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Karnataka SSLC Class 10 Social Science Business Studies Important Questions Chapter 3 Globalisation of Business
What is globalisation?
The International Monetary Fund has defined globalisation as “the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services and of international capital flow, and also through the more rapid and widespread diffusion of technology”.
What is globalisation? Explain.
The International Monetary Fund has defined globalisation as “the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services and of international capital flow, and also through the more rapid and widespread diffusion of technology”. From this definition it is clear that globalisation involves:
- increasing cross-border movement of goods and services
- international flow of capital, technology and information
- formation of one worldwide market by obtaining raw materials and other resources from cheap markets
- production of goods in any region of the world at cheaper cost.
What are the essential aspects of globalisation?
What are the factors that are included in globalisation?
The essential aspects of globalisation are:
- It is a worldwide phenomenon that includes technical, economic, political and cultural exchanges brought about by modern communication, transportation and legal infrastructure.
- It encourages international capital and trade overcoming political barriers.
- It creates free trade zone by removing import and export duties.
- It reduces restrictions on capital investment or removes barriers to capital flow.
- It creates subsidies to worldwide trade organisations.
- Globalisation brings about harmonisation of intellectual property laws across majority of states which have more restrictions.
What are the characteristics of globalisation?
The characteristics of globalisation are as follows:
- faster growth in international trade than the growth of world economy
- increase in international flow of capital and investment
- creates international agreements leading to organisations like WTO and OPEC
- helps in the development of the global financial system
- globalisation results in economic practices like outsourcing by MNCs
- increases international travel and tourism and cultural exchanges
- development of global communication infrastructure, greater trans-border data flow, use of technologies like internet, satellite communication network, etc.
What are the positive effects of globalisation?
What are the advantages of globalisation?
The positive effects of globalisation are:
- It promotes economic growth and generates a wider range of products and services.
- It helps to raise the standard of living of the people.
- It helps in economic development and adds to the GDP of a country.
- It also helps in increasing the incomes of the people.
- Customers get wider choice of goods and services at a much cheaper price.
- Globalisation leads to competition among producers and results in reduction of costs and prices.
- Globalisation promotes specialisation. Countries begin to specialize in those products for which they are best suited or in which they have an advantage.
- Globalisation makes countries more interdependent on one another and can build improved political and social links.
Explain the negative aspects of globalisation with examples.
What are the disadvantages of globalisation?
The negative aspects of globalisation are:
- In order to cut down costs, many firms in developed nations have outsourced their manufacturing and white collar jobs to third world countries, where the cost of labour is low. This has led to increase in the incidences of child labour, etc.
- Fierce competition in the global market has led to increase in unethical practices in business dealings.
- Globalisation has also helped terrorists and criminals through free movement of goods and people across borders.
- Globalisation has resulted in the growth of cities, but they are unable to solve the problems of garbage and disposal of industrial waste; as a result, cities are reduced to garbage dumps and pollution levels are high.
- Fast food chains are spreading rapidly in developing countries. People have started consuming more of junk food. The result is, degradation of health and spread of diseases.
- Globalisation has also led to the rich getting richer and the poor struggling for a square meal.
- Globalisation has led to environmental degradation.
- The import of cheap goods from other countries has created problems of unemployment.
- Dumping of goods at below cost price has harmed industries in such countries.
“Globalisation helps the worldwide economic movement”. Substantiate.
- Globalisation promotes economic growth and generates a wider range of products and services.
- It increases the standard of living of a country.
- It helps increase the GDP of a country.
- It helps in increasing the income of the people.
- It creates specialisation in the production of goods.
- Globalisation leads to greater economic interdependence among countries.
- Globalisation encourages international capital and trade overcoming the political barriers among countries.
- It helps to reduce or completely remove the restrictions or barriers to capital investment.
- It helps in the development of the global financial system. Thus, globalisation helps the worldwide economic movement.
What is the impact of globalisation on traditional food habits?
Globalization affects food habits and health of the people. How?
- Fastfood chains are spreading fast in the developing countries.
- People have started consuming more of junk food.
- As a result, there is degradation of health and spread of diseases.
- The traditional food habits are slowly disappearing.
Globalisation has led to environmental degradation. How?
‘Environmental pollution is increasing due to globalisation’. Justify.
The growth and development of cities due to globalisation has resulted in cities being reduced to garbage dumps where industrial waste is accumulated and pollution levels are high. The amount of raw materials needed to run industries and factories is taking a heavy toll on the natural resources. Pollution has severely impacted the quality of air leading to deadly diseases.
Globalisation keeps the cost of commodities down. How?
Globalisation keeps the cost of commodities down by creating competition for local firms.
When was the World Trade Organisation established?
The World Trade Organisation (WTO) was established in 1995.
Write a note on World Trade Organisation.
The World Trade Organisation (WTO) was established on January 1st, 1995. Its office is located at Geneva in Switzerland. At present 149 countries are its members. All major decisions are made by its members as a whole, who usually meet at least once every two years.
What are the aims of World Trade Organisation?
What are the main functions of WTO?
The aims/functions of World Trade Organisation are:
- Bringing trade agreements into force throughout the world.
- Administering the world trade agreements as a mediator.
- Stress on free and independent trade throughout the world.
- Solving trade disputes that arise among the nations.
- Striving to reduce the taxes in international trade.
- Bringing international trade under legal framework.
- Assistance to underdeveloped nations to get more facilities in international trade.
- Bringing efficiency in production and trade by utilising resources effectively.
What are the supplementary functions of WTO?
The supplementary functions of World Trade Organisation are:
- Bringing down the cost of living and raising the standard of living in member countries.
- Settling disputes and reducing trade tensions of the member countries.
- Stimulating economic growth and employment.
- Reducing the cost of doing business internationally.
- Encouraging good governance.
- Contributing to promote peace and stability in member countries.
Expand the following abbreviations:
OPEC, WIPO, WTO.
OPEC – Oil Producing and Exporting Countries.
WIPO – World Intellectual Property Organisation.
WTO – World Trade Organisation.
Products of different countries are available in the markets of India because of the process of –
In order to cut down manufacturing costs, many firms in developed countries are resorting to –
The headquarters of the World Trade Organisation is at –
(C) New York
The World Trade Organisation was established in –
Globalisation creates free trade zone by –
(A) using container services
(B) creating subsidies
(C) removing import and export duties
(D) overcoming the political barriers.
(C) removing import and export duties