MP Board Solutions for Class 10 Economics Chapter 4 – Globalisation and the Indian Economy

What is globalisation?
Answer: Globalisation is the process of increasing economic, social, and cultural connections between countries through trade, investment, technology, and the movement of goods and people.

What are the factors that have enabled globalisation?
Answer: Key factors include liberalisation of trade policies, advancements in technology and transport, communication like the internet, and the spread of multinational companies (MNCs).

What is a multinational corporation (MNC)?
Answer: An MNC is a company that owns or controls production in more than one country, such as Coca-Cola, Nestlé, or Samsung.

How do MNCs operate in other countries?
Answer: MNCs set up factories or offices in other countries to reduce costs, use local labour, and sell their products in new markets.

What is foreign investment?
Answer: It is the investment made by foreign companies or individuals in businesses, infrastructure, or industries of another country to earn profit.

What is liberalisation?
Answer: Liberalisation refers to the removal of government restrictions on trade and industries, allowing free flow of goods, services, and capital.

How has technology contributed to globalisation?
Answer: Improved transport and communication, like ships, internet, and mobile networks, have made it easier to exchange information and move goods globally.

How do MNCs benefit local companies?
Answer: MNCs help local companies by providing capital, technology, training, and opportunities to be part of the global supply chain.

What are global supply chains?
Answer: They are international production networks where different stages of making a product are carried out in different countries for efficiency.

How has globalisation affected Indian consumers?
Answer: It has increased the availability of variety, quality goods at lower prices, especially in areas like food, fashion, electronics, and automobiles.

What are the disadvantages of globalisation for producers?
Answer: Small producers face competition from big foreign companies and may suffer loss of business, reduced income, or even closure.

Give examples of industries affected by globalisation.
Answer: Indian textile, toy, and handicraft industries have been affected as they cannot match the scale, speed, or cost of global players.

What are trade barriers?
Answer: Trade barriers are restrictions imposed by the government, like taxes or quotas, to protect domestic industries or regulate foreign trade.

Why did India remove trade barriers in 1991?
Answer: India removed barriers to integrate with the global economy, attract foreign investment, and improve economic growth after facing a financial crisis.

What are the effects of foreign trade?
Answer: Foreign trade allows competition, better choices, and wider markets, but can also affect local industries if they fail to compete.

What are the positive effects of globalisation in India?
Answer: Globalisation has created jobs, raised incomes, increased exports, improved access to technology, and brought better goods and services to people.

What are the negative effects of globalisation in India?
Answer: It has led to job insecurity, poor working conditions, and the decline of small-scale industries due to foreign competition.

What steps has the government taken to protect local producers?
Answer: It has promoted Make in India, offered subsidies, training, better infrastructure, and imposed certain trade restrictions to support domestic industries.

How does WTO support globalisation?
Answer: The World Trade Organization (WTO) encourages free trade by helping countries resolve disputes and reduce trade barriers across the world.

What is the criticism of WTO by developing countries?
Answer: Developing countries feel WTO favours rich nations, as they pressure others to open markets but protect their own industries.

How has globalisation impacted employment in India?
Answer: It has created jobs in IT, BPO, and export industries, but many workers are in unorganized sectorswith low wages and no benefits.

What is outsourcing?
Answer: Outsourcing is when companies give work to external firms, often in other countries, to reduce costs — for example, Indian call centres.

What is SEZ (Special Economic Zone)?
Answer: SEZs are areas where businesses enjoy tax benefits, fewer regulations, and better infrastructure to attract foreign and domestic investment.

How can India benefit more from globalisation?
Answer: By investing in education, infrastructure, innovation, and improving ease of doing business, India can become more competitive and inclusive.

Summarise globalisation in the Indian context.
Answer: Globalisation has brought growth and choices, but also challenges. With smart policies, India can harness its benefits while protecting its local economy.