Unit 4 Ch 4 : Globalization and the Indian Economy — Social Studies STD 10 — Question

Read the sources given below and answer the questions that follow.

Source A- Production across countries:

Until the middle of the twentieth century, production was largely organised within countries. What crossed the boundaries of these countries were raw material, food stuff and finished products. Colonies such as India exported raw materials and food stuff and imported finished goods. Trade was the main channel connecting distant countries. This was before large companies called multinational corporations (MNCs) emerged on the scene.

Source B- Foreign trade and integration of markets:

Foreign trade creates an opportunity for the producers to reach beyond the domestic markets, i.e., markets of their own countries. Producers can sell their produce not only in markets located within the country but can also compete in markets located in other countries of the world. Similarly, for the buyers, import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced.

Source C- Impact of globalisation in India:

Globalisation and greater competition among producers - both local and foreign producers - has been of advantage to consumers, particularly the well-off sections in the urban areas. There is greater choice before these consumers who now enjoy improved quality and lower prices for several products. As a result, these people today, enjoy much higher standards of living than was possible earlier.

Questions:

1. How are MNCs a major force in connecting the countries of the world? (Source A - Production across countries).
2. How does foreign trade become a main channel in connecting countries? (Source B - Foreign trade and integration of markets).
3. How is globalisation beneficial for consumers? (Source C - Impact of globalisation in India).