Let’s Revise the Topics Covered under this Chapter (Globalization and Indian Economy): [For detailed Understanding, visit our NOTES by CLICK HERE]
2. MULTINATIONAL CORPORATIONS (MNCs)
4. FACTORS THAT ENABLED GLOBALIZATION
Test your understanding with these important questions designed for Class 10 Economics Chapter- Globalization and Indian Economy. Practice them carefully to strengthen your concepts and secure full marks in your Board Exam.
2 MARKS QUESTIONS
Q1. What is globalisation?
Approach: Define clearly + mention how it connects countries.
Answer:
Globalisation is the process by which countries are linked through trade, investment, and technology. It allows goods, services, and ideas to move freely across borders, creating a global market.
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Q2. What do you mean by economic integration?
Approach: Define + relate with globalisation.
Answer:
Economic integration means closer economic ties among countries through trade and investment. It is a key feature of globalisation that connects national economies into a single world economy.
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Q3. Mention any two benefits of globalisation for consumers.
Approach: Identify two benefits clearly.
Answer:
Consumers get access to a wide variety of goods at lower prices and improved quality. They can enjoy both domestic and international products due to global competition.
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Q4. Why is foreign investment an important part of globalisation?
Approach: Define foreign investment + link with globalisation.
Answer:
Foreign investment brings capital, technology, and job opportunities from one country to another. It helps connect economies and strengthens the process of globalisation.
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Q5. How has transport technology contributed to globalisation?
Approach: Mention improvement + its effect.
Answer:
Advanced transport systems like cargo ships and air freight reduce time and cost in moving goods worldwide, making global trade easier and faster.
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Q6. State any two major factors that have enabled globalisation.
Approach: Name and explain briefly.
Answer:
(i) Rapid improvement in technology.
(ii) Liberalisation of trade policies by various countries, reducing restrictions on imports and exports.
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Q7. What is meant by liberalisation?
Approach: Define + state its aim.
Answer:
Liberalisation refers to the removal of government restrictions on trade and business. Its aim is to make markets open and promote free flow of goods and services globally.
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Q8. How has the internet helped in globalisation?
Approach: Mention role of communication technology.
Answer:
The internet connects buyers and sellers worldwide instantly. It allows companies to manage global operations, promote products, and provide services across countries.
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Q9. What are trade barriers? Give one example.
Approach: Define + give an example.
Answer:
Trade barriers are government-imposed restrictions on international trade, like import duties or quotas. For example, imposing higher import tax on foreign goods.
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Q10. Write one positive and one negative impact of globalisation.
Approach: Mention both sides clearly.
Answer:
Positive: More job opportunities and better technology.
Negative: Small producers may not survive due to competition from large global firms.
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3 MARKS QUESTIONS
Q1. Explain the meaning of globalisation and how it has influenced the world economy.
Approach:
Intro: Define globalisation.
Main Body: Show its impact on trade and investment.
Conclusion: Link to interdependence among countries.
Answer:
Globalisation is the process that connects economies and societies through trade, capital, and information flows.
It allows goods and services to be produced in one country and sold in another. Companies can invest across borders, and consumers have access to global products.
Thus, globalisation has made countries economically interdependent, leading to a more connected world economy.
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Q2. How has technology helped in the spread of globalisation?
Approach:
Intro: Mention the role of technology.
Main Body: Explain communication and transport development.
Conclusion: Show how it supports global linkages.
Answer:
Technology is one of the strongest forces behind globalisation.
Modern communication tools like the internet and mobile phones allow instant exchange of ideas. Fast transport reduces the time and cost of delivery. These developments help companies operate globally.
Hence, technology has made the world more connected, supporting international trade and cooperation.
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Q3. Explain any three positive effects of globalisation on India.
Approach:
Intro: Introduce globalisation in India.
Main Body: State three benefits.
Conclusion: Summarise its impact.
Answer:
Globalisation in India accelerated after 1991 economic reforms.
Here are some positive effects of globalization:
- Increased foreign investment and job creation.
- Availability of modern technology.
- Greater choice and quality for consumers.
Overall, globalisation has strengthened India’s economy and made it more competitive globally.
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Q4. What role does liberalisation play in promoting globalisation?
Approach:
Intro: Define liberalisation.
Main Body: Link it with global trade expansion.
Conclusion: State result.
Answer:
Liberalisation means reducing restrictions on trade and business.
When countries reduce import duties and allow foreign investment, it encourages international companies to enter new markets. This increases global trade and competition.
Thus, liberalisation has opened the path for globalisation by making economies free and open.
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Q5. Describe any three challenges of globalisation.
Approach:
Intro: Introduce globalisation’s mixed effects.
Main Body: Mention three challenges.
Conclusion: Suggest a balance.
Answer:
While globalisation has many benefits, it also presents some difficulties.
The challenges of globalization are as follow:
- Unequal distribution of benefits.
- Small industries face competition from MNCs.
- Cultural and economic dependence on other countries.
To make globalisation fair, governments must protect local industries and workers.
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Q6. Why is globalisation considered a process of interconnection?
Approach:
Intro: Define globalisation.
Main Body: Show connections between countries.
Conclusion: State overall effect.
Answer:
Globalisation connects people and nations through economic and cultural exchange.
It links producers and consumers worldwide through trade and investment. For example, Indian software is used in the USA, and foreign goods are sold in India.
Thus, globalisation has made the world a closely linked economic system.
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Q7. Explain how government policies since 1991 have supported globalisation in India.
Approach:
Intro: Mention 1991 reforms.
Main Body: Discuss policy changes.
Conclusion: Summarise effect.
Answer:
In 1991, India introduced New Economic Policy to face an economic crisis.
It reduced trade barriers, allowed foreign investment, and promoted private enterprises. These reforms opened Indian markets to the world.
Hence, government liberalisation policies have made India an active part of the global economy.
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Q8. How does globalisation affect employment in developing countries like India?
Approach:
Intro: Mention the employment link.
Main Body: Explain both increase and risks.
Conclusion: Give balanced view.
Answer:
Globalisation has changed employment patterns in developing nations.
It creates new jobs in industries like IT, services, and manufacturing. However, traditional small-scale sectors may lose jobs due to competition.
Therefore, while globalisation increases opportunities, it also requires protection for weaker sectors.
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Q9. What are the main characteristics of globalisation?
Approach:
Intro: Define concept.
Main Body: Mention key features.
Conclusion: Brief summary.
Answer:
Globalisation connects economies and cultures worldwide.
The characteristics of globalization are:
- Free movement of goods and services.
- Growth of MNCs.
- Global communication and transport.
- Interdependence of markets.
These features together make the world a single economic system.
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Q10. Explain how globalisation connects producers and consumers.
Approach:
Intro: Define.
Main Body: Explain with example.
Conclusion: Conclude with link
Answer:
Globalisation links production and consumption worldwide.
Producers sell goods globally — for example, Indian cotton shirts are sold in Europe, and mobile phones from South Korea are sold in India.
Thus, globalisation brings producers and consumers closer through global markets.
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5 MARKS QUESTIONS
Q1. Explain in detail the meaning and importance of globalisation in the modern world.
Approach:
Intro: Definition and background.
Main Body: Key features and significance.
Conclusion: Final summary.
Answer:
Globalisation is the process of increasing interconnection among countries through trade, investment, and technology. It became prominent after economic reforms worldwide in the 1990s.
It allows goods, services, and capital to move freely. It promotes international cooperation, boosts growth, and enables sharing of technology and knowledge. Businesses can operate globally, while consumers enjoy greater choices.
Thus, globalisation has transformed the world into a single market, encouraging development and cultural exchange.
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Q2. Discuss the major factors that have enabled globalisation.
Approach:
Intro: Introduce need for globalisation.
Main Body: Explain key factors one by one.
Conclusion: Overall effect.
Answer:
Globalisation has expanded mainly because of changes in technology, government policy, and communication.
Below are some factors that have enabled globalization:
- Technological Advances – Internet, telecommunication, and faster transport make global trade easy.
- Liberalisation of Trade – Reduced import duties and open investment policies.
- Growth of MNCs – They spread production across countries.
- Government Reforms – Policies since 1991 opened economies.
Together, these factors have integrated world economies, creating a globally connected market.
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Q3. How has globalisation benefited India? Explain with examples.
Approach:
Intro: Introduce globalisation in India.
Main Body: Mention benefits and examples.
Conclusion: Balanced end.
Answer:
Globalisation in India started with the 1991 reforms that liberalised trade and opened markets.
It brought foreign investment in sectors like IT and automobile. Companies such as Infosys and Tata Motors expanded internationally. Consumers now enjoy better products at lower prices. Employment opportunities increased, and Indian industries gained global exposure.
Hence, globalisation has strengthened India’s economy and made it a competitive global player.
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Q4. Explain the positive and negative effects of globalisation.
Approach:
Intro: State both aspects.
Main Body: Explain pros and cons.
Conclusion: Balanced opinion.
Answer:
Globalisation has both advantages and drawbacks.
Positive Effects:
- Increases foreign investment and job opportunities.
- Improves product quality and technology transfer.
Negative Effects:
- Small producers suffer due to tough competition.
- Inequality between rich and poor nations widens.
Globalisation is beneficial if managed fairly so that its gains are shared equally by all.
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Q5. How have technological changes supported globalisation?
Approach:
Intro: Mention role of technology.
Main Body: Explain communication and transport aspects.
Conclusion: Resulting effect.
Answer:
Technology has been the main driving force behind globalisation.
There are some ways that shows technological changes supported globalization:
- Internet, mobile phones, and satellites enable instant communication.
- Modern shipping and air transport have reduced cost and time.
- Digital platforms allow businesses to operate globally with ease.
Technology has turned the world into a global village by connecting markets and people.
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Q6. How has liberalisation accelerated globalisation in India?
Approach:
Intro: Define liberalisation.
Main Body: Explain its impact on India.
Conclusion: Conclude with summary.
Answer:
Liberalisation means reducing government control over trade and business.
Since 1991, India reduced import duties, removed licensing, and encouraged foreign investment. This made it easier for global companies to enter Indian markets and for Indian companies to expand abroad.
Thus, liberalisation has been the foundation for India’s integration with the global economy.
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Q7. Explain with examples how globalisation affects local industries.
Approach:
Intro: Introduce the concept.
Main Body: Discuss both positive and negative impacts.
Conclusion: Suggest a balance.
Answer:
Globalisation connects local industries to global markets.
Some industries gain foreign investment and modern technology, improving quality. However, small-scale producers may lose business because they cannot compete with large multinational firms.
Hence, government support is needed to protect local industries while enjoying global benefits.
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Q8. Why is globalisation called a worldwide process of interdependence?
Approach:
Intro: Define interdependence.
Main Body: Explain examples.
Conclusion: State final impact.
Answer:
Interdependence means countries rely on one another for goods, services, and capital.
Through globalisation, India imports technology from abroad and exports software, textiles, and goods. Every country depends on others for trade and development.
Therefore, globalisation builds mutual dependence, making nations part of a shared economic network.
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Q9. What measures can be taken to make globalisation more fair?
Approach:
Intro: State problem.
Main Body: Suggest measures.
Conclusion: End with result.
Answer:
Although globalisation offers many benefits, not everyone gains equally.
There are some measures that make globalization more fair. These are:
- Protect small industries through fair policies.
- Provide skill training to workers.
- Ensure global rules support developing nations.
- Encourage ethical business practices by MNCs.
By adopting fair rules, globalisation can benefit all countries equally and promote sustainable growth.
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