1:) What do you understand by globalisation? Explain in your own words.
Q2. 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?
Q3. How would flexibility in labour laws help companies?
Q4. What are the various ways in which MNCs set up or control production in other countries?
Ans. Various ways in which MNCs control production in other countries:
Q5. Why do developed countries want developing countries to liberalise their trade and investment?
What do you think should the developing countries demand in return?
Ans. Developed countries want developing countries to liberalise their trade and investment because then the MNCs belonging to the developed countries can set up factories in less expensive developing nations, and thereby increase profits, with lower manufacturing costs and high sale price.
In my opinion, the developing countries should demand, in return, for some manner of protection of domestic producers against competition from imports. Also, charges should be levied on MNCs looking to set base in developing nations.
Q6. “The impact of globalisation has not been uniform.” Explain this statement.
Ans. (i) Globalisation has been proved beneficial for the top Indian companies but so far workers are concerned, globalisation has perished them. (ii) The top Indian companies have invested in newer technology and production methods and raised their production standards. Some have gained from successful collaborations with foreign companies. Globalisation has enabled some large Indian companies to emerge as multinationals themselves. For examples: Tata Motors (Automobiles), Infosys (IT), etc. (iii) But for a large number of small producers and workers globalisation has posed great problems. They have been hit hard due to competition. Several units have shut down rendering many workers jobless. Thus, we can say that the impact of globalisation has not been uniform.
Q7. How has liberalisation of trade and investment policies helped the globalisation process?
Ans. (i) Liberalisation of trade and investment policies has helped the globalisation process by making foreign trade and foreign investment easier. (ii) This has led to a deeper integration of national economies into one conglomerate whole. (iii) Now goods could be imported and exported easily. Foreign companies could set up factories and offices in India.
Q8. How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.
Ans. (i) Foreign trade gives opportunity to producers to sell their goods in other countries of the world. Producers can sell their produce not only in markets located within the country but can also compete in markets located in other countries of the world. (ii) For the ordinary consumers, the foreign trade proves very useful because the best brands of different articles are produced all over the world. Their choice of goods expands manifolds. (iii) For the buyers, import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced. (iv) Foreign trade gives opportunity to producers in the two countries closely compete against each other even though they are far away from each other. This is how markets are integrated through foreign trade. For example, Japanese electronic items are imported to India, and have proved to be a tough competition for less-technologically-advanced companies here.
Q9. Globalisation will continue in the future. Can you imagine what the world would be like twenty years from now? Give reasons for your answer.
Ans. Globalisation will continue in the future. Twenty years from now, the world will be more globally connected and integrated into one international economy, if this process continues on a fair and equitable basis. Trade and capital flows will increase alongside the mobility of labour. This will occur because liberalisation will get augmented and MNCs will converge with other companies producing the same goods.
Q10. 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 arguments?
Ans. Both the arguments are right to some extent.
Describe any five factors that promote the Multinational Corporations (MNCs) to setup their production units in a particular place.
Ans. MNCs set up production units on the basis of: (i) proximity to the markets; (ii) availability of skilled and unskilled labour at low cost; (iii) availability of other factors of production is assured; and (iv) government policies that look after their interests. (v) developed infrastructure (vi) safety measures. (Any five)
Q. What are the basic functions of foreign trade?
Ans. Foreign trade creates an opportunity for the produces to reach beyond the domestic markets. Producers can sell their produce not only in markets located within the country but can also compete in markets located in other countries of the world. O For the buyers, import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced
Q. What are the effects of foreign trade?
Ans. Effects of foreign trade are as follows: (i) Chinese have started exporting Chinese plastic toys to India. (ii) Buyers in India now have the option of choosing between Indian and Chinese toys. (iii) Because of the cheaper prices and new designs, Chinese toys have become more popular in the Indian markets. In the competition between Indian and Chinese toys, Chinese toys prove better. With the result, Indian toy-makers face losses, as their toys are selling less.
Q.What are MNCs?
Ans. (i) An MNC is a company that owns or controls production in more than one nation. (ii) These companies set up offices and factories for production in regions where they can get cheap labour and other resources. (iii) This is done to ensure that the cost of production remains low and MNCs can earn greater profits.
Q. What is investment? How is foreign investment different from it?
Ans. The money that is spent to buy assets such as land, building, machines and other equipment is called investment. Investment made by MNCs is called foreign investment. Every investment is made with the hope that the assets will earn profits for these companies
Q. Analyze the Impact of globalization.
Q. Which factors have stimulated the globalisation process?
Q. How was the liberalisation policy gradually adopted in India?
Q. Describe the problems created by globalisation for small producers and workers. Ans.
Q.How did Ford Motors, an MNC, set its foot in India?
Ans. (i) Ford Motors, an American company, is one of the world’s largest automobile manufacturers with production spread over twenty-six countries of the world.
(ii) It came to India in 1995 and spent ` 1,700 crore to set up a large plant near Chennai.
(iii) This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks.
(iv) By the year 2014, Ford Motors was selling 77,000 cars in the Indian markets, while another 77,000 cars were exported from India to South Africa, Mexico and Brazil.
(v) The company wanted to develop Ford India as a component supplying base for its other plants across the globe.