13 worked answers · short steps first, explanations when you need them
Exercises and activities
Textbook pages 72–73
Question 1
What is globalisation? Explain in your own words.
Steps only
Globalisation is the growing connection among countries through trade, investment, technology and the movement of information and services.
Answer
Globalisation is the growing connection among countries through trade, investment, technology and the movement of information and services. A product may be designed in one country, made with parts from several others and sold worldwide.
Question 2
Why did India place barriers on foreign trade and investment? Why were some barriers later removed?
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Barriers such as import taxes and limits protected Indian producers from strong foreign competition and helped the country build its industries after Independence.
Answer
Barriers such as import taxes and limits protected Indian producers from strong foreign competition and helped the country build its industries after Independence. From 1991, many barriers were reduced to encourage investment, competition, technology and wider choice. The change aimed to connect India more closely with the world economy.
Question 3
How can flexible labour laws help companies?
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Companies may find it easier to change work hours or staffing when demand changes, which can lower costs and help them compete.
Answer
Companies may find it easier to change work hours or staffing when demand changes, which can lower costs and help them compete. But flexibility without safeguards can make work insecure and unsafe. Labour rules should protect fair wages, safety and workers’ rights while allowing responsible business decisions.
Question 4
How do multinational companies set up, control or produce in other countries?
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An MNC may build a factory, buy a local company, form a partnership, or place orders with local producers.
Answer
An MNC may build a factory, buy a local company, form a partnership, or place orders with local producers. It can coordinate design, finance, technology, production and marketing across countries. This connects production networks and gives the company control over quality and supply.
Question 5
Why do developed countries ask developing countries to liberalise trade and investment? What should developing countries ask for in return?
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Developed countries want easier access to markets and investment opportunities.
Answer
Developed countries want easier access to markets and investment opportunities. Developing countries should ask for fair rules, equal treatment, protection for workers and the environment, access to technology, and time and support for local industries to compete. Rules should apply fairly to all countries.
Question 6
Explain the statement: “The impact of globalisation has not been uniform.”
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Some consumers gained more choice and some skilled workers and large firms gained jobs, investment and new markets.
Answer
Some consumers gained more choice and some skilled workers and large firms gained jobs, investment and new markets. But small producers and workers in low-paid or insecure jobs may face stronger competition and pressure on wages. Benefits depend on skills, resources and bargaining power, so groups experience globalisation differently.
Question 7
How have liberalised trade and investment policies helped globalisation?
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Lowering import barriers and easing investment rules made it easier for goods, capital and companies to move across borders.
Answer
Lowering import barriers and easing investment rules made it easier for goods, capital and companies to move across borders. MNCs could establish or expand production in India, while Indian companies could trade and invest abroad. These links increased competition and connected markets.
Question 8
How does foreign trade connect markets in different countries? Give a new example.
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Foreign trade lets buyers access products from other countries and gives producers access to foreign customers.
Answer
Foreign trade lets buyers access products from other countries and gives producers access to foreign customers. For example, an Indian company may import cocoa, process it into chocolate and sell the product in India and abroad. Changes in supply or price in one country can affect buyers and sellers elsewhere.
Question 9
Imagine how globalisation may change the world over the next twenty years. Give reasons.
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One possible future is that digital services, cleaner technologies and online trade connect more people and businesses.
Answer
One possible future is that digital services, cleaner technologies and online trade connect more people and businesses. Automation and artificial intelligence may change jobs, while climate risks may alter supply chains. These are possibilities, not certainties; policies, technology and international cooperation will shape the outcome.
Question 10
How would you respond to the claims that globalisation has hurt India’s development and that it has helped India develop?
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Both arguments contain some truth.
Answer
Both arguments contain some truth. Globalisation has brought investment, technology, exports and more consumer choice, supporting some jobs and businesses. It has also increased pressure on small producers and some workers. India’s development depends on how benefits are shared and how workers, local industries and consumers are protected.
Question 11
Complete the passage about greater choice in India, foreign goods, MNC investment and increased competition.
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The blanks are: globalisation; integration; because India offers a large market and production opportunities; competition; investment; competition.
Answer
The blanks are: globalisation; integration; because India offers a large market and production opportunities; competition; investment; competition. A full sentence: “This is closely associated with globalisation. Markets in India are selling goods produced in many other countries, showing greater integration. MNCs invest in India because it offers a large market and production opportunities. Rising investment and imports have meant greater competition among producers.”
Question 12
Match: (i) MNCs buy cheaply from small producers (ii) quotas and taxes (iii) Indian companies investing abroad (iv) IT spreads service production (v) MNCs investing in factories in India.
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The matches are: (i) garments, footwear and sports items—(b); (ii) trade barriers—(e); (iii) Tata Motors, Infosys and Ranbaxy—(d); (iv) call centres—(c); (v) automobiles—(a).
Answer
The matches are:
(i) garments, footwear and sports items—(b);
(ii) trade barriers—(e);
(iii) Tata Motors, Infosys and Ranbaxy—(d);
(iv) call centres—(c);
(v) automobiles—(a).
Question 13
Choose the best options: (i) what moved rapidly with globalisation? (ii) common MNC investment route? (iii) has it improved living conditions for everyone?
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(i) Goods, services and investments between countries—(b).
Answer
(i) Goods, services and investments between countries—(b).
(ii) Buying existing local companies—(b).
(iii) None of the above—(d), because the benefits have not reached all people equally.