Page 109 - Understanding Economics for Class 10

 Workers are hired by companies flexibly for short periods when there is intense pressure
of work. It means workers are not hired on regular basis. The main motive to do so is
to reduce the labour cost for the company. After all this, still more flexibility in laws are
demanded by foreign companies.
Goyal Brothers Prakashan
LET’S WORK THESE OUT (Page No. 67)
1. How has competition benefited people in India?
Ans. Globalisation has brought competition among producers - both local and foreign producers.
This competition has benefited people in India in many ways:
(i) It has proved to be advantageous to consumers specially the well-off people in urban
areas.
(ii) More choices of goods at lower price and of improved quality are available to these
consumers.
(iii) Hence, better standard of living is enjoyed by these people than earlier.

2. Should more Indian companies emerge as MNCs? How would it benefit the people in
the country?
Ans. yes, more Indian companies should emerge as MNCs. This will help those companies to
expand their trade in the markets of other countries across the world.
It will benefit the people in the country as well in the following ways:
(i) This will help in increasing the job opportunities for the people.
(ii) Large companies who are emerging as MNCs are making use of better technology in
production and hence are able to provide people with better quality goods at cheaper
rates.
(iii) With the help of MNCs, Indian economy would become stronger.

3. Why do governments try to attract more foreign investment?
Ans. Governments try to attract more foreign investment because:
(i) With the help of foreign investment, more employment opportunities can be created
in the country.
(ii) Big MNCs bring new and updated technology to the country providing better quality
goods at low prices.

4. In Chapter 1, we saw what may be development for one may be destructive for others.
The setting of SEZs has been opposed by some people in India. Find out who are these
people and why are they opposing it.
Ans. People who will oppose the setting of SEZs are:
(i) The rural people and the tribal people- most of the SEZs are set up in rural areas.
So these people are afraid that their land can be acquired for setting SEZs and hence
will lose their livelihood.
(ii) People who are producing same goods and services outside SEZs as produced by
those who are inside SEZs. In SEZs various facilities and tax concessions are given
which are not given to those who are producing outside SEZs. These people will lose
out in competition with them.

Economics Class X E-95