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1. Technology has been improved rapidly. 

2. Due to this, many revolutionary changes occurred in the fields of production, trade and especially in information and communication. 

3. Nowadays computer and internet has made the world a hamlet. 

4. After 1991, the barriers on foreign trade and foreign investment were removed to a large extent in India. 

5. This had speeded up the process of globalisation in India. 

6. The policies implemented by international organisations like WTO, promoted the interests of MNCs, all over the world.

Globalization means interconnecting the markets and countries also. 

Factors that helped globalization are: 

1.Technology: The development in Information and Communication Technology have been even more remarkable and rapid. Rapid improvement in technology has been one major factor that has stimulated the globalization process. 

2. Transportation: As a result, goods are delivered faster across long distances at lower costs. The Internet also allows us to send instant electronic mail and talk across the world at negligible costs. 

3. Liberalization of Foreign Trade: With the liberalization of trade, businesses are allowed to make decisions freely about what they wish to import or export. 

4. Liberalization of Foreign Investment: Due to this so many companies are going to invest on new products. 

5. Political climate: We must remember that political decisions are taken in a particular context, which accounts for the economic and technological change that has already taken place.

The following factors have stimulated the globalisation process.

1. Improvement in transportation: In the last fifty years, there have been a lot of improvements in transportation technology. This has made faster delivery of goods across long distances possible, at lower costs.

2. Development in information and communication technology: Technology in the areas of telecommunication and computers has been advancing rapidly.

3. Telecommunication: Telecommunication facilities like telephone, telegraph, mobiles, fax are used to connect people in the world. This has been made possible due to satellite communication devices.

4. Computers: They have now entered almost in every field of activity. In the amazing world of internet, we can obtain and share information on almost anything.

5. Internet: Internet also allows us to send instant electronic mail (e-mail) and talk (voice mail) across the world at negligible cost. Even the payment of money from one bank to another can be made through e-banking.

In 2013 several nations in Western Asia and Northern Africa like Tunisia, Egypt was influenced by each other’s revolutions and uprooting of dictators. This was called ‘Arab Spring’ in the media.

Globalization is a process of connecting countries across the globe. Technology, Liberalisation of foreign trade and investment, foreign investment policy, WTO and other global institutions led to this globalization.

An MNC is a multinational corporation, owns and controls production in more than one nation.

D) Parakh foods

Correct option is B) America

Cargill Foods, a very large American MNC, bought Parakh foods, which had a large marketing network in many parts of India. It was a well reputed company. It had four oil refineries, whose control passed to Cargill Foods. Cargill Foods is, now, the largest producer of edible oil in India, with a capacity of making 5 million pouches daily. 

A) Agriculture sector

Correct option: (b) China

MNCs do this so that the cost of production is low and they can earn greater profits.

B) Cargill Foods

Correct option is B) Locations

Correct option is B) Geneva

A) 1 – b, 2 – e, 3 – d, 4 – c, 5 – a

1. The given paragraph says that because of foreign companies opportunities are created and the producers send their goods to other markets also. 

2. The buyers also have the choice to select the commodities or goods whatever they like. 

3. Foreign trade helps in connecting markets of the globe. The international market system will be increased.

4. My comments on this paragraph are that many of the foreign products like Cocacola, Pepsi and other cool drinks are available in our country. 

5. Local coconuts and buttermilk are not being utilized.

6. Though there is a choice for buyers, they should think of their domestic market also. 

7. Foreign trade connects the markets in different countries. 

8. The integration of the market system doesn’t collapse the domestic economic system.

Intellectual property

1. According to the paragraph given, it says that the multinational companies invest for the production of goods jointly with the local companies. 

2. This additional investment is a sort of benefit for the local companies as they have access to technology. 

3. To some extent it is true. 

4. When foreign companies want to establish a new factory they bring some new technology and provide job opportunities for the local people. 

5. They utilize the local resources along with the human resource. 

6. The companies keep the local companies in their grip and gradually they lose their control on their own production. 

7. Some people say that multinational companies are helpful to local companies. 

8. It is true in the initial stage but in due course, it leads to downfall. 

9. So I don’t fully agree with this paragraph. 

10. The government should put barriers which are useful for the local companies.

Globalisation refers to the integration of an economy with the other country based on interdependence.

The NEP accords top priority to modern techniques and technologies. It also promotes computers and electronics industries. It has made the Indian industries dynamic.

The Indian government, after independence, had put barriers to foreign trade and foreign investment.

Around 1991, the government decided that the time had come for Indian producers to compete with producers around the globe

1. Liberalization 

2. Privatization 

3. Globalization.

1. There are better services in the communication sector. 

2. Many food processing companies have taken over the market.

For the protection of local manufacturers from the competition of producers of another country, the government imposes taxes on imported goods. This is called an import quota.

For the protection of local consumers, the government restricts giving limit of export of particular goods. This is called an export quota.

1. For a long time trade has been the main channel of connecting countries. 

2. India had trade routes to both East and West. 

3. It is different now, as the channel of connecting countries is now foreign trade. 

4. Foreign trade creates an opportunity for the producers to reach beyond the domestic markets. 

5. For buyers, foreign trade expands the choice of goods beyond what is domestically produced.

B) Increased Foreign Investment

Correct option is A) Trade

B) Removing barriers or restrictions set by the government.

A) Transportation

Globalisation refers to the rapid spread of goods and services, technology and information, ideas and culture, trade and interactions across the world. It is the connection of different parts of the world resulting in the expansion of international cultural, informational, economic and political activities. In the early 1990s, the term globalisation was used to include economic, political, sociocultural, technological and ideological changes that occurred in the world in the post cold war era. The world has become more interconnected due to advances in technology and communication. Events in one part of the world have an impact on other parts of the world.  Changes have taken place economically and culturally.

(a) Economic Issues:

Some economic changes that have occurred due to globalisation.

1. Free flow of finance and capital – Investments provide finance and help to build industries. Indian companies both private for e.g., Tatas and government e.g., ONGC have invested in many countries in Asia, Africa and Europe. Foreign companies have also invested in India in sectors like power plants, infrastructure projects, consumer food chains, etc. This free flow of capital is both ways i.e., India to foreign countries and vice- versa. Foreign investment especially in the infrastructure sector is essential.

2. Change in the concept of trade:

• WTO – It was established in 1995 to replace GATT. The WTO is the only agency that oversees the rules of international trade settles trade disputes and organises trade negotiations and agreements.
• The scope of the term ‘trade’ has widened to include not only traditional commodities like fruits, grains, minerals, oil, etc., but also services like banking, insurance and intellectual property like trademarks.
• Use of container cargo ships to carry huge amount of goods all over the world.

3. Rise of Transnational companies for e.g., Nestle, Unilever, etc., are operate in India. Even Indian multinational companies like Wipro, Bajaj, etc., are doing well. 

This affects the economy as follows:

• Labour market – MNC’s recruit skilled and semi-skilled employees for e.g., Indian labour is employed in West Asia, Europe, USA, etc., in industrial and service sectors.
• Small shops and industries – Those stores which are efficient, continue to thrive while some industries either sell out to MNC’s or shut down.
• Agricultural Sector – Many MNC’s have introduced new technology and opened up direct markets for Indian agricultural products for e.g., India exports spices, fish, etc., to many nations.

(b) Ideological Issues – During the Cold War, East European nations, Soviet Union and China followed socialist ideology where the public sector was important. USA and West European countries were capitalist and so the private sector was important. India followed Democratic Socialism and a ‘Mixed Economy’ where both public and private sector coexisted in the economic system.

Today, there is only one dominant ideological and economic system i.e., Market Economy. However, the nature of the market economy is determined by the ideology of that country for e.g., USA has ‘capitalist market economy’, many west European countries have ‘Welfare market economy’, China has ‘socialist market economy’. The Indian system is based on ‘economic liberalism’.

(c) Social and Cultural Issues – Today a ‘global cosmopolitan culture’ has emerged i.e movement of people across the world and public awareness of global issues. This is noticed in matters like values e.g., secularism, clothing, food choices, ways of celebrating festivals, etc. There is international awareness of India’s rich cultural and historical heritage.

Similarly, westernisation and urbanisation have influenced Indian society eg breakup of the traditional joint family and rise of individualism and materialism in the country.

(d) Technological issues – Rapid advances in global communication such as Internet, satellite communication etc brought in revolutionary changes in our lives. The internet has provided search engines like ‘Google’ to find out information and has enabled social networking through micro media like Instagram, Skype, etc. All these technologies are transnational and may be positively inclined e.g., NGO’s working for humanitarian issues or negatively inclined such as terrorist organisations.

Globalisation refers to the rapid spread of goods and services, technology and information, ideas and culture, trade and interactions across the world. It is the connection of different parts of the world resulting in the expansion of international cultural, informational, economic and political activities. In the early 1990s, the term globalisation was used to include economic, political, socio-cultural, technological and ideological changes that occurred in the world in the post cold war era. The world has become more interconnected due to advances in technology and communication. Events in one part of the world have an impact on other parts of the world. Changes have taken place economically and culturally.

The Positive aspects of globalisation are -

1. It creates more employment opportunities. 

2. It encourages free trade. 

3. It leads to better choice of goods and services to the consumer. 

4. It leads to wider investments in developing countries. 

5. It enhances efficiency of the tertiary sector i.e., banking and finance. 

6. It increases purchasing power of citizens and enhances their standard of living. 

7. It increases labour productivity and reduces capital-output ratio. 

8. It helps to increase efficiency in the production system.

The negative aspects of globalisation are -

1. Globalization promotes technological adaption to increase productivity but has also resulted in loss of jobs. 

2. Local/small scale industries cannot withstand competition from the MNC’s and may be bought off or shut down. 

3. Less developed countries may become dependent on the technologically superior countries. 

4. It has caused specialization of labour and so there are few employment opportunities for unskilled labour. 

5. It has led to increased gap between rich and poor nations. 

6. It may lead to overexploitation of resources and negatively impact the environment. 

7. It leads to the harmful effects of consumerism. 

8. It may lead to reduction in social welfare schemes in both developed and developing countries.

Participatory State advocates more involved forms of citizen participation and greater political representation than traditional representative democracy. It goes beyond traditional democratic practices wherein decisions are made by the majority. In a participatory State, all sections of the society are involved in the making of policy. Participatory State is beneficial as it gives citizens a central role in public policy through public discussion, negotiations, voting, etc. It emphasizes the importance of making citizens aware and providing for a form of communication which promotes political dialogue.

A) Rich countries

C) Indentured labourer

After independence, the Indian government had placed restrictions on foreign trade and foreign investment. This was to protect the domestic producers from foreign competition as the competition from imports would not have allowed these industries to develop. Thus, only imports of only essential items such as machinery, fertilisers and petroleum were made.

Globalisation and development of trade have resulted in the availability of a greater choice of goods in the market for the consumer. Globalisation is the interconnection between counties through the expansion of foreign trade and foreign investment. It helps in the integration of the markets in different countries. It will give a lot of opportunities and openings for domestic consumers to reach out beyond the domestic market. Consumers also have the choice to select commodities produced beyond the domestic markets. The prices tend to be equal in both the markets gradually. Thus, foreign trade widens the markets for consumers and helps in connecting the markets worldwide.

(a) Better roads, power, water, raw material, marketing and information network, improvement and modernization to technology and timely availability to credit at reasonable interest rates will give a lot of opportunities and openings for the domestic producers to reach out beyond the domestic market. Producers can sell their commodities to buyers from around the world. 

(b) The MNCs would not be interested in investing in these fields. They will be interested to invest their money in assets like land and buildings, plant and machinery and others for earning profits. Also, the development of these facilities would help Indian producers. Thus the MNCs will not be interested to invest and improve these facilities. 

(c) Yes, the government has a role in making these facilities available. Government is the only body that would be able to provide these services at a cheap rate to everyone. All these facilities will give a lot of opportunities and openings for the domestic producers to reach out beyond the domestic market. Producers can sell their commodities to buyers from around the world. This will enable them to increase the national income. 

(d) The government has a role in making facilities like better roads, power, water, raw material, marketing and information network, improvement and modernization to technology and timely availability to credit at reasonable interest rates available. Government is the only body that would be able to provide these services at a cheap rate to everyone. Other than these facilities, the government should also make administration changes to reduce corruption and lobbying, promote domestic products and provide subsidies and assistance to domestic industries.

1. The money that MNCs spent to buy assets such as land, building, machines and other equipment is called foreign investment. 

2. Ford motors came to India in 1995. 

3. It spent Rs.1700 crore to set up a large plant near Chennai. 

4. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks.

It is an American company. It is one of the world’s largest automobile manufactures with production spread over 26 countries of the world.

Outsourcing means going out to a source outside the company to buy regular service.

B) buy up existing local companies

Correct option is C) Taxes

B) Mahindra and Mahindra

Privatization means reduced government intervention and increased private investment in production activities.

Correct option is B) i, ii, iii, iv

Correct option is B) 16

B) Negligence of sortie languages there by causing their extinction.