Ans: Globalisation means the process of rapid integration or interconnection between countries. It involves:

• Greater foreign trade — exchange of goods and services between countries.
• Greater foreign investment — MNCs investing in production facilities in other countries.
• Movement of technology, people and information across borders.
• Integration of production and markets across countries.

MNCs play a major role in globalisation by setting up factories and offices in different countries, buying local companies, and controlling production and trade. Globalisation has increased competition among producers and given consumers a greater choice of goods and services at lower prices.

Ans: Reasons for putting barriers to foreign trade and foreign investment after Independence:

• To protect domestic producers from foreign competition.
• Industries were just coming up in the 1950s and 1960s, and competition from imports would not have allowed them to grow.
• India allowed imports of only essential items like machinery, fertilisers and petroleum.

Reasons for removing these barriers around 1991:

• The government felt that the time had come for Indian producers to compete with producers around the globe.
• Competition would improve the performance of domestic producers as they would have to improve their quality.
• This decision was supported by powerful international organisations like the WTO.
• Removing barriers would allow goods to be imported and exported easily and foreign companies to set up factories and offices in India.

Ans: Flexibility in labour laws would help companies in the following ways:

• They can hire workers for short periods when there is intense pressure of work, instead of hiring them on a regular basis.
• They can reduce the cost of labour by not paying workers for the whole year.
• They can avoid providing benefits like provident fund, gratuity and medical facilities.
• They can adjust the workforce according to the demand for their products.
• They can compete better with other companies and increase their profits.

However, flexibility in labour laws reduces job security and benefits for workers.

Ans: MNCs set up, control or produce in other countries in the following ways:

• Setting up factories and offices: They set up production units in regions where they can get cheap labour and resources.
• Joint production with local companies: They form partnerships with local companies, providing money for investment and bringing the latest technology.
• Buying up local companies: They buy existing local companies and expand production. Example: Cargill Foods bought Parakh Foods.
• Placing orders with small producers: They place orders for production with small producers around the world and sell the products under their own brand names.
• Controlling price, quality and labour conditions: Large MNCs have tremendous power to determine these for distant producers.

Ans: Why developed countries want developing countries to liberalise trade and investment:

• So that their companies and MNCs can invest in developing countries and earn more profits.
• So that they can sell their goods and services in the large markets of developing countries.
• So that they can get cheap labour and resources from developing countries.
• So that they can remove barriers to their exports and investments.

What developing countries should demand in return:

• Developed countries should remove their own trade barriers and subsidies.
• They should allow fair access to their markets for products from developing countries.
• They should provide technology and financial support to developing countries.
• They should follow WTO rules equally and not protect their own producers unfairly.
• They should support fair globalisation that benefits all countries.

Ans: The statement "the impact of globalisation has not been uniform" means that globalisation has benefited some people while harming others. This can be explained as follows:

Benefited:

• Well-off consumers in urban areas have a greater choice of goods and services at lower prices.
• Producers with education, skill and wealth have made the best use of new opportunities.
• New jobs have been created in industries like cell phones, automobiles, electronics and IT.
• Some Indian companies have emerged as multinationals.

Harmed:

• Small producers and workers have faced major challenges due to competition.
• Many small units have shut down, rendering workers jobless.
• Workers are employed flexibly with no job security and low wages.
• Small farmers and producers have been hit hard by cheap imports.

Thus, globalisation has not benefited everyone equally, and its impact has been uneven.

Ans: Liberalisation of trade and investment policies has helped the globalisation process in the following ways:

• It has removed barriers on foreign trade and foreign investment.
• Goods can now be imported and exported easily.
• Foreign companies can set up factories and offices in India.
• Businesses are allowed to make free decisions about imports and exports.
• It has increased foreign investment by MNCs.
• It has led to greater integration of production and markets across countries.

Thus, liberalisation has been a major factor enabling globalisation.

Ans: Foreign trade leads to integration of markets across countries in the following ways:

• Goods travel from one market to another, increasing the choice of goods for buyers.
• Prices of similar goods in the two markets tend to become equal.
• Producers in the two countries compete against each other.
• This connects the markets and integrates them.

Example: Suppose India imports mobile phones from China. Indian consumers now have a choice between Indian and Chinese mobile phones. If Chinese phones are cheaper, Indian companies will have to reduce their prices to compete. As a result, prices of mobile phones in India and China will tend to become similar. This integrates the mobile phone markets of the two countries.

Ans: Twenty years from now, the world is likely to be even more globalised. Some possibilities are:

• Greater integration: Countries will be more closely connected through trade, investment and technology.
• More MNCs: More companies from developing countries like India will become multinationals.
• Advanced technology: Information technology, artificial intelligence and robotics will spread further, making communication and production even faster and cheaper.
• More services traded: Services like education, healthcare, accounting and software will be traded more across countries.
• Environmental concerns: There will be greater focus on sustainable development and fair globalisation.
• Movement of people: People may move more between countries for jobs and education, though restrictions may continue.

However, the benefits of globalisation will depend on how fairly it is managed by governments and international organisations.

Ans: Both arguments have some truth. I would respond by saying that globalisation has both positive and negative effects on India's development:

Globalisation is helping India develop:

• Consumers have more choices and better quality goods at lower prices.
• New jobs have been created in IT, automobiles, electronics and services.
• Indian companies have improved their technology and become multinationals.
• Foreign investment has brought capital and technology to India.

Globalisation has hurt India's development:

• Small producers and workers have suffered due to competition.
• Many small units have shut down, causing unemployment.
• Workers face insecure jobs and low wages.
• Small farmers have been affected by cheap imports.

Therefore, globalisation is neither completely good nor completely bad. The need is to make it fairer so that its benefits are shared by all sections of society. The government should protect the interests of small producers and workers while taking advantage of the opportunities offered by globalisation.

Ans: Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of globalisation. Markets in India are selling goods produced in many other countries. This means there is increasing integration with other countries. Moreover, the rising number of brands that we see in the markets might be produced by MNCs in India. MNCs are investing in India because they can get cheap labour and other resources, and India provides a large market for their goods and services. While consumers have more choices in the market, the effect of rising competition and imports has meant greater competition among the producers.

Ans: The correct matches are:

Ans:

(i) The correct answer is (b) goods, services and investments between countries.

(ii) The correct answer is (b) buy existing local companies.

(iii) The correct answer is (d) none of the above.

Globalisation has not improved living conditions for all people. It has benefited well-off consumers and skilled workers, but many small producers and workers have suffered. Therefore, the improvement has not been uniform.

Ans: This is a project activity. Students should:

• Make a list of branded products they use daily, such as soaps, toothpaste, garments and electronic goods.
• Find out which of these brands are owned by MNCs. For example, brands like Dove, Pepsodent, Nike, Samsung and Nokia are produced by MNCs.
• Choose any Indian industry or service, such as the garment industry, IT industry, automobile industry or tourism.
• Collect information and photographs from newspapers, magazines, books, television, the internet and interviews with people.
• Prepare a report covering all the aspects mentioned in the question.
• Present the findings in a wall chart or project file.

This activity helps students understand the practical aspects of globalisation and its impact on Indian industries and workers.