AP State Syllabus SSC 10th Class Social Studies Solutions 10th Lesson Globalisation
10th Class Social Studies 10th Lesson Globalisation Textbook Questions and Answers
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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?
- After Independence, it had put barriers to foreign trade and foreign investment.
- Because to protect the producers within the country from foreign competition.
- Industries were just coming up, with foreign competition, they may not survive.
- Indian government levies tax on foreign goods.
- And because of tax, prices of those goods become high.
- Our goods will prosper.
- Tax on imports is thus a barrier.
- Around 1991, Indian government decided that the time had come for foreign competition.
- It believed competition would improve our goods’ quality.
- So it wished to remove these barriers.
How would flexibility in labour laws help companies?
- Flexibility in labour laws help companies to reduce the cost of labour for the company by negotiating the wages and other conditions.
- Governments allowed flexibility in the labour laws to attract foreign investment.
- Instead of hiring workers on a regular basis, companies hire workers flexibly.
- That is for short periods when there is intense pressure of work.
- This is done to reduce the cost of labour for the company.
- Foreign companies are demanding further flexibility in labour laws.
What are the various ways in which MNCs set up or control the production in other countries?
- At times, MNCs set up production jointly with the local companies of other countries.
- The local companies benefit with additional investments and technology of MNCs.
- MNCs buy local companies and then to expand production.
- MNCs with huge wealth can quite easily do so.
- Large MNCs place orders with small producers.
- They sell them under their brand.
Why do developed countries want developing countries to liberalise their trade and investment? What do you think should the developing countries demand in return?
- Developed countries want developing countries to liberalise their foreign trade and foreign investment.
- As most of the MNCs are owned by these developed countries they can expand into developing countries.
- With huge wealths greater than the budgets of many developing countries, they can influence the power.
- They will see the decision of polity were made in their favour.
- Companies from developing countries may not be competing with MNCs in technology and marketing.
- MNCs can capture the entire marketing potential of developing countries.
- This will result in decay of the economy of indigenous developing countries.
- They should demand proper share for their indigenous industries in marketing in their countries and in developed countries.
“The impact of globalisation has not been uniform.” Explain this statement.
- The impact of globalisation has not been uniform in India.
- It is advantageous to well-off section in the urban areas.
- They enjoy improved quality and lower prices of several products.
- Industries like cellphones, automobiles, electronics, soft drinks, fast food or banking in urban areas are developed.
- Several top Indian companies benefit from increased competition.
- Some large Indian companies emerged as MNCs.
- Wide opportunities for IT, data entry, accounting etc. fields.
- Thousands of small producers closed their units and met losses.
- Many employees lost their employment and workers saw their rights erode.
How has the liberalisation of trade and investment policies helped the globalisation process?
- Liberalisation of trade and investment policies has helped the globalisation process.
- It opened the gates for MNCs to set up and produce and market goods at cheap production costs.
- It resulted in greater integration of production and markets across the country.
- MNCs are playing a major role in the globalisation process.
- More and more goods, services, investments and technology are moving between countries.
- Most regions of the world are in closer contact with each other than a few decades back.
How does foreign trade lead to the integration of markets across countries? Explain with an example other than those given here.
- Foreign trade creates an opportunity for the producer to reach beyond the domestic markets.
- For the buyers, trade expands the choice of goods beyond what is domestically produced.
- Foreign trade thus results in connecting the markets or integration of markets in different countries.
- Walmart is an American retail market giant.
- The UPA government at the centre accepted for foreign investment in the retail sector.
- So, Walmart in collaboration with Bharati set up many retail outlets across the country.
- There is a wide choice for Indian retail consumers.
Globalisation will continue in the future. Can you imagine what the world would be like twenty years from now? Give reasons for your answer.
- Globalisation has started, thus, it will continue in the future.
- From 20 years now, the world would be a better one.
- The developed countries continue to expand their MNCs.
- They will try to capture the market of developing countries.
- The developing countries in turn, fight for a better deal.
- Over a period of time, they develop their economy and demand better place along with developed countries.
- Globalisation has started, thus it will continue in the future:
- After 20 years, the native companies have no capacity to compete with MNCs and they will close.
- People also will attract to foreign goods.
- In health and education also MNCs will enter. Even though in Indian Railways also MNCs will enter.
- Totally, the Indian people lost their culture and tradition.
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?
- I would support the second person.
- Globalisation is helping India develop.
- It brought many opportunities in IT, call centres, data entry, insurance and banking etc.
- Many Indian companies became MNCs and are earning huge profits.
- Many other Indian companies benefited with additional investment and technology from MNCs worldwide.
- MNCs developed land and infrastructural facilities here.
- Thus, India is developing due to globalisation.
The benefits of globalisation have been unevenly distributed. It has benefited well-off consumers and also producers with skill, education and huge wealth. Certain services, enabled with technology have expanded.
On the other hand, thousands of small producers and workers have seen their employment and worker’s rights erode. It explains to understand the two-sided nature of globalisation.
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 —(i)—. Markets in India are selling goods produced in many other countries. This means there is increasing —(ii)— 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 —(iii)—. While consumers have more choices in the market, the effect of rising —(iv)— and —(v)— has meant greater —(vi)— among the producers.
(ii) foreign trade;
(iii) they have access to cheaper labour;
Match the following.
(i) – b
(ii) – e
(iii) – d
(iv) – c
(v) – a
10th Class Social Studies 10th Lesson Globalisation InText Questions and Answers
10th Class Social Textbook Page No. 131
Choose any one single item like Mobile phones or vehicles; identify the number of Brands available in the market. Are they owned and manufactured in India or abroad? Discuss with your parents or other adults and find out how many such brands were available 30 years ago.
- There are many mobile phone brands available now in our country.
- Few of them are owned by and manufactured in our country.
- Whereas most of them are owned by other nations and manufactured either here or abroad.
- Brands are like Samsung, Nokia, LG, Karbon, Zen, Apple, i Phone, Sony, Panasonic, Infinix are a few of them.
- Apple and i Phone are American brands; Nokia from the Philippines; LG and Samsung are of South Korea; Panasonic from Japan; Karbon and Zen, etc. are from China and Infinix and such mobiles are from India.
- 30 years ago no cellular or mobile phone was available in India.
10th Class Social Textbook Page No. 133
Would you say Ford Motors is an MNC? Why?
- I would say Ford Motors is an MNC.
- It is one of the world’s largest automobile manufacturers with production spread over 26 countries.
- It was selling 27,000 cars in Indian Market by 2004.
- By the year 2004, 24,000 cars were exported from India to South Africa, Brazil and Mexico.
What is foreign investment? How much did Ford Motors invest in India?
- The money that MNCs spent to buy assets such as land, building, machines and other equipment is called foreign investment.
- Ford motors came to India in 1995.
- It spent Rs. 1700 crore to set up a large plant near Chennai.
- This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks.
10th Class Social Textbook Page No. 134
By setting up their production plants in India, MNCs such as Ford Motors tap the advantage not only of the large markets that countries such as India provide but also the lower costs of production. Explain the statement.
- MNCs such as Ford Motors tap the large markets in India by setting up their plants here.
- They also lower their cost of production. i
- It is estimated that 50%-60% money they have saved on production by producing in India.
- As labour is cheap here, other resources are also cheap. So they are producing goods at lower cost.
- Apart from this, they are provided with educated youth in employment for lesser wages compared to other countries.
- As the population in India and China alone accounts to 30% of the world population and Forbes surveys show that numbers of millionaires are increasing in these countries.
- So MNCs have concentrated on tapping the markets here.
Why do you think the company wants to develop India as a base for manufacturing car components for its global operations? Discuss the following factors :
(a) cost of labour and other resources in India
(b) the presence of several local manufacturers who supply auto parts to Ford Motors
(c) closeness to a large number of buyers in India and China
- The company Ford Motors wants to develop India a base for manufacturing car components for its global operations.
- In India the cost of labour is cheap.
- The costs of other resources is also cheap in India.
- India thus provides the advantage of being a cheap manufacturing location.
- Another reason is that in India the presence of several local manufacturers who supply auto parts to Ford Motors.
- It is another reason that in India and China there is presence of buyers in large numbers.
In what ways will the production of cars by Ford Motors in India lead to interlinking of production?
The company is making engines and body at its plant. It is processing other components from various suppliers which operate in India. Even designing some of the new models has been done in India. So India is providing a perfect base for all the operations related to productions of cars for the Ford Motor. Hence it can be said that proper interlinking of production is happening in India for this company.
In what ways is an MNC different from other companies?
- An MNC is a company that owns or controls production in more than one nation.
- Other company owns and controls production in only one country.
- MNCs set up offices and factories where they get cheap labour.
- They try to earn more profits.
- The production process of MNCs is divided into small parts and spread across the globe.
- Other companies tend to produce at a single place.
- MNCs are rich and sound in technology.
- Other companies may not be rich that much and may not possess such sound technology.
Nearly all major multinationals are American, Japanese or European, such as Nike, Coca-Cola, Pepsi, Honda, Nokia. Can you guess why?
- Nearly all major multinationals are American, Japanese or European.
- Because they are developed countries and MNCs have wealth exceeding the entire budgets of developing countries.
- Those countries force developing countries to liberalise their foreign trade.
- They place orders with small producers and sell these under their brand.
- They have tremendous power to determine price, quality, delivery and labour conditions for those distant producers.
What was the main channel connecting countries in the past? How is it different now?
- For a long time trade has been the main channel of connecting countries.
- India had trade routes to both East and West.
- It is different now, as the channel of connecting countries is now foreign trade.
- Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
- For buyers, foreign trade expands the choice of goods beyond what is domestically produced.
Distinguish between foreign trade and foreign investment.
|Foreign Investment||Foreign Trade|
|1) The money that MNCs spent to buy assets such as land, building, machines and other equipment is ‘foreign investment’.||1) The foreign trade of a country consists of both exports and imports of goods and services.|
|2) It is made with the hope that it will earn profits.||2) Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.|
|3) Local companies are joined by MNCs get investment and technology.||3) For buyers, foreign trade expands the choice of goods beyond what is domestically produced.|
|4) These have enormous wealth and exercise power.||4) It results in connecting the markets or integration of markets in different countries.|
In recent years China has been importing steel from India. Explain how the import of steel by China will affect:
(a) steel companies in China.
(b) steel companies in India.
(c) industries buying steel for production of other industrial goods in China.
- In recent years China has been importing steel from India.
- Steel companies in India strive to supply the best quality steel at possible cheaper rates.
- They are able to expand their market.
- They will compete with the steel companies in China and want to continue with exports.
- On the other hand, Chinese steel companies try to compete with Indian steel companies.
- They try to better the quality of steel and sell at cheaper prices.
- There may be technological interchange.
- The companies which produce other goods, but purchase steel from India, located in China try to make use of imported steel.
- Thus, we could see varying impacts of this activity.
How will the import of steel from India into the Chinese markets lead to the integration of markets for steel in the two countries?
- In recent years China has been importing steel from India.
- Indian cement producers found market outside our country.
- Chinese have now got a choice of opting for cement produced beyond their state.
- Thus it results in connecting the markets or integration of markets in these two countries.
10th Class Social Textbook Page No. 136
What is the role of MNCs in the globalisation process?
How are multi-national companies promoting Globalisation? Explain.
- Multi-National Companies (MNCs) are looking for cheap locations for their production.
- Foreign investment in developing countries has been raising.
- A large part of the foreign trade is controlled by MNCs.
- More and more goods and services, investments and technology are moving between countries.
- MNCs, bring not only their products to a country but also the new business policies and cultures.
- Most regions of the world are in closer contact with each other than a few decades back by MNCs. Thus, MNCs are playings major role in the globalisation process.
- MNCs are helping in increasing competitiveness among native companies.
- Latest models of vehicles in different countries are introduced by the MNCs in the globalisation process.
What are the various ways in which countries can be linked?
- There are various ways in which countries can be linked.
- One is the flow of trade in goods as well as services.
- The second is the flow of labour, i.e., the migration of people in search of employment.
- The third is the movement of capital for short-term or long-term investments over long distances.
- The fourth is ideas are also being shared and expanded.
Choose the correct option: Globalisation, by connecting countries, results in
(a) lesser competition among producers.
(b) greater competition among producers.
(c) no change in competition among producers.
The correct option is (b). Globalisation, by connecting countries, results in greater competition among producers.
10th Class Social Textbook Page No. 137
In the following example, underline the words describing the use of technology in production.
A news magazine published for London readers is to be designed and printed in Delhi. The text of the magazine is sent through Internet to the Delhi office. The designers in the Delhi office get instructions on how to design the magazine from the office in London using telecommunication facilities. The designing is done on a computer. After printing, the magazines are sent by air to London. Even the payment of money for designing and printing from a bank in London to a bank in Delhi is done instantly through the internet (e-banking).
How is information technology connected with globalisation? Would globalisation have‘been possible without the expansion of IT ?
- Rapid improvement in technology has been one major factor that has stimulated the globalisation process.
- The developments in information technology are even more remarkable.
- To contact one another around the world and to access information instantly telegraph, telephone including mobile phones, fax, etc. are used.
- Computers have now entered almost every field of activity.
- To share information and to know almost anything you want, Internet is useful.
- So, globalisation would not have been possible without the expansion of Information Technology.
10th Class Social Textbook Page No. 138
What do you understand by the liberalisation of foreign trade?
- The Indian government, after independence, had put barriers to foreign trade and foreign investment.
- This was necessary to protect from foreign competition.
- Around 1991, the government decided that the time had come for foreign competition.
- So, barriers on foreign trade were removed to a large extent.
- Goods can be exported and imported easily.
- Foreign companies could set up factories and offices here.
- This removing of barriers set by the government is liberalisation.
Removing barriers or restrictions set by the government on foreign trade and foreign investment is known as liberalisation of foreign trade.
Tax on imports is one type of trade barrier. The government could also place a limit on the number of goods that can be imported. This is known as quotas. Can you explain, using the example of Chinese toys, how quotas can be used as trade barriers? Do you think this should be used? Discuss.
- Quotas can be used as trade barriers.
- They can restrict the influx of foreign goods which is helpful for the prosperity of same goods of our make.
- I think this should be used, but to a considerable extent.
- That allows our producers to compete with foreign producers.
- The quality of goods can be improved and prices also to be brought down with competition.
- If quotas were adopted with regard to Chinese toys, so many Indian toy-makers would not have perished.
10th Class Social Textbook Page No. 139
Fill in the blanks.
WTO was started at the initiative of —(i)— countries. The aim of the WTO is to —(ii)—. WTO establishes rules regarding —(iii)— for all countries, and sees that —(iv)— . In practice, trade between countries is not —(v)—. Developing countries like India have —(vi)—, whereas developed countries, in many cases, have continued to provide protection to their producers.
(ii) liberalise international trade;
(iii) international trade;
(iv) these rules are properly obeyed;
(vi) removed trade barriers.
What do you think can be done so that trade between countries is fairer?
- Many decisions that affect large parts of the world are taken by institutions of global governance.
- They believe that the same set of rules and regulations are followed by all countries.
- But, in practice, developed countries are not abided by them and still forcing the developing countries to follow those rules.
- To avoid this, the institutions of global governance shall see that all countries are in same plane.
- The developing countries should come together to resist the inequality meted out to them by other countries.
- Then only the trade between countries will be fairer.
In the given example on the left (For example, refer to textbook on P. 139 – The agriculture sector ——– and fair trade ?) we saw that the US government gives massive sums of money to farmers for production. At times, governments also give support to promote the production of certain types of goods, such as those which are environmentally friendly. Discuss whether these are fair or not.
- Governments give support to promote certain goods, if they are environmentally friendly.
- It is fair on the part of government.
- It encourages many people to purchase them which does not cause any harm to environment.
- The producers of those goods, as they get support from the government, can withstand the initial troubles.
- It inspires others to invent many more goods which are environmentally friendly.
- It emulates other producers towards eco-friendly products.
10th Class Social Textbook Page No. 140
How has competition benefited people in India?
- The competition in globalisation has benefited people in India.
- It has been of advantage to consumers.
- The well-off sections in the urban areas have a greater choice.
- They now enjoy the improved quality and lower prices for several products.
- These people today enjoy much higher standards of living than was possible earlier.
Should more Indian companies emerge as MNCs? How would it benefit the people in the country?
- Globalisation has enabled some large Indian companies to emerge as multinationals.
- They are spreading their operations worldwide.
- More Indian companies should emerge as MNCs.
- A host of services like IT, data entry, accounting, administrative tasks, engineering are done cheaply and exported.
- The people of the country would benefit from it.
- They get quality goods and services at lower prices.
Why do governments try to attract more foreign investment?
- The central and state governments are trying to attract more foreign investment.
- Because this investment boosts the infrastructural facilities in our country.
- MNCs share with our companies the latest technology.
- So governments are providing world-class facilities, tax exemptions, flexibility in labour laws etc. to attract more foreign investment.
Elsewhere we read what may be development for one may be destructive for others. The setting of SEZs has been opposed by some people in India. Find out who are these people and why are they opposing it.
- What may be development for one may be destructive for others.
- The setting of Special Economic Zones has been opposed by some people.
- SEZs need not pay taxes for first five years.
- SEZs have labour laws flexible.
- SEZs have world-class facilities.
- People are against SEZs as many companies which set up SEZs are not functioning well.
- They were provided exemptions at the expense of other companies.
10th Class Social Textbook Page No. 141
What are the ways in which Ravi’s small production unit was affected by rising competition?
- Ravi’s small production unit produced capacitors.
- In 2001 government allowed imports of capacitors.
- MNCs forced his clients to buy capacitors from them at half of the price of capacitors of Ravi.
- Ravi now produces less than half the capacitors he produced previously.
Should producers such as Ravi stop production because their cost of production is higher compared to producers in other countries? What do you think?
- Producers like Ravi should not stop production because the cost of production is higher compared to producers in other countries.
- The government should arrange Ravi, the technology with which he could compete the MNCs.
- At the same time some restrictions must be put on MNCs without affecting norms of WTO.
- People should be encouraged to purchase the capacitors produced by Ravi.
Recent studies point out that small producers in India need three things to compete better in the market:
(a) better roads, power, water, raw materials, marketing and information network,
(b) improvements and modernisation of technology, and
(c) timely availability of credit at reasonable interest rates.
Explain how these three things would help Indian producers?
- Small Indian producers are now unable to compete with MNCs.
- If they are provided with good roads, water, power, raw materials, marketing and information network, they would better compete with the MNCs.
- The technology that which they are using should be improved and modernised in order to compete with MNCs.
- They should be provided with credit with less rate of interest, which help them to compete I with the MNCs.
Do you think MNCs will be interested in investing in these? Why?
- The MNCs definitely are not interested in investing in these.
- Always MNCs invest with the aim of getting more profits, they won’t think of providing infrastructure.
- If they try to provide these things, it would be useful to small Indian producers.
- So, they do not show any interest in investing in these.
Do you think the government has a role in making these facilities available? Why?
- The government has a role in making these facilities available.
- If the government makes these facilities available, then many small Indian producers develop themselves.
- They would be able to compete with foreign MNCs.
- As governments are nowadays welfare states, they have a role in making these facilities available.
Think of any other steps that the government could take. Discuss.
- The government could impose sanctions or restrictions on MNCs.
- Make that MNCs should behave with corporate social responsibility.
- Government should protect the interests of the people and see that MNCs prosper.
- It should adopt the policy which provides for mutual consent.