Globalisation
Positive Impacts
(i) CHOICE OF PRODUCT- Globalisation have been advantage to consumers as have the choice of product prices.
As a they with improved quality and a result, these people today enjoy much higher standards of living than was
possible earlier.
(ii)NEW JOBS AND SERVICES- MNCs have been interested in industries which produces automobiles, electronics
etc. They invest in them and create hew jobs and services. Also, local companies supplying raw material etc to
these industries have prospered
(iii) EXPANSION OF LOCAL MARKETS – Foreign trade Creates an opportunity for producers to reach beyond the
domestic market. Producers can sell there produce not only in the markets located in India but can also compete in
the markets located in other countries
(iv) LARGE COMPANIES BECOMING MNCS – Globalisation has enabled some large Indian Companies to become
MNs. Eg- TATA Motors (Automobiles) Infosys (IT), Ranbaxyn (Medicines)
(v) INTRODUCTION OF NEW TECHNOLOGY – With the expansion of Foreign Trade, more MNCs enter the
market. They bring more foreign investment and latest technology with them. It improves the production in the
country done. Hence contributes in economic development.
Negative Impacts
(a) SMALL PRODUCERS COMPETE OR PERISH – With the arrival of MNCs sometimes small producers are not
able to compete, thus they perish. Eg - Indian toy producing company as the market is flooded Chinese toys and
then these Indian companies perish
(b) UNCERTAIN EMPLOYMENT FOR WORKERS-
(i) Faced with growing competition, most employers these days prefer to employ workers flexibly. This means that
workers jobs are no longer secure.
(ii) In most of the MNC only skilled and educated workers have gained while small workers are under stress as they
are getting exploited.
(iii) Workers are denied there fare share of benefits earned by MNCs
(iv) Conditions of workers in organized sectors have come to resemble the unorganized sector workers. In
organized sector no longer gets the protection and benefits they enjoyed earlier.
Role of liberalization in the globalisation (Removing barriers or restrictions set by government is known as
liberalization. Starting around 1991, Indian government made some far reaching changes in policy.)
i. Liberalization of trade, business are allowed to make decisions freely.
ii. It has promoted free import.
iii. It has promoted free export
iv Foreign companies could set up factories.
v. Foreign investment are encouraged.
vi. Enable the use of latest Technology
vii. Local companies can works as a MNC’s.
viii. Production of services can be spread easily.
ix. Foreign trade can be integrated.
x. It strength the production and market
Globalisation is the process of rapid integration or interconnection between countries. Explain the
statement with examples.
i. Globalisation has encouraged foreign investments.
ii. MNCs set up production close to the markets and availability of skilled and unskilled labour at low costs.
iii. MNCs will choose countries which have policies which enable easy operations.
iv. MNCs set up production jointly with local companies.
v. There is better exchange of technologies.
vi. Globalisation has increased the interdependence between countries.
vii. Consumers have more access to global products.
viii. Globalisation helps the integration of markets of the countries.
ix. It makes countries culturally rich.
x. Sharing technology between countries benefitted human being.
xi. Kargil foods, Reliance Industries are the prime examples of industries which are help to integrate the countries.
Economics Questions (Latest Pattern)
Ques 1 A farmer has borrowed money from a money lender at a high rate of interest, as he could not pay the
interest, he was forced to borrow from another landlord to settle the amount for the interest borrowed to the money
lender. State the consequences he may face in this situation. (5)
Ques 2 Miss X wants to start a savoury food store in her village. She wants to supplement her income to raise the
standard of living of her family. How, do you think, self-help groups can help, support your answer with reasons? (5)
Ques 3 “Agriculture gives boost to the industrial sector’. Justify the statement with any three relevant points. (3)
Ques 4 Mr Pawan, a village head wanted to create more job opportunities to increase the income of the people of
his village under MNREGA act, Suggest any three activities, so that Mr Pawan could initiate in his village. (3)
Ques 5 A worker in an urban area, who was working in a small factory, was not paid his wages properly, he was
forced to work extra hours under poor working conditions, there was no job security, recently he lost his job and
was found selling electrical items in a pushcart. Analyze the role of the government in protecting the workers
working in an Unorganized sector. (5)
Ques 6 Mr.Y from a city in India visits a rural area and finds five people working in a small agricultural farm. More
than two people are not required to work in the farm and removing the other three will not affect production. How
can one solve this problem of underemployment in rural areas? Explain. (3)
Ques 7 Sunil and Raman did their graduation from the same college. Sunil got employed in an unorganised sector
and was not satisfied whereas Raman got employed in an organised sector and was happy and satisfied. Identify
three reasons for Sunil’s dissatisfaction as compared to Raman. (5)
Ques 8 Money by providing the crucial intermediate step eliminates the need for double coincidence of wants.
Justify the statement highlighting the significance of the modern form of money in India. (5)
