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Important Questions: CBSE Class 10 Social Science Chapter 21 Globalisation and the Indian Economy
Globalisation and the Indian Economy is a crucial chapter in CBSE Class 10 Social Science, forming part of the Economics section (Understanding Economic Development). Chapter 21 examines how India integrated into the global economy post-1991, the role of MNCs and production networks, liberalisation and policy reforms, and the impact on different sections of society. This question bank provides 18 important questions with model answers to help you score maximum marks in the 2025 board exam.
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Key takeaways
- ✓Chapter 21 typically carries 4–5 marks in the CBSE Class 10 Social Science board exam, appearing as MCQs, short-answer, or case-based questions.
- ✓MNCs and production networks, liberalisation policy post-1991, and the role of WTO are high-frequency topics in board papers.
- ✓1-mark questions test definitions (globalisation, liberalisation, FDI, WTO) and factual recall about MNCs.
- ✓3-mark questions ask you to explain impact of globalisation on Indian producers, consumers, and workers, requiring NCERT examples.
- ✓5-mark questions and case studies demand analysis of liberalisation policy, advantages and disadvantages of globalisation, and government's role.
- ✓Common mistakes include vague answers without examples, mixing up liberalisation and privatisation, and ignoring negative impacts of globalisation.
Chapter Overview and Marks Weightage in CBSE Class 10 Board Exam
Globalisation and the Indian Economy appears under Section B (Economics) of the CBSE Class 10 Social Science paper. This chapter typically carries 4 to 5 marks in the board exam. Questions may appear as part of the 1-mark MCQ section, 3-mark short-answer questions, or 5-mark long-answer and case-based questions. In recent years, CBSE has asked at least one direct question on MNCs, liberalisation, or impact of globalisation on Indian workers and producers. The 2024 paper carried a 3-mark question on how globalisation has affected small-scale industries in India, and a case-based question on a multinational company's production network. Expect 1–2 MCQs testing definitions of globalisation, liberalisation, FDI, and WTO. The chapter is compact but rich in examples—Ford Motors, Cargill Foods, Chinese toy makers—so use these proper nouns in your answers to demonstrate NCERT grounding. Additionally, 1–2 marks may come indirectly in map work or source-based questions if integrated with other chapters.
- Section B (Economics) total weightage: 20 marks in the 80-mark theory paper
- Chapter 21 direct questions: 4–5 marks (1 MCQ + 1 short/long answer)
- High-frequency topics: MNCs and production networks, liberalisation policy, impact on consumers and producers, role of WTO
- Recent trend: Case-based questions on real MNC examples or liberalisation outcomes
- Time allocation: Spend 8–10 minutes on a 5-mark question, 5 minutes on a 3-mark question
1-Mark Questions: MCQs and Very Short Answer (VSA)
One-mark questions test your command over definitions, factual recall, and specific terminology from Chapter 21. Expect 1–2 MCQs in the board paper. These questions are direct but require precision—vague or incomplete answers will not fetch marks. Below are six important 1-mark questions with model answers. Remember to use exact NCERT terms like 'foreign investment', 'trade barriers', 'liberalisation', 'MNC', 'WTO', and 'Special Economic Zone (SEZ)'. Practise writing crisp one-line answers of 15–20 words. Do not over-explain; the examiner is looking for the keyword and core concept. These questions often appear in the first section of the paper, so answer them quickly and move on to longer questions. A single mark can make the difference between grades, especially if you are aiming for 38+ in Social Science.
- Q1. Define globalisation. — A. Globalisation is the process of rapid integration or interconnection between countries through foreign investment and foreign trade.
- Q2. What is liberalisation? — A. Liberalisation means removing or reducing government controls and restrictions on trade and investment to allow free flow of goods and capital.
- Q3. Expand WTO. — A. WTO stands for World Trade Organisation, established in 1995 to liberalise international trade and supervise trade agreements.
- Q4. What is a multinational corporation (MNC)? — A. An MNC is a company that owns or controls production in more than one nation, e.g. Ford Motors, Coca-Cola.
- Q5. Give one example of a trade barrier. — A. Tax on imports (also called tariff or import duty) is a trade barrier that makes foreign goods more expensive.
- Q6. What is a Special Economic Zone (SEZ)? — A. SEZs are industrial zones in India with world-class facilities, relaxed labour laws, and tax exemptions to attract foreign companies.
2-Mark Questions with Model Answers
Two-mark questions require brief explanations with one or two supporting points or examples. Aim for 30–40 words per answer. CBSE awards 1 mark for the core concept and 1 mark for elaboration or example. Do not write long paragraphs; use two clear sentences. Below are three important 2-mark questions from Chapter 21 that appeared in previous board papers or sample papers released by CBSE. Notice how each answer includes an NCERT example or proper noun—this demonstrates textbook knowledge and earns full marks. Avoid generic statements like 'globalisation has both good and bad effects'; instead, name the specific good or bad effect. For instance, mention 'consumers enjoy wider choice at lower prices' or 'small battery makers lost business to Chinese imports'. Two-mark questions are scoring if you stick to the NCERT framework and avoid unnecessary detail.
- Q7. How do MNCs spread their production across countries? — A. MNCs set up production where it is close to markets, skilled labour is available at low cost, and government policies are favourable. For example, they set up factories in China, Mexico, or India and control production through orders to local companies.
- Q8. Why did the Indian government remove barriers to foreign trade and investment in 1991? — A. India faced a financial crisis in 1991 with rising debt and low foreign exchange reserves. To obtain loans from international agencies and boost growth, the government adopted liberalisation and removed trade barriers.
- Q9. State two impacts of globalisation on consumers in India. — A. (i) Consumers enjoy a wider choice of goods at competitive prices, such as mobile phones and electronics. (ii) Higher income groups benefit from improved quality and global brands, though poor consumers may not afford these goods.
3-Mark Questions with Detailed Model Answers
Three-mark questions demand structured answers with three distinct points or one explained point with two examples. Allocate 5 minutes and write 60–80 words. CBSE mark schemes award 1 mark per valid point, so clarity and completeness matter. Below are four important 3-mark questions covering MNCs, liberalisation, impact on producers, and the role of government. Use subheadings or numbering (i), (ii), (iii) to organise your answer—it makes checking easier for the examiner and ensures you do not miss a point. Always reference NCERT examples: Ford Motors in India, Cargill Foods buying Indian companies, Chinese toys flooding Indian markets, garment exporters in Tiruppur. These examples show you have read the chapter carefully and are not relying on general knowledge. Avoid mixing up liberalisation (removing government controls) with privatisation (selling public sector units)—this is a common error that loses marks.
More 3-Mark Questions: Liberalisation, Impact, and Government Role
This section continues with three additional 3-mark questions focusing on liberalisation policy, impact of globalisation on Indian workers and small producers, and the debate around fair globalisation. These topics are high-frequency in CBSE papers. When explaining liberalisation, mention the year 1991 and the specific measures: removing import quotas, lowering tariffs, allowing foreign investment, and privatising public sector units. For impact questions, present a balanced view—mention both positive effects (cheaper goods, exports growth, new jobs in IT and services) and negative effects (job losses in small-scale sector, worker exploitation, unequal benefits). The NCERT chapter emphasises that globalisation has not been fair for all; rich and skilled workers gain, but poor farmers and small producers suffer. Your answer should reflect this nuance. Use phrases like 'on one hand' and 'on the other hand' to structure arguments. CBSE values analytical answers over one-sided praise or criticism.
5-Mark Questions and Case-Based Questions
Five-mark questions test your ability to explain, analyse, and evaluate. They may be direct long-answer questions or case-based questions with a source passage followed by sub-questions. Allocate 8–10 minutes and aim for 120–150 words. Structure your answer clearly: write an introduction (1–2 lines), then 4–5 points in separate paragraphs or numbered format, and a brief conclusion if the question asks 'explain and evaluate'. CBSE awards partial marks, so even if you miss one point, the others will earn you marks. Below is one detailed 5-mark question and one case-based example. For case-based questions, read the source carefully, underline keywords, and answer sub-questions from both the source and your NCERT knowledge. Do not copy sentences from the source verbatim; rephrase in your own words. Recent board papers have included case studies on SEZs, MNC production networks, or the 1991 reforms. Practise at least 3–4 such questions from sample papers and previous year papers to build speed and accuracy.
How CBSE Frames Questions from This Chapter
Understanding CBSE's question-framing pattern helps you anticipate what the examiner will ask and how to structure answers. Chapter 21 questions typically fall into five categories: definition-based (globalisation, liberalisation, MNC, WTO), process-based (how MNCs spread production, how liberalisation was implemented), impact-based (effect on consumers, producers, workers), evaluation-based (advantages and disadvantages of globalisation, fair vs unfair globalisation), and case-based (passage on an MNC or SEZ with sub-questions). The chapter's concise NCERT text means CBSE relies heavily on examples—Ford Motors, Cargill, Chinese toys, Tiruppur garments, SEZs—so memorise these proper nouns and their context. Command words matter: 'Define' needs a one-line answer; 'Explain' needs elaboration with examples; 'Analyse' or 'Evaluate' requires discussing both positive and negative aspects. In 3-mark and 5-mark questions, CBSE often asks 'Explain with examples', so generic answers without examples earn half marks. Recent papers have included hypothetical scenarios: 'A small battery maker in Delhi is struggling due to cheap imports—explain two government measures that can help.' This tests application of concepts, not rote learning. Practise converting chapter content into answers for different command words.
- Common command words: Define, Explain, Describe, Analyse, Evaluate, Justify, Give reasons
- High-scoring tip: Always include NCERT examples (Ford, Cargill, Chinese toys, SEZs) to demonstrate textbook knowledge
- Balanced answers: For 'impact' or 'evaluate' questions, present both positive and negative points
- Case-based trend: Expect 1 case study in the 5-mark section with a passage on an MNC or liberalisation policy
- Mark distribution: In 5-mark answers, introduction = 1 mark, main points (3–4) = 3 marks, conclusion/example = 1 mark
Common Mistakes to Avoid in Chapter 21 Answers
Students often lose marks in Chapter 21 due to avoidable errors. One major mistake is writing vague, example-free answers. Saying 'MNCs help the economy' without naming Ford or Cargill earns half marks at best. Always anchor your answer in NCERT examples. Another frequent error is confusing liberalisation (removing government controls on trade) with privatisation (selling public sector companies). While both happened in 1991 reforms, they are distinct concepts; use the correct term as per the question. Third, students ignore the negative impacts of globalisation. If a question asks for 'impact' or 'evaluate', you must mention both positives (consumer benefits, export growth) and negatives (small producer closures, worker exploitation). A one-sided answer loses marks. Fourth, writing long, unstructured paragraphs instead of point-wise answers. Use numbering or bullets—it ensures you cover all points and makes checking easier. Fifth, copying the question or writing an introduction that repeats the question wastes time and words. Jump straight into the answer. Sixth, spelling errors in key terms: write 'liberalisation' (not liberalization), 'WTO', 'MNC', 'SEZ' correctly. Finally, not practising case-based questions—these are new in format and require extracting information from a passage plus applying chapter knowledge. Solve at least five case studies from sample papers before the exam.
- Vague answers without examples: Always cite Ford, Cargill, Chinese toys, Tiruppur, or SEZs
- Confusing liberalisation and privatisation: Know the definitions and use the term the question asks for
- Ignoring negative impacts: For 'evaluate' or 'impact' questions, discuss both pros and cons
- Unstructured paragraphs: Use point-wise format with numbering (i), (ii), (iii)
- Copying the question: Start your answer directly without repeating the question stem
- Spelling errors: Liberalisation, globalisation, WTO, MNC, SEZ—write these terms correctly
- Skipping case-based practice: These questions carry 5 marks; practise extracting answers from passages
Sample Question 16: Role of WTO in Globalisation
The World Trade Organisation (WTO) matters in promoting globalisation, and CBSE often asks about its functions and impact. The WTO was established in 1995 to supervise and liberalise international trade. It aims to remove trade barriers between nations so that goods and capital flow freely. Developed countries that dominate the WTO have forced developing countries like India to remove trade barriers, but they themselves continue to protect their own industries with subsidies and tariffs. This creates an unfair playing field. For example, the US and EU subsidise agriculture heavily, making it difficult for Indian farmers to compete in global markets. Meanwhile, India had to lower tariffs on industrial goods, exposing small producers to cheap imports. This 3-mark question often appears in board papers, so prepare a balanced answer mentioning both the stated aim of WTO (free trade) and the criticism (unfairness to developing nations).
Sample Question 17: Foreign Investment and Economic Growth
Foreign investment is a key channel through which globalisation affects an economy. MNCs invest in factories, offices, and infrastructure, bringing capital and technology that domestic companies may lack. This is called Foreign Direct Investment (FDI). For India, FDI inflows surged after 1991 liberalisation—companies like Samsung, Hyundai, and Pepsi set up operations, generating employment and boosting GDP growth. However, not all foreign investment benefits the host country equally. MNCs may repatriate profits, invest in capital-intensive sectors that create few jobs, or dominate markets and squeeze out local competitors. CBSE 3-mark or 5-mark questions may ask you to explain how foreign investment promotes growth or to evaluate its advantages and disadvantages. Your answer should include concrete examples and a balanced perspective. Mention SEZs (Special Economic Zones) as a policy tool to attract foreign investment by offering tax breaks and world-class infrastructure. Also note that foreign investment can increase external dependence and vulnerability if the economy relies too heavily on MNC operations.
Sample Question 18: Globalisation and Workers
Globalisation has had mixed effects on workers in India. On one hand, new jobs have emerged in IT, BPO, retail, and manufacturing sectors linked to global supply chains. Skilled workers with English proficiency and technical qualifications have seen rising incomes and career opportunities. On the other hand, workers in small-scale and traditional industries have faced job losses due to import competition and closure of units. Even workers employed by MNCs or their suppliers often work in poor conditions—long hours, low wages, job insecurity, and lack of union protection. The NCERT chapter highlights garment workers in export units who face pressure to meet tight deadlines and are paid poorly. Additionally, globalisation has expanded the informal sector where workers have no social security or legal protection. CBSE 3-mark or 5-mark questions may ask you to explain the impact of globalisation on workers or suggest measures to protect workers' rights. Always present both positive and negative aspects and refer to NCERT examples like garment exporters in Tiruppur or workers in SEZs.
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Frequently asked questions
How many marks does Chapter 21 Globalisation carry in CBSE Class 10 Social Science board exam?+
Chapter 21 typically carries 4–5 marks. Expect 1 MCQ (1 mark) and either one 3-mark or one 5-mark question. Occasionally a case-based question worth 5 marks may draw from this chapter.
What are the most important topics in Chapter 21 for board exam preparation?+
Focus on MNCs and production networks, liberalisation policy and 1991 reforms, impact of globalisation on consumers and producers, role of WTO, and measures for fair globalisation. Memorise examples like Ford Motors, Cargill, Chinese toys, and SEZs.
What is the difference between liberalisation and privatisation?+
Liberalisation means removing government controls and barriers on trade and investment, allowing free flow of goods and capital. Privatisation means selling government-owned public sector companies to private players. Both were part of 1991 reforms but are distinct concepts.
How should I write a 5-mark answer on impact of globalisation?+
Structure your answer with an introduction, then 4–5 points covering positive impacts (FDI, export growth, consumer choice) and negative impacts (small producer closures, job losses, inequality). Use NCERT examples and write a balanced conclusion.
Which NCERT examples must I remember for Chapter 21?+
Key examples: Ford Motors partnering with Mahindra, Cargill Foods buying Indian companies, Chinese toys flooding markets, garment exporters in Tiruppur supplying global brands, SEZs in Mumbai and Chennai, and WTO pressuring India to lower tariffs. Mention these in your answers.
What are common mistakes students make in Chapter 21 answers?+
Common mistakes include writing vague answers without examples, confusing liberalisation and privatisation, ignoring negative impacts of globalisation, writing unstructured long paragraphs, and not practising case-based questions. Always use point-wise format and NCERT examples.
How is WTO related to globalisation?+
WTO (World Trade Organisation) was set up in 1995 to supervise and liberalise international trade. It pressures countries to remove trade barriers, promoting globalisation. However, developed countries dominate WTO and often protect their own industries unfairly.
What is a Special Economic Zone (SEZ) and why is it important?+
SEZ is an industrial zone with world-class infrastructure, tax exemptions, and relaxed labour laws to attract foreign companies. SEZs help India compete globally by offering MNCs low-cost production bases. However, workers in SEZs often face poor conditions.
How did liberalisation in 1991 change the Indian economy?+
Liberalisation removed trade barriers, allowed foreign investment, reduced tariffs, and privatised public sector units. This led to rapid economic growth, entry of MNCs, rise in exports, and consumer access to global goods, but also hurt small producers facing import competition.
Can I score full marks if I only write positive impacts of globalisation?+
No. If the question asks for 'impact' or uses the word 'evaluate', you must present both positive and negative effects. A balanced answer showing understanding of NCERT content earns full marks; one-sided answers receive half marks.
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