Social Science · Textbook solutions
Globalisation and the Indian Economy
Every solved example, exercise, and miscellaneous question, in the order the textbook teaches them. · 46 questions
Production across Countries
1 q
Let's Work This Out
Practice · 1
- LW 4.1 Q1Complete the following statement to show how the production process in the garment industry is spread across countries. ‘The brand tag says “Made in Thailand” but they are not Thai products. We dissect the manufacturing process and look for the best solution at each step. We are doing it globally. In making garments, the company may, for example, get cotton fibre from Korea, ........’
Interlinking Production across Countries
7 q
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Practice · 7
- Read the passage and answer the questions. Ford Motors, an American company, is one of the world's largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks. By the year 2017, Ford Motors was selling 88,000 cars in the Indian markets, while another 1,81,000 cars were exported from India to South Africa, Mexico, Brazil and United States of America. The company wants to develop Ford India as a component supplying base for its other plants across the globe.LW 4.2 Q1Would you say Ford Motors is a MNC? Why?
- Read the passage and answer the questions. Ford Motors, an American company, is one of the world's largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks. By the year 2017, Ford Motors was selling 88,000 cars in the Indian markets, while another 1,81,000 cars were exported from India to South Africa, Mexico, Brazil and United States of America. The company wants to develop Ford India as a component supplying base for its other plants across the globe.LW 4.2 Q2What is foreign investment? How much did Ford Motors invest in India?
- Read the passage and answer the questions. Ford Motors, an American company, is one of the world's largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks. By the year 2017, Ford Motors was selling 88,000 cars in the Indian markets, while another 1,81,000 cars were exported from India to South Africa, Mexico, Brazil and United States of America. The company wants to develop Ford India as a component supplying base for its other plants across the globe.LW 4.2 Q3By setting up their production plants in India, MNCs such as Ford Motors tap the advantage not only of the large markets that countries such as India provide, but also the lower costs of production. Explain the statement.
- Read the passage and answer the questions. Ford Motors, an American company, is one of the world's largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks. By the year 2017, Ford Motors was selling 88,000 cars in the Indian markets, while another 1,81,000 cars were exported from India to South Africa, Mexico, Brazil and United States of America. The company wants to develop Ford India as a component supplying base for its other plants across the globe.LW 4.2 Q4Why do you think the company wants to develop India as a base for manufacturing car components for its global operations? Discuss the following factors: (a) cost of labour and other resources in India (b) the presence of several local manufacturers who supply auto-parts to Ford Motors (c) closeness to a large number of buyers in India and China
- Read the passage and answer the questions. Ford Motors, an American company, is one of the world's largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks. By the year 2017, Ford Motors was selling 88,000 cars in the Indian markets, while another 1,81,000 cars were exported from India to South Africa, Mexico, Brazil and United States of America. The company wants to develop Ford India as a component supplying base for its other plants across the globe.LW 4.2 Q5In what ways will the production of cars by Ford Motors in India lead to interlinking of production?
- Read the passage and answer the questions. Ford Motors, an American company, is one of the world's largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks. By the year 2017, Ford Motors was selling 88,000 cars in the Indian markets, while another 1,81,000 cars were exported from India to South Africa, Mexico, Brazil and United States of America. The company wants to develop Ford India as a component supplying base for its other plants across the globe.LW 4.2 Q6In what ways is a MNC different from other companies?
- Read the passage and answer the questions. Ford Motors, an American company, is one of the world's largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks. By the year 2017, Ford Motors was selling 88,000 cars in the Indian markets, while another 1,81,000 cars were exported from India to South Africa, Mexico, Brazil and United States of America. The company wants to develop Ford India as a component supplying base for its other plants across the globe.LW 4.2 Q7Nearly all major multinationals are American, Japanese or European, such as Nike, Coca-Cola, Pepsi, Honda, Nokia. Can you guess why?
Foreign Trade and Integration of Markets
4 q
Let's Work These Out
Practice · 4
- LW 4.3 Q1What was the main channel connecting countries in the past? How is it different now?
- LW 4.3 Q2Distinguish between foreign trade and foreign investment.
- LW 4.3 Q3In recent years China has been importing steel from India. Explain how the import of steel by China will affect. (a) steel companies in China. (b) steel companies in India. (c) industries buying steel for production of other industrial goods in China.
- LW 4.3 Q4How will the import of steel from India into the Chinese markets lead to integration of markets for steel in the two countries? Explain.
What is Globalisation?
3 q
Let's Work These Out
Practice · 3
- LW 4.4 Q1What is the role of MNCs in the globalisation process?
- LW 4.4 Q2What are the various ways in which countries can be linked?
- LW 4.4 Q3Choose the correct option. Globalisation, by connecting countries, shall result in (a) lesser competition among producers. (b) greater competition among producers. (c) no change in competition among producers.
Factors that have Enabled Globalisation
4 q
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Practice · 4
- Read the passage and answer the questions. Information and communication technology (or IT in short) has played a major role in spreading out production of services across countries. Let us see how. A news magazine published for London readers is to be designed and printed in Delhi. The text of the magazine is sent through Internet to the Delhi office. The designers in the Delhi office get orders on how to design the magazine from the office in London using telecommunication facilities. The designing is done on a computer. After printing, the magazines are sent by air to London. Even the payment of money for designing and printing from a bank in London to a bank in Delhi is done instantly through the Internet (e-banking)!LW 4.5 Q1In the above example, underline the words describing the use of technology in production.
- Read the passage and answer the questions. Information and communication technology (or IT in short) has played a major role in spreading out production of services across countries. Let us see how. A news magazine published for London readers is to be designed and printed in Delhi. The text of the magazine is sent through Internet to the Delhi office. The designers in the Delhi office get orders on how to design the magazine from the office in London using telecommunication facilities. The designing is done on a computer. After printing, the magazines are sent by air to London. Even the payment of money for designing and printing from a bank in London to a bank in Delhi is done instantly through the Internet (e-banking)!LW 4.5 Q2How is information technology connected with globalisation? Would globalisation have been possible without expansion of IT?
- LW 4.6 Q1What do you understand by liberalisation of foreign trade?
- LW 4.6 Q2Tax on imports is one type of trade barrier. The government could also place a limit on the number of goods that can be imported. This is known as quotas. Can you explain, using the example of Chinese toys, how quotas can be used as trade barriers? Do you think this should be used? Discuss.
World Trade Organisation
3 q
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Practice · 3
- LW 4.7 Q1Fill in the blanks. WTO was started at the initiative of __________ countries. The aim of the WTO is to ____________________. WTO establishes rules regarding ________________ for all countries, and sees that ___________________. In practice, trade between countries is not ______________________________. Developing countries like India have ___________________, whereas developed countries, in many cases, have continued to provide protection to their producers.
- LW 4.7 Q2What do you think can be done so that trade between countries is more fair?
- LW 4.7 Q3In the above example, we saw that the US government gives massive sums of money to farmers for production. At times, governments also give support to promote production of certain types of goods, such as those which are environmentally friendly. Discuss whether these are fair or not.
Impact of Globalisation in India
9 q
Let's Work These Out
Practice · 9
- LW 4.8 Q1How has competition benefited people in India?
- LW 4.8 Q2Should more Indian companies emerge as MNCs? How would it benefit the people in the country?
- LW 4.8 Q3Why do governments try to attract more foreign investment?
- Read the passage and answer the questions. Ravi did not expect that he would have to face a crisis in such a short period of his life as industrialist. Ravi took a loan from the bank to start his own company producing capacitors in 1992 in Hosur, an industrial town in Tamil Nadu. Capacitors are used in many electronic home appliances including tube lights, television etc. Within three years, he was able to expand production and had 20 workers working under him. His struggle to run his company started when the government removed restrictions on imports of capacitors as per its agreement at WTO in 2001. His main clients, the television companies, used to buy different components including capacitors in bulk for the manufacture of television sets. However, competition from the MNC brands forced the Indian television companies to move into assembling activities for MNCs. Even when some of them bought capacitors, they would prefer to import as the price of the imported item was half the price charged by people like Ravi. Ravi now produces less than half the capacitors that he produced in the year 2000 and has only seven workers working for him. Many of Ravi's friends in the same business in Hyderabad and Chennai have closed their units.LW 4.9 Q1What are the ways in which Ravi's small production unit was affected by rising competition?
- Read the passage and answer the questions. Ravi did not expect that he would have to face a crisis in such a short period of his life as industrialist. Ravi took a loan from the bank to start his own company producing capacitors in 1992 in Hosur, an industrial town in Tamil Nadu. Capacitors are used in many electronic home appliances including tube lights, television etc. Within three years, he was able to expand production and had 20 workers working under him. His struggle to run his company started when the government removed restrictions on imports of capacitors as per its agreement at WTO in 2001. His main clients, the television companies, used to buy different components including capacitors in bulk for the manufacture of television sets. However, competition from the MNC brands forced the Indian television companies to move into assembling activities for MNCs. Even when some of them bought capacitors, they would prefer to import as the price of the imported item was half the price charged by people like Ravi. Ravi now produces less than half the capacitors that he produced in the year 2000 and has only seven workers working for him. Many of Ravi's friends in the same business in Hyderabad and Chennai have closed their units.LW 4.9 Q2Should producers such as Ravi stop production because their cost of production is higher compared to producers in other countries? What do you think?
- Read the passage and answer the questions. Ravi did not expect that he would have to face a crisis in such a short period of his life as industrialist. Ravi took a loan from the bank to start his own company producing capacitors in 1992 in Hosur, an industrial town in Tamil Nadu. Capacitors are used in many electronic home appliances including tube lights, television etc. Within three years, he was able to expand production and had 20 workers working under him. His struggle to run his company started when the government removed restrictions on imports of capacitors as per its agreement at WTO in 2001. His main clients, the television companies, used to buy different components including capacitors in bulk for the manufacture of television sets. However, competition from the MNC brands forced the Indian television companies to move into assembling activities for MNCs. Even when some of them bought capacitors, they would prefer to import as the price of the imported item was half the price charged by people like Ravi. Ravi now produces less than half the capacitors that he produced in the year 2000 and has only seven workers working for him. Many of Ravi's friends in the same business in Hyderabad and Chennai have closed their units.LW 4.9 Q3Recent studies point out that small producers in India need three things to compete better in the market: (a) better roads, power, water, raw materials, marketing and information network (b) improvements and modernisation of technology (c) timely availability of credit at reasonable interest rates. - Can you explain how these three things would help Indian producers? - Do you think MNCs will be interested in investing in these? Why? - Do you think the government has a role in making these facilities available? Why? - Can you think of any other step that the government could take? Discuss.
- LW 4.10 Q1In what ways has competition affected workers, Indian exporters and foreign MNCs in the garment industry?
- LW 4.10 Q2What can be done by each of the following so that the workers can get a fair share of benefits brought by globalisation? (a) government (b) employers at the exporting factories (c) MNCs (d) workers.
- LW 4.10 Q3One of the present debates in India is whether companies should have flexible policies for employment. Based on what you have read in the chapter, summarise the point of view of the employers and workers.
Exercises
15 q
- Ex 4 Q1What do you understand by globalisation? Explain in your own words.
- Ex 4 Q2What were the reasons for putting barriers to foreign trade and foreign investment by the Indian government? Why did it wish to remove these barriers?
- Ex 4 Q3How would flexibility in labour laws help companies?
- Ex 4 Q4What are the various ways in which MNCs set up, control or produce in other countries?
- Ex 4 Q5Why do developed countries want developing countries to liberalise their trade and investment? What do you think should the developing countries demand in return?
- Ex 4 Q6“The impact of globalisation has not been uniform.” Explain this statement.
- Ex 4 Q7How has liberalisation of trade and investment policies helped the globalisation process?
- Ex 4 Q8How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.
- Ex 4 Q9Globalisation will continue in the future. Can you imagine what the world would be like twenty years from now? Give reasons for your answer.
- Ex 4 Q10Supposing 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?
- Ex 4 Q11Fill 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.
- Ex 4 Q12Match the following.
Column A Column B (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.Ex 4 Q13 (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.
- Choose the most appropriate option.Ex 4 Q13 (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.
- Choose the most appropriate option.Ex 4 Q13 (iii)Globalisation has led to improvement in living conditions
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