Eco chapter 4 Extra Questions Presentation1.pdf

Gsksbdhd

1. Globalisationand the Indian Economy
What is Globalisation?
The term globalisationrefers to the integration of the economy of the nation with the world economy.
It includes the creation of networks and pursuits transforming social, economical, and geographical
barriers.
Globalisationtries to build links in such a way that the events in India can be determined by the events
happening distances away.
To put it in other words, globalisationis the method of interaction and union among people, corporations,
and governments universally.
Effect of Globalisationin India
India is one of the countries that succeeded significantly after the initiation and implementation of
globalisation.
The growth of foreign investment in the field of corporate, retail, and the scientific sector is enormous
in the country.
It also had a tremendous impact on the social, monetary, cultural, and political areas. In recent years,
globalisationhas increased due to improvements in transportation and information technology.
With the improved global synergies, comes the growth of global trade, doctrines, and culture.

2. Globalisationand the Indian Economy
Globalisationin the Indian Economy
Indian society is changing drastically after urbanisationand globalisation.
The economic policies have had a direct influence in forming the basic framework of the economy.
Economic policies established and administered by the government also performed an essential role in
planning levels of savings, employment, income, and investments in the society.
Cross country culture is one of the critical impacts of globalisationon Indian society.
It has significantly changed several aspects of the country, including cultural, social, political, and
economical.
However, economic unification is the main factor that contributes maximum to a country’s economy into an
international economy.

3. Globalisationand the Indian Economy
Advantages of Globalisationin India
Increase in employment:
With the opportunity of special economic zones (SEZ), there is an increase in the number of new jobs available.
Including the export processing zones (EPZ) centre in India is very useful in employing thousands of people.
Another additional factor in India is cheap labour.
This feature motivates the big companies in the west to outsource employees from other regions and cause more
employment.
Increase in compensation:
After globalisation, the level of compensation has increased as compared to the domestic companies due to the skill and
knowledge a foreign company offers.
This opportunity also emerged as an alteration of the management structure.
High standard of living:
With the outbreak of globalisation, the Indian economy and the standard of living of an individual has increased.
This change is notified with the purchasing behaviourof a person, especially with those who are associated with foreign
companies.
Hence, many cities are undergoing a better standard of living along with business development.

4. Globalisationand the Indian Economy
Solved Questions.
•Q.1-What do you understand by the term ‘Globalisation’?
Meaning Globalisationmeans integrating the Indian economy with the world economy.
•It is the outcome of the policies of liberalisationand privatisation.
•It attempts to establish links in such a way that the events or happenings in India can be influenced by the events happeningmiles
away.
•It is an outcome of various policies that aim to transform the world towards greater interdependence and integration.
Aim : It aims to create a borderless world.
Q.2-List some arguments in favourand against globalisation.
(A) In favourof globalisation
Globalisationresulted in the following:
Greater access to global markets
Advanced technology
Better future prospects for large industries of developing countries to become important players in the international arena.
(B) Against globalisation
Globalisationhas been criticisedby some scholars because according to them:
The benefits of globalisationaccrue more to the developed countries as they are able to expand their markets in other countries.
It compromises the welfare of people belonging to the developing countries.
A market-driven globalisationincreases the economic disparities among nations and the people.

5. Globalisationand the Indian Economy
Q.1-______________means integrating the Indian
economy with the world economy.
a.Liberalisation
b.Privatisation
c. Globalisation
d.None of the above
Q.2-Globalisation is the outcome of__________
and ________
a.Liberalisation
b.Privatisation
c.Globalisation
d. Both (a) and (b)
Q.3-Globalisationaims to create ____________
world.
a.Limited
b.Restricted
c. Borderless
d.None of the above
Q1 What are the different kinds of globalisation?
The top five types of globalisationare:
1.Financial globalisation. 2. Economic globalisation. 3. Technological globalisation.
4. Political globalisation. 5. Cultural globalisation.
Q2 What are examples of Globalisation?
The two examples of globalisationare as follows:
1.Travel: The capacity to travel to other places and experience their cultures.
2. Transportation:The international transportation systems, such as air travel and shipping.
Q3 What is the importance of Globalisation?
Globalisationis important to expand the markets and enable a business to make a sensible
utilisationof the available resources. It also solves various issues of an individual and the nation,
giving them many options to choose from and satisfy their needs. Globalisationboosts exports,
discourages import, and uplifts foreign exchange.
Q4 What are the main reasons that caused Globalisation?
The main reason that caused globalisationare as follows:
1.Making global travel easier by improving transportation.
2. Advanced technology made communication and sharing of information easier.
3. Minimisedtariff barriers and encouraged global trade.
4. Broadening of global media.
Q5 What are the positive impacts of Globalisation?
The four positive impacts of globalisationare as follows:
1. Creates efficient markets
2. Increases competition
3. Stabilisessecurity
4. Increases wealth equality across the world

6. Globalisationand the Indian Economy
Meaning of Privatisation
It means the transfer of ownership, management, and control of the public sector enterprises to the private sector.
Ways of Privatisation
Government companies are transformed into private companies in two ways.
Transfer of ownership
Government companies can be converted into private companies in the following two ways:
By the withdrawal of the government from the ownership and management of public sector companies
By the outright sale of public sector companies.
However, there are six methods of privatisation.
Public sale of shares
Public auction
Public tender
Direct negotiations
Transfer of control of enterprises that were controlled by the state or by municipalities
Lease with a right to purchase

7. Globalisationand the Indian Economy
What are the characteristics of privatisation?
The characteristics of privatisationare as follows:
It limits government participation in economic activities and safeguards the private sector.
It establishes economic democracy and allows private sectors to operate in economic activities freely.
Why is privatisationimportant?
For any economy, privatisationis important because it creates jobs and builds a healthy competition in the
market. Privatisationworks for maximisingprofit by improving the standards of customer services and
goods.

8. Globalisationand the Indian Economy
Meaning of Liberalisation
Liberalisationis the process or means of the elimination of control of the state over economic activities. It provides
a greater autonomy to the business enterprises in decision-making and eliminates government interference.
Liberalisationin India
Since the adoption of the New Economic Strategy in 1991, there has been a drastic change in the Indian
economy.
With the arrival of liberalisation, the government has regulated the private sector organisationsto conduct
business transactions with fewer restrictions.
For the developing countries, liberalisationhas opened economic borders to foreign companies and investments.
Earlier, the investors had to encounter difficulties to enter countries with many barriers.
These barriers included tax laws, foreign investment restrictions, accounting regulations, and legal issues.
Economic liberalisationreduced all these obstacles and waived a few restrictions over the control of the economy
to the private sector.

9. Globalisationand the Indian Economy
Objectives
To boost competition between domestic businesses
To promote foreign trade and regulate imports and exports
To improve the technology and foreign capital
To develop a global market of a country
To reduce the debt burden of a country
To unlock the economic potential of the country by encouraging the private sector and multinational corporations to invest and
expand
To encourage the private sector to take an active part in the development process
To reduce the role of the public sector in future industrial development
To introduce more competition into the economy with the aim of increasing efficiency
Reforms under Liberalisation
Deregulation of the Industrial Sector
Financial Sector Reforms
Tax Reforms
Foreign Exchange Reforms
Trade and Investment Policy Reforms
External Sector Reforms
Foreign Exchange Reforms
Foreign Trade Policy Reforms

10. Globalisationand the Indian Economy
Q.1 ___________ means removing all unnecessary controls and restrictions like permits, licenses,
quotas etc. imposed by the government.
a.Liberalisation
b.Privatisation
c.Globalisation
d.None of the above
Q.2-Which of the following reforms are included under liberalisation taken by the government?
a.Industrial Sector Reforms
b.Financial Sector Reforms
c.Tax Reforms
d.All of the above
Q.3-______________ introduced more competition into the economy with aim of increasing efficiency.
a.Liberalisation
b.Privatisation
c.Globalisation
d.None of the above

11. Globalisationand the Indian Economy
What is the meaning of Liberalisationin Economics?
Liberalisationin economics means minimisingthe government’s restrictions and regulations in an economy, in
return for higher involvement of private organisations. In short, liberalisationmeans the removal of restrictions in
order to promote economic development.
What is one role of Liberalisation?
The one important role of liberalisationis to ease the government controls to encourage economic development
What are the 2 main objectives of Liberalisation?
The following are the two main objectives of Liberalisation:
To boost international foreign investment, industrial production, and technology competitiveness.
To increase the position of Indian goods in the international markets.
**********************************THE END*************************************