Unfair bilateral/regional agreements due to bargaining power imbalance.
4. Social sectors like health, education not equipped to handle impact.
5. Loss of policy space and autonomy in regulating activities of foreign capital,
6. Adverse impact on livelihoods of farmers, informal sector workers, small producers etc.

Question 28.
How can information technology help producers in developing countries integrate with global value chains?
Answer:

1. Internet and software enables coordination of fragmented production processes across geographies.
2. Digitally tracking movement of Inventory, inputs and final products across the value chain.
3. Using advanced software tools for product design, quality control and precision manufacturing,
4. Outsourcing of services like billing, payroll, dataeqtry to vendors in other countries.
5. Helps upgrade skills and technology of producers in developing countries to global standards.

Question 29.
What are the arguments against providing excessive concessions like tax holidays to attract foreign capital?
Answer:

1. Revenue loss to government impacting resources available for development.
2. Economic viability and location decisions should be based on genuine cost advantages not artificial incentives.
3. Incentives often pocketed by investors without real benefit to the economy in terms of jobs, technology etc.
4. Promotes enclave type development with weak linkages to rest of economy.
5. One incentive period is over, investors tend to shift base again in search of more sops
6. Difficult to withdraw incentives once granted due to pressure from business lobbies.

AP 10th Class Social Economics 4th Lesson Important Questions: 4 Marks

Question 1.
In what ways Multi National Corporation (MNQ different from other companies? Explain with an example.
Answer:

• Domestic companies tend to restrict their operations to the country of origin, while multinational corporations operate in more than two countries.
  Ex- Infosys
• Companies (Infosys) expand globally for many reasons, mostly to obtain new markets, cheaper resources and reduction in operational costs, all of which significantly affect financial management. These benefits also increase the risks ,fkced by multinational corporations.
• Multinational (Infosys) financial management differs from domestic financial management in six essential ways.
• Unlike their domestic financial management counterparts, multinationals are subject to exchange rates that differ based on the prevailing inflation rate in the foreign countries where they operate.

Question 2.
“The multinational companies (MNCs) choose China as an alternative location for investment?” Explain the statement.
Answer:
The multinational companies (MNCs) choose China as an alternative location for investment because:

• Since the revolution in 1949, China gradually came in the field of World economy.
• It attracted the foreign MNC’s because of its lowest economic structure.
• Apart from labour, China had the greatest population. They developed a sizeable customer base as well.
• Wages in China were comparatively low. So, it was great attraction for the MNCs.

Question 3.
“Foreign trade integrates the markets in different countries.” Support the statement with arguments.
Answer:

• Foreign trade provides opportunities for both producers and buyers to reach t beyond the domestic market of their own countries good travel from one country to another.
• For the buyers, import of goods produced in another country provides opportunity to extent their choice of goods beyond what is domestically produced.
• Competition among producers of various countries prevail as they can sell their products not only in the domestic market but also compete in the market, of other countries.
• Foreign trade has bee the main channel connecting countries. For example. Silk route connects Indian and South Asia to the markets in both the East and West.

Question 4.
How is information technology connected with globalization?
Answer:
Information technology has accelerated the pace of globalisation in the following ways:

• Information technology has facilitated the introduction of various satellite communication devices through which people can get connected to anyone in every corner of the world instantly.
• With information technology, there has been coordination across the different geographic locations in situations where a product is developed in one part of the world, assembled in another country, and sold in yet another country.
• Without information technology, globalisation would have taken many more years to spread since it would have taken longer for the necessary information to be conveyed, which would have slowed down the rate of country-to-country integration.

Question 5.
“How can the Government of India play a mqjor role to make globalization more fair? Explain with examples.
Answer:
i) Fair globalization would create equal opportunities for all and would ensure that the benefits of globalization are shared better, ii) The government can play a major role in making this possible through the following ways:
a) The policies of the government must protect the interests of all the people of the country, not only of the rich and powerful.
b) The government must ensure that the labour laws are properly implemented and the workers get their rights.
c) The government must support the domestic and smaller producers by making them strong enough to enter the competitive global market.
d) The government should negotiate at the WTO for fairer rules and regulations.

Question 6.
How do Multinational Corporations (MNCs) interlink production across countries? Explain with examples.
Answer:

• MNCs usually set up production units across the globe in places where the market is nearby, there is the availability of skilled and unskilled labour at low costs and other factors essential to the growth of production.
• The setting up of production in various countries leads to the development of products globally. Sometimes, the MNCS might also set up production with the local companies of a country as a joint responsibility, thus bringing in the latest technology and foreign investment.

Question 7.
How do Multi National Corporations (MNCs) interlink production across countries? Explain with examples.
Answer:
Multinational Corporations are expanding their production in the following ways:
i) The global brands outsource the manufacturing keeping in mind the low-cost factor. They placed orders with local companies. Eg: Garments, footwear, sports items etc.

ii) By setting up partnership with local companies. For example, Maruti and Suzuki has a partnership in automobile industry. Here, Suzuki is a Japanese company which had a tie up with an Indian company, Maruti.

iii) Due to the availability of, cheap labour and other resources, MNCS set up offices and factories in different regions

iv) By buying local companies. Eg. Cargill Foods is a MNC which has bought Parakh foods in India.

Question 8.
Why are rules and regulations required in the market- place? Explain.
Answer:

• Rules and regulations are required in the marketplace to protect consumers.
• Sellers often abdicate responsibility for a low-quality product, cheat in weighing out goods, add extra charges over the retail price, and sell adulterated/ defective goods.
• Rules are the regulations that the people under a government need to follow.
• They guarantee the smooth run of community life.
• They also ensure the safety of the citizens by giving instructions that help to reduce accidents.

Question 9.
Examine the role of Information Technology stimulating the process of globalization.
Answer:

1. Technical equipment such as cell phones, the internet, telephones, and microchips – have contributed to globalisation by exchanging ideas, capital, and people to make it convenient to move from one place to another at a fast pace.
2. With the help of the internet, we can find anything with a single click.
3. It’s become very easy to do online shopping with the help of technology.
4. Numerous MNCs have their customer service in India and provide online support to everyone in the world using technology.
5. Develop satellite communication devices.

Question 10.
Why do multinational corporations (MNCs) set up their offices and factories in certain areas only? Explain any five reasons.
Answer:
MNCs set up their production units in a particular areas due to the following reasons:

1. Where skilled and unskilled labour is available at low costs.
2. Where markets are near.
3. Where the favourable government policies which look after their interests.
4. Where the other factors of production such as raw materials, water, electricity and transport are available and assured.
5. Where there are standard safety measures for assured production.

Question 11.
What is liberalisation? Describe any four effects of liberalisation on the Indian economy.
Answer:
Liberalisation of the economy means minimising the controls imposed by the government in return for higher enwolvement of privates organisations. The four effects of liberalisation on the Indian economy are:

• Since, barriers on foreign trade and foreign, investment were removed to a large extent. Now, goods could be imported and exported easily.
• Competition would improve the performance of producers within the country.
• Liberalisation allows to make decisions freely.
• Foreign companies could set up factories and offices to boost up production.
• Competition improve the performance of producers within the country since they have to improve their quality of the product.

Question 12.
How do we feel the impact of globalisation on our daily life? Explain with examples.
Answer:
Impact of Globalization in our daily life are:

1. Employment have been created in industries where MNCs have invested.
2. Transportation technology has made much faster delivery of goods across long distances possible at lower cost.
3. Prices of products have come down due to competition among the producers and manufacturers.
4. The invention of computers, internet, mobile phones and fax has made contacting each other around the world quite easy.
5. Some Indian companies have become multinational themselves due to globalisation which increases jobs.

Question 13.
Describe the impact of Globalization on Indian economy with examples.
Answer:
The globalisation has impacted Indian economy in the following ways:

• Over the past twenty years, the foreign investment has increased.
• Globalisation has created new opportunities for Indian companies, particularly providing services like it.
• It has created new jobs and has helped in reducing the unemployment rate to an extent.
• Services such as data entry, accounting, engineering are now being done cheaply in India.
• Indian companies like- Tata Motors, Infosys have been able to get benefits from the increased competition created as a result of Globalization.

Question 14.
Explain the major drivers of globalisation.
Answer:

• Key drivers are growth of MNCs, rising foreign trade and investment, rapid technological progress in IT, internet and telecom.
• MNCs control production globally through subsidiaries, partnerships and outsourcing in different countries.
• Trade has risen due to better transportation, communication and reduced trade barriers.
• MNCs are the biggest source of foreign investments worldwide.
• IT advances have enabled exchange of data and coordination over long distances.

Question 15.
How are MNCs playing a major role in the globalisation process?
Answer:

• MNCs control production globally through subsidiaries, partnerships etc.
• This links production across borders.
• They invest abroad to access cheap resources, labour and gain from vast markets.
• Their intra – company trade is a huge part of international trade.
• Top MNCs have wealth exceeding the budgets of many country governments.
• Many local brands are being bought up by MNCs.

Question 16.
How can globalisation be made fair? What actions can the government take?
Answer:

• Protect small producers – provide facilities to improve competitiveness.
• Implement labour laws properly – ensure decent conditions for workers.
• Support workers rights – job security, fair wages, social security benefits.
• Negotiate at WTO for equitable rules. Coordinate with other developing countries.
• Use trade measures if required -to protect producers facing unfair competition.

Question 17.
Explain how production is spread globally by MNCs.
Answer:

• Set up new factories where costs are low.
• Acquire existing companies.
• Form joint ventures with local firms.
• Outsource production to local suppliers.
• Locate different stages of production across countries.
• Aim to lower costs, access resources and markets.

Question 18.
How does foreign trade integrate markets across countries?
Answer:

• Imports allow access to goods from different countries.
• Consumers enjoy a wider choice of goods than just domestic produce.
• Producers have access to export markets not just domestic markets.
• Competition forces producers to upgrade quality and technology.
• Prices in integrated markets tend to equalise.

Question 19.
What are the benefits and disadvantages of liberalisation of trade and investment for India?
Answer:
Benefits:

• Consumers have a wider choice of quality products as trade barriers are reduced.
• Skilled companies gained from access to technologies, collaboration with MNCs.
• Investment by MNCs created new jobs in certain sectors.

Disadvantages:

• Competition hurts small manufacturers leading to the shutdown of many units.
• Unfair labour practices have increased as firms try to cut costs. Job insecurity rose.
• Reforms sometimes under pressure from rich nations unfairbilateral agreements.

Question 20.
Explain some of the factors that have facilitated globalisation.
Answer:

1. Rapid growth of MNCs seeking global operational flexibility.
2. Vast improvements in technology-transportation, telecom, internet.
3. Liberalisation of trade and investment policies by governments worldwide due to WTO, World Bank pressure.
4. Creation of global bodies like WTO to facilitate and monitor trade flows.

Question 21.
What are the main ways in which MNCs exercise control over production and distribution in developing countries?
Answer:

• Outsource manufacturing to local contractors using cheap labour.
• Form joint ventures with local companies providing capital and technology.
• Buy up local companies for their distribution network and facilities.
• Dictate terms like cost and quality as they have alternative suppliers.
• Dominate retail of their products as brands become popular.

Question 22.
What are the major factors that have driven the process of globalisation?
Answer:

• Rapid growth of multinational corporations seeking global presence.
• Improvements in transportation, communication and technology.
• Liberalisation of trade and investment policies by governments.
• Growth of global organisations like WTO to promote trade.
• Pressure from developed nations to open up markets.

Question 23.
How are multinational corporations playing a key role in spreading globalisation?
Answer:

• Setting up operations and subsidiarles worldwide.
• Outsourcing and partnering with local companies.
• Transferring resources, technology and skills across borders.
• Spreading production processes across countries.
• Integrating markets through trade and investment flows.

Question 24.
Explain the steps taken in India since 1991 to liberalise trade and investment.
Answer:

• Removal of quantitative restrictions on imports.
• Reduction of tariffs and import duties.
• Easing of restrictions on foreign investment.
• Allowing foreign firms to set up operations in India.
• Privatisátion of public sector enterprises.
• Reform of financial sector regulations.

Question 25.
How does foreign trade facilitate integration of markets across countries?
Answer:

1) Imports allow consumers access to foreign goods.
2) Exports provide access to markets abroad for domestic producers.
3) Producers compete in both domestic and global markets.
4) Generates competition forcing upgrading of quallty and technology.
5) Prices in interconnected markets tend to equalise.

Question 26.
What are the different ways MNCs exercise control over operations in host countries?
Answer:

1. Set up wholly owned subsidiaries.
2. Take over existing local companies.
3. Form joint ventures and partnerships.
4. Subcontract manufacturing to local suppliers.
5. Control distribution and marketing of products.

Question 27.
How has the impact of globalisation varied for different stakeholders in India?
Answer:

1. Benefitted urban middle class consumers, skilled producers.
2. Adversely affected small manufacturers, unorganised sector workers.
3. New opportunities in IT, automobiles, pharmaceuticals etc.
4. But greater competition and uncertainty in traditional industries.
5. Led to rise in inequality between groups.

Question 28.
How has outsourcing impacted India’s growth?
Answer:

• Enabled export of IT, back office services to developed countries.
• Generates employment, especially for educated English speaking youth.
• Attracted foreign investment into these sectors.
• Led to growth of IT hubs and prosperity of cities like Bangalore.
• However, concerns about labour practices and overdependence.

Question 29.
What are the reservations developing countries have regarding the WTO framework?
Answer:

1. Forced to open up markets due to bargaining power of developed nations.
2. Subsidies and protection in developed countries especially in agriculture.
3. Double standards e.g. strict IPR for benefit of MNCs from rich nations.
4. Lack of level playing field for developing countries
5. Unfair bilateral agreements favouring developed countries.

Question 30.
How can the government ensure globalisation is fair and inclusive?
Answer:

1. Invest in health, education and skill development.
2. Upgrade infrastructure benefiting domestic industry.
3. Impose trade remedies against unfair competition.
4. Negotiate at WTO for level playing field.
5. Implement labour laws and ensure decent working conditions.

Question 31.
What strategies can help smaller firms withstand global competition?
Answer:

• Improving infrastructure – power, logistics etc.
• Providing timely access to credit for upgrading technology.
• Skill development and training in new techniques.
• Cluster development providing common facilities.
• Lowering costs through newer technologies.

Question 32.
What are the main arguments against allowing unchecked Imports into India?
Answer:

• Will lead to loss of jobs and shutdown of industries.
• India’s manufacturing sector is still developing and needs support.
• Cheap imports often of poor quality will flood markets.
• Terms of trade will turn adverse impacting export competitiveness.
• Danger of overdependence on foreign goods for certain items.

Question 33.
How has improvement in technology facilitated globalisation?
Answer:

• Rapid advances in communication technology like internet and mobile.
• Dramatic reduction in transportation costs.
• Easier to coordinate complex production chains across geographies.
• Outsourcing of services like call centres, software services etc.
• Flow of information, capital, ideas and people transformed.

Question 34.
What are the possible benefits for India of greater integration with the global economy?
Answer:

• Access to larger markets abroad for exports.
• Inflow of advanced technology and expertise.
• Forces upgrade of quality and efficiency to compete globally.
• Attract greater foreign investment into India.
• Opportunity in areas where India has competitive advantage.

Question 35.
How do Special Economic Zones promote industrialization and exports?
Answer:

• Provides excellent infrastructure and logistics.
• Faster clearances and minimal.red tape.
• Lower taxes, duties and simplified procedures.
• Cluster development and supply chain linkages.
• Labour law relaxations to reduce costs for exporters.

Question 36.
What measures can help India gain a greater share in world trade?
Answer:

1. Upgrade infrastructure – ports, roads, power etc.
2. Remove unnecessary regulation and bureaucracy.
3. Provide incentives for value added exports.
4. Promote sectors where India is competitive.
5. Negotiate free trade pacts with major economies.
6. Build brands and marketing networks abroad.

Question 37.
How can globalisation adversely affect income distribution in an economy ?
Answer:

1. Benefits accrue disproportionately to owners of capital.
2. Highly skilled labour gains, unskilled lose jobs to imports.
3. Traditional industries decline, income shocks to workers.
4. More jobs become temporary, insecure affecting stability.
5. Rural areas often lag behind urban in exploiting opportunities.

Question 38.
What actions has India taken post 1991 to attract more foreign investment?
Answer:

1. Establishment of special economic zones with tax incentives
2. Removal of restrictions on activities of MNCs.
3. Allowing higher share of foreign equity in investments.
4. Privatisation and disinvestment in public sector.
5. Bilateral investment treaties to protect foreign capital.

Question 39.
How has the rise of multinational Corporations impacted global trade and production?
Answer:

1. Control vast resources exceeding many countries’ budgets.
2. Setup production flexibly in low cost locations globally.
3. Source inputs from different locations to reduce costs.
4. Investments and intra- company trade major part of global flows.
5. Accused of unfair trade practices and labour exploitation.

Question 40.
What are the arguments made against complete liberalisation of cross border capital flows ?
Answer:

1. Short term speculative flows can be destabilising.
2. Developing economies lack institutions to handle volatility.
3. It constrains ability to have independent monetary policy.
4. Currency appreciation can hurt competitiveness of exports.
5. Risk of capital flight in case of adverse conditions.

Question 41.
How can information technology help producers in developing countries integrate with global value chains?
Answer:

• Internet enables coordination of production networks.
• Tracking movement of inputs and inventory digitally.
• Using software tools for design, quality control etc.
• Outsourcing of services like billing, data entry etc.
• Helps upgrade technology and skills to global standards.

Question 42.
What are the reservations developing countries have regarding inequities in the WTO framework?
Answer:

• Forced to open markets due to bargaining power imbalance with developed nations
• Double standards in areas like agriculture where massive subsidies given by rich nations.
• Strong intellectual property rights regime imposed to benefit corporates from developed world.
• Limited scope for protecting domestic producers from sudden import surges.
• Lack of transparency in negotiations and tendency to force bilateral treaties unfairly.

Question 43.
How do foreign companies benefit from shifting production bases to developing countries like India?
Answer:

1. Low cost and abundant labour force compared to back home.
2. Relatively lax regulations on labour practices and factory safety norms.
3. Availability of skilled manpower and English speaking workforce.
4. Large and fast growing local market allowing economies of scale.
5. Special tax and policy incentives offered to attract foreign investors.
6. Good, supporting infrastructure and supply chain ecosystem.

Question 44.
Read the given extracts and answer the following questions.

India undertook major reforms in 1991 under WTO and IMF-World Bank pressure to open up the ecnomy. Import restrictions were lifted, tariffs reduced, foreign investment norms liberalised significantly. Globalisation has benefited consumers in urban India through wider choice of brands, higher incomes.

Question 1.
What were the major reforms initiated in India since 1991?
Answer:
Import restrictions were lifted, tariffs were reduced substantially and foreign investment norms were liberalised under WTO and IMF-World Bank pressure.

Question 2.
Who were the major beneficiaries of globalisation in India?
Answer:
Urban middle class consumers gained through wider choice of brands, higher incomes and improved living standards.

Question 3.
How did foreign institutions like the IMF and World Bank influence India’s reforms?
Answer:
India liberalised the economy under pressure from IMF and World Bank making it a condition for aid and assistance.

Question 4.
Read the given extract and answer the following questions.

The process of globalisation has created opportunities for businesses to expand their operations across borders. One of the major drivers of globalisation has been the growth of multinational corporations (MNCs), which have been able to take advantage of new technologies, liberalised trade policies, and other factors to increase their presence in different regions of the world. However, globalisation has also had its challenges, including the impact on workers, the environment, and local communities.

Question 1.
What has been one of the major drivers of globalisation?
Answer:
The expansion of multinational corporations

Question 2.
What factors have enabled to increase their presence in different regions of the world?
Answer:
New technologies and liberalised trade policies.

Question 3.
What are some of the challenges associated with globalisation?
Answer:
Exploitation of workers and environmental degradation.

Question 4.
How has globalisation impacted local communities?
Answer:
It has caused social and cultural disruption and displacement.

Question 46.
Read the given extracts and answer the following questions.

The tourism industry is a major contributor to trfeny economies around the world. However, it also has its challenges, including environmental impact, cultural preservation, and labour rights. Sustainable tourism seeks to address these challenges by promoting responsible tourism’practices that protect the environment, preserve cultural heritage, and benefit local communities.

Question 1.
What are some of the challenges associated with the tourism industry?
Answer:
Environmental impact, cultural preservation, and labour rights.

Question 2.
What is sustainable tourism?
Answer:
Tourism that promotes responsible tourism practices is called sustainble tourism.

Question 3.
What are some of the benefits of sustainable tourism?
Answer:
Preservation of cultural heritage and diversity.

Question 4.
How can sustainable tourism benefit local communities?
Answer:
By creating new job opportunities and driving economic growth.

AP 10th Class Social Economics 4th Lesson Important Questions: 2 Marks

Question 1.
Suggest any one way to enhance pilgrimage tourism through Indian Railways.
Answer:

• The railways can make various steps in pilgrimage cities in India and can advertise the same.
• This will enable passengers to conduct mult-facious activites.
• It is great interesting force.

Question 2.
Correct the following statement and rewrite it.
i. Removing barriers or restrictions by the government is known as Globalisation.
Answer:
Removing barriers or restrictions by the government is known as Liberalisation.

ii. International Monetary Fund (IMF) is an organisation whose aim is to liberalise international trade.
Answer:
World Trade Organisation (WTO) is an organisation whose aim is to liberalise international trade.

Question 3.
“Banks are efficient medium of exchange.” Support the statement with arguments.
Answer:
“Banks are efficient medium of exchange ” because:

• Banks accept the deposits and also pay an amount as interest on the deposits.
• The facility of cheque against demand deposit makes it possible to directly settle payments without the use of cash.
• Demand deposits are accepted widely as a medium of payment.

Question 4.
Why had the Indian government put barriers to foreign trade and foreign investments after independence? Analyse the reasons.
A. The Indian government put up barriers to foreign trade and foreign investments
because:

• To protect the producers within the country from foreign competition.
• In the 1950s and 1960s, industries were coming up in India and external competition due to imports at that stage would not have been conducive for development of domestic industries in India.
• Indian government permitted imports of only essential items such as-machinery, fertilisers, petroleum, etc.

Question 5.
How are local companies benefitted by collaborating with multinational corporations? Explain with examples.
Answer:

• Many MNCs collaborate with local companies of the host country to invest and expand their businesses.
• In such collaborations, MNCs get entry into a new market.
• On the other hand, the local companies gain additional investments and access to the latest technology.

Question 6.
What are the key drivers of globalisation?
Answer:

• Trade, investment and technology have interconnected countries.
• MNCs, foreign trade and investment, technological improvements have facilitated it.

Question 7.
How have MNCs contributed to the globalisation process?
Answer:

• Control production globally through subsidiaries, partnerships, dutsoureing etc.
• This links production across borders.

Question 8.
In what ways can MNCs exercise control over production in other countries?
Answer:

• Set up new facilities, acquire local companies, and outsource production to local suppliers.
• This allows them to take advantage of resources and markets.

Question 9.
How does foreign trade connect distant countries?
Answer:

• Countries can export and import more goods.
• Buyers and sellers compete across borders. This integrates markets.

Question 10.
How is WTO pressurising developing countries like India to liberalise?
Answer:

• Forcing countries to remove trade barriers through international agreements.
• But double standards in areas like agriculture.

Question 11.
What steps can the government take to ensure fair globalisation?
Answer:

• Protect workers, small producers. Implement labour laws.
• Provide facilities to improve competitiveness of small-scale units.
• Negotiate at WTO for fairer rules.

Question 12.
How does competition from Imports affect local producers in India?
Answer:

• Rising competition hurts small producers as costs are higher.
• Many units close down.

Question 13.
What facilities do small producers need to compete better?
Answer:

• Better infrastructure like roads, power etc.
• Modernisation of technology. Access to credit. ‘

Question 14.
Explain the impact of globalisation on producers and workers in India.
Answer:

• Helped skilled companies with education and capital gain technology, invest abroad.
• Competition hurts small manufacturers unable to upgrade. Many units shutdown.
• Working conditions worsened for many workers due to lack of job security, pressure to cut costs.
• But new opportunities are also created in sectors like IT, automobiles, pharma.

Question 15.
Why are developed countries pressurising developing countries to liberalise trade and investment policies?
Answer:

• MNCs from developed countries want to expand business globally.
• They want to access cheap labour, resources and markets in other countries.
• Removing trade barriers allows free flow of goods, services and investments.
• Forces like WTO, World Bank push for reforms – to remove restrictions.

Question 16.
How can information technology help in spreading services across countries?
Answer:

• Internet and telecom enables exchange of data, coordination over long distances.
• Allows outsourcing of services like software development, call centres etc. to other countries.
• Firms can get services from outside rather than set up facilities everywhere. Reduces costs.
• Countries like India with skills in IT etc., can export these services globally.

Question 17.
What are the barriers that countries can impose on imports? How do they provide protection to domestic producers?
Answer:

• Import tariffs or taxes imposed to make imported goods more expensive.
• Quotas limit the quantity allowedto be imported.
• Such trade barriers protect domestic producers from foreign competition.
• Domestic goods become cheaper compared to imports due to barriers.

Question 18.
Explain some of the ways by which MNCs exercise control over production.
Answer:

• Set up fully owned subsidiaries in other countries.
• Take over existing local companies.
• Form joint ventures and partnerships with local companies.
• Outsource production to local suppliers – dictate price, quality etc.

Question 19.
How does lowering of trade barriers help in achieving greater integration of markets?
Answer:

• Removing barriers like import duties makes trade between countries easier.
• Domestic producers can access markets in other countries more easily.
• Imports flow freely allowing wider choice for consumers.
• Producers have to compete both in domestic and global markets.

Question 20.
How does globalisation result in interlinking of production across countries?
Answer:

• MNCs divide production into small parts and locate across the globe.
• Cheapest locations chosen for each part to minimise costs.
• Parts then brought together for final assembly.
• Production gets fragmented across countries and interconnected.

AP 10th Class Social Economics 4th Lesson Important Questions: 1 Mark

Question 1.
Cargill Foods, a very large MNC, is the largest producer of edible oil in India. Which one of these countries does it belong to? (D)
A) India
B) France
C) Great Britain
D) United States of America

Question 2.
Read the following data and information carefully and select the most appropriate answer from the given options:
TABLE FOR COMPARISON OF THREE COUNTRIES

Countries	Monthly income of citizens in 2007 (in Rupees)
	I	II	III	IV	V
Country A	9500	10500	9800	10000	10200
Country B	500	500	500	500	48000
Country C	5000	1000	15000	4000	25000

Rita is an employee of a multinational company who gets transferred to different countries after every three years of service. She has been given an opportunity to choose any one out of the three countries mentioned in the table above as her next job location. She calculates average income of all these countries as per the given data and chooses to be transferred to Country A.

Identify the reason for which Rita has chosen country A. (B)
A) Most of its citizens are rich and stable
B) Has most equitable distribution of income
C) National income of its citizens is higher
D) Average income of its citizens is lower

Question 3.
Which one of the following refers to investment? (C)
A) The money spent on religious ceremonies
B) The money spent on social customs
C) The money spent to buy assets such as land
D) The money spent on household goods

Question 4.
The process of integration between different countries is called as ____
Answer:
Globalization

Question 5.
Identify the correct statements about globalization. ( A )
I. Removal of barriers by the government
II. Foreign companies are allowed to set up factories
III. Has enabled all companies to increase their investments
IV. Has lessened foreign investment and foreign trade.
A) I &II
B) II & III
C) I & III
D) II & IV

Question 6.
Choose the correct statement about factors regarding globalization in India: (A)
I. Improvement in transportation technology.
II. Liberalization of foreign trade and foreign investment.
III. Favourable rules of WTO towards India in comparison to developed countries. Choose the correct options from the codes given below:
A) Only I and II
B) Only I and III
C) Only II and III
D) Only III

Question 7.
In which one of the following ways has ‘information and communication technology’ stimulated the ‘globalisation’ process the most? ( D )
A) Access foods across countries
B) Access raw material across countries
C) Access services across countries
D) Access information instantly across countries

Question 8.
Why did the Indian government liberalize trade regulations in 1991?
Answer:
Government wanted Indian producers to compete in the World Market.

Question 9.
Which international agency allow free trade and work on mutual trade between countries?
Answer:”
WTO (World Trade Organisation)

Question 10.
What was the main aim to form World Trade Organisation”?
Answer:
To liberalise international trade.

Question 11.
Evaluate the impacts of opening foreign trade on the global economy byidentifying the appropriate statements among the following options:
i) The choice of goods in the markets increase:
ii) Producers from two countries closely compete against each other despite the distance between their locations.
iii) Fpreign trade thus results in connecting the markets or integration of markets in different countries.
iv) The quality of the product is always good.
Options:
A) Statements i and ii are appropriate. (B)
B) Statements i, ii and iii are appropriate.
C) All the statements are appropriate.
D) Only statement iv is appropriate.

Question 12.
Which one of the following is a challenge of Globalisation? (C)
A) Access to New Markets
B) Access to New Talent
C) International Recruitment
D) Disproportionate Growth

Question 13.
Which one of the following aspects was the base of the Bretton Woods system? (C)
A) Military system
B) Cultural system
c) Economic system
D) Historical system

Question 14.
What is globalisation?
Answer:
Integration between countries through trade, investment, technology etc.

Question 15.
What are multinational corporations (MNCs)?
Answer:
Large companies that operate across countries.

Question 16.
How do MNCs control production globally?
Answer:
Set up subsidiaries, partner with local companies, and outsource production.

Question 17.
What has driven foreign trade growth?
Answer:
Better transportation, communication, reduced tradp barriers.

Question 18.
What is the major source of foreign investment worldwide?
Answer:
Multinational companies.

Question 19.
How has technology impacted globalisation?
Answer:
Improvements in IT, internet, telecom enable global coordination.

Question 20.
Who has benefited from globalisation in India?
Answer:
Urban consumers, skilled companies.

Question 21.
How does globalisation affect small producers and workers in India?
Answer:
Rising competition hurts them.

Question 22.
What reforms were made in India in 1991?
Answer:
Deregulation of trade and investment.

Question 23.
Which global body pressurised India to liberalise trade and investment policies?
Answer:
World Trade Organization (WTO)

Question 24.
What is needed for fair globalisation?
Answer:
Spread benefits widely.

Question 25.
How can the government help small producers cope with competition from imports?
Answer:
Provide facilities, training, and timely credit.

Question 26.
What should India do to -get fairer rules at WTO?
Answer:
Coordinate with other developing countries.

Question 27.
How can MNCs control production without owning facilities?
Answer:
Out source production to local suppliers.

Question 28.
Which Indian companies have benefited from globalisation?
Answer:
Tata Motors, Infosys, Ranbaxy etc;

Question 29.
What do MNCs invest abroad to access?
Answer:
Resources, markets, low cost production.

Question 30.
How has IT enabled outsourcing of services to India?
Answer:
The Internet allows sending data for back office work.

Question 31.
Which sectors in India attract more foreign investment?
Answer:
Automobiles, electronics, soft drinks etc.

Question 32.
How does trade lead to integration of markets across countries?
Answer:
Choices rise, producers compete across borders.

Question 33.
How has globalisation impacted working conditions in India?
Answer:
Jobs become less secure, pressure of work increases.

Question 34.
How has technology facilitated globalisation?
Answer:
Rapid improvements in IT, internet,’Telecom etc. allow better communication, exchange of data, and coordination over long distances.

Question 35.
What are the benefits of globalisation for Indian companies?
Answer:
Some companies gained from collaborations, becoming MNCs themselves, access to new technology etc.

Question 36.
How does globalisation benefit urban consumers in India?
Answer:
More choice of brands, improved quality, lower prices higher standard of living.

Question 37.
How do MNCs take advantage of establishing production in other countries?
Answer:
Access to cheap labour, resources, larger markets to maximise profits.

Question 38.
What are the main reforms initiated in 1991 in India?
Answer.
Reduced trade barriers and deregulated foreign investment to promote globalisation.

Question 39.
How has outsourcing impacted workers in India?
Answer:
Lack of job security, pressure to work long hours, low wages and unfair conditions.

Question 40.
How do MNCs benefit from outsourcing production to Indian companies?
Answer:
Can get supplies at cheap rates from small producers, maximising profits.

Question 41.
What are the concerns regarding special economic zones (SEZ) in India?
Answer:
Acquiring agricultural land, not implementing labour laws.

Question 42.
How does trade lead to competition among producers in different countries?
Answer:
Producers have access to markets abroad. This brings about competition inter¬nationally.

Question 43.
How do MNCs gain by employing workers flexibly?
Amswer:
No need to pay benefits to permanent workers. Reduces costs.

Question 44.
What is the drawback of imposing quotas on imports?
Answer:
Limits consumer choice, protects inefficient firms.

Question 45.
How does lowering of trade barriers help MNCs?
Answer:
Makes it easier to set up operations and access markets across countries.

Question 46.
What is the reason for putting barriers to foreign trade and foreign investment by the Indian government?
Answer:
To protect domestic industries from foreign competition.

Question 47.
Arrange in correct sequence (B)
i) Competition between producers
ii) Specialisation
iii) Exchange of goods
iv) Gains from trade
Answer:
A) ii, iii,i,iv
B) ii,i,iii,iv

Question 48.
Arrange in correct sequence. (B)
i) Manufacture
ii) Design
iii) Assemble
iv) Market
Answer.
A) ii, iii,i,iv
B) ii,i,iii,iv
C) iv,i,iii,ii
D) i,ii,iv,iii

Question 49.
Arrange in correct sequence
i) Growth of MNCs
ii) Technology
iii) Production networks
iv) Interlinked economies
Answer:
A) i, ii,iii,iv
B) ii,i,iii,iv
C) iv,i,iii,ii
D) i,ii,iv,iii

Question 50.
Assertion: Workers face job insecurity in special economic zones. (C)
Reason : Labour laws are not followed to reduce costs.
Answer:
A) Assertion is true but reason is false.
B) Assertion is false but reason is frue.
C) Both assertion and reason are true.
D) Both assertion and reason are false.