Page 118 - Understanding Economics for Class 10

(ii) Is the product exported to other countries?
(iii) Are there MNCs among the producers?
(iv) Competition in the industry
(v) Conditions of work in the industry
Goyal Brothers Prakashan
(vi) Has there been any major change in the industry in
the past 15 years?
(vii) Problems that people in the industry face.
Ans. Let us take the example of Telecommunication industry
in India. It is a service industry.
(i) vodafone, Airtel, Jio
(ii) yes, telecom services are exported to other countries
like Airtel is providing service in Africa as Airtel Africa.
(iii) yes Airtel and vodafone are MNCs
(iv) yes, there is cut throat competition among the three companies
(v) It comes in oraganised sector, hence working conditions are decent.
(vi) yes, there has been major changes in the industry in the past 15 years like
CDMA technology has disappeared from the market
 Constant upgradation of spectrum from 2G to 3G to 4G and now to 5G
 Big companies have forced all the small operators to shut down their business like
Aircel, reliance etc.
(vii) Problems are: Shrinking margins and customer retention.

ADDITIONAL QUESTIONS

I. Multiple choice Questions
1. Special Economic Zones (SEZ) developed by the Government of India aim
(a) to attract foreign companies to invest in India
(b) to encourage small investors
(c) to encourage regional development
(d) none of the above
Ans. (a) to attract foreign companies to invest in India

2. Which one among the following is a far reaching change in the policy made in India in
1991?
(a) removing barriers or restrictions set by the government which is known as liberalisation.
(b) Put barriers to foreign trade and foreign investments.
(c) restrictions set by the government to protect the producers within the country from
foreign competition.
(d) By giving protection to domestic producers through a variety of means.
Ans. (a) removing barriers or restrictions set by the government which is known as liberalisation.

3. Why do MNCs set up offices and factories in more than one nation?
(a) The cost of production is high and the MNCs can earn profit.
(b) The cost of production is low and the MNCs undergoes a loss.
(c) The cost of production is low and the MNCS can earn greater profit.
(d) The MNCs want to make their presence felt globally
Ans. (c) The cost of production is low and the MNCS can earn greater profit.

E-104 Economics Class X