1. The correct answer is (C). Globalisation expands when the government reduces trade barriers, lowers import and export taxes and removes restrictions on foreign investment. These policies make it easier for foreign companies to enter domestic markets, encouraging international trade and investment. ORead more

    The correct answer is (C). Globalisation expands when the government reduces trade barriers, lowers import and export taxes and removes restrictions on foreign investment. These policies make it easier for foreign companies to enter domestic markets, encouraging international trade and investment. On the other hand, reducing competition among producers (Statement II) would hinder globalisation by limiting economic freedom and innovation.

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  2. Sustainable development ensures that present development does not compromise the future. It raises new challenges in planning, resource management and equity, changing how development is approached. Points with explanation: Resource conservation: Using solar energy and rainwater harvesting reduces nRead more

    Sustainable development ensures that present development does not compromise the future. It raises new challenges in planning, resource management and equity, changing how development is approached.

    Points with explanation:

    • Resource conservation: Using solar energy and rainwater harvesting reduces natural resource depletion.
    • Environmental protection: Reduces pollution, deforestation and climate impact.
    • Long-term planning: Development strategies must consider future generations’ welfare.
    • Social equity: Benefits should reach all communities, including marginalized groups.
    • Example: Promoting organic farming ensures economic growth while protecting soil and water
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  3. Banks play a vital role in managing public money. They accept deposits safely and lend money to individuals and businesses, supporting economic growth. Points with explanation: Safe storage of money: Protect deposits from theft and misuse. Lending: Loans to farmers, businesses and households promoteRead more

    Banks play a vital role in managing public money. They accept deposits safely and lend money to individuals and businesses, supporting economic growth.

    Points with explanation:

    • Safe storage of money: Protect deposits from theft and misuse.
    • Lending: Loans to farmers, businesses and households promote economic activities.
    • Interest system: Depositors earn interest; banks earn by lending, maintaining balance.
    • Financial services: Provide payment facilities, credit and savings accounts.
    • Economic growth: Mobilized funds are invested in productive sectors, creating employment and improving financial stability.
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  4. MNCs have a significant impact on India’s economy, offering both opportunities and challenges. They bring capital, technology and employment while enhancing global business connections. Investment: Foreign capital supports industrial expansion. Technology transfer: Modern techniques improve productiRead more

    MNCs have a significant impact on India’s economy, offering both opportunities and challenges. They bring capital, technology and employment while enhancing global business connections.

    Investment: Foreign capital supports industrial expansion.

    Technology transfer: Modern techniques improve productivity and skills.

    Employment: Create jobs in factories, IT and services.

    Exports and trade: Promote global trade and economic integration.

    Challenges: Local businesses may face competition; profits are partly sent abroad.

    Regulation needed: Government policies can balance benefits and protect domestic industries.

     

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  5. The student correctly concluded that the factory producing sports shoes for a multinational brand is part of the globalised economy, while the small local unit operates only in the domestic market. The two setups differ in several important ways: Scale of Operation: The multinational-linked factoryRead more

    The student correctly concluded that the factory producing sports shoes for a multinational brand is part of the globalised economy, while the small local unit operates only in the domestic market. The two setups differ in several important ways:

    1. Scale of Operation:
      The multinational-linked factory works on a large scale, producing goods for both domestic and international markets, whereas the local unit operates on a small scale, catering mainly to local customers.
    2. Technology and Quality Standards:
      The global brand uses advanced machinery, modern technology and strict quality control to meet international standards. The local unit, on the other hand, usually relies on traditional methods and has limited access to new technology.
    3. Capital and Investment:
      The multinational factory has huge foreign investment and capital, often supported by global partnerships. The small local unit is run by local capital and limited financial resources.
    4. Employment Conditions:
      In the globalised setup, workers may get better training and sometimes higher wages, but they also face pressure to meet deadlines. The local unit employs fewer workers, often informally, with less job security or benefits.
    5. Market Linkages:
      The multinational-connected factory is linked to the global supply chain, exporting goods and importing raw materials. The small unit sells only within the local market, with no international connections.
    6. Brand and Competition:
      The multinational brand benefits from global marketing, advertising and brand recognition, while the local unit depends on word-of-mouth and local customers for survival.

    Conclusion:

    The student recognised that the factory tied to a multinational brand was part of a globalised production system, connected to foreign markets, technology and capital, while the small local unit was limited to the domestic market with local resources and reach. These differences clearly show the contrast between a globalised and a non-globalised production setup.

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