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"Liberalisation of… (Class 10 Social Science 2023, Q33a)

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Social ScienceCBSE Class 10 · Board exam 2023, set 32/6/1 · 5 marks · Long answer

CBSE Class 10 Social Science 2023: question 33(a)

Set in the CBSE Class 10 board exam of 2023, paper 32/6/1, section D, question 33(a), for 5 marks. Try it first; the hints and our step-by-step solution are below.

Q33(a) · 5 marks · Long answerGlobalisation and the Indian Economy

"Liberalisation of foreign trade and foreign investment policy have shown far reaching changes in India." Support the statement with suitable arguments.

Source: official question paper from cbse.gov.in (PDF). See it in the full 2023 board paper, set 32/6/1.

Hints

Open one hint at a time and try again before the next.

Hint 1

Recall what changed in India after 1991 in trade and investment rules.

Hint 2

Think of barriers such as taxes and quotas, and of SEZs.

Hint 3

Think of what happened to Indian companies: technology, collaborations, becoming MNCs.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Meaning of liberalisation: Since 1991 India has removed many rules and barriers on foreign trade and investment. Foreign companies were given freedom to trade and invest, for example through FDI and disinvestment of public sector units.

    1 mark

  2. Trade barriers reduced: Earlier the government used taxes on imports (tariffs) and quotas to limit imports, for example on Chinese toys. These controls were relaxed so that goods and capital could move more freely.

    1 mark

  3. Special Economic Zones: SEZs with world-class facilities were set up to attract foreign companies and investment.

    1 mark

  4. Flexible labour laws: The government allowed flexibility in labour laws to attract foreign investors.

    1 mark

  5. Impact on Indian firms: Many companies adopted newer technology and production methods and raised their standards. Some collaborated with foreign firms, and several Indian companies became MNCs trading in other countries. Foreign trade and investment policy was also backed by powerful international organisations such as the WTO.

    1 mark

Answer: Liberalisation opened India to foreign trade and investment through lower barriers, SEZs, flexible labour laws, foreign collaborations and the rise of Indian MNCs.

Where the marks are

  • Explains liberalisation as removal of rules on trade and investment such as FDI (1 mark)
  • Tariffs and quotas relaxed (1 mark)
  • SEZs set up to attract foreign companies (1 mark)
  • Labour laws made flexible (1 mark)
  • Technology upgrading, collaborations and Indian MNCs (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Globalisation and the Indian Economy, one at a time, marked against the answer key and marking points.Back to the full paper2023 board paper, set 32/6/1: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.