Class 10 Social Science Chapter 22 Globalisation and the Indian Economy (Economics) PYQ

Class: X Subject: Social Science Session: 2025-26 Book: Economics Type: PYQ (Board Exam) Board: CBSE Chapter 4 : Globalisation and the Indian Economy

SECTION A : Multiple Choice Questions (1 Mark Each)

Q1. MNCs set up production where: [CBSE 2023] [1]
(a) Wages are high
(b) Close to markets, skilled labour, and low costs
(c) Government restricts them
(d) Only in developed countries Ans:
(b) Close to markets, skilled labour, and low costs. MNCs look for cheap labour, large markets, and favourable government policies. ______________________________________________________________________________________________________________________________

Q2. Which of the following has enabled globalisation? [CBSE 2024] [1]
(a) Information and communication technology
(b) Increase in taxes
(c) Reduced production
(d) Ban on trade Ans:
(a) Information and communication technology. IT, internet, telecom, and container shipping have dramatically reduced costs and time of cross-border trade. ______________________________________________________________________________________________________________________________

Q3. WTO stands for: [CBSE 2022] [1]
(a) World Trade Organisation
(b) World Travel Organisation
(c) Western Trade Office
(d) World Technology Organisation Ans:
(a) World Trade Organisation. Started in 1995, it sets rules for international trade. It aims to liberalise trade by removing barriers. ______________________________________________________________________________________________________________________________

Q4. Which of the following is NOT a way MNCs invest in a country? [CBSE 2021] [1]
(a) Buying local companies
(b) Setting up production jointly with local companies
(c) Placing orders with small producers
(d) Giving donations to government Ans:
(d) Giving donations to government. MNCs invest through joint ventures, buying local companies, placing orders with small producers, or setting up their own factories. ______________________________________________________________________________________________________________________________

Q5. What is meant by trade barrier? [CBSE 2020] [1]
(a) Physical barriers on roads
(b) Tax on imports to regulate foreign trade
(c) Language barriers
(d) Internet restrictions Ans:
(b) Tax on imports to regulate foreign trade. Governments use trade barriers like tariffs and quotas to protect domestic industries from cheap foreign competition. ______________________________________________________________________________________________________________________________

Q6. SEZ stands for: [CBSE 2023] [1]
(a) Special Education Zone
(b) Special Economic Zone
(c) Scheduled Employment Zone
(d) State Enterprise Zone Ans:
(b) Special Economic Zone. SEZs offer tax exemptions, flexible labour laws, and infrastructure to attract foreign investment and boost exports. ______________________________________________________________________________________________________________________________

Q7. Liberalisation of trade means: [CBSE 2022] [1]
(a) Increasing trade barriers
(b) Removing barriers to allow free flow of goods and services
(c) Banning imports
(d) Nationalising industries Ans:
(b) Removing barriers to allow free flow of goods and services. Indian government started liberalisation in 1991, reducing tariffs and opening up the economy. ______________________________________________________________________________________________________________________________

Q8. Which of the following has benefited from globalisation in India? [CBSE 2021] [1]
(a) Small producers
(b) IT industry
(c) Local toy makers
(d) Handloom weavers Ans:
(b) IT industry. India's IT sector has greatly benefited from globalisation, earning huge foreign exchange and providing millions of jobs. ______________________________________________________________________________________________________________________________

Q9. Foreign investment means: [CBSE 2020] [1]
(a) Investment by Indian companies abroad
(b) Investment by MNCs and foreign companies in India
(c) Government investment in defence
(d) Investment in gold Ans:
(b) Investment by MNCs and foreign companies in India. It includes setting up factories, buying shares of Indian companies, and joint ventures. ______________________________________________________________________________________________________________________________

Q10. Assertion
(a) : Globalisation has not been beneficial for all sections of society. Reason (R): Small manufacturers have faced competition from cheap imported goods. [CBSE 2024] [1]
(a) Both true and (R) correctly explains
(a)
(b) Both true but (R) does not explain
(a)
(c)
(a) is true but (R) is false
(d)
(a) is false Ans:
(a) Both are true and (R) correctly explains
(a) . Cheap Chinese imports have devastated small-scale industries in toys, textiles, and other sectors. ______________________________________________________________________________________________________________________________

SECTION B : Short Answer Questions (3 Marks Each)

Q11. How has information technology helped in globalisation? [CBSE 2024] [3] • Communication: Internet, email, and video conferencing have made instant communication across countries possible at almost zero cost. • Services Export: IT enabled India to export software and BPO services worth billions. Call centres, data processing, and software development flourished. • E-Commerce: Online platforms like Amazon, Flipkart connect producers and consumers globally. Digital payments make cross-border trade seamless.

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Q12. What are the various ways in which MNCs spread their production across countries? [CBSE 2023] [3] • Joint Ventures: MNCs partner with local companies to share investment, technology, and market access. E.g., Maruti-Suzuki in India. • Buying Local Companies: MNCs buy existing Indian companies to gain instant market access. E.g., Cargill Foods acquired Parakh Foods. • Placing Orders: MNCs place orders with small local producers for garments, footwear, and components. They provide design and supply to global markets.

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Q13. What is fair globalisation? How can government ensure it? [CBSE 2022] [3] • Meaning: Fair globalisation means its benefits should be shared more equally - not just benefit rich countries and large MNCs at the cost of small producers. • Government Role: Use trade barriers wisely to protect small producers, enforce labour laws, invest in education and health, and negotiate better WTO terms. • People's Movements: Workers' organisations and civil society must raise voice for fair wages, working conditions, and environmental protection in the globalised world.

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Q14. How has competition from imports affected Indian producers? [CBSE 2021] [3] • Small Industries Hit: Cheap Chinese imports of toys, textiles, and electronics devastated many small-scale Indian manufacturers who could not compete on price. • Job Losses: Many workers in batteries, plastics, capacitors, and other units lost jobs as factories shut down due to competition from cheap imports. • Some Benefited: However, large Indian companies in IT, automobiles, and pharmaceuticals have benefited from globalisation by accessing global markets.

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Q15. Explain the role of WTO in globalisation. [CBSE 2020] [3] • Trade Rules: WTO sets rules for international trade among its 164 member countries. It aims to make trade free and fair by removing barriers. • Pressure on Developing Countries: WTO has pushed developing countries like India to open markets. Developed countries often retain their protections while demanding openness. • Dispute Resolution: WTO provides a platform for resolving trade disputes between countries, though decisions often favour economically powerful nations.

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SECTION C : Long Answer Questions (5 Marks Each)

Q16. "Globalisation has been advantageous to consumers but not to all producers." Justify. [CBSE 2024] [5] Ans: Globalisation's uneven impact on Indian economy: • Consumer Benefits: Greater choice of goods, improved quality, and lower prices due to competition. MNCs bring latest technology and products. • Large Producers Benefit: IT companies, automobile firms, and pharmaceutical companies have expanded globally, increasing revenues and employment. • Small Producers Suffer: Small-scale manufacturers of toys, textiles, batteries face fierce competition from cheap imports, especially from China.

• Workers Affected: To compete globally, companies cut costs by reducing workers, lowering wages, or using contract labour with no job security. • Need for Fair Globalisation: Government must support small producers through technology, credit, and training while protecting their interests through smart trade policies. ______________________________________________________________________________________________________________________________

Q17. Explain the impact of globalisation on Indian economy. [CBSE 2023] [5] Ans: Globalisation has had a mixed impact on India: • Economic Growth: India's GDP has grown significantly since 1991 reforms. Foreign investment, trade, and IT exports have increased manifold. • Employment: New jobs created in IT, BPO, retail, and services. However, manufacturing employment has not grown proportionally. • Consumer Choice: Indians now have access to global brands, products, and services at competitive prices. Quality of goods has improved.

• Inequality: Benefits have been uneven. Urban educated professionals gained more than rural farmers. Rich got richer while many small producers lost livelihoods. • Cultural Impact: Western lifestyle, food, and fashion have influenced Indian culture. However, Indian culture (yoga, cuisine) has also spread globally. ______________________________________________________________________________________________________________________________

Q18. How has the Indian government tried to attract foreign investment? [CBSE 2022] [5] Ans: Government has taken many steps to attract foreign investment: • Liberalisation (1991): Removed trade barriers, reduced tariffs, and allowed FDI in most sectors. This opened India to global markets and MNCs. • SEZs: Special Economic Zones offer tax holidays, cheap infrastructure, and flexible labour laws to attract foreign companies to set up units. • Improved Infrastructure: Investment in roads, ports, airports, telecom, and digital infrastructure makes India an attractive destination for manufacturing.

• Flexible Labour Laws: In some cases, companies are given more flexibility in hiring and firing workers to reduce costs and compete globally. • Make in India: Campaign to position India as a global manufacturing hub. Simplified rules, single window clearance, and ease of doing business reforms. ______________________________________________________________________________________________________________________________

Q19. What is the role of MNCs in the globalisation process? Explain with examples from India. [CBSE 2021] [5] Ans: MNCs are the primary driving force of globalisation: • Production Spread: MNCs set up factories in countries with cheap labour and large markets. Samsung, Apple, and Toyota produce in India for domestic and export markets. • Investment: They bring foreign investment, advanced technology, and management practices. Ford, Hyundai, and Maruti-Suzuki transformed India's automobile sector.

• Supply Chains: MNCs create global supply chains. Indian garment producers, IT companies, and auto-parts makers are integrated into global MNC networks. • Employment: They create direct and indirect employment. IT companies like TCS, Infosys serve global MNC clients, employing millions of Indians. • Competition: MNC entry increases competition, improving quality and reducing prices. But it can also destroy local small-scale industries. ______________________________________________________________________________________________________________________________

Q20. "Foreign trade integrates markets in different countries." Explain with examples. [CBSE 2020] [5] Ans: Foreign trade is a key driver of globalisation: • Market Integration: When Chinese toys flood Indian markets, Indian and Chinese markets get connected. Producers compete across borders. • Price Equalisation: If Indian producers make cheaper garments, buyers worldwide will prefer them, equalising prices across markets. • Consumer Choice: Indian consumers can buy Japanese electronics, American software, and European cars. Trade expands choices beyond domestic production.

• Export Opportunities: Indian farmers export basmati rice, tea, spices globally. IT companies serve clients worldwide. Trade creates new income sources. • Interdependence: Countries become dependent on each other for goods, services, and technology. This integration brings both opportunities and challenges. ______________________________________________________________________________________________________________________________ --- End of Chapter 4 PYQ ---