Globalisation and the Indian Economy
Short Questions
1.What is globalisation?
Answer: Globalisation is the process of connecting countries through trade, investment, and the movement of goods and services.
2. What does MNC stand for?
Answer: MNC stands for Multinational Corporation.
3. What is the main motive of MNCs?
Answer: The main motive of MNCs is to earn more profit by producing goods at lower cost.
4. What is foreign investment?
Answer: When a company invests money in another country to buy land, buildings, or machines, it is called foreign investment.
5. What are trade barriers?
Answer: Trade barriers are restrictions set by the government to control imports and exports.
6. What is liberalisation?
Answer: Liberalisation means removing restrictions on foreign trade and investment.
7. What is the role of technology in globalisation?
Answer: Modern technology has made transport and communication faster, helping countries connect easily.
8. What does WTO stand for?
Answer: WTO stands for World Trade Organisation.
9. What is the aim of WTO?
Answer: The aim of WTO is to promote free and fair trade among countries.
10. Why do MNCs set up factories in developing countries?
Answer: MNCs set up factories in developing countries to get cheap labour and resources.
11. What is foreign trade?
Answer: Foreign trade is the exchange of goods and services between different countries.
12. What are SEZs?
Answer: SEZs or Special Economic Zones are industrial areas with special facilities to attract foreign investment.
13. How has globalisation benefited consumers?
Answer: Consumers now have more choices, better quality goods, and lower prices.
14. Which Indian companies have become MNCs?
Answer: Some Indian MNCs are Tata Motors, Infosys, and Ranbaxy.
15. What is fair globalisation?
Answer: Fair globalisation means sharing the benefits of globalisation equally among all people.
Long Questions
1. Explain how MNCs spread production across countries.
Answer: MNCs spread their production by setting up factories or buying existing companies in different countries. They divide their production process into parts and choose countries that offer cheap labour and resources. This helps them reduce costs and earn more profit while linking production across the world.
2. How does foreign trade lead to integration of markets?
Answer: Foreign trade connects producers and consumers living in different countries. Goods and services move from one country to another, increasing competition and consumer choice. As a result, prices of similar products in different countries become closer and markets get integrated.
3. Describe the impact of technology on globalisation.
Answer: Modern technology has made transportation and communication faster and cheaper. It allows companies to send goods, information, and money quickly across countries. Because of this, global business and trade have become much easier and more efficient.
4. What is liberalisation of foreign trade and investment?
Answer: Liberalisation means removing government restrictions on the import and export of goods and services. It allows foreign companies to invest freely in a country and promotes open competition. This has helped Indian producers improve quality and efficiency to match global standards.
5. What is the role of WTO in globalisation?
Answer: The World Trade Organisation (WTO) helps countries trade freely by setting global trade rules. It promotes free trade by asking countries to reduce barriers and tariffs. However, developing nations often face unfair treatment as developed countries still protect their own industries.
6. What are the positive effects of globalisation on India?
Answer: Globalisation has given Indian consumers more choices, better quality goods, and lower prices. It has created new job opportunities in industries like IT, automobiles, and banking. Many Indian companies have also grown and expanded into global markets successfully.
7. What are the negative effects of globalisation on small producers?
Answer: Small producers in India have suffered because they cannot compete with big multinational companies. Many small factories have closed down, and workers have lost their jobs. Their higher costs and limited resources make it difficult to survive in global competition.
8. Explain the impact of globalisation on workers.
Answer: Workers today face job insecurity as companies prefer hiring them temporarily to save labour costs. Many workers have lost benefits like health insurance and paid leave. Long working hours and low wages have become common, especially in export industries.
9. What steps can the government take for fair globalisation?
Answer: The government can ensure that workers get fair wages and safe working conditions. It can support small producers with better facilities, credit, and technology. India can also work with other developing countries to make world trade more equal and just.
10. How has globalisation changed life for Indian consumers?
Answer: Globalisation has given Indian consumers access to goods from all over the world. They can buy better quality products at reasonable prices, improving their lifestyle. It has also introduced new brands and technologies that were not available earlier.
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