Page 104 - Understanding Economics for Class 10

2. What are the various ways in which countries can be linked?
Ans. various ways in which countries can be linked are:
(i) Movement of goods between countries (import and export of goods)
(ii) Movement of services between countries like many countries have set up their call
Goyal Brothers Prakashan
centres in India.
(iii) Foreign investment is done by one country in another country like Ford Motors has
invested in India.
(iv) Movement of people between countries in search of better income, better jobs or
better education is also a way through which the countries can be connected.

3. Choose the correct option.
Globalisation, by connecting countries, shall result in
(i) lesser competition among producers.
(ii) greater competition among producers.
(iii) no change in competition among producers.
Ans. (iv) greater competition among producers.

FActors tHAt HAVe enABLed GLoBALIsAtIon
Technology
 One major factor that has stimulated the globalisation process, is rapid improvement in
technology. For instance, there has been improvement in transportation technology over
the past fifty years Due to this, delivery of goods has become faster across long distances
at lower costs.
 Developments in information and communication technology has also been remarkable.
 Technology in the areas of telecommunications, computers, Internet has been changing
rapidly in recent times.
 To contact one another around the world, to access information instantly and to
communicate from remote areas, Telecommunication facilities (telegraph, telephone
including mobile phones, fax) are used.
 Satellite communication devices facilitates the process of communication.
 Computers and use of internet has helped in obtaining and sharing information on
almost every field.
 Sending instant electronic mail (e-mail) and talk (voice-mail) across the world at
negligible costs has also become possible with the help of internet.
Containers for transport of goods
 In Containers, goods are placed safely and can be loaded intact onto ships, railways, planes
and trucks. There has been a huge reduction in port handling costs due to containers. It
has also increased the speed with which exports can reach markets.
 There has been a reduction in cost of air transport also, which has enabled much greater
volumes of goods being transported by airlines.

Information and communication technology (or IT in short) has played a major role in spreading
out production of services across countries. Let us see how.
Example-Using IT in Globalisation
 Printing of a magazine is done in Delhi however; it is done for publishing this magazine
in London. The text of the magazine is sent through Internet to the Delhi office.

E-90 Economics Class X