GLOBALISATION AND THE INDIAN ECONOMY

Chapter 4

EXERCISES

1 What do you understand by globalisation? Explain in your own words.
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?

3. How would flexibility in labour laws help companies?

4. What are the various ways in which MNCs set up, control or produce in other countries?

5. Why do developed countries want developing countries to liberalise their trade and investment? What do you think should the developing countries demand in return?

6. “The impact of globalisation has not been uniform.” Explain this statement.

7. How has liberalisation of trade and investment policies helped the globalisation process?

8. How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.

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.

10.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?

11.Fill in the blanks.

Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of ______________. Markets in India are selling goods produced in many other countries. This means there is increasing ______________ with other countries. Moreover, the rising number of brands that we see in the markets might be produced by MNCs in India. MNCs are investing in India
because________________________________________________________ . While consumers have more choices in the market, the effect of rising _______________ and ______________has meant greater _________________among the producers.

12.Match the following.

(i) MNCs buy at cheap rates from small           (a) Automobiles 
producers

(ii) Quotas and taxes on imports are used to         (b) Garments, footwear,                      regulate   trade                                                   sports items

(iii)Indian companies who have invested abroad     (c) Call centres

(iv) IT has helped in spreading of                         (d) Tata Motors, Infosys, Ranbaxy
product-ion of services

(v) Several MNCs have invested in setting         (e) Trade barriers
up factories in India for production.

13.Choose the most appropriate option.

(i) The past two decades of globalisation has seen rapid movements in

(a) goods, services and people between countries.

(b) goods, services and investments between countries.

(c) goods, investments and people between countries.

(ii) The most common route for investments by MNCs in countries around the
world is to

(a) set up new factories.

(b) buy existing local companies.

(c) form partnerships with local companies.

(iii) Globalisation has led to improvement in living conditions

(a) of all the people

(b) of people in the developed countries

(c) of workers in the developing countries

(d) none of the above

ADDITIONAL ACTIVITY / PROJECT

I. Take some branded products that we use everyday (soaps, toothpaste,
garments, electronic goods, etc.). Check which of these are produced by MNCs.

II. Take any Indian industry or service of your choice. Collect information and
photographs from newspapers, magazine clippings, books, television, internet, interviews with people on the following aspects of the industry.

(i) Various producers/companies in the industry

(ii) Is the product exported to other countries?

(iii) Are there MNCs among the producers?

(iv) Competition in the industry

(v) Conditions of work in the industry

(vi) Has there been any major change in the industry in the past 15 years?

(vii) Problems that people in the industry face.



Questions Type By: Himashree Bora.

DABP007287