Table of Contents
GLOBALISATION AND INDIAN ECONOMY CLASS 10 CBSE
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11.Define a Multinational Corporation (MNC).
Ans.A Multinational Corporation (MNC) is a company that owns or controls production in more than one nation.
12.Why do MNCs set up their offices and factories in those regions where they get cheap labour and other resources?
Ans. To reduce their cost of production and increase their profits.
13.Define investment.
Ans.Money that is spent to buy assets such as land, building, machines and other equipments is called investment.
14.What is foreign investment?
Ans. Investment made by MNCs to buy assets like land, building, machines and other equipments is called foreign investment.
- Mention two benefits that local companies get when they set up production units in association with the MNCs.
Ans. The benefits that local companies can get are:
(a)MNCs can provide money for additional investment like buying latest and new machines for faster production.
(b)MNCs might bring the latest technology of production with them.
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16.How are the MNCs spreading their production across the globe?
Ans. MNCs are spreading their production across the globe by setting up partnerships with local companies, by using the local companies for supplies and by closely competing with local companies or buying them up.
17.What happens to the sales of the Indian toys when Chinese toys invade the domestic market?
Ans.As a result of the invasion of Chinese toys domestic market, the sale of Indian toys falls.
18.Define globalisation.
Ans.Globalisation is the process of rapid integration or interconnection between countries.
19.Due to which reason the latest models of different items are available within our reach?
Ans.Due to Globalisation, the latest variety of different items is available within our reach.
20.Give one major factor that has stimulated the globalisation process.
Ans. Rapid improvement in technology has stimulated the A globalisation process.
21.What is meant by trade barrier?
Ans. Tax on imports by the government is called trade barrier. It is called a barrier because some restrictions have been set up.
22.How government can use trade barriers?
Ans.Government can use trade barriers to increase or decrease foreign trade and to decide what kind of A goods and how much of each good should come into the country.
23.Why had the Indian Government put barriers to foreign trade and foreign investment after independence? State any one reason.
Ans.To save domestic producers from international competition so that they may develop.
24.Why did the Indian Government remove barriers to a large extent on foreign trade and foreign investment?
Ans.Indian Government felt that time has come for Indian producers to compete in international markets.
25.What is liberalisation?
Ans.Removing barriers or restrictions set by the government is known as liberalisation.
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26.What is the aim of World Trade Organisation?
Ans.The aim of World Trade Organisation is to liberalise international trade.
27.How many countries of the world were members of the World Trade Organisation in July 2016?
Ans. As on July 2016, about 165 countries of the world were the members of the World Trade Organisation.
28.Who forced the developing countries to remove the trade barriers?
Ans.World Trade Organisation (WTO) forced the developing countries to remove the trade barriers.
29.How has globalisation benefited the well-off consumers?
Ans. Globalisation benefited the well-off consumers as there is greater choice before these consumers who now enjoy improved quality and lower prices for several products. As a result, these consumers, today, enjoy much higher standards
of living than was possible earlier.
30.What are the benefits of goods or products produced by the MNCs?
Ans.The goods or products produced by the MNCs have a larger number of well-off buyers. In MNCs, new jobs have been created. Also, local companies supplying raw materials etc. to these industries have prospered.
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