After twenty years, world would undergo a positive change which will possess the following features— healthy competition, improved productive efficiency, increased volume of output, income and employment, better living standards, greater availability of information and modern technoloy.
Reason for the views given above : These are the favourable factors for globalisation :
→ Availability of human resources both quantitywise and qualitywise.
→ Broad resource and industrial base of major countries.
→ Growing entrepreneurship
→ Growing domestic market.

Benefits of globalisation of India :
→ Increase in the volume of trade in goods and services
→ Inflow of private foreign capital and export orientation of the economy.
→ Increases volume of output, income and employment.

Negative Impact / Fears of Globalisation.
→ It may not help in achieving sustainable growth.
→ It may lead to widening of income inequalities among various countries.
→ It may lead to aggravation of income inequalities within countries.
Whatever may be the fears of globalisation, I feel that it has now become a process which is catching the fancy of more and more nations. Hence we must become ready to accept globalisation with grace and also maximise economic gains from the world market.

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.

Answer

Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of globalisation. Markets in India are selling goods produced in many other countries. This means there is increasing trade 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 of cheaper production costs. While consumers have more choices in the market, the effect of rising demand and purchasing power has meant greater competition among the producers.

(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

 

 

ans (i) b (ii) e(iii) d (iv) c (v) a

(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.
ANS (b) goods, services and investments 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.
ANS (b) buy existing 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
ANS (d) none of the above

1. MNC stands for
(i) Multinational Corporation (ii) Multination Corporation
(iii) Multinational Cities (iv) Multinational Council

2. Investment made by MNCs is called
(i) Investment (ii) Foreign Trade
(iii) Foreign Investment (iv) Disinvestment

3. Process of integration of different countries is called
(i) Liberalisation (ii) Privatisation
(iii) Globalisation (iv) None of the above

4. MNCs do not increase
(i) Competition (ii) Price war (iii) Quality (iv) None of the above

5. This helps to create an opportunity for the producers to reach beyond the domestic market
(i) Foreign trade (ii) Domestic trade (iii) Internal trade (iv)Trade barrier

6. Foreign Trade
(i) Increases choice of goods (ii) Decreases prices of goods
(iii) Increases competition in the market (iv) Decreases earnings

7. Globalisation was stimulated by
(i) Money (ii) Transportation (iii) Population (iv) Computers

8. Production of services across countries has been facilitated by
(i) Money (ii) Machine (iii) Labour (iv) Information and communication technology

9. Tax on imports is an example of
(i) Investment (ii) Disinvestment (iii) Trade barrier (iv) Privatisation

10. Liberalisation does not include
(i) Removing trade barriers (ii) Liberal policies
(iii) Introducing quota system (iv) Disinvestment 

Answer Key of MCQ:1(i) 2(iii) 3(iii) 4(iv) 5(i) 6(iv) 7(ii) 8(iv) 9(iii) 10(iii) 

Four functions of WTO are:
(i) Administering trade agreements between nations. (ii) Forum for trade negotiations.
(iii) Handling trade disputes. (iv) Maintaining national trade policy.

The impact of WTO on Indian economy is:
 (i) An opportunity to India for trading with other member countries.
(ii) Availability of foreign technology to India at a reduced cost. 
(iii) Many laws of WTO are unfavorable to the developing countries like India.
(iv) Certain clauses of WTO agreement on agriculture put restrictions on the provision of subsidized food grains in India.