Page 126 - Understanding Economics for Class 10
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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
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