NCERT Solutions for Class 10 Social Economics Chapter 4 Globalisation and the Indian Economy

Are you a student of class 10th and you are looking for NCERT Solutions Class 10 Social Economics Chapter 4? Because this chapter is very important for the exam. Many questions from this chapter have come in the exam. Because of this, it is very important to know the question and answers of this chapter.

So students, after reading this article, you will get a lot of marks from this chapter in the exam, because the questions related to all the exams have been described in it, so definitely read it completely.

Class 10 Social Economics Chapter 4 Globalisation and the Indian Economy

class | Classes10th
CHAPTER | Chapter04
Chapter Name | Chapter NameGlobalisation and the Indian Economy
board | boardCBSE
book | Books NCERT
subject | SubjectECONOMICS
Medium | Moderate ENGLISH
Study Material | Study MaterialsVVI Question answer

Economics class 10 chapter 4 question answer

Very short answer type questions

1 What do you mean by globalization?

Answer- Globalization means connecting our economy with other economies of the world through foreign trade and foreign investment. Multinational companies play a very important role in this work when they establish their units in many countries of the world.

2 What do you mean by liberalization?

Ans- The process of removal of barriers or restrictions by the government is called Liberalization.

3 What do you understand by the liberalization of foreign trade?

Answer- The process of removing barriers and restrictions set by the government on foreign trade and foreign investment is called the liberalization of foreign trade.

4 What are multinational companies called?

Ans- A multinational company is one that owns or controls production in more than one country.

Where do multinational companies set up their offices?

Answer- They open their offices and factories in such regions which are likely to get cheap labor and resources.

6 What is the investment?

Ans- The money spent in the purchase of assets like land, buildings, machines, and other equipment is called investment.

What has been the benefit of 7 containers?

Answer – Due to the containers, where there has been a huge saving in the transportation cost, thereThe delivery speed has also increased significantly.

8 What has been the benefit of the Internet?

Answer- All kinds of information you want to know through the internet.

9. You can get it right away. What do you mean by trade barrier?

Answer- The trade barrier is a trick in the hands of the government, which is used by doing this, it can maintain a balance between imports and exports.

10. What is the benefit of 10 trade barriers?

Answer- Through this, any government can compete with its newly developed industries in the world.Can save from

11 When did the firm name Ford Motors come to India?

Answer – In 1995 AD.

12 What are the factors that make globalization possible?

Answer – (a) Rapid advancement in technology.

(b) Liberalization of trade and investment policies.

(c) Cooperation of international organizations like the World Trade Organisation.

(d) Multinational companies setting up their units in different countries etc. ,

13 What is World Trade Organization and when and why was it established?

Answer- The World Trade Organization is an international organization between member nations that administers business rules. It was established on January 1,

Done in 1995 AD. Its headquarters are in Geneva.

14. Write two objectives of the World Trade Organisation.

Answer- Two objectives of the World Trade Organization-

(a) The establishment of the World Trade Organization was done by the United Nations Organization to encourage international trade. its headquarters, Located in Geneva, Switzerland.

(b) in the equitable development of trade among WTO countries help.

15. Write two functions of WTO.

Ans- (a) To implement the trade agreements of WTO. (b) act as a forum for trade-related negotiations between countries.

16 What is the basic objective of foreign trade?

Answer – Its basic or main objective is that it should help the producers of its country. Provide opportunities to reach other countries.

17 Why are Chinese toys sold in the Indian market?

Answer – Because one their prices are cheap and secondly their designs are innovative.

18 What is the impact of Chinese toys on Indian toy manufacturers?

Ans- Indian toy manufacturers suffer because Indian toys are sold

19 The Indian government removed barriers to foreign trade and foreign investment. Why did you think of removing

Answer – In 1991, the Indian government thought that the time has come when Indian producers able to compete with the world’s producers It is done.

Short answer type questions

1 What do you understand by Globalization? Explain in your own words. Do it.

Answer- Globalization means linking or coordinating the domestic market with the world market with the free flow of trade, capital, technology, labor, and services. It is closely related to the policies of liberalization and privatization.

The concept of globalization depends on the following facts-

(i) Free flow of goods and services between different countries,

(ii) Free flow of foreign investment or capital,

(iii) Free flow of technology,

(iv) Free flow of labor among different countries of the world

After the formulation of the new economic policy in 1991, globalization in India got encouragement.

2 What were the reasons for imposing restrictions on foreign trade and foreign investment by the Government of India? Why did the government want to remove these barriers?

Answer- The following are the reasons for the imposition of barriers by the Indian government on foreign trade and foreign investment-

(a) This was done so that the producers of the country could be protected from foreign competition protection should be provided.

(b) Competition could have stalled the budding industries of India.

(c) so deemed fit to import only those articles without whom it is difficult to work and which is absolutely essential. For example- Machinery, Fertilizer, Petroleum, etc.

3. Removal of blockades by the Indian government following are the reasons-

(a) The Indian government thought that the time had come when the Indian industrialists were able to face the competition.

(b) Due to this competition, Indian producers are forced to improve their goods. Will try so that their goods can be sold abroad in large quantities.

(c) fair competition will prove to be a great help in increasing the quality of things. Keeping these things in mind, the Indian government gradually started removing many restrictions on imports in 1991. This benefited many international companies that started investing in India and the Indian buyer also started getting different types of goods easily and at cheap prices.

3. How will flexibility in labor laws help companies?

Answer- Flexibility in labor laws will help companies in many ways, with the hope that the Indian government has given several concessions in labor laws to multinational companies-

(a) Organized sector companies have to follow many rules to protect the rights of workers, but in recent years these multinational companies have been allowed relaxation in many rules.

(b) Secondly, with the aim of reducing labor cost, multinational companiesPermission has also been given to appoint workers for a short period. As soon as the pressure of work reduces, these companies lay off such temporary members. Can also do

Due to the flexibility in labor laws, many multinational companies have started their business in India and many more are going to do so.

4.”The impact of globalization is not uniform. Explain the statement in your own words.

Answer- The effect of globalization on consumers, products, and workers is not the same. Some of its effects are positive and some are negative. positive effect

(a) Its effect on the consumers of urban areas is beneficial.

(b) It also has a positive effect on skilled and trained workers.

(c) local companies by supplying raw materials to multinational companies have become prosperous.

(d) Information technology, data entry, accounting, administrative functions, and engineering services have benefited from it.

negative impact

(a) It has an adverse effect on small manufacturers.

(b) Many small units have closed down due to which many people working there workers have become unemployed.

(c) The rural economy has been badly affected due to the adverse impact on small and cottage industries.

What are the different ways by which countries can be interconnected? Can 


(a) Trade,

(b) Mobility of capital between different nations,

(c) extension of different types of services,

(d) Welcome by each nation of capital and capital investment from other countries. exchange of the latest technology by each nation,

(e) Apart from goods, services, investments, and technology, there can be another means of connecting different countries. This medium is the movement of people between different countries. Often people travel from one country to another in search of better income, better employment, and education, but due to many restrictions in the last few decades, there has not been much increase in the movement of people between different countries.

6 How has competition affected workers in the commodity industry, Indian exporters, and foreign MNCs?

Answer- Competition has affected the workers of the textile industry, Indian exporters, and foreign multinational companies in the following ways-

Labor The unskilled workers of the textile industry do not get employment opportunities due to which they compete with the skilled workers. Unskilled workers do not get permanent employment. The quality of goods and services of Indian exporters is not good due to which they have to sell at low prices in foreign markets.

This causes economic loss to the Indian exporters. There is fierce competition among MNCs to reduce the cost of production. If the cost increases, then the possibility of earning maximum profit ends.

class 10th NotesMCQ
HistoryPolitical Science

7 What is the role of multinational companies in the globalization process?

Ans- (a) MNCs often look for places in the world where their cost of production is less so that they can earn maximum profit.

(b) There is a continuous increase in the investment of multinational companies in different countries. Along with this, foreign trade between different countries has also increased.

(c) A large part of foreign trade is controlled and operated by multinational companies.

(d) Thus, multinational companies are increasingly increasing the relationship between different countries. At the same time, the markets and production of different countries are also getting increasingly integrated.

Therefore, it can be said that multinational companies are playing an important role in the process of globalization.

8. Foreign trade helps in the integration of the markets of different countries. Explain in your own words.

Or, what is the advantage of foreign trade?

Answer – There is no doubt that foreign trade is based on the markets of different countries.Helps a lot with integration. This happens in the following way-

(a) Due to foreign trade, the productive class of a country can send its goods for sale to distant countries.

(b) If their goods are good and cheap, then the demand for their goods in the world market can increase manifold and their name also gets fame.

(c) Black market or fear of the black market as a result of foreign trade does not remain because things are freely available in the world market.

(d) The customers get maximum benefit on account of foreign trade. Now different types of things are available to them in their own country, then they start getting good and cheap goods.

9. How is information technology linked to globalization? what information technology would globalization have been possible without the spread of

Ans- The development of technology in the field of information and communication technology i.e. telecommunication computers, internet has made it easier for the world to contact each other, get information instantly and communicate from distant areas. These have made it possible to provide faster services in remote areas at lower costs. Thus, information technology is linked to globalization.

No, globalization would not have been possible without the spread of information technology.

10 Describe the changes brought about in India as a result of adopting the policy of liberalization and globalization.

Answer- Changes due to liberalization and globalization-

(a) Increase in export of goods and services- After adopting liberalization and globalization, India’s contribution at the international level has increased. The adoption of liberalization led to an increase in India’s exports.

(b) Increase in Foreign Direct Investment- Foreign Direct Investment which was Rs.174 crores in 1991 AD. 9338 crores in the year 2000.

(c) Increase in foreign exchange – Our foreign exchange was 4822 crores in 1991 AD. 1,52,924 crore in the year 2000.

(d) Reduction in prices- In 1990-91 AD, there was an increase in prices in India at the rate of 12%, which later remained at only 5%.

(e) Failure to increase employment opportunities- The new economic policy failed to provide new employment opportunities.

(f) Marginal increase in industrial growth – the adoption of liberalization and globalizationMarginal increase in industrial progress was found after 1500.

11 How have the people of India benefited from the competition?OR Consumers have benefited from globalization and competition among producers.” Give arguments in favor of this statement.

Answer- Globalization and more competition have benefited the people in India in the following ways-

(a) Consumers, especially the rich class of consumers living in urban areas, have more choices than ever before. They are now benefiting from the excellence, quality, and low prices of many items. As a result, these people are enjoying a relatively higher standard of living today than in the past.

(b) local companies supplying raw materials etc. to these industries have been developed.

(c) Some large Indian companies have emerged as MNCs by spreading their operations across the world. For example, Tata Motors, Infosys, Ranbaxy, etc.

(d) Globalization and competition have created new opportunities for service companies and information and communication technology companies.

12.Why do governments try to attract more foreign investment?

Answer – Governments try to attract more foreign investment due to the following reasons-

(a) Foreign investment will create new employment opportunities in the country.

(b) It provides not only finance but also managerial and technical expertise and new technology in production.

(c) It encourages local companies to invest more in ancillary services such as transport and training agents. Also, it inspires collaboration with foreign companies.

(d) a part of the profits derived from foreign investment is normally distributed to the industries concerned; Investments are made in expansion and modernization.

(e) The social returns derived from foreign investments are greater than the private returns derived from them.

(f) Governments receive revenue by taxing the profits of foreign firms and by royalty from concession agreements.

13 How are multinational companies different from other companies?

Answer – Multinational company differs from any other company in the following ways –

multinational company other company
(a) It owns or controls production within a country.(a) It owns or controls production in more than one country.
(b) It sets up factories or offices for production in those countries where it gets labor and other resources cheaply.(b) It has no such option.
(c) Since the cost of production is less for the MNC, it earns more profit.(c) It does not have any such potential to earn more profit. 

Explain the difference between foreign trade and foreign investment.

Ans- The money spent by multinational companies in the purchase of assets such as land, buildings, machines, and other equipment is called foreign investment. On the contrary, foreign trade is the process under which the produced goods are transported for sale in the international market.

Long answer type questions

1. How do multinational companies establish control over production or production in other countries?

Answer- In other countries, multinational companies establish their production or control production in many ways-

(a) They set up their production centers at such places which are close to the market is very near.

(b) They choose places where they can find a variety of artisans and labor can be easily found.

(c) They will establish their centers in such places where other means or factors of production are also easily available to them. Like- good roads, electricity, etc.

(d) They will open their manufacturing centers in such places or states where the local governments give assurances that their interests will be taken care of.

(e) Many times multinational companies start working with local companies so that they can get qualified and experienced partners.

(f) Sometimes multinational companies buy some local companies so that it is easy to promote the work.

(g) Many times these multinational companies will get various spare parts used in the manufacture of any item prepared from local industrial units and

By joining them, she herself will take care of the task of making motorcars, etc. Thus, according to time and circumstances, multinational companies will establish their manufacturing units by adopting different methods if their objective of earning profit is fulfilled.

2. How does liberalization of trade and investment policies help in the globalization process? OR, Describe the various liberalization measures adopted by the Government of India. Explain.

Answer – Liberalization of trade and investment policies in the globalization process as followsProvides help in the form of-

(a) Many industrial programs which were earlier run by public sector enterprises have now been opened up to the private sector as well.

(b) Earlier, many such items were allowed to be made by the private sector, yet it was necessary to take permission from the government for the production of such things. Now this process has been largely abolished.

(c) The number of enterprises left to the public sector was reduced from 17 to 3.

(d) Now the private sector was also allowed to enter the basic industries. Some of such basic industries are as follows- iron and steel, air transport, electricity, shipbuilding, defense materials, heavy machinery, etc.

(e) As a result of liberalization industrialists were given many facilities to produce and many informalities were simplified more than before.

(f) Many of the import-export competitions were removed, which made it easier for Indians to export their goods.

Thus many multinational companies were also invited to invest in India. Special economic zones were created for them and they were also allowed to change labor laws.

Why do developed countries want liberalization of their trade and investment in developing countries? Do you believe that developing countries should also make such demands in return?

Or, globalization will continue in the future as well. Can you imagine what the world will be like twenty years from now? Give a reason for your answer.

Answer- There is no doubt that the effects of globalization are not uniform. Where it has benefited developed countries, multinational companies, big industrialists, skilled, educated, and wealthy producers, and wealthy consumers. There it has undoubtedly caused a lot of loss to the small industrialists, and workers like Sushila, the developing country.

Have delivered. Many factories had to be closed, many lost their permanent jobs. and many countries fell victim to the competition of developed countries.

Some developed countries curbed the import of foreign goods by adopting opposite tactics. The U.S. gave financial assistance to its landlords and made them able to sell cheap grain so that the grain brought from abroad could not be sold cheaply there.

Such policies of developed countries hurt the exports of developing countries. Some people are very much against globalization. They say that globalization

It has caused great damage to the development of our country. But if we look carefully, we have to keep pace with the world. It is impossible to live alone now, so it would be better to adopt globalization by making some improvements. Now that globalization has become a sustainable option, it needs to be made more equitable.

Governments of developing countries like India, by improving industrialization to their industrialists, by giving them loans at cheap rates should be made capable of foreign competition by providing facilities like better electricity, etc.

The governments of each country can also make agreements in their favor with the World Trade Organization for equitable rules.

Governments of developing countries may use barriers necessary to protect trade and industry as long as they deem fit.

Developing countries should put pressure on the developed countries to liberalize their trade and investment. If these countries walk together, they can put proper pressure on the developed countries and get their proper demands accepted. In recent years, he has also got a lot of success in this direction.

Class 10 Economics

Class 10 Economics MCQs

कक्षा 10 अर्थशास्त्र Notes In Hindi

कक्षा 10 अर्थशास्त्र MCQs In Hindi


Q. What can the government do to protect small producers from the competition?

Answer – The government can prepare small producers for competition by giving loans at cheap rates, helping them to increase the quality of their goods.

Q. How many classes benefited from globalization?

Answer – This benefited the consumers as they now have more options than ever before. Now they could buy good things at cheap prices.

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