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Chapter Analysis
Intermediate20 pages • EnglishQuick Summary
The chapter 'Globalisation and the Indian Economy' explores the concept of globalisation, which is defined as the integration of economies through trade and investment. It discusses the role of multinational corporations (MNCs) in this process, and the impact of globalisation on various sectors in India. The chapter highlights both the positive aspects, such as increased consumer choice and technological advancement, and the negative impacts, like challenges faced by small producers.
Key Topics
- •Globalisation and MNCs
- •Impact of Foreign Trade
- •Role of WTO
- •Trade Liberalisation
- •Technological Advancements
- •Effects on Small Producers
- •Integration of Markets
- •Challenges and Opportunities
Learning Objectives
- ✓Understand the concept of globalisation and its driving factors
- ✓Identify the role and influence of MNCs in the global market
- ✓Recognize the impact of globalisation on Indian economy and society
- ✓Explain the role of WTO in globalisation
- ✓Assess the advantages and disadvantages of trade liberalisation
- ✓Evaluate the challenges faced by small producers due to globalisation
Questions in Chapter
What do you understand by liberalisation of foreign trade?
Page 19
How has liberalisation of trade and investment policies helped the globalisation process?
Page 17
What is foreign investment? How much did Ford Motors invest in India?
Page 15
Why do developed countries want developing countries to liberalise their trade and investment? What do you think should the developing countries demand in return?
Page 18
How did Ford Motors tap the advantage of the Indian market?
Page 15
Additional Practice Questions
Explain the impact of globalisation on small-scale industries in India.
mediumAnswer: Globalisation has increased competition, leading many small-scale industries to struggle and even shut down due to their inability to compete with larger firms and imported goods. This has resulted in job losses and economic difficulties for workers in these industries.
What role does the World Trade Organization (WTO) play in globalisation?
easyAnswer: The WTO establishes rules for international trade, aiming to facilitate free trade across countries. However, its rules have often been seen as favoring developed countries, as they maintain trade barriers while developing nations are pressured to eliminate theirs.
Discuss how foreign trade has led to integration of markets using an example different from those given in the chapter.
mediumAnswer: Foreign trade allows for the exchange of goods and services across borders, leading to market integration. For example, the coffee trade integrates markets of coffee-producing countries like Brazil with consumer markets in the United States and Europe, influencing prices and availability.
In what ways have technological advancements impacted globalisation?
mediumAnswer: Technological advancements, particularly in communication and transportation, have accelerated globalisation by making it easier and cheaper to trade goods, share information, and set up global production networks.
How can government policies make globalisation more fair?
hardAnswer: Governments can ensure fair globalisation by implementing policies that protect vulnerable industries, provide training and support for displaced workers, and negotiate for fairer international trade agreements.