Page 116 - Understanding Economics for Class 10
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Example: Post 1991, Due to globalisation, Numerous MNC’s have entered India like Apple,
                            Microsoft, Pepsi, Mc Donalds, Coke, etc.


                         9.  Globalisation will continue in the future. Can you imagine what the world would be like twenty
               Goyal Brothers Prakashan
                            years from now? Give reasons for your answer.
                         Ans.  Globalisation will continue in the future as well. Twenty years from now,

                            (i) The production of  goods  will  be  more  efficient  due  to adoption  of  latest  cost saving
                               technology.
                           (ii) Since,  every  country wants to  attract  foreign  investment,  Competition  in the  market  will
                               increase.
                           (iii) There will be advancement in every field.
                           (iv) Quality and quantity of goods produced will also increase as rising competition will
                               encourage everyone to produce at low cost.
                           (v) Small industries and entrepreneurs will increase as more opportunities are provided to them.


                         10.  Supposing you find two people arguing: One is saying globalisation  has hurt our country’s
                            development.  The other is telling, globalisation is helping India develop. How would you
                            respond to these arguments?
                         Ans.  Globalisation has both positive and negative effects. The positive effects are:
                            (i) Improved trade opportunities and an increase in the number of employed because of large-
                               scale industries. The profit market has increased, and imports and exports have increased
                               in the nation’s economy.
                           (ii) People have more choices for goods and can buy goods that are made across the world at
                               lower prices.
                           (iii) Globalisation has raised the standard of living.
                             The negative effects of globalisation are:

                            (i)  A disproportionate increase in the income of the rich and a corresponding decrease in the
                               income  of the  poor because  the  small-scale  local  industrialists  are  unable  to  earn  much
                               profit. Thereby increasing income inequality.
                           (ii) Workers’ jobs are no longer secure, because of the growing competition, these days most
                               employers prefer to employ workers ‘flexibly’.


                         11.  Fill in the blanks.
                            Indian buyers have a greater choice of goods than they did two decades back. This is closely
                                                            (i)
                            associated with the process of ______________. Markets in India are selling goods produced
                                                                                 (ii)
                            in many other countries. This means there is increasing ______________ with other countries.
                            Moreover, the rising number of brands that we see in the markets might be produced by MNCs
                                                                                                 (iii)
                            in  India. MNCs are  investing in  India  because  _____________ _______________________
                            ____________________ .  While  consumers have more choices  in the market,  the effect  of
                                       (iv)
                                                                                             (vi)
                                                             (v)
                            rising _______________ and ______________has meant  greater  _________________among
                            the producers
                       Ans.  (i) Globalisation                           (ii)  trade
                           (iii) cheaper cost of production              (iv)  demands
                            (v) purchasing power                         (vi)  competition



             E-102                                                                                      Economics  Class X
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