United Indian school – Kuwait

Grade 10
Economics notes
Online teaching – PART 1
CHAPTER 4 (ECONOMICS)
GLOBALIZATION AND THE INDIAN ECONOMY
1. How have our market have transformed? Explain with examples.
i) We have wide choice of goods and services before us
ii) The latest models of digital cameras, mobile phones and televisions made by
leading manufacturing of the world are within our reach.
iii) Examples: every season new models of automobiles can be seen on Indian roads
iv) Today, Indians are buying cars produced by nearly all the top companies in the
world.
v) Similar explosion of brands can be seen for many other goods; from shirts to
television to processed fruit juices.
2. Explain any three ways in which MNCs have spread their production and interaction with
local producers in various countries.
i) By setting up partnership with local companies
ii) By placing order with local companies for example, garments, footwear, sports
etc.,
iii) By closely competing with local companies
iv) By buying local companies example buying Cargil foods by American Food
Company Parakh food.
3. Where do MNCs setup their production units? Explain.
i) MNCs setup production units at such a place where they can produce their goods
at a minimum cost
ii) They place where markets are closer.
iii) The place where skilled and unskilled labour are available at low cost
iv) Other factors of production are assured
v) Government policies are favorable.
4. What is foreign investment?
The investment made by MNCs is called foreign investment.
5. Describe the role of technology in promoting globalization process.
i) This has made much faster delivery of goods across long distances possible at
lower costs.
ii) Even more remarkable have been the development in information and
communication technology.
iii) Technology in the areas of telecommunications, computers, and internet have
been changing rapidly.
iv) Telecommunication facilities are used to contact one another around the world.
 v) This has been facilitated by satellite communication devices.
6. How does foreign trade integrate the markets of different countries? Explain with
example.
i) Foreign trade creates an opportunity for the producers to reach beyond the
markets.
ii) Producers can sell their products in the markets located in other countries
iii) It helps for expanding the choice of goods beyond domestic market.
iv) It is the main channel connecting countries
v) Highly helpful for extensive trade
vi) The trading interest attracts various trading companies.
7. What is globalization?
Globalization is the process of rapid integration or interconnection between countries
through foreign trade and foreign investment by MNCs.
8. Describe three ways in which countries can be linked through globalization.
i) By movement of goods
ii) By movement of services
iii) By movement of investment
iv) By movement of technology
v) By the movement of people between country.
9. How do the MNCs help in the growth of local companies?
i) MNCs are spreading production and interacting with local producers in various
countries across the globe.
ii) By setting up partnership with local companies
iii) By using the local companies for supply
iv) By closely competing with the local companies or buying them
10. MNCs are playing a major role in the ………process.
Globalization