CBSE Class 10 Social Science Board Exam 2020: Important Questions & Answers - Economics (Chapter 4: Globalization and the Indian Economy) 

CBSE Class 12th Social Science Board Exam 2020 is due on March 18 and students are busy in their last-minute preparation. To make your last days of revision easier and stress-free we have compiled this article with a list of important questions and answers from Chapter 4 of Economics textbook which is important from the exam perspective. 

Ques 1 . A group of companies in India wishes to import high quality ACs from South Korea but have to pay a huge import tax on them which would make the ACs very expensive leading to a decline their sale. Ascertain the role of the import tax in this situation.

Ans: The Import tax is acting as a Trade Barrier.

Ques 2 The MNC’s of a country sets up a production jointly with the local company of other country. State any one benefit of this joint production to the local company.

Ans: Benefits of Joint Production:

1. MNC can provide money for additional investment.
2. MNC might bring latest technology for production

Ques 3 Critically examine the impact of globalization in India.

Ans: Impact of Globalization in India:

1. Stiff competition for local producers and manufacturers.
2. No job security
3. Workers are denied their fair share of benefit
4. Long working hours and low wages to the worker.
5. Expansion of unorganized sector.
6. New opportunities for IT sector
7. Increase in investment and foreign trade

Important Questions & Answers - Economics (Chapter 1: Development)

Ques 4 Evaluate the role of MNCs in the economic development of a country.

Ans: Role of MNCs in the economic development:

1. MNCs place order for production with small producers
2. MNCs are setting up partnerships with local companies.
3. They are interlinking markets all over the world.

Ques 5 Why do MNCs set up their offices and factories in certain areas only? Explain any 5 reasons.

Ans:

1. Availability of Raw material.
2. Availability of skilled and unskilled labor at low costs.
3. Availability of other factors of production is assured like electricity etc.
4. Smaller companies are available.
5. Where government policies are favorable to investors.

Ques 6 How has foreign trade been integrating markets of different countries ? Explain with examples.

Ans: Foreign Trade is Integrating markets of different countries-

(i) Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.

(ii) Producers can sell their products in the markets located in other countries.

(iii) It helps for expanding the choice of goods beyond domestic market.

(iv) It is a main channel connecting countries.

(v) Highly helpful for extensive trade.

(vi) The trading interest attracts various trading companies.

Ques 7 How do Multi-National Corporations (MNCs) interlink production across countries ? Explain with examples.

Ans: Multi –National Corporations(MNCs) interlink production across countries:

1. There are varieties of ways in which the MNCs are spreading their production and interacting with local producers in various countries across the globe.
2. By setting up partnership with local companies by using the local companies for supplies, by closely competing with the local companies or buying them.
3.  MNCs are exerting a strong influence on production at the distant locations.
4. As a result, production in these widely dispersed locations is getting interlinked.
5. Example – Cargill Foods , Parakh Food

Ques 8 Analyse any five positive effects of globalisation on the Indian economy.

Ans: Positive effects of Globalisation :

1. Globalisation has brought greater competition among producers – both local and foreign producers has been of advantage to consumers particularly the well-off sections in the urban areas.
2. There is greater choice before consumers. They enjoy improve quality at lower prices.
3. People today, enjoy much higher standards of living.
4. Local companies supplying raw material have prospered.
5. The top Indian companies have been able to benefit from increased competition.
6. Some Indian companies have gained from successful collaboration with foreign companies.
7. MNCs have increased their investments in India over the past 20 years, especially in cell phones, automobiles, electronics, soft drinks etc.
8. Many Indian companies have emerged as Multi Nationals themselves. Example- Tata Motors, Infosys, Ranbaxy, Asian Paints etc.
9. Globalisation has created opportunities for new jobs.

Ques 9 What is liberalisation ? Describe any four effects of liberalisation on the Indian economy.

Ans: Liberalisation means:

Removing barriers or restrictions set by the government is known as liberlisation:

Impacts of Liberalisation :

1. Competition would improve the performance of producers within the country.
2. Barriers on foreign trade and foreign investment were removed to a large extent. This meant that goods could be imported and exported easily.
3. iii. Foreign companies could set up factories and offices to boost up production.
4. It allows to make decisions freely.
5. The competition would improve the performance of producers within the country since they have to improve their quality.

Ques 10 What are the various ways in which MNCs set up, or control, production in other countries?

Ans: The various ways in which MNCs set up, or control, production in other countries are by buying the domestic companies or hiring them for work. Sometimes, MNCs buy mass produce from domestic industries, and then sell it under their own brand name, at much higher rates, in foreign countries. MNCs look towards developing nations to set up trade because the labour and manufacturing costs in such places are lower.

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