What is the impact of globalisation on consumers?

Greater choice and lower prices

What is liberalisation?

Removing government restrictions

What is the impact of SEZs on local communities?

Positive impact on local businesses

What are the disadvantages of globalisation?

Only positive for developed countries

What are the ways in which MNCs set up production in other countries?

Collaborating with local companies

Setting up small local businesses

NCERT Solutions Class 10 Economics Chapter 4 – Globalisation And The Indian Economy

Name: Globalisation And The Indian Economy – Class 10 Economics
Uploaded: 2026-05-31
Description: Globalisation is the rapid integration of countries through trade, investment, and technology. MNCs play a major role, creating opportunities for skilled and wealthy producers while posing challenges for small producers and workers. Fair globalisation requires government support and protection for all.

Class 10 Economics

Last Updated: 31 May 2026

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Chapter Introduction

Globalisation is the rapid integration of countries through trade, investment, and technology. MNCs play a major role, creating opportunities for skilled and wealthy producers while posing challenges for small producers and workers. Fair globalisation requires government support and protection for all.

हिंदी में (Hindi)

वैश्वीकरण देशों के बीच व्यापार, निवेश और तकनीक के माध्यम से तेज़ी से जुड़ने की प्रक्रिया है। बहुराष्ट्रीय कंपनियाँ अवसर तो देती हैं, लेकिन छोटे उत्पादक और कामगार चुनौतियों का सामना करते हैं। न्यायसंगत वैश्वीकरण में सरकार की मदद और सभी के लिए सुरक्षा जरूरी है।

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Important Points

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Practice MCQ Questions (28 questions)

Q1. What is globalisation?

Q2. What is the role of MNCs in the globalisation process?

Q3. How does foreign trade lead to integration of markets?

Q4. What is foreign investment?

Q5. What are the factors that have facilitated globalisation?

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Tough Words (Glossary)

Globalisation

Meaning: Process of increasing integration among countries in trade, investment and technology

अर्थ: देशों के बीच व्यापार, निवेश और तकनीक के जरिए बढ़ती पारस्परिक जुड़ाव की प्रक्रिया

"Globalisation has connected Indian markets to the world."

Multinational Corporation (MNC)

Meaning: A company that owns or controls production in more than one country

अर्थ: ऐसी कंपनी जो एक से अधिक देशों में उत्पादन का स्वामित्व या नियंत्रण रखती है

"Many MNCs set up factories where labour is cheap."

Integration

Meaning: Bringing different parts together into a single system

अर्थ: विभिन्न हिस्सों को जोड़कर एक प्रणाली बनाना

"Foreign trade leads to integration of markets."

Supply chain

Meaning: Network of organisations and activities involved from raw material to final customer

अर्थ: कच्चे माल से अंतिम ग्राहक तक जुड़ी संस्थाओं व प्रक्रियाओं का तंत्र

"MNCs manage global supply chains to cut costs."

Outsourcing

Meaning: Getting work done by another firm, often in another country

अर्थ: किसी अन्य कंपनी से, अक्सर दूसरे देश में, काम करवाना

"The company is outsourcing customer support to India."

Offshoring

Meaning: Moving a business process to another country

अर्थ: व्यावसायिक प्रक्रिया को दूसरे देश में स्थानांतरित करना

"Offshoring reduced the firm's expenses."

Investment

Meaning: Spending money to buy assets to earn future profits

अर्थ: भविष्य में लाभ कमाने के लिए परिसंपत्तियों पर किया गया व्यय

"Foreign investment brings new technology."

Foreign investment

Meaning: Investment by individuals/companies from another country

अर्थ: दूसरे देश के व्यक्तियों/कंपनियों द्वारा किया गया निवेश

"MNCs come with foreign investment to India."

Assets

Meaning: Things of value owned by a person or company

अर्थ: व्यक्ति या कंपनी के स्वामित्व वाली मूल्यवान वस्तुएँ/संपत्तियाँ

"Land and machines are important assets for a factory."

Cost of production

Meaning: Total cost incurred to make a product

अर्थ: किसी वस्तु को बनाने में आने वाली कुल लागत

"Firms try to reduce the cost of production."

Skilled labour

Meaning: Workers with specialised training and abilities

अर्थ: विशेष प्रशिक्षण व कौशल वाले श्रमिक

"Skilled labour is needed in electronics."

Unskilled labour

Meaning: Workers without specialised skills

अर्थ: विशेष कौशल के बिना श्रमिक

"MNCs also hire unskilled labour for basic tasks."

Technology

Meaning: Practical use of scientific knowledge in production

अर्थ: उत्पादन में वैज्ञानिक ज्ञान का व्यावहारिक उपयोग

"New technology speeds up manufacturing."

Telecommunications

Meaning: Communication over distance by phone, cable or satellite

अर्थ: दूरसंचार: फ़ोन, केबल या उपग्रह से दूर तक संचार

"Telecommunications make global coordination easy."

Information Technology (IT)

Meaning: Use of computers and networks to store, process and share information

अर्थ: कंप्यूटर व नेटवर्क के जरिए सूचना का भंडारण, संसाधन व साझा करना

"IT has enabled online banking and e-commerce."

E-banking

Meaning: Electronic banking using the Internet and digital devices

अर्थ: इंटरनेट व डिजिटल साधनों से बैंकिंग सेवा

"E-banking allows instant international payments."

Containerisation

Meaning: Using standard containers to move goods efficiently

अर्थ: मानकीकृत कंटेनरों से माल का कुशल परिवहन

"Containerisation has cut shipping costs drastically."

Liberalisation

Meaning: Removal or relaxation of government restrictions on trade and investment

अर्थ: व्यापार व निवेश पर सरकारी प्रतिबंधों का हटना/ढील

"Liberalisation opened Indian markets to competition."

Trade barrier

Meaning: A restriction on imports or exports, such as a tax (tariff)

अर्थ: आयात/निर्यात पर लगाया गया प्रतिबंध, जैसे कर (शुल्क)

"Trade barriers can protect local industries."

Tariff

Meaning: A tax imposed on imported goods

अर्थ: आयातित वस्तुओं पर लगाया गया कर

"A higher tariff makes imports costlier."

Free trade

Meaning: International trade with little or no government restrictions

अर्थ: सरकारी रोक-टोक के बिना अंतरराष्ट्रीय व्यापार

"WTO promotes rules for free trade."

Protectionism

Meaning: Policy to protect domestic industries by restricting imports

अर्थ: आयात सीमित कर घरेलू उद्योगों की रक्षा की नीति

"Protectionism can raise prices for consumers."

World Trade Organization (WTO)

Meaning: Global body that sets and enforces rules of international trade

अर्थ: अंतरराष्ट्रीय व्यापार के नियम बनाने व लागू कराने वाली वैश्विक संस्था

"India is a member of the WTO."

Subsidy

Meaning: Financial support given by the government to producers

अर्थ: सरकार द्वारा उत्पादकों को दी जाने वाली आर्थिक सहायता

"Farm subsidies can lower export prices."

Dumping

Meaning: Selling goods abroad at very low prices, often due to subsidies

अर्थ: सब्सिडी आदि के कारण विदेश में बहुत कम कीमत पर सामान बेचना

"Dumping hurts local producers in importing countries."

Foreign trade

Meaning: Exchange of goods and services between countries

अर्थ: देशों के बीच वस्तुओं व सेवाओं का आदान-प्रदान

"Foreign trade expands consumer choices."

Import

Meaning: Bringing goods/services into a country from abroad

अर्थ: दूसरे देशों से वस्तु/सेवा को देश में लाना

"India imports crude oil."

Export

Meaning: Sending goods/services to other countries for sale

अर्थ: वस्तु/सेवा को बिक्री के लिए दूसरे देशों को भेजना

"We export software services to many nations."

Market competition

Meaning: Rivalry among sellers to attract buyers

अर्थ: खरीदारों को आकर्षित करने के लिए विक्रेताओं के बीच प्रतिस्पर्धा

"Global competition forces firms to improve quality."

Consumer

Meaning: A person who buys goods or services for use

अर्थ: वस्तु/सेवा खरीदने वाला व्यक्ति (उपभोक्ता)

"Consumers benefit from better quality at lower prices."

Producer

Meaning: A person or firm that makes goods or services

अर्थ: वस्तु/सेवा बनाने वाला व्यक्ति/कंपनी (उत्पादक)

"Producers must adapt to global standards."

Brand

Meaning: A name or symbol identifying a product or company

अर्थ: किसी उत्पाद/कंपनी की पहचान का नाम या प्रतीक (ब्रांड)

"Many global brands are present in Indian malls."

Call centre

Meaning: Office where employees handle customer calls for companies

अर्थ: कंपनियों के ग्राहकों के फोन संभालने वाला कार्यालय

"Many call centres in India serve foreign clients."

Special Economic Zone (SEZ)

Meaning: Designated area with special facilities and tax incentives to attract investment

अर्थ: निवेश आकर्षित करने हेतु विशेष सुविधाएँ व कर-राहत वाला क्षेत्र

"Firms in SEZs get tax exemptions for initial years."

Flexibility in labour laws

Meaning: Allowing firms to hire workers temporarily and change work conditions

अर्थ: कंपनियों को अस्थायी भर्ती व कामकाजी शर्तें बदलने देने की नीति

"Greater flexibility may reduce job security."

Organised sector

Meaning: Formal, registered part of the economy following labour laws

अर्थ: कानूनी रूप से पंजीकृत और श्रम-क़ानूनों का पालन करने वाला क्षेत्र

"Organised sector jobs offer benefits like PF and leave."

Unorganised sector

Meaning: Informal part of the economy with irregular, low-paid jobs

अर्थ: अनौपचारिक क्षेत्र जहाँ काम असंगठित, अनियमित व कम वेतन वाला होता है

"Many workers in cities are in the unorganised sector."

Inequality

Meaning: Unequal distribution of income and opportunities

अर्थ: आय व अवसरों का असमान बँटवारा (असमानता)

"Globalisation can increase inequality if not regulated."

Fair globalisation

Meaning: A form of globalisation that shares benefits widely and protects rights

अर्थ: ऐसा वैश्वीकरण जिसमें लाभ व्यापक रूप से बाँटे जाएँ और अधिकारों की रक्षा हो

"Fair globalisation needs stronger labour protections."

Liberalisation of trade

Meaning: Reducing or removing restrictions on international trade

अर्थ: अंतरराष्ट्रीय व्यापार पर प्रतिबंधों को कम/हटाना

"Liberalisation of trade increased imports and exports."

Foreign investment policy

Meaning: Government rules about how and where foreigners can invest

अर्थ: विदेशियों के निवेश से जुड़ी सरकारी नीतियाँ

"A friendly foreign investment policy attracts MNCs."

Consumer choice

Meaning: The range of different products available to buyers

अर्थ: खरीदारों के लिए उपलब्ध विभिन्न उत्पादों की श्रृंखला (विकल्प)

"Global brands have widened consumer choice."

Economies of scale

Meaning: Cost advantages due to large-scale production

अर्थ: बड़े पैमाने पर उत्पादन से मिलने वाला लागत-लाभ

"MNCs enjoy economies of scale in factories."

Joint venture

Meaning: A business arrangement where two firms share ownership and control

अर्थ: दो कंपनियों द्वारा संयुक्त स्वामित्व व नियंत्रण वाला उपक्रम

"The MNC entered a joint venture with a local firm."

Acquisition

Meaning: Buying most or all of another company’s shares to gain control

अर्थ: किसी कंपनी का नियंत्रण पाने हेतु उसके अधिकांश शेयर खरीदना (अधिग्रहण)

"The MNC grew by acquisitions of local brands."

Logistics

Meaning: Planning and movement of goods from origin to destination

अर्थ: माल की उत्पत्ति से गंतव्य तक की योजना व परिवहन (लॉजिस्टिक्स)

"Efficient logistics reduce delivery time."

Regulation

Meaning: Rules set by government to guide economic activity

अर्थ: आर्थिक गतिविधियों को संचालित करने वाले सरकारी नियम

"Proper regulation can protect small producers."

Race to the bottom

Meaning: Pressure to cut wages and standards to remain competitive

अर्थ: प्रतिस्पर्धी बने रहने के लिए वेतन व मानकों को लगातार घटाने की प्रवृत्ति

"A race to the bottom harms workers’ rights."

Value chain

Meaning: Full range of activities to create a product, from design to sale

अर्थ: डिज़ाइन से बिक्री तक उत्पाद बनाने की सभी गतिविधियों की शृंखला

"Design is a high-value part of the value chain."

Luddites (contextual)

Meaning: Workers opposing job losses due to new technology (historical term)

अर्थ: नई तकनीक से नौकरियाँ जाने के विरोधी श्रमिक (ऐतिहासिक संदर्भ)

"Modern ‘Luddites’ criticise automation’s impact."

Corporate monopoly

Meaning: Dominance of a market by one or few large firms

अर्थ: एक या कुछ बड़ी कंपनियों द्वारा बाज़ार पर वर्चस्व (एकाधिकार)

"Corporate monopolies can reduce competition."

Level playing field

Meaning: Fair conditions so all competitors have equal opportunities

अर्थ: ऐसी निष्पक्ष परिस्थितियाँ जिनमें सभी को बराबर अवसर मिलें

"Small firms need a level playing field to survive."