MP Board Class 10th Social Science Solutions Chapter 21 Globalisation

In this article, we will share MP Board Class 10th Social Science Book Solutions Chapter 21 Globalisation Pdf, These solutions are solved subject experts from the latest edition books.

MP Board Class 10th Social Science Solutions Chapter 21 Globalisation

MP Board Class 10th Social Science Chapter 21 Text book Exercises

Objective Type Questions

Question 1.
Multiple Choice Questions
(Choose the correct answer from the following)

Question (i)
Globalisation has improved the standard of living of –
(a) Poor class
(b) Higher class
(c) Rural areas
(d) All classes of the society
Answer:
(c) Rural areas

Question (ii)
Which industries are closed due to globalisation –
(a) Large – scale industries
(b) Multinational companies
(c) Small – scale industries
(d) Industries of all type
Answer:
(d) Industries of all type

Question (iii)
The process of globalisation began in India from the year –
(a) 1947
(b) 1951
(c) 1991
(d) 2001.
Answer:
(c) 1991

Question (iv)
The World Trade Organisation was established in –
(a) 1985
(b) 1995
(c) 2001
(d) 2005.
Answer:
(b) 1995

Question (v)
The main basis of globalisation is –
(a) foreign trade
(b) internal trade
(c) agricultural trade
(d) small scale industry.
Answer:
(a) foreign trade

Question 2.
Fill in the blanks: (MP Board 2009)

1. At present the number of reserved industries is …………….
2. Under globalisation the transportation of goods and services is ……………. between various countries.
3. The companies who produce goods in different countries are called ……………. (MP Board 2009)

Answer:

1. Eight
2. Liberalised
3. Mulitnational Companies.

MP Board Class 10th Social Science Chapter 21 Very Short  Answer Type Questions

Question 1.
What was the foreign policy of India prior to the year 1991?
Answer:
Liberalisation and Globalisation.

Question 2.
What are those companies called who produce in more than one country?
Answer:
Multinational Company.

Question 3.
Which consumer class is benefited more by globalisation?
Answer:
Higher Class.

Question 4.
What do you understand by multinational companies?
Answer:
A company whose work is related to production and sale spread all over the world is known as multinational companies.

MP Board Class 10th Social Science Chapter 21  Short  Answer Type Questions

Question 1.
State the meaning of globalisation. Who have been benefited by globalisation?
Answer:
Globalisation is meant the working of whole world together with co – operation and co-ordination in the form of a market. Under the process of globalisation the restrictions on the inflow and outflow of goods and services from one country to another are withdrawn. Thereby the market prices start working freely in whole of the world. As a result the prices in all the countries becomes near about equal. In this way as a result of globalisation all the markets of the world are unified. The upper strata of our society is the most beneficiary of this system.

Question 2.
What is foreign trade?
Answer:
The foreign trade has linked all the countries of the world together. There are several big companies of the world, which are called multinational companies. These companies sell their products in several countries of the world. This is noticeable here that a multinational company is that who produces goods in more than one country. These companies produce goods on large scale and sell these produced goods in several countries.

Question 3.
What is the unification of market?
Answer:
India has adopted the New Economics Policy since 1991. The main objective of this policy is to take advantage of the progress of the world and technical knowledge and thus accelerate the economic development of the country. This policy has opened the way of liberalisation by avoiding the existing administrative restriction. Along with this the efforts has been made to motivate private investment and to attract the foreign capital. It can be said in brief that through the new policy a new chapter has began by linking the India market economy with the economy of the world.

Question 4.
How are the small producers affected by globalisation?
Or
Write the effect of Globalization on the small producers? (MP Board 2009)
Answer:
All people have not been benefited by the globalisation, thus now it is clear that globalisation has affected the Indian economy in both the ways inversely and positively. The reality is this, that globalisation has benefited the industries and business and we have approached in the world market. Several Indian producers have got the form of multinational company.

The development rate of Indian economy has also become more than 9 per cent. Consumers are now getting world – level standardised goods. But in reality the people of all classes have not got the benefit of globalisation equally. Several small and tiny industries have been closed due to competition. The problems like poverty and unemployment prevailing in the developing countries like India have become more complicated.

Along with this due to the influence of developed countries upon. The World Trade Organisation, developing and backward countries are not getting the benefits of globalisation. The new labour – laws are not affecting the labour class favourably. Therefore the efforts are needed.

MP Board Class 10th Social Science Chapter 21 Long Answer Type Questions

Question 1.
What do you understand by globalisation? Explain the causes that motivate the process of globalisation.
Or
What is globalisation? Explain the causes that motivate this process. (MP Board 2009)
Answer:
Globalisation means opening ftp the economy to facilitate its integration with the world economy. In this situation economics are integrated with each other. In case of globalisation it becomes easy to sell goods and services abroad.

Factors Inspiring Globalisation:

1. Expansion of Technical Knowledge:
During last 50 years the technical knowledge has developed rapidly. The transport technology has made it possible to send goods upto distant places in a lower cost. Telecommunication facilities such as internet, mobile phone, fax etc. has made the task of connecting people with °ach other throughout the world very easy. Communication satellite has brought a revolutionary change by expanding these facilities. As a result globalisation has expanded rapidly.

2. Process of Liberalisation:
Till the middle of twentieth century the production was limited mainly within the boundaries of the countries. So many countries imposed strict restrictions to protect the goods produced by them from competition. India also during the decades of 1950 and 1960 had permitted only to import the necessary goods as machineries, fertilizers and petroleum etc. Several industries developed due to this policy and India became self – reliant in several sectors.

3. Expansion of Competition and Market:
Competition has a special importance in capitalist economic system. In this system different producing compaines in order to seek the hold on market take support of competition. For this purpose these companies along with cutting down the prices use advertisements and various medium of convincing and canvassing the buyers.

4. Expansion of Multinational Companies:
Multinational companies play a significant role in linking the distant countries with each other. These companies set up their factories for production purpose in those countries where they get cheaper labour and other means of production and due to this the capacity of these companies increasesto compete.

Question 2.
How do foreign trade helps in unifying the markets of various countries?
Answer:
During the decades of 1970 and 1990 some such changes took place due to which began the process of liberalising foreign trade. For example, dissolution of Union of Socialist Soviet of Russia, economic unification of Europe, emergence of Japan as a major power of the world and economic development of Korea, Singapore and Hongkong. As a result several countries agreed to liberalise the world trade.

This strengthen, the process of liberalization. After the establishment of The World Trade Organisation1 in 1955, almost all the countries of the world have reduced their taxes on imports and have opened the markets of their countries for other countries. So, the process of globalisation has gained speed.

Question 3.
Explain the economic condition of India after the globalisation, and discuss the problems created by gloabaissation?
Or
Explain the main problems which are created by globalisation? (MP Board 2009, 2010)
Answer:
The following aspects are there undertaking The system of globalisation in India:
1. Industrialisation:
The industrialisation in the country has been accelerated due to the industrial policy declared in the year 1991 and the reforms done afterwards. Now number of industries reserved exclusively for public sector is reduced only to three. It means that the private sector has got sufficient opportunities for expansion.

2. Increase in Foreign Investment:
After the globalisation the multinational companies have increased their investment in India. These companies have shown their interest in such investment as cell phones, motorcars, electronic equipments, cold drinks, junk food materials and banking services. New opportunities of employment have been created by these industries and services.

3. Advantage to Indian Companies:
Globalisation has set up several Indian companies as multinational companies. These companies have expanded their activities at world level. For example, Tata Motars, Infosys, Ranbaxy, Asian Paints, Sunderm Fastners can be taken as examples which have now become multinational companies.

The Indian companies, in order to compete with foreign companies, have adopted the latest technology and have raised the standards of their production. There are some companies who have improved their condition by collaborating with multinational companies.

Problems Created by Globalisation:
This is not true to say that India has only benefited by globalisation. The reality is this, the globalisation has also created several problems. Following are these problems.

1. Impact on Small Producers:
Globalisation has adversely affected the several small industries of India. Small industries are not capable to compete with goods produced in foreign. As a result several small industries have closed.

2. Uncertainty of Employment:
Lives of labourers have been greatly affected by globalisation. These days due to growing competition, maximum employers like flexibility in providing employment to labourers. It means that the jobs of labourers are not secure. The factory owners, to minimize the cost, provide temporary employment to the labourers; so that they may not have to pay them salary round the year.

1. Benefit not to all
2. Regional disparities.

MP Board Class 10th Social Science Chapter 21 Additional Important Questions

Objective Type Questions

Question 1.
Multiple Choice Questions:
(Choose the correct answer from the following)

Question (i)
The New Industrial Policy was adopted since –
(a) 1989
(b) 1990
(c) 1991
(d) 1992.
Answer:
(c) 1991

Question (ii)
The main base of globalisation is –
(a) Multinational Companies
(b) Foreign Trade
(c) America
(d) European Union.
Answer:
(b) Foreign Trade

Question (iii)
New economic policy liberated the –
(a) Private sector
(b) Public sector
(c) Industrial sector
(d) Tertiary sector.
Answer:
(a) Private sector

Question (iv)
W.T.O. means –
(a) World Terrorist Organisation
(b) World Transport Organisation
(c) World Trade Organisation.
(d) World Temperate Organisation
Answer:
(c) World Trade Organisation.

Question 2.
Fill in the blanks:

1. World bank is an International ……………… institution that extends financial assistance to member nation for development purposes.
2. Financial Crunch is a situation in which the government ……………… falls drastically short of government expenditure.
3. Privatisation is defined as transfer of ownership and control from the public sector to the ……………… sector.
4. The private sector allowed to establish industries and
   business but subject to ……………… and ………………

Answer:

1. Financial
2. Revenue
3. Private
4. Control regulation

Question 3.
True and False type questions:

1. New Economic Policy or N.E.P. was adopted in 1995.
2. Globalization means decreasing integration between different economics of the world.
3. Privatisation means to bring most of the enterprises of the country under the ownership, control and management of the private sector.
4. Liberalisation means to rid industry and trade of unnecessary restrictions and make them more competitive.

Answer:

1. False
2. False
3. True
4. True.

Question 4.
Match the following:

Answer:

1. (c)
2. (a)
3. (d)
4. (b).

Answer in One – Two Words or One Sentence:

Question 1.
Define World Trade Organisation (WTO)?
Answer:
WTO is the global international organisation dealing with the rules of trade between nations.

Question 2.
When was WTO established?
Answer:
WTO was established on January 1, 1995.

Question 3.
Where is WTO located?
Answer:
WTO is located at Geneva, Switzerland.

Question 4.
What is GATT?
Answer:
GATT (General Agreement on Trade and Tariffs) was the forum for negotiating trade agreement between nations between 1947 – 1994.

Question 5.
When did India become the member of WTO?
Answer:
India became the member of the WTO on January 1, 1995.

Question 6.
Mention two functions of WTO?
Answer:

1. Administering WTO trade agreements.
2. Forum for trade negotiations between countries.

MP Board Class 10th Social Science Chapter 21 Very Short  Answer Type Questions

Question 1.
Define sustainable development.
Answer:
Sustainable development is an economic development where necessities of generations are not compromised by the pleasure of present generation.

Question 2.
Explain the concept of sustainable economic development. Give two points?
Answer:

1. Development should take place without polluting and damaging the environment.
2. Development should be continuous and it should fulfil the needs and aspiration of the present and future generations.

Question 3.
What is the role of WTO? What two benefits will India get by being a member of WTO?
Answer:
WTO is the global trade organisation dealing with the rules of trade between nations. India, as a member of WTO will be benefited in the following ways:

1. Promotion and expansion of trade among countries.
2. (a) Less restrictions on Indian exports.
   (b) Getting technology from developed countries.

Question 4.
Define Liberalisation?
Answer:
Liberalisation means freedom to the private sector to run those activities which were earlier confined to only public sector. Secondly, Private sectors have given many relaxations from the rules and regulations.

Question 5.
What is NRI?
Answer:
NRI (Non-Resident Indian) is an Indian who does not normally live and work in India, but in some other country. He holds Indian citizenship and Indian passport.

MP Board Class 10th Social Science Chapter 21 Short Answer Type Questions

Question 1.
Mention three freedoms given to the private sector industry by liberalisation?
Answer:

1. Industrial licensing has been abolished except for five industries.
2. Number of public sector industries has been reduced from 17 to 3.
3. Freed from regulation like permission for importing materials.

Question 2.
Enlist main objectives of New Economic Policy?
Answer:
Following were the objectives of new economic policy:

1. Liberalisation of the economy.
2. Expansion of private sector.
3. Encouragement of private foreign investment.
4. Modernisation of agriculture.
5. Controlling fiscal deficit.

Question 3.
What do you mean by disinvestment? How far did we succeed in this programme?
Answer:
Disinvestment means selling shares of its performing enterprise by the government. It is one method of privatization. Our programme of privatization through investments has succeeded to some extent only.

Question 4.
Mention the functions of WTO?
Answer:
Functions of World Trade Organisation (WTO):

1. Administering trade agreements between nations.
2. Forum for trade negotiations.
3. Handling trade disputes between nations.
4. Monitoring national trade policy.
5. Technical assistance and training for developing countries and.
6. Cooperation with other international organisation.

Question 5.
How can you justify the presence and impact of globalisation?
Answer:
The presence and impact of globalisation can be justified by the following facts:

1. Development of social consciousness.
2. Fast and quick technological changes.
3. Global form of modern business.
4. Formation of International Monatory Fund (IMF).
5. Foreign collaboration and joint ventures, financial and assistance.
6. Globalisation of marketing through Cable TV network and satellite links and
7. Introduction of internet facilities like e-mail and e- commerce services.

Question 6.
Explain in short meaning of the term ‘Globalization’. Write its main characteristics (features on related points) also?
Answer:
Meaning:
Globalization means integration, unification or integration of domestic economy with the world economy. Characteristics (Features or Related Points):

1. Due to globalisation producers from outside can sell their goods and services in India. We can do the same with our goods and services.
2. Entrepreneurs from other countries can invest in India and the Indian entrepreneur can also do the same in other countries.

Question 7.
Discuss some positive aspects of Globalisation and Liberalisation?
Answer:
Globalisation and Liberalisation have helped in rapid economic development.

1. A large industrial base created; increase in industrial production.
2. Proportion of people living below the poverty line less.
3. Self – sufficient in food.
4. Mobilised its savings.
5. Generated its own resources for development.
6. Large pool of scientists and technically skilled working person.
7. Export – oriented industries.

Question 8
Differentiate between policy of restriction and policy of liberalization?
Answer:
Liberalization:
It means removing unnecessary trade restrictions and making the economy more competitive. New Economic policy liberated the private sector from strict control and licensing.

Restriction:
If restrictions are imposed on economic activities by government policies, it is called the policy of restriction or restrictive policy. No real economy is completely free of restrictions. When these restrictions are removed, it is called the policy of liberalization.

Question 9.
What measures have been taken for globalisation of the economy of India?
Answer:
Free interaction among economies of the world in the field of trade finance, production techlnologies and investment is termed as globalisation of the economy. It encourages foreign trade and institutional investment. Following measures are adopted for it:

1. Devaluation of rupee by 20% in July 1990 – 91.
2. Full convertibility was offered in 1993-94 to encourage exports earnings.
3. Long period trade policy of remove restrictions.
4. Encouragement to open competition.
5. Modification of custom and tariff.

Question 10.
What is sustainable development? What are its important features?
Answer:
The development, which takes care of the needs of present generation without compromising with the needs of future generation is termed as sustainable development.

Important features of sustainable development:

1. Economic growth
2. No or the least compromise with the necessities of the future generation
3. Pollution free economic development
4. No or the least depletion of non – renewable resources and
5. Preservation of environmental and exhaustible resources.

Question 11.
Explain the meaning of World Trade Organisation?
Answer:
World Trade Organisation (WTO):
The global international organisation, working on multilateral trading system, where trade agreemeftts are negotiated and signed by a large majority of world’s trading nations and ratified in their parliaments are known as W.T.O. Its objective is to assist trade flowing smoothly, freely, fairly and predictable among nations. WTO was established on Jan 1, 1995 in Geneva, Switzerland. India also became its member on January 1,1995.

MP Board Class 10th Social Science Chapter 21 Long Answer Type Questions

Question 1.
Review the status of Indian economy before the new economic policy – 1991?
Answer:
1. Self – reliance:
The five – year plans imed at obtaining self – reliance. The dependency upon foreign aid was reduced in fulfilment of this aim. During this period self – reliance in agriculture sector was achieved and vast industrial sector was developed.

2. Foreign Trade:
In the year 1991 imports were kept under control. During this period only necessary goods like machineries, fertilizer and petroleum were mainly imported. To protect the domestic producers from foreign competition the policy of protection was adopted. Therefore, the trade during this period increase slowly. The contribution of India in total world trade in 1951 was near about. 1 per cent which reduced upto 0.6 percent in 1991.

3. National and Per Capita Income:
During the period of 1951 to 1991 the national income increased at the average rate of 4.0 per cent. But due to the rapid growth in population during this period the per capita income increased at a very slow speed.

4. Increase in the Opportunities of Employment:
During this period though the efforts were made to increase the job opportunities even then the problem increased day – by – day. The problem of unemployment became very complicated till 1991.

5. Crisis of Foreign Currency:
India adopted the policy of reducing imports between the years 1951 to 1991. But India needed foreign currency for the import of petroleum products machinery and other necessary goods. India had to take international loan to import these goods. Therefore, India was trapped in the crisis of foreign exchange.

6. Price rise:
During the period of planning India had to face the problem of continuous price rise. After the First Five-Year Plan during the years 1956 to 1991 the rate of inflation in India was between 5 to 6 per cent.

Question 2.
Explain briefly the key features of Indian economy after adoption of the New Economic Policy?
Answer:
Key Features of Indian Economy after adoption of New Economic Policy:
1. Industrial activities which were restricted for public sector were also opened up to private sector except for industries having national importance tike defence, space research etc.

2. Relaxation in regulations tike quota system, industrial licensing, concentration of economic power etc. This was meant to give freedom to the businesses to undertake activities having growth potential.

3. Permission to import raw material was eased to make/it more competitive for businesses to reduce cost and undertake better technology.

4. Pricing and distribution was made free to give businesses free hand to deal with pricing and distribution strategies.

5. Restriction on investement and increase in production capacity was eased to pave the way for industrial growth.

6. The economy was opened to integrate it with world economy in terms of flow of goods and services investment etc.

Question 3.
Explain the process of globalisation?
Or
Give the meaning of globalisation and describe the steps taken in this direction?
Or
Write the main five factors which promote globalization? (MP Board 2009)
Answer:
Process of Globalisation or Steps taken for Globalisation:
1. Raising Foreign Equity Participation:
Prior to July 1999 f foreign equity participation was subjected to lot of approvals, sanctions and constraints. It was restricted to 40%. Now it has been increased to 51% and the approvals have been made routine work.

2. Devaluation of Rupee:
Rupee was devalued by 20% in July 1990 – 91. The devaluation was made to encourage exports and discourage imports. It also aimed at inflow of more foreign capital.

3. Convertibility of Rupee:
The government offered partial convertibility of rupee through the budget of 1992 – 93. Full convertibility was offered in 1993 – 94. Convertibility of rupee was aimed at encouraging export earnings.

4. Long Period Trade Policy:
The government announced foreign trade policy for a period of five years i.e. 1992 – 97. The sole purpose of this policy was liberalisation. It also removed restrictions on external trade.

5. Encouragement to Open Competition:
Exports and imports were left to market forces, government control was minimised.

6. Modification of Customs and Tariff:
In order to build up our competitive strength, customs and tariff policies were modified to promote international trade.

7. Modernisation of the Economy:
The new economic policy accords top priority to modern techniques and technology. It also promotes computers and electronics industries. It has made the Indian industries dynamic. All foreign collaborations concerning higher technology have been (created by the government.

8. Privatisation of the Company:
It means removing strict control over private sector and making them free to take necessary decisions. Now, the new policy tries to expand private sectors.