Question 1.
What do you understand by globalisation? Explain in your own words.
Answer:
Globalisation is a process that
brings numerous nations together. It is an integrating process which aims at
free flow of good, man¬power, services, social and cultural activities from
one nation to another. It is connectivity, interconnection bringing people
together.
Question 2.
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?
Answer:
Till about four decades after we
attained freedom from the Britishers, we had thought to build modern india on
our own efforts and with whatever technical knowledge raw-material and man
power resources the country itself possessed. That was why that we put
barriers to foreign trade and foreign investment. But once we permitted
private sector to play its role in the country’s Economy, we introduced
liberalisation and privatisation. The results were very encouraging. We
flourished a lot in terms of economy. It was after 1991 that the trade and
foreign barriers were removed. It was a situation which made us capable of
competing in world market.
Question 3.
How would flexibility in labour
laws help companies?
Answer:
Flexibility in labour laws help the companies to recruit the workers
according to the needs of the companies. The companies employ the labourers
with their own condition of work and pay and salaries. This helps productivity
which not only yield profits for the companies, but improve the economic
conditions of the people.
Question 4.
What are the various ways in
which MNCs set up, or control production in other countries?
Answer:
MNCs stand for multinational
companies. These are usually foreign companies which set up their business
organisations. They control production, while they operate, through numerous
ways. Some of therse are
- They set up production centres close to the markets;
- They employ workers who are skilled;
- They establish their installations where the factors of production are easily available.
- They set up their organisations usually jointly with local companies so that the benefits are shared between the native and foreign companies.
- Products so made is sold under their brand names, employing the locals in the companies.
Question 5.
Why do developed countries want
developing countries to liberalise their trade and investment? What do you
think Should the developing countries demand in return?
Answer:
The developed countries want the
developing countries to liberalise their trade and investment so that the
raw-material man-power, market of the developing countries can be utilized by
the MNCs of the developed nations. This helps the developed nations to fully
utilize their surplus money.
The developing countries should, in return, seek fair globalisation benefits. The globalising effects should help the economy and employment avenues of the developing nations. These developing nations should seek benefits of globalization and a fair share in development of their economy.
Question 6.
“The impact of globalisation has
not been uniform.” Explain this statement.
Answer:
The impact of globalisation has
not been uniform. The consumers do enjoy the foreign- sponsored products, but
these are only the well- off urban consumers; workers do enjoy the benefits of
good salaries, but the workers outside the globalization institution,
especially the rural poor have not been adequately compensated. The benefits
of the globalisation efforts have been more towards the MNCs rather than the
native companies.
Question 7.
How has liberalisation of trade
and investment policies helped the globalisation process?
Answer:
The liberalisation of trade and
investnments, indeed, helped the globalisation process. Our foreign trade has
increased; private sector has contributed a lot in country’s economy; the
Indians have been able to enjoy the foreign- sponsored and foreign
manufactured products. The liberalising measures of the government have helped
the private enterprises to produce products with quality. The Indian products
are competing with the products of other countries in the international
markets.
Question 8.
How does foreign trade lead to
integration of markets across countries? Explain with an example other than
those given here.
Answer:
Foreign trade is a trade among different nations. It helps to integrate
markets across countries. What we have less, we wise to buy that, and what we
have more, we wish to sell to others. For selling the products we have in
plenty, we seek foreign markets to export them. For buying the products we are
in shortage, we buy them from others, i.e., we import those products. In both
cases we seek foreign markets and in the process, we integrate. We export
textiles and import crude oil.
Question 9.
Globalisation will continue in
the future. Can you imagine what the world would be like twenty years from
now? give reasons for your answer.
Answer:
Globalisation is not only going to
stay, it is going to continue. It is a process of future, and in fact, the
only process in the future. Once having made a beginning, it has to go further
and further. After 20 years from now, we will have a situation when the
borders would have no meaning; one would be travelling to other countries as
if one is travelling to other cities. Social, economic and cultural relations
would widen and people of the world be too nearer and closer. In fact, it
would, then, be a world like a global village.
Question 10.
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 organisations.
Answer:
There is a lot of misinformation and misgivings about globalisation. On the
one hand, it is argued that the globalisation is damaging our development in
so far as we have begun depending on others. The other argument has the
opposite view, i.e., we are developing because of globalization the fact of
the matter is that globalisation has put us in the larger situation of the
world; we are now at a ground where we have to compete with others. It is here
that our skill matters; it is here that our expertise and quality matters; it
is here that we face our competitors in the spirit of real competition.
Globalisation provides us a challenge; v-.- need to face it and accept it.
Question 11.
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 …………….. Markets in India are
selling goods produced in many other countries. This means there is increasing
…………….. 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 ………… While consumers have more choices in the market, the effect
of rising ………….. and has meant greater ……….. among the producers.
Answer:
Globalisation, trade, they can get
cheap labour and other resources, prices, standard, impact on workers and some
people.
Question 12.
Match the following
| (i) MNCs buy at cheap rates from small Producers | (a) Automobiles |
| (ii) Quotas and taxes on imports are used to regulate trade. | (b) Garments, footwear and sports items |
| (iii) Indian companies who have invested abroad. | (c) Call centres |
| (iv) IT has helped in spreading of Production of services | (d) Tata motors, Infosys ranbaxy |
| (v) Several MNCs have invested in setting up factories in India for production | (e) Trade barriers |
Answer:
| (i) MNCs buy at cheap rates from small Producers | (b) Garments, footwear and sports items |
| (ii) Quotas and taxes on imports are used to regulate trade. | (e) Trade barriers |
| (iii) Indian companies who have invested abroad. | (d) Tata motors, Infosys ranbaxy |
| (iv) IT has helped in spreading of Production of services | (c) Call centres |
| (v) Several MNCs have invested in setting up factories in India for production | (a) Automobiles |
Question 13.
Choose the most appropriate
option.
(i) The past two decades of
globalisation has seen rapid movements in
(a) goods, services and people between countries.
(b) goods, services and investments between countries.
(c) goods, investments and people between countries.
Answer:
(c) goods, investments and people
between countries.
(ii) The most common route for investments by MNCs in countries around the
world is to
(a) set up new factories.
(b) buy existing local companies.
(c) form
partnerships with local companies.
Answer:
(b) buy existing local companies.