Page 105 - Understanding Economics for Class 10

 How to design the magazine is instructed by the office in London to the designers in
Delhi through telecommunication facilities. The designing is done on a computer.
 The magazines are sent by air to London after printing. Payment for designing and printing magazine
is made by a bank in London to a bank in Delhi instantly through the Internet (e-banking).
Goyal Brothers Prakashan

LET’S WORK THESE OUT (Page No. 63)
1. In the above example, underline the words describing the use of technology in production.
Ans. The text of the magazine is sent through Internet to the Delhi office. How to design
the magazine is instructed by the office in London to the designers in Delhi through
telecommunication facilities. The designing is done on a computer. The magazines are
sent by air to London after printing. Payment for designing and printing magazine is made
by a bank in London to a bank in Delhi instantly through the Internet (e-banking).

2. How is information technology connected with globalisation? Would globalisation have
been possible without expansion of IT?
Ans. Information technology has helped in globalisation in many ways.
It helped in contacting one another around the world instantly and communicating from
remote areas is also made possible by IT. Telecommunication facilities (telegraph, telephone
including mobile phones, fax) has made people to connect to different corners of the
world. 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.
Without expansion of IT, globalisation would have taken a long time. It would be difficult
to send important information on time. Delaying in sending information would not have
enabled effective and profitable business.

Liberalisation of foreign trade and foreign investment policy
Let us take the example of imports of Chinese toys in India.
 Suppose the Indian government puts a tax on import of toys. It means those who want
to import these toys would have to pay tax on this. Imposition of tax will increase the
price of imported toys.
 The higher price paid by importer on toys would be passed on to the consumers. Consumers
in Indian markets will also have to pay higher prices. Chinese toys will no longer be
cheaper in the Indian market. This will reduce the imports from China.
 Indian toy makers would again be able to increase their sales and hence will prosper.
 Tax on imports is an example of trade barrier. Since some restrictions in the form of tax
has been imposed, it is called a barrier.
 To increase or decrease (regulate) foreign trade and to decide what kinds of goods and
how much of each, should come into the country, Governments can use trade barriers.
 Barriers have been put by Government on foreign trade and foreign investment to protect
the producers within the country from foreign competition after Independence.
 In the 1950s and 1960s, Industries were just coming up, at that stage if they had to
compete with imports, they would not have established themselves, as competition from
imports would have prevented these industries to come up.
 Thus, imports of only essential items such as machinery, fertilisers, petroleum etc. were
allowed in India.

Economics Class X E-91