Page 116 - Understanding Economics for Class 10

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