Page 126 - Understanding Economics for Class 10

2. How can the government of India play a major role to make globalisation more fair?
Ans. We have seen that everyone has not benefited from globalisation. People with education,
skill and wealth have made the best use of new opportunities. On the other hand, there are
many people who have not shared the benefits. It is therefore, we need fair globalisation.
Goyal Brothers Prakashan
The government can work for the cause of fair globalisation in the following ways—
(i) It can make policies to protect the interests, not only of the rich and powerful, but all
the people in the country.
(ii) The government can ensure that labour laws are properly implemented and the workers
get their rights.
(iii) It can support small producers to improve their performance till the time they become
strong enough to compete.
(iv) If necessary, the government can use trade and investment barriers.

(v) It can negotiate at the WTO for fairer rules. It can also align with other countries with
similar interests to fight against the domination of developed countries in the WTO.

3. How do we feel the impact of globalisation on our everyday life. Explain with examples
Ans. We feel the impact of globalisation on our everyday life.
(i) The products which we are using right from the morning till night are almost produced
by MNCs. Toothpaste, soap, clothes we wear, car, food we eat, we can see the impact
of globalisation everywhere.
(ii) Consumers and businesses have more choices of goods and access to products that were
never available before from other countries. Example: among soaps consumers have
different brands like Dove, Pears etc. for Handbags: Gucci, Louis vuitton etc. these
are all brand of international companies.
(iii) In almost every field there is use of technology, which has become possible due to
globalisation. Example: in electronics like Tv: from black and white to colour Tv, from
normal Tv to LED. There are lot of examples where technology is evolving making
products better.
(iv) Due to increased competition, goods are available at cheap prices and of better quality.
Example: initially when mobile phones were introduced, they were purchased by only
upper class but now competition has led to new innovations at lesser price. Even a
rickshaw puller has mobile phones these days.
(v) New opportunities for financing are available and have access to worldwide financial market.
(vi) Our companies have reached to global markets selling their products and build a name
for themselves.
4. What is liberalisation? Explain its five effects on the Indian economy.
Ans. removing barriers or restrictions set by the government is known as liberalisation.
Comparatively less restrictions were imposed by government which allowed businesses to
make decisions freely about what they wish to import or export. Government becomes more
liberal in 1991.
Its effects on Indian economy are:
(i) Because of liberalization foreign investment in India increased
(ii) Since restrictions were removed from imports consumers get more choices of goods at
lower prices
(iii) More employment opportunities were also created in the country
(iv) New and updated technology is used in the production which has increased the efficiency
(v) However, small producers find it difficult to compete with foreign products (since goods
are moving freely in the country)

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E-112 Economics Class X