Globalisation and the Indian Economy Class 10 important questions with answers

What comes in the exam

• Globalisation and the Indian Economy is in Economics (Understanding Economic Development).
• Only two parts are in the board paper: what globalisation is, and the factors that have enabled it (technology, and liberalisation of trade and investment).
• Almost half the questions are 1-mark MCQs, then 3-mark, 5-mark and 2-mark answers.
• Almost every year you get liberalisation of trade and investment (trade barriers and the changes of 1991), how transport and information technology helped globalisation, and the meaning of globalisation.
• Assertion–Reason is rare.
• How MNCs spread production, how trade joins markets, the WTO, and the impact of globalisation are school project work, not board questions.

Top 8 Globalisation and the Indian Economy questions from board papers

Real CBSE questions, printed as they appeared. Open each answer to see the marking and the steps.

1. Q1 Assertion–Reason · 1 mark CBSE · 2025

   ICT and globalisation statements

   Two statements I and II are given below. Read both the statements carefully and choose the correct option : Statement I : Information and communication technology stimulate the process of globalisation. Statement II : It is used to contact each other, receive information instantly and communicate with remote areas.

   • (A) Both statements I and II are correct and statement II is the correct explanation of statement I.
   • (B) Both statements I and II are correct, but statement II is not the correct explanation of statement I.
   • (C) Statement I is correct, but statement II is incorrect.
   • (D) Statement I is incorrect, but statement II is correct.
   Answer and marking

   Correct option: (A) Both statements I and II are correct and statement II is the correct explanation of statement I.

   1. Check Statement I against the book. Statement I true: ICT has stimulated globalisation
   2. Check Statement II and its link to I. Statement II true: instant contact and information across distances is how ICT spreads globalisation
   3. Both are true and II gives the reason, so pick the first option. Answer: (A) 1 mark

   Answer: (A) Both correct and II correctly explains I

   Marks: Correct option 1

   For full marks: Test each statement on its own, then ask if II tells HOW or WHY I happens.

   Where students lose marks: Choosing (B), not seeing that instant communication is exactly how ICT stimulates globalisation.

   CBSE marking scheme

   (A) Both statements I and II are correct and statement II is the correct explanation of statement I.

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2. Q2 MCQ · 1 mark CBSE · 2024

   Meaning of globalisation

   Which one of the following statements best describes the meaning of ‘Globalization’ ?

   • (A) Removal of tax barriers on trade
   • (B) Providing higher standard of living
   • (C) Process of rapid integration between countries
   • (D) Taking special steps to attract foreign companies
   Answer and marking

   Correct option: (C) Process of rapid integration between countries

   1. Recall the book's meaning of globalisation. Globalisation = process of rapid integration or interconnection between countries
   2. Removing barriers and attracting companies are steps, not the meaning. Answer: (C) 1 mark

   Answer: (C) Process of rapid integration between countries

   Marks: Correct option 1

   For full marks: For 'meaning' questions, pick the definition, not a cause or a result.

   Where students lose marks: Choosing (A), which describes liberalisation, a cause of globalisation, not its meaning.

   CBSE marking scheme

   (C) Process of rapid integration between countries

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3. Q3 Very short answer · 2 marks CBSE · 2025

   Globalisation as integration

   "Globalisation is the process of rapid integration and interconnection between countries." Explain the statement with examples.

   Answer and marking

   1. Show how production gets linked, with an example. Foreign investment by MNCs integrates production across countries, e.g. Ford Motors producing cars in India. 1 mark
   2. Then show how markets get linked, with an example. Foreign trade integrates markets, e.g. Chinese toys are sold in Indian markets. 1 mark

   Answer: Foreign investment integrates production (Ford in India) ; foreign trade integrates markets (Chinese toys)

   Marks: Any two points 1 each

   For full marks: Give one point on production and one on markets, each with an example. The question says 'with examples'.

   Where students lose marks: Repeating the statement ('countries are connected') as an answer, without saying how, earns no mark.

   CBSE marking scheme

   Any two (2x1): foreign trade rising rapidly; MNCs trade substantially in goods and services; foreign investment integrates production; foreign trade integrates markets; goods, services, investment, technology move between countries; regions in closer contact than decades ago.

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4. Q4 Short answer · 3 marks CBSE · 2025

   Liberalisation and globalisation

   How did the policy of liberalisation adopted by India in the 1990s promote globalisation ? Explain with examples.

   Answer and marking

   1. Say what liberalisation removed. Barriers on foreign trade and investment were removed to a large extent. 1 mark
   2. Give the trade result. Goods could be imported and exported easily. 1 mark
   3. Give the investment result with an example. Foreign companies could set up factories and offices in India, so MNCs could invest easily. 1 mark

   Answer: Barriers removed ; easy imports and exports ; foreign companies set up factories

   Marks: Any three points 1 each

   For full marks: Give an example, such as foreign companies setting up factories in India.

   Where students lose marks: Only defining liberalisation, without saying how it opened India to foreign trade and companies, loses marks.

   CBSE marking scheme

   Any three (3x1=3): barriers on foreign trade and investment largely removed; goods can be imported and exported easily; foreign companies can set up factories and offices; MNCs can invest easily; more choice for consumers; producers of different countries compete closely; MNCs produce globally; more trade and investment integrate countries; any other relevant point.

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5. Q5 Short answer · 3 marks CBSE · 2025

   How 1991 trade policy helped

   How did the trade policy implemented in 1991 stimulated the globalization in India ? Explain with example .

   Answer and marking

   1. Start with what the policy removed. Barriers on foreign trade were removed, opening India to imports and exports. 1 mark
   2. Show MNC investment rising, with examples. MNC investment was encouraged, in industries such as cell phones, automobiles, soft drinks and fast food. 1 mark
   3. Show how some Indian firms grew global, with examples. Collaboration and competition helped some Indian companies become MNCs, e.g. Tata Motors and Infosys. 1 mark

   Answer: Trade barriers removed ; MNC investment (cell phones, automobiles, fast food) ; Indian firms became MNCs (Tata Motors, Infosys)

   Marks: Any three points 1 each

   For full marks: Each point needs an example, since the question asks for one. Product or company names make the point clear.

   Where students lose marks: Giving the points with no example anywhere loses marks, because the question says 'with example'.

   CBSE marking scheme

   Any three (3x1=3): barriers on foreign trade removed, opening imports/exports; investment by MNCs encouraged (cell phones, automobiles, soft drinks, fast food); Indian firms pushed to compete globally; collaboration with foreign firms let some become MNCs (Tata Motors, Infosys); infrastructure and policies to attract foreign investment (SEZs); new opportunities for service firms (IT); any other relevant point.

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6. Q6 Short answer · 3 marks CBSE · 2023

   IT and globalisation

   How is information technology connected with globalization ? Explain.

   Answer and marking

   1. Start with how fast this technology itself has changed. Technology in telecommunications, computers and the Internet has been changing rapidly in recent times. 1 mark
   2. Name the devices and say what people use them for. Telegraph, telephone including mobile phones, and fax are used to contact one another around the world. 1 mark
   3. Link IT to production, using the book's magazine example. IT has spread production of services across countries, e.g. a London magazine designed and printed in Delhi, paid by e-banking. 1 mark

   Answer: Rapid change in telecom, computers, Internet ; phones, mobiles, fax connect the world ; IT spreads production of services (London magazine, e-banking)

   Marks: Any three points 1 each

   For full marks: Use the book's magazine example to show IT spreading production of services. Explain how each point links countries.

   Where students lose marks: Describing only what a computer does, without the link to other countries, misses the globalisation part.

   CBSE marking scheme

   Any three, 1 each: rapid change in telecommunications, computers and Internet; telecom facilities (telegraph, telephone, mobiles, fax) used to contact people worldwide; facilitated by satellite communication; internet to obtain and share information; IT spread production of services across countries; designing, printing, e-banking in this domain; instant e-mail and voice mail worldwide at negligible cost; any other relevant point.

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7. Q7 Long answer · 5 marks CBSE · 2024

   Technology drives globalisation

   ‘Improvement in technology has stimulated the globalisation process.’ Explain the statement with examples.

   Answer and marking

   1. Start with the main claim. Rapid improvement in technology is a major factor that stimulated globalisation. 1 mark
   2. Give the transport change. The past fifty years saw several improvements in transport technology. 1 mark
   3. Show what transport gained. This made faster delivery of goods over long distances possible at lower cost. 1 mark
   4. Add the bigger change in ICT. Even more remarkable are developments in ICT: telecommunications, computers and the internet. 1 mark
   5. Give communication examples. Telegraph, telephone including mobile phones and fax are used to contact one another around the world. 1 mark

   Answer: Technology stimulates globalisation ; better transport ; faster, cheaper delivery ; ICT development ; phones and fax connect the world

   Marks: Any five points 1 each

   For full marks: Give examples like containers, mobile phones or e-mail within 120 words.

   Where students lose marks: Listing devices with no link to globalisation earns less; say how each connects countries.

   CBSE marking scheme

   Any five (5×1): rapid improvement in technology is a major factor stimulating globalisation; the past fifty years saw several improvements in transport technology; this made faster delivery of goods over long distances possible at lower cost; even more remarkable are developments in information and communication technology — telecommunications, computers, Internet changing rapidly; telecommunication facilities (telegraph, telephone incl. mobile, fax) used to contact one another around the world; any other relevant point.

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8. Q8 Long answer · 5 marks CBSE · 2024

   Technology as a key factor

   “Rapid improvement in technology has been one major factor that has stimulated the globalisation process.” Explain the statement with examples.

   Answer and marking

   1. Begin with transport, the first kind of technology the book names. Improved transportation technology has made faster delivery of goods across long distances possible at lower costs. 1 mark
   2. Give the container example and what it changed. Containers loaded intact onto ships, trains, planes and trucks cut port handling costs and made exports reach markets faster. 1 mark
   3. Add the change in air transport. The cost of air transport has fallen, so much greater volumes of goods now travel by air. 1 mark
   4. Start with how fast this technology itself has changed. Technology in telecommunications, computers and the Internet has been changing rapidly in recent times. 1 mark
   5. Name the devices and say what people use them for. Telegraph, telephone including mobile phones, and fax are used to contact one another around the world. 1 mark

   Answer: Faster, cheaper transport ; containers cut port costs ; cheaper air transport ; rapid change in telecom, computers, Internet ; phones and fax connect the world

   Marks: Any five points 1 each

   For full marks: Give examples for each point, as the question asks: containers, air transport, mobile phones, fax. Five separate points earn five marks.

   Where students lose marks: Writing 'technology improved' without a named example for each point loses marks, since the question asks for examples.

   CBSE marking scheme

   Any five (5×1): rapid improvement in technology stimulated globalisation; in the past fifty years transport technology improved greatly; this made faster delivery of goods over long distances possible at lower cost; even more remarkable are developments in information and communication technology — telecommunications, computers, Internet changing rapidly; telecommunication facilities (telegraph, telephone incl. mobile, fax) used to contact one another across the world; any other relevant point.

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Free 10-question test: Globalisation and the Indian Economy

MCQ and Assertion–Reason questions from CBSE papers. About 10 minutes. Your score shows straight away.

Common mistakes in Globalisation and the Indian Economy

How to write for full marks

• Number your points and give as many as the marks: two for 2 marks, three for 3 marks, five for 5 marks.
• For 'justify' or 'evaluate', end each point with its link to globalisation, like 'so goods reach far markets faster and cheaper'.
• Add an example to a point where you can: containers, e-mail on the internet, or foreign companies setting up factories and offices in India after 1991.
• Keep to the word limits: 2 marks within 40 words, 3 marks within 60, 5 marks within 120.
• For 'factors that enabled globalisation', give both of the book's factors: technology (transport, and information and communication technology), and liberalisation of foreign trade and investment.

Not in the 2026-27 exam

Leave these out of your revision.

• Production across countries, MNCs, foreign trade and the WTO: project work at school, not asked in the board paper
• Impact of globalisation in India and the struggle for a fair globalisation: project work at school, not asked in the board paper

Questions students ask