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Exercises — Globalisation and the Indian Economy

🎓 Class 10 Social Science CBSE Theory Ch 4 — Globalisation and the Indian Economy ⏱ ~15 min

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Exercises — Globalisation and the Indian Economy

NCERT Understanding Economic Development | Chapter 4: Globalisation and the Indian Economy — End-of-Chapter Exercises

Key Terms — Globalisation and Indian Economy Chapter 4 Revision

Globalisation

The process of rapid integration of countries through greater foreign trade and foreign investment, connecting producers and markets worldwide.

Multinational Corporation (MNC)

A company that owns or controls production in more than one country, often setting up factories where labour and resources are cheap.

Liberalisation

The removal or reduction of government restrictions on foreign trade and investment — such as lowering tariffs and import quotas.

World Trade Organisation (WTO)

An international body that sets rules for global trade, aiming to liberalise international commerce. Developing countries argue its rules often favour rich nations.

Trade Barrier

Restrictions imposed by a government on imports through tariffs (taxes) or quotas, used to protect domestic industries from foreign competition.

Special Economic Zone (SEZ)

Designated areas where companies enjoy tax concessions, flexible labour laws, and other incentives to attract foreign investment and boost exports.

NCERT Exercise Questions with Answers — Globalisation

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

L3 Apply

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?

L4 Analyse

How would flexibility in labour laws help companies?

L4 Analyse

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

L3 Apply

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

L5 Evaluate

"The impact of globalisation has not been uniform." Explain this statement.

L4 Analyse

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

L4 Analyse

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

L3 Apply

Globalisation will continue in the future. Can you imagine what the world would be like twenty years from now? Give reasons for your answer.

L6 Create

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?

L5 Evaluate

Fill in the blanks:

L3 Apply

Passage

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.

Match the following:

L3 Apply

	Column I	Column II
(i)	MNCs buy at cheap rates from small producers	(a) Automobiles
(ii)	Quotas and taxes on imports are used to regulate trade	(b) Garments, footwear, sports items
(iii)	Indian companies who have invested abroad	(c) Call centres
(iv)	IT has helped in spreading of production of services	(d) Tata Motors, Infosys, Ranbaxy
(v)	Several MNCs have invested in setting up factories in India for production	(e) Trade barriers

Choose the most appropriate option:

L3 Apply

(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

📚 Competency-Based Questions — Revision Practice

Read the situation and answer.

L4 Analyse

Situation

A garment exporting factory in Tirupur pays workers Rs 40 per piece for stitching shirts. A global MNC has placed an order for 10,000 shirts at Rs 200 each. The factory owner earns Rs 80 per shirt after raw material costs. The MNC sells each shirt in Europe for Rs 1,500.

Who benefits the most in this supply chain, and what does this reveal about the nature of globalisation?

Evaluate whether the WTO has been fair to developing countries like India. Support your answer with two arguments.

L5 Evaluate

A small toy manufacturer in India is struggling to compete with cheap Chinese imports after trade barriers were lowered. Suggest a strategy that combines government support and the manufacturer's own innovation to survive.

L6 Create

Compare how globalisation has affected the IT industry versus the garment industry in India.

L4 Analyse

⚖ Assertion-Reason Questions

Assertion (A): MNCs prefer to set up production in countries where they can get cheap labour and raw materials.
Reason (R): Lower production costs increase the profit margins for MNCs in the global market.

(A) Both A and R are true, and R correctly explains A

(B) Both A and R are true, but R does not correctly explain A

(D) A is false but R is true

Assertion (A): The Indian government removed trade barriers starting in 1991 as part of its liberalisation policy.
Reason (R): Indian industries were unable to produce any goods domestically and needed to import everything.

(A) Both A and R are true, and R correctly explains A

(B) Both A and R are true, but R does not correctly explain A

(D) A is false but R is true

Assertion (A): Fair globalisation requires government intervention to protect workers' rights and support small producers.
Reason (R): The benefits of globalisation are automatically and equally distributed across all sections of society.

(A) Both A and R are true, and R correctly explains A

(B) Both A and R are true, but R does not correctly explain A

(D) A is false but R is true

Review All Parts — Chapter 4: Globalisation and the Indian Economy

Reference: NCERT Official Textbook — Economics Class 10 | CBSE Curriculum 2025

Frequently Asked Questions — Globalisation Exercises and Key Terms

What are important questions from Globalisation Chapter 4?

Important questions include: what are MNCs and how they spread production, explain interlinking production, what is globalisation and its factors, how liberalisation helped globalisation, discuss impact on consumers and producers, explain WTO's role, what is fair globalisation, and how government should regulate globalisation. Case-based questions frequently appear in board exams.

How to answer questions on MNCs and production?

Start by defining MNCs as companies controlling production in more than one country. Explain their methods: joint ventures, buying local firms, placing production orders, or establishing subsidiaries. Use the Ford Motors example to illustrate how MNCs bring technology and capital while accessing cheaper labour and new markets in developing countries.

What key terms should I learn for Globalisation Chapter 4?

Key terms include: multinational corporation (MNC), foreign investment, foreign trade, globalisation, liberalisation, privatisation, World Trade Organisation (WTO), trade barriers, tariffs, quotas, Special Economic Zones (SEZ), outsourcing, interlinking production, market integration, joint ventures, fair globalisation, and competition.

How to write a long answer on impact of globalisation?

Structure in four parts: positive impact on consumers (more choices, better quality, lower prices); benefits to large producers (IT, automobiles gaining global markets); negative impact on small producers (competition, shutdowns, job losses); need for fair globalisation (government policies, labour protection, WTO reform). Use specific NCERT examples throughout.

What is the difference between liberalisation and globalisation?

Liberalisation is the removal of government restrictions on trade, investment, and business — it is a policy decision. Globalisation is the broader process of increasing interconnection between countries through trade, investment, and technology. Liberalisation enables globalisation. In India, the 1991 economic reforms liberalised trade policy, accelerating integration into the global economy.

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