Gujarat Board GSEB Textbook Solutions Class 10 Social Science Chapter 16 Economic Liberalization and Globalization Textbook Questions and Answers, Additional Important Questions, Notes Pdf.
Economic Liberalization and Globalization Class 10 GSEB Solutions Social Science Chapter 16
Gujarat Board Class 10 Social Science Economic Liberalization and Globalization Textbook Questions and Answers
I. Answer the following questions in detail.
Question 1.
What is the meaning of liberalization? Mention its benefits.
Answer:
Liberalization is the gradual removal of restrictions imposed on the private sector to encourage economic development.
Go through these Social Science Chapter 16 Economic Liberalization and Globalization Class 10 GSEB Notes to score well in your exam.
Benefits of liberalization are as follows:
Private sector was provided with an opportunity to make unconstrained development. This led to increase in industrial production. It gave impetus to global trade and led to increase in India’s global trade. Increase in foreign trade led to increase in the foreign exchange reserves. This resulted in improvement in the infrastructure facilities within the country.
Question 2.
Mention the advantages and disadvantages of privatization.
Answer:
Advantages of privatization: Privatisation led to an increase in the number of production units in the industrial sector. It resulted in increase in production in capital intensive and consumer industries. Privatization of public sector units led to efficient and fullest utilization of producing capacity of these units.
Disadvantages of privatization:
Concentration of economic power led to increase in the evil of monopoly. It adversely affected the development of cottage industries. Privatization has led to inflation.
Question 3.
What steps have been taken to protect the environment?
Answer:
Earth conference was organized for the first time at Stockholm in Sweden in 1972 to discuss measures to protect the environment at the global level. Thereafter, many such conferences and conventions have taken place to discuss the environment-related issues. India has actively participated in these global events and adopted the resolutions passed for the protection of the environment.
Following are the steps taken in India for the protection of environment:
Information of the pollution level in the major cities is collected and published. National and State Pollution Control Boards have been set up. 5th June is celebrated as the Environment Day. Air Pollution Control Act was enacted in 1981. International agreements have been signed about deteriorating level of ozone, disposal of nuclear waste and maintenance of biodiversity. Steps have been taken to create awareness regarding the protection of environment in the country.
Question 4.
Explain the strategy of sustainable development.
Answer:
Sustainable development is the process of development which meets the needs of present generation without compromising with the capability of the future generation to meet their needs. Strategy of sustainable development is meant to conserve and preserve the natural resources by taking the following steps:
- Careful use of the renewable natural resources like land, forest and water
- Judicious use of the non-renewable resources like coal, minerals and petroleum products.
- Minimization of the transportation cost by suitably locating industries.
- Strive to achieve eco-friendly development.
- Undertake multi-purpose development projects like Damodar Valley Corporation wherein the same natural resources could be used for different activities, such as irrigation, generation of electricity, water transport and flood control.
- Judicious use of natural resources and check on wastage.
- Careful planning and management of disposal of industrial waste and poisonous chemicals.
- Steps to prevent emergence and spread of slums in the urban areas.
- Emphasis on the development and use of the non-conventional sources of energy such as solar and wind energy.
II. Answer the following questions point-wise.
Question 1.
Explain the benefits of globalization.
Answer:
India has secured the following benefits of globalization:
- There is considerable increase in the Foreign Direct Investment (FDI).
- Quality products from the developed countries have become available in India.
- Capability has been built up to withstand competition.
Question 2.
Mention the objectives Of the World Trade Organization.
Answer:
The World Trade Organization (WTO) was established on 1st January, 1995. Its headquarters are at Geneva in Switzerland.
- The objectives of the WTO are as follows:
- To remove obstacles in the international trade.
- To overcome the protection given to domestic industry to facilitate global trade.
- To coordinate domestic trade policies with world trade policy.
- To resolve international trade related disputes.
- The following steps have been taken to realize these objectives:
- An international body has been set up to implement international agreements related to trade.
- The WTO serves as a forum for regulating international trade.
- The WTO promotes discrimination free international trade.
- The WTO observes domestics trade policies of the member-states and suggests required improvements therin.
Question 3.
Mention the ways (methods) of privatization.
Answer:
The ways (methods) of privatization are as follows:
- Opening up of the areas reserved for the public sector, such as banking and insurance, to the private sector.
- Transfer of ownership and Control of public sector enterprises to the private entitles.
- Disinvestment of the capital invested in the public sector enterprises.
III. Answer the following questions in short:
Question 1.
Explain the concept of globalization.
Answer:
Globalization is the process of connecting one country economy with the world economy. As the result of which flow of goods, services, technology and labour is easily available in the world.
Following improvements have taken place due to globalization:
- Obstacles of trade between two nations have been removed.
- Such a condition has been created so that capital exchange can easily take place between two nations.
- Obstacles in the way of exchange of technology have been removed.
- Free exchange of labour may be there among different nations of the world. Mixed-effects of globalization have been there on Indian economy.
Question 2.
When were the economic reforms introduced in India?
Answer:
The economic reforms were introduced in India in the year 1991.
Question 3.
When was the WTO established?
Answer:
The World Trade Organization (WTO) was established on 1st January, 1995.
Question 4.
Explain the concept of ‘Sustainable development’.
Answer:
Sustainable development has been defined as a process of development wherein most of the requirements of the present generation are met without compromising with the capability of the future generations to meet their needs. Sustainable development is advocated due to the extreme adverse effects of human activities on ecology. If the present generation uses the natural resources at high speed, the resources will get depleted and nothing will remain for the future generations. To protect the interests of the future generations some restraints have been suggested in the strategy of sustainable development.
IV. Answer the following questions by choosing the correct alternative.
Question 1.
Where are the headquarters of the World Trade Organization?
(a) Stockholm
(b) Geneva
(c) London
(d) Kolkata
Answer:
(b) Geneva
Question 2.
When was the “Earth Conference” organized to bring awareness about environment?
(a) 1972
(b) 1951
(c) 1992
(d) 2014
Answer:
(a) 1972
Question 3.
When is the World Environment Day celebrated?
(a) 8th March
(b) 11th June
(c) 5th June
(d) 12th June
Answer:
(c) 5th June
Question 4.
The process of connecting the economy of the country with the world economy is
(a) Privatization
(b) Globalization
(c) Liberalization
(d) None of these
Answer:
(b) Globalization
Gujarat Board Class 10 Social Science Economic Liberalization and Globalization Additional Important Questions and Answers
I. Multiple Choice Questions (MCQs)
Question 1.
Which among the following reforms is incorrect while referring the economic reforms under liberalization?
(a) Removal of license system except the reserved industrial of public sector.
(b) To remove reservation from railway, nuclear field and defence and to keep it open.
(c) No need of permission for the industries that are not causing pollution.
(d) Registration was made essential for industries.
Answer:
(d) Registration was made essential for industries.
Question 2.
Which among the following is correct advantage that is caused because of an adoption of economic liberalisation?
(a) Increase in import and decrease in foreign debts and income unequality.
(b) Increase in production, reserve foreign exchange and foreign trade.
(c) Decrease in monopoly, export and increase in poverty.
(d) Increase in infrastructure facilities, with agriculture development and decrease in unemployment.
Answer:
(b) Increase in production, reserve foreign exchange and foreign trade.
Question 3.
Which is the negative impact caused after the economic liberalization initiated in 1991?
(a) Increase in export.
(b) Industrial production increased.
(c) Increase in income unequality.
(d) Increase in reserve foreign exchange.
Answer:
(c) Increase in income unequality.
Question 4.
Which among the following is a correct way of undertaking privatization?
(a) Submission of private sector industries to public sector.
(b) Submission of public sector industries to private sector.
(c) Public sector holds the ownership and management of its industries with it.
(d) Private sector hands over its industries to public sector.
Answer:
(b) Submission of public sector industries to private sector.
Question 5.
Which among the following problem is caused by privatization?
(a) Price rise
(b) Decentralization of economic power
(c) Income inequality
(d) Unempolyment
Answer:
(a) Price rise
Question 6.
Whaf aimed by reducing the obstacles from international trade?
(a) Decrease in foreign trade
(b) Increase in foreign trade
(c) Stagnancy in foreign trade
(d) Increase in the government income
Answer:
(b) Increase in foreign trade
Question 7.
Here are the student’s opinions on globalization.
Kavya: Foreign investment gets incented.
Kavita: The commodities produced in developed nations are freely available in the developing countries.
Kapila: Small scale industries are developed in the developing countries. Kanchan: The developing countries get empowered to sustain in international trade.
Which among the above is correct?
(a) Kavya, Kavita and Kanchan
(b) Kavita, Kapila, Kanchan
(c) Kapila, Kanchan, Kavya
(d) Kavya, Kavita, Kanchan
Answer:
(d) Kavya, Kavita, Kanchan
Question 8.
Which among the following is incongruous to the aim of the World Trade Organization?
(a) To remove obstacles from global trade.
(b) To protect the industries of the nations.
(c) To co-ordinate global trade and economic policy.
(d) To arbitrate the trade conflicts among the nations.
Answer:
(b) To protect the industries of the nations.
Question 9.
Which day is celebrated to promote eninronment preservation?
(a) 5th September
(b) 5th June
(c) 15th June
(d) 5th July
Answer:
(b) 5th June
Question 10.
Which act was passed in 1981 by Indian Government?
(a) Water Pollution Control Act
(b) Corruption Control Act
(c) Noise Pollution Control Act
(d) Air Pollution Control Act
Answer:
(d) Air Pollution Control Act
II. Very Short Answer Type Questions:
Question 1.
Name the policy under which restrictions and controls upon the private sector are reduced.
Answer:
Liberalization
Question 2.
Under which policy is the ownership of public sector handed to private sector?
Answer:
Privatization
Question 3.
What are called the process of connecting the national economy with the world economy?
Answer:
Globalization
Question 4.
Where are the headquarters of WTO?
Answer:
They are in Geneva, Switzerland.
Question 5.
How much is the India’s share in world trade?
Answer:
About 1%
Question 6.
When was the World Environment Day celebrated in the world?
Answer:
5th June.
Question 7.
When was the Air Pollution Control Act passed in India?
Answer:
In the year 1981
III. Short Answer Type Questions
Question 1.
State the disadvantages of liberalization.
Answer:
Although government reduced several restrictions, it could not stop monopoly of some. During economic reforms, India paid attention to industrial sector only. As a result, India remained backward in agriculture.
Question 2.
State the disadvantages of globalization.
Answer:
Globalization has failed to solve the problem of poverty and unemployment to the desired extent. Developing countries have not acquired expected benefits through increased exports. Large scale industries have acquired more benefit while small scale industries have obtained less benefit.
IV. Long Answer Type Questions
Question 1.
Why did India introduce economic reforms in 1991?
Answer:
When India became independent in 1947, its economy was completely ruined. The government had to act fast and in a systematic way so that it could achieve speedy economic development. To do so, India initiated its “Five Year Plans’ from year 1951. At the end of every Five Year Plan India would review the progress made in the economy. India also announced its monetary policy, fiscal policy and industrial policy during these plans to boost the economy.
Even after several Five Year Plans, India could not attain the economic development that it aimed at. The government then did thorough investigation of the causes for failures. Based on this investigation it decided to bring major changes in its economic policies. As a result, in 1991, the government brought major reforms in the industrial policy. The major reforms that it brought were:
- Liberalization,
- Privatization, and
- Globalization.
These three reforms are also known as the ‘Economic reforms of 1991’.
Question 2.
Write a note on privatization.
Answer:
The process in which ownership and management of industrial units under state control are handed over or transferred to the private sector is called privatization: Privatization is done to increase the efficiency of public sector i.e. government-controlled industries.
Privatization is done through two methods:
First, those areas which are reserved for public sector are opened for the private sector. State keeps the ownership of state-owned companies under its control and gives the charge of management to the private companies.
Alternatively, the state keeps management in its own hand and gives ownership to the private company. Advantages of Privatization: Privatization increased the number of production units in industrial sector. It increased production of industries that were either capital intensive or produced consumable goods. Efficiency of public sector improved due to privatization of public sector enterprise.
Question 3.
What is WTO? State its objectives and junctions.
Answer:
The World Trade Organization (WTO) is a global international organization that deals with the rules of trade between nations. World Trade Organization was established on 1st January, 1995 by the member nations of United Nations. Its headquarters are located at Geneva in Switzerland.
Objectives:
- To remove obstacles that hinder global trade.
- To remove protection policy given to industries of country for foreign trade.
- To co-ordinate with global trade policy and economic policy.
- To solve the trade-related disputes arising in the world.
Functions:
- To set up the structure for implementing world trade and trade agreements observing these agreements.
- To work as a platform for debates and negotiations related to multinational trade.
- To encourage unbiased international trade.
- Different nations follow their own national policies related to trade. The WTO observes them and suggests improvements to those nations.
Question 4.
How does or will WTO impact Indian economy?
Answer:
India is a member of WTO since its formation.
The impact of WTO so far or in future is discussed below:
Initially, India’s contribution to world trade was 0.5%. Later, India’s exports increased tremendously due to increase in international trade and as a result of it, India’s contribution in world trade has increase to 1%. Being a member of WTO has helped India to increase its export of readymade clothes. As a member of WTO, India has been able to increase export of its agro products.
Increase in export has reduced the stress faced due to high imports. Increased export will increase foreign exchange and hence ease out foreign exchange pressure built up due to high import. Thus, being a member of World Trade Organization India has got and will get several benefits in international trade.
However, it should be noted that to gain these benefits India has to agree to some conditions of WTO and follow its mandate. The extent of these benefits depends on the speed with which India increases its infrastructural facilities and how developed countries treat India.
V. Fill in the blanks
1. India has adopted the development favouring reforms in year …………… .
2. Inspite of liberalization, there is a sector industries is handed over to private sector.
3. In, ………….., the ownership of public sector industries is handed over to private sector.
4. Privatization benefits the ………………… industries.
5. Globalization means connecting national economy with the ……………….. economy.
Answer:
1. 1991
2. income
3. privatization
4. large scale
5. global