Class 10 : Social Science (In English) – Lesson 21 Globalisation and the Indian Economy

EXPLANATION & SUMMARY

🌍 Explanation
🔵 Introduction
🌿 Globalisation means the greater integration of production, markets, and economies across the world.
⚡ It allows goods, services, technology, capital, and ideas to flow between countries.
For India, globalisation has meant opening up markets, foreign investment, and new opportunities.
💡 But it also poses challenges like inequality and dependence.

🟢 What is Globalisation?
💡 It is the process by which the world becomes interconnected.
🌍 Integration takes place through trade in goods/services, investment, migration, and information flows.
⚡ Example: A mobile phone designed in USA, assembled in China, using Indian software.
✔️ Thus, production and consumption link many countries.

🔴 Factors that Enabled Globalisation
Technology
⚡ Rapid improvement in transport (ships, aircraft, containers).
📱 Advances in communication → internet, mobile phones, satellite links.
🧠 Led to faster movement of goods, people, ideas.

Liberalisation
🌿 Removing trade barriers and restrictions on imports/exports.
💡 In India, 1991 reforms reduced tariffs, encouraged foreign investment.
✔️ Allowed greater competition and integration.

Role of Multinational Corporations (MNCs)
🏢 Companies operating in more than one country.
🌍 Spread production across different countries to reduce costs and expand markets.
⚡ Example: Coca-Cola, Nokia, Tata Motors.

🟡 Production Across Countries
MNCs set up factories, offices, and joint ventures worldwide.
🌿 They choose locations with cheap labour, resources, or favourable laws.
⚡ Parts are produced in different countries → assembled into one product.
💡 Leads to global chains of production.

🔵 Impact of Globalisation in India
Positive Impacts
⚡ Greater variety of goods at lower prices (cars, electronics, clothes).
🌿 New jobs in industries like IT, services, manufacturing.
💡 Indian companies access global markets.
🧠 Modern technology and management skills introduced.

Negative Impacts
🌿 Small producers struggle to compete with cheaper imports.
⚡ Farmers face volatility due to global price fluctuations.
💡 Jobs created often in unorganised sector, with low security.
🧠 Benefits concentrated in urban and skilled groups.

🟢 World Trade Organisation (WTO)
🌍 WTO is an international body that sets global trade rules.
💡 Aims to promote free trade, reduce restrictions.
✔️ India is a member, but developing nations often feel disadvantaged as rules favour developed countries and big corporations.

🔴 Liberalisation of Indian Economy
⚡ 1991 → New Economic Policy introduced.
🌿 Trade barriers reduced; imports became easier.
🧠 Foreign investment allowed in industries.
💡 Public sector reduced; private sector grew stronger.

🟡 Struggles of Local Producers
🌿 Small-scale industries cannot match scale of MNCs.
⚡ Example: Indian toy-makers, small shops face competition from cheap imports.
👩 Farmers producing cotton face fluctuating international prices.
✔️ Raises demand for government protection and fair policies.

🔵 Role of Consumers and Organisations
👩‍👩‍👧 Consumers benefit from choice but must demand fair practices.
🌿 Organisations like consumer groups, NGOs demand fair wages, no child labour, sustainable practices.
💡 Campaigns for fair globalisation push governments to support weaker sections.

🟢 Fair Globalisation
💡 Means globalisation where benefits reach all people, not just rich corporations.
🌿 Requires government policies like:
Protecting small producers.
Ensuring workers get proper wages and job security.
Supporting farmers during price crashes.
✔️ Globalisation must combine growth with justice.

🔴 Conclusion
🌍 Globalisation connects India with the world.
⚡ It has created opportunities in trade, technology, and jobs.
❌ But it also widened inequalities, left farmers and small businesses vulnerable.
💡 Solution: Policies that ensure fair benefits, strengthen local industry, and support the poor.

📝 Summary
🌍 Globalisation: Integration of economies through trade, investment, technology, people.
⚡ Enabled by: technology, liberalisation, MNCs.
🏢 MNCs: spread production, global supply chains.
🌿 Positive impacts: more choices, jobs, foreign investment.
❌ Negative impacts: small producers, farmers hurt, rising inequality.
🧠 WTO: regulates trade but often favours developed nations.
💡 Fair globalisation: policies for protecting small producers, workers, and farmers.

📝 Quick Recap
🔵 Globalisation = world integration through trade/ideas.
🟢 Driven by technology, liberalisation, MNCs.
🔴 India gained jobs, variety, markets.
🟡 Challenges: inequality, farmer distress, small producers losing.
🌍 Need for fair globalisation to include all.

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QUESTIONS FROM TEXTBOOK

🔵 Question 1: What do you understand by globalisation? Explain in your own words.
🟢 Answer:
🌍 Globalisation means integration of economies worldwide.
🌿 It connects production, trade, technology, people, and capital across countries.
⚡ Example: A mobile phone may be designed in USA, assembled in China, and sold in India.
💡 In simple terms, globalisation means interdependence and free flow of goods, services, and ideas among nations.

🔵 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:
🌿 Initially, India imposed barriers to protect domestic producers after independence.
⚡ Aim was self-reliance and avoiding foreign domination.
💡 By 1991, India removed many barriers because:
To attract foreign investment.
To increase efficiency and competitiveness.
To integrate with world economy and boost growth.

🔵 Question 3: How would flexibility in labour laws help companies?
🟢 Answer:
🌿 Flexibility means allowing companies to hire/lay off workers easily.
⚡ Reduces cost of production, increases efficiency.
💡 Helps companies compete globally by reducing rigid rules.
❌ But it may hurt workers’ job security.

🔵 Question 4: What are the various ways in which MNCs set up, control or produce in other countries?
🟢 Answer:
🏭 Set up factories in regions with cheap labour and resources.
⚡ Buy out local companies.
🌿 Form joint ventures with local partners.
💡 Control production by outsourcing to small producers.
✔️ Aim is cost reduction and wider markets.

🔵 Question 5: Why do developed countries want developing countries to liberalise trade and investment? What should developing countries demand in return?
🟢 Answer:
🌍 Developed nations want free access to markets of developing nations.
⚡ They push for liberalisation to sell goods and invest easily.
🌿 Developing countries should demand:
Fair trade rules.
Access to technology.
Opportunities for their exports.
Protection of farmers and small producers.

🔵 Question 6: “The impact of globalisation has not been uniform.” Explain this statement.
🟢 Answer:
🌿 Some groups benefited — MNCs, skilled workers, urban consumers.
⚡ Others, like small industries and farmers, suffered due to competition.
💡 Example: IT and service industries grew, but handloom weavers lost jobs.
✔️ Thus, globalisation created both winners and losers.

🔵 Question 7: How has liberalisation of trade and investment policies helped the globalisation process?
🟢 Answer:
🌿 Liberalisation removed import restrictions and reduced tariffs.
⚡ Allowed foreign companies to invest in India.
💡 Encouraged competition, modern technology, new products.
✔️ Made Indian economy more integrated with the world.

🔵 Question 8: How does foreign trade lead to integration of markets across countries? Explain with an example.
🟢 Answer:
🌍 Foreign trade connects producers and consumers worldwide.
⚡ Goods produced in one country sold in another.
💡 Example: Indian markets have cars, phones, clothes from abroad; Indian garments exported globally.
✔️ Thus, it creates a single global market.

🔵 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:
🌿 Likely more connected with advanced technology.
📱 Digital trade and online services will dominate.
⚡ Products and cultures will mix even more.
💡 Risks: widening inequality, climate impact.
✔️ Fair policies needed to ensure balanced benefits.

🔵 Question 10: Two people argue — one says globalisation has hurt development, another says it helps. How would you respond?
🟢 Answer:
🌿 Both are correct in different ways.
⚡ Globalisation created jobs, technology, and consumer choices.
❌ But it also harmed small producers and farmers.
💡 Balanced view: Globalisation should continue, but with fair policies to protect weaker sections.

🔵 Question 11: Fill in the blanks.
(i) Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of globalisation.
(ii) Markets in India are selling goods produced in many other countries. This means there is increasing integration with other countries.
(iii) The rising number of brands that we see in markets might be produced by MNCs in India. MNCs are investing in India because of cheap labour and resources.
(iv) While consumers have more choices in the market, the effect of rising competition and quality has meant greater efficiency among producers.

🔵 Question 12: Match the following.
(i) MNCs buy at cheap rates from small producers → (b) Garments, footwear, sports items
(ii) Quotas and taxes on imports are used to regulate trade → (e) Trade barriers
(iii) Indian companies which 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 → (a) Automobiles

🔵 Question 13: Choose the most appropriate option.
(i) The past two decades of globalisation has seen rapid movements in:
🟢 Answer: (b) goods, services and investments between countries.

(ii) The most common route for investments by MNCs in countries around the world is:
🟢 Answer: (b) buy existing local companies

(iii) Globalisation has led to improvement in living conditions:
🟢 Answer: (c) of workers in the developing countries (though unevenly).

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OTHER IMPORTANT QUESTIONS FOR EXAMS

🔵 Question 1: Which of the following best explains globalisation?
🟡 Options:
🔵 (A) National self-sufficiency
🟢 (B) Integration of world economies
🔴 (C) Restricting trade
🟡 (D) Only foreign aid
🟢 Answer: (B) Integration of world economies.

🔵 Question 2: Which year is considered as the beginning of India’s liberalisation reforms?
🟡 Options:
🔵 (A) 1947
🟢 (B) 1991
🔴 (C) 1971
🟡 (D) 2000
🟢 Answer: (B) 1991.

🔵 Question 3: Which organisation regulates global trade?
🟡 Options:
🔵 (A) IMF
🟢 (B) WTO
🔴 (C) World Bank
🟡 (D) UNDP
🟢 Answer: (B) WTO.

🔵 Question 4: Which of these is a result of globalisation in India?
🟡 Options:
🔵 (A) Less consumer choice
🟢 (B) Greater variety of goods
🔴 (C) Closed economy
🟡 (D) Decline of foreign investment
🟢 Answer: (B) Greater variety of goods.

🔵 Question 5: Which sector in India benefitted most from globalisation?
🟡 Options:
🔵 (A) Agriculture
🟢 (B) IT and services
🔴 (C) Handloom weaving
🟡 (D) Cottage industries
🟢 Answer: (B) IT and services.

🔵 Question 6: WTO favours which group the most?
🟡 Options:
🔵 (A) Developing countries
🟢 (B) Developed countries
🔴 (C) NGOs
🟡 (D) Farmers
🟢 Answer: (B) Developed countries.

🔵 Question 7: Which of the following is NOT a factor enabling globalisation?
🟡 Options:
🔵 (A) Liberalisation
🟢 (B) Technological advances
🔴 (C) Trade barriers
🟡 (D) MNCs
🟢 Answer: (C) Trade barriers.

🔵 Question 8: The removal of restrictions on foreign trade is known as:
🟡 Options:
🔵 (A) Privatisation
🟢 (B) Liberalisation
🔴 (C) Nationalisation
🟡 (D) Globalisation
🟢 Answer: (B) Liberalisation.

🔵 Question 9: Which Indian companies have invested abroad as part of globalisation?
🟡 Options:
🔵 (A) Infosys, Tata Motors, Ranbaxy
🟢 (B) LIC, BSNL, Air India
🔴 (C) HAL, DRDO, ISRO
🟡 (D) All of the above
🟢 Answer: (A) Infosys, Tata Motors, Ranbaxy.

🔵 Question 10: Which is an example of foreign trade integrating markets?
🟡 Options:
🔵 (A) Only local products available
🟢 (B) Indian buyers purchase Chinese toys
🔴 (C) Farmers selling only in local mandi
🟡 (D) Prohibition of imports
🟢 Answer: (B) Indian buyers purchase Chinese toys.

🔵 Question 11: Which of these is a negative impact of globalisation?
🟡 Options:
🔵 (A) Expansion of IT jobs
🟢 (B) Loss of livelihood for small producers
🔴 (C) Cheaper consumer goods
🟡 (D) Increase in exports
🟢 Answer: (B) Loss of livelihood for small producers.

🔵 Question 12: Which policy measure in 1991 promoted globalisation?
🟡 Options:
🔵 (A) Trade barriers
🟢 (B) New Economic Policy
🔴 (C) Green Revolution
🟡 (D) Land reforms
🟢 Answer: (B) New Economic Policy.

🔵 Question 13: Which of these is a feature of an MNC?
🟡 Options:
🔵 (A) Operates in one country only
🟢 (B) Operates in many countries
🔴 (C) Controlled only by government
🟡 (D) Produces only agricultural goods
🟢 Answer: (B) Operates in many countries.

🔵 Question 14: What is the most common route for MNCs to enter a country?
🟡 Options:
🔵 (A) Buying existing companies
🟢 (B) Creating local markets
🔴 (C) Exporting only
🟡 (D) Prohibiting local trade
🟢 Answer: (A) Buying existing companies.

🔵 Question 15: Which one of these is NOT an impact of liberalisation?
🟡 Options:
🔵 (A) Cheaper imports
🟢 (B) Increased foreign investment
🔴 (C) Reduced competition
🟡 (D) Better technology access
🟢 Answer: (C) Reduced competition.

🔵 Question 16: What does WTO stand for?
🟡 Options:
🔵 (A) World Technology Organisation
🟢 (B) World Trade Organisation
🔴 (C) World Textile Organisation
🟡 (D) World Tourism Organisation
🟢 Answer: (B) World Trade Organisation.

🔵 Question 17: Which of these statements is true about globalisation?
🟡 Options:
🔵 (A) It benefits all people equally
🟢 (B) Its impact is uneven
🔴 (C) It eliminates inequality
🟡 (D) It harms only rich people
🟢 Answer: (B) Its impact is uneven.

🔵 Question 18: Which industry in India faced tough competition due to imports?
🟡 Options:
🔵 (A) IT sector
🟢 (B) Handloom and toy industries
🔴 (C) Automobile sector
🟡 (D) Space technology
🟢 Answer: (B) Handloom and toy industries.

🔵 Question 19: Which is an example of fair globalisation?
🟡 Options:
🔵 (A) Ignoring farmers’ needs
🟢 (B) Policies protecting small producers
🔴 (C) Closing markets for goods
🟡 (D) Supporting only MNCs
🟢 Answer: (B) Policies protecting small producers.


🔵 Question 20: What are trade barriers? Why are they used?
🟢 Answer:
🌿 Trade barriers are restrictions like quotas and tariffs on imports.
⚡ They are used to protect domestic producers, regulate foreign trade, and encourage local industries.

🔵 Question 21: Mention two ways MNCs spread production.
🟢 Answer:
🏭 By setting up factories/joint ventures in other countries.
⚡ By buying existing local companies or outsourcing to small producers.

🔵 Question 22: What does liberalisation mean?
🟢 Answer:
🌿 Liberalisation means removing barriers on imports, exports, and investments.
💡 It allows free flow of goods and capital between nations, promoting globalisation.

🔵 Question 23: State two negative impacts of globalisation in India.
🟢 Answer:
🌿 Small industries face closure due to cheap imports.
⚡ Farmers suffer from unstable global prices.

SECTION C — Short Answer (3 marks each; ~60 words)
🔵 Question 24: How has technology helped globalisation?
🟢 Answer:
⚡ Faster transport (ships, aircraft, containers) connects producers and consumers globally.
🌿 Communication revolution — internet, mobile phones, satellites — allows real-time links.
💡 Example: IT-enabled services in India provide back-office work for companies abroad.

🔵 Question 25: Why is WTO criticised by developing countries?
🟢 Answer:
🌿 WTO rules often favour developed countries and MNCs.
⚡ Developed nations continue subsidies for their farmers, while asking poor countries to remove trade barriers.
💡 This creates unfair competition for farmers and producers in developing nations.

🔵 Question 26: Explain the positive impacts of globalisation on India.
🟢 Answer:
🌿 Consumers enjoy more choices at lower prices.
⚡ New jobs created in IT, services, and modern industries.
💡 Indian companies like Infosys and Tata Motors gained access to global markets.

🔵 Question 27: How are small producers affected by globalisation?
🟢 Answer:
🌿 They face competition from cheaper imports.
⚡ Toy-makers, garment weavers, handloom workers lose markets.
💡 Unable to match MNC scale or technology → decline in income and jobs.

🔵 Question 28: What is meant by fair globalisation?
🟢 Answer:
🌍 Fair globalisation means benefits shared equally by all.
⚡ Requires government policies to protect farmers, workers, and small producers.
💡 Ensures good wages, safe working conditions, and equal opportunities.

SECTION D — Long Answer (5 marks each; ~120 words)
🔵 Question 29: Describe the impact of globalisation on Indian farmers.
🟢 Answer:
🌿 Farmers face competition from cheap imports of agricultural goods.
⚡ Price fluctuations in global markets affect income.
💡 Example: Cotton growers hit by fall in international prices.
❌ Lack of government support makes them vulnerable.
🧠 Some benefit through export opportunities, but majority face risks.

🔵 Question 30: Analyse the role of multinational corporations in the Indian economy.
🟢 Answer:
🏭 MNCs set up factories in India to reduce cost of production.
🌿 Provide modern technology, investment, and job opportunities.
⚡ Expand markets for Indian goods globally.
❌ But they also dominate small producers and local markets.
💡 MNCs play dual role: drivers of growth and sources of inequality.

🔵 Question 31: Explain how liberalisation and foreign trade policies accelerated globalisation in India.
🟢 Answer:
🌿 1991 reforms reduced import duties and barriers.
⚡ Allowed foreign investment in Indian industries.
💡 Easier entry for MNCs brought modern goods and services.
✔️ Increased competition, efficiency, and integration with global economy.

🔵 Question 32: “The impact of globalisation has not been uniform in India.” Justify.
🟢 Answer:
🌿 IT, telecom, automobile industries benefitted greatly.
⚡ Consumers got better choices and prices.
❌ Farmers, small traders, handloom workers lost markets.
💡 Urban areas grew, but rural inequality widened.
✔️ Thus, gains and losses vary across groups.

SECTION E — Case/Source-Based (4 marks each; 1+1+2)
🔵 Question 33 (Case 1):
“An Indian toy company closes down due to cheaper Chinese imports.”
(i) Which impact of globalisation is shown? (1)
(ii) Why did this happen? (1)
(iii) Suggest a policy to protect such producers. (2)
🟢 Answer:
(i) Negative impact on small producers.
(ii) Cheap foreign goods reduce demand for local goods.
(iii) Govt. support with subsidies, fair trade policies, and better technology.

🔵 Question 34 (Case 2):
“An IT company in Bengaluru provides services to clients in USA.”
(i) Which process is this? (1)
(ii) Which sector benefits? (1)
(iii) How has technology made this possible? (2)
🟢 Answer:
(i) Outsourcing/globalisation.
(ii) Service sector (IT).
(iii) Internet, satellites, fast communication allow real-time international work.

🔵 Question 35 (Case 3):
“Developed nations ask India to remove trade barriers but keep subsidies for their own farmers.”
(i) Which organisation is linked here? (1)
(ii) Why unfair? (1)
(iii) How does it harm Indian farmers? (2)
🟢 Answer:
(i) WTO.
(ii) Rules favour rich nations.
(iii) Cheap subsidised imports hurt Indian farmers’ income and reduce competitiveness.

SECTION F — Map Skill (5 marks)
🔵 Question 36 (a): On an outline map of India, locate two regions with major automobile MNC factories.
🟢 Answer:
🌿 Gurugram (Haryana).
🏭 Chennai (Tamil Nadu).

🔵 Question 36 (b): On a world map, mark three global hubs of trade.
🟢 Answer:
🌍 New York (USA).
🏢 London (UK).
🌿 Shanghai (China).
For Visually Impaired Candidates:
(i) Name two Indian automobile hubs: Gurugram, Chennai.
(ii) Name three global trade hubs: New York, London, Shanghai.

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MISCONCEPTIONS “ALERTS”

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