Case Study Questions Chapter 4 Globalisation and the Indian Economy

What is Case Study Question / Paragraph Based Question?
A case study is a scenario in a particular academic / professional context which students are expected to analyse and respond to, guided by specific questions posed concerning the situation. In many cases, the scenario or case study involves a number of issues or problems that must be dealt with in a academic / professional workplace.

Why Case Study Questions are included in academics?
Case study assignments usually require students to identify problems and issues in a scenario, to demonstrate their developing knowledge of theories and academic / professional policies and to make decisions and recommendations based on these to either prevent or solve some of the issues in that scenario.

How to solve Case Study Questions?
There are several steps to writing an answer to a case study assignment:

STEP 1: Read the case study and questions carefully.

  • Read the case and associated questions carefully.
  • Highlight the main points of the case and any issues that you can identify.
  • Read the questions closely and analyse what they are requiring you to do.
  • Read the case again, linking the information that is relevant to each question you have been asked.

STEP 2: Identify the issues in the case study.
Case studies describe a situation which may arise in a particular profession or social context. They often involve a number of people in a complex situation. They will often describe a situation which is problematic, possibly in how it is dealt with, or in its complexity. An important part of your answer is to analyse the situation and to identify the issues/actions described in the case which may be problematic. The following questions may help you to do this:

  • What actions were taken in the case?
  • Were these actions the most appropriate and why?
  • Were there any consequences of the actions taken?
  • Was anything omitted or not considered?
  • Were actions/procedures in line with existing codes of practice, policy or theories?

STEP 3: Link theory to practice.
Use your knowledge of existing codes of practice, theories and/or other academic / professional documents and behaviours to decide what was done appropriately and what was not.

STEP 4: Plan your answer.
It can be useful to use the questions you have been set as headings and to answer each part in turn, reducing the chance of omitting set questions. You can always take out the headings before you submit if you wish. Lecturers usually set questions in a logical order, so answer in the order they are written in your question.

STEP 5: Start writing your case study answer (for theory only)
Like any assignment, you will need an introduction, body sections in which you answer the questions put to you regarding the case study, and a conclusion.

STEP 6: Edit and proofread.
Read through your paper yourself to detect and correct other errors and omissions.
Check you have answered all questions and backed up your answer with relevant passage.

Types of Case Study Questions / Paragraph Based Questions
Case Study Questions / Paragraph Based Questions can be broadly classified into two types:

  1. MCQs type: In this type, student has to tick the correct option from various options.
  2. Theory type: In this type, student has to write proper solution / answer in cotext to the case study.

Case Study/ Passage Based Questions Chapter 3 Money and Credit

Type 1: MCQ type

Case Study Question 01

Read the extract given below and answer the questions that follow:

There are a variety of ways in which the MNCs are spreading their production and interacting with local producers in various countries across the globe. By setting up partnerships with local companies, by using the local companies for supplies, by closely competing with the local companies or buying them up, MNCs are exerting a strong influence on production at these distant locations. As a result, production in these widely dispersed locations is getting interlinked.

Answer the following MCQs by choosing the most appropriate option:

Question.1. Which of the following best describes an MNC?

(a) An MNC is a company that controls production of goods and services in multiple nations.
(b) An MNC is a government organised body that controls the distribution of resources in a country.
(c) An MNC is an organisation that ensures new technology is used by the farming sector of a country.
(d) An MNC is a conglomerate of domestic companies that control production of goods and services in the domestic region.

Question.2. Which of the following is an advantage of globalisation to multinational companies?

(a) Multinational companies do not have to procure raw materials from other countries as globalisation leads to self-sufficiency of companies.
(b) Spreading out production across international borders can help in lowering the cost of production.
(c) When multinational companies expand production across the world, they do not have to pay taxes as they help in generating employment.
(d) Multinational companies can easily put the burden of increased cost of production on global consumers and continue to earn high profits.

Question.3. Rajiv has a textile firm. For carrying out production, Rajiv spent money on procuring thread from traders, buying machine and equipment and built a warehouse to store the cloth produced. The expenditure incurred by Rajiv for conducting the production process is termed as ____________.

(a) investment
(b) profits
(c) equity
(d) interest

Question.4. Which of the following can be a benefit to local businesses if they conduct business with MNCs?

(a) Local businesses do not have to invest in the business as MNCs do all the investment.
(b) MNCs provide cheap labour to local businesses.
(c) MNCs can bring advanced techniques of production.
(d) Local businesses earn higher profits as their cost of production becomes nil.

Ans.1. (a) An MNC is a company that controls production of goods and services in multiple nations.
Ans.2. (b) Spreading out production across international borders can help in lowering the cost of production.
Ans.3. (a) investment
Ans.4. (c) MNCs can bring advanced techniques of production.

Case Study Question 02

Read the passage carefully given below and answer the questions that follow:

“The advent of globalisation and the policy of liberalisation have opened the market to the world players. It has given rise to wide choice of goods and services to the consumer. MNCs have played a vital role in the world market. Foreign trade and investment in the country has increased. It has also resulted in exchange of technology between countries. In recent times, technology in the areas of telecommunications, computers and internet has been changing rapidly. Globalisation has also created new opportunities for companies providing services, particularly those involving in IT. Better job opportunities for people have given rise to migration. Globalisation has also enabled some large Indian companies to emerge as multinationals For example, Tata Motors, Infosys, Ranbaxy have expanded their operations around the world.”

Question.1. ______has been a major force in the globalisation process connecting distant regions of the world.

(a) Traders
(b) International companies
(c) Multinational corporations
(d) Businesses houses

Question.2. What is a multinational corporation (MNC)?

(a) A corporation that conducts international trade.
(b) A corporation that manufactures goods for other countries.
(c) A company that owns or controls production in more than one nation.
(d) None of the above

Question.3. Globalisation has created new opportunities for those companies which are involved in:

(a) Manufacturing
(b) IT
(c) Food business
(d) None of these

Question.4. Assertion (A): The advent of globalisation and the policy of liberalisation have opened the market to the world players.
Reason (R): Globalisation has also enabled some large Indian companies to emerge as multinationals.
Options:

(a) Both (A) and (R) are true and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true but R is not the correct explanation of A.
(c) (A) is true but (R) is false.
(d) (A) is false but (R) is true.

Question.5. Which Indian Company has emerged as a MNC?

(a) Mahindra & Mahindra
(b) Tata Motors
(c) Renault
(d) Maruti Suzuki

Ans.1. (c) Multinational corporations
Ans.2. (c) A company that owns or controls production in more than one nation.
Ans.3. (b) IT
Ans.4. (a) Both (A) and (R) are true and (R) is the correct explanation of (A).
Ans.5. (b) Tata Motors

Case Study Question 03

Read the passage carefully given below and answer the questions that follow:

“Foreign trade creates an opportunity for the producers to reach beyond the domestic markets, i.e., markets of their own countries. Producers can sell their produce not only in markets located within the country but can also compete in markets located in other countries of the world. Similarly, for the buyers, imports of goods produced in other country are one way of expanding the choice of goods beyond what is domestically produced. In general, with the opening of trade, goods travel from one market to another. Choice of goods in the markets rises. Prices of similar goods in the two markets tend to become equal. And, producers in the two countries now closely compete against each other even though they are separated by thousands of miles. Foreign trade thus results in connecting the markets or integration of markets in different countries.”

Question.1. Foreign trade creates an opportunity for the:

(a) Consumers
(b) Producers
(c) Manufacturers
(d) None of these

Question.2. Foreign trade creates an opportunity for the producers to:

(a) reach beyond their expectations.
(b) go beyond the domestic markets.
(c) go beyond the foreign markets.
(d) None of the above

Question.3. Fill in the blank:
___________ results in connecting the markets or integration of markets in different countries.

Question.4. Assertion (A): Producers can sell their produce in markets located in other countries of the world.
Reason (R) : Foreign trade results in connecting the markets or integration of markets in different countries.
Options:

(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of A
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.

Question.5. What is the one way of expanding the choice of goods beyond what is domestically produced?

(a) Export of goods
(b) Import of goods
(c) Exim trade
(d) None of these

Ans.1. (b) Producers
Ans.2. (b) go beyond the domestic markets.
Ans.3. Foreign trade
Ans.4. (a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
Ans.5. (b) Import of goods

Case Study Question 04

Read the source given below and answer the following questions:

35-year-old Sushila has spent many years as a worker in garment export industry of Delhi. She was employed as a ‘permanent worker’ entitled to health insurance, provident fund, over time at a double rate, when Sushila’s factory closed in the late 1990s. After searching for a job for six months, she finally got a job 30 km away from where she lives. Even after working in this factory for several years, she is a temporary worker and earns less than half of what she was earning earlier. Sushila leaves her house every morning, seven days a week at 7:30 a.m. and returns at 10 p.m. A day off from work means no wage. She has none of the benefits she used to get earlier. Factories closer to her home have widely fluctuating orders and therefore pay even less.

Answer the following MCQs by choosing the most appropriate option:

Question.1. The passage given above relates to which of the following options?

(a) Uncertain employment
(b) Rising competition
(c) Impact of globalisation on employment
(d) Transforming employment scenario

Question.2. According to the passage, Sushila’s current employment nature is temporary based on which of the following statements?

(a) She earns less than half of what she was earning earlier.
(b) Sushila leaves her house every morning.
(c) A day off from work means no wage.
(d) Factories closer to her home have widely fluctuating orders

Question.3. Companies these days hire most of its employees as temporary employees, so that :

(a) companies can save money.
(b) need not to give social security.
(c) extra output at low cost.
(d) All of the above

Question.4. “She earns less than half of what she was earning earlier” means the workers are now denied their fair share of benefits brought about by_________.

(a) Liberalisation
(b) Privatisation
(c) Globalisation
(d) None of these

Ans.1. (d) Transforming employment scenario
Ans.2. (c) A day off from work means no wage.
Ans.3. (d) All of the above
Ans.4. (c) Globalisation

Case Study Question 05

Read the source given below and answer the following questions:

In recent years, the central and state governments in India are taking special steps to attract foreign companies to invest in India. Industrial zones, called Special Economic Zones (SEZs), are being set up. SEZs are to have world class facilities: electricity, water, roads, transport, storage, recreational and educational facilities. Companies who set up production units in the SEZs do not have to pay taxes for an initial period of five years. Government has also allowed flexibility in the labour laws to attract foreign investment. The companies in the organised sector have to obey certain rules that aim to protect the workers’ rights. Instead of hiring workers on a regular basis, companies hire workers ‘flexibly’ for short periods when there is intense pressure of work. This is done to reduce the cost of labour for the company.

Answer the following MCQs by choosing the most appropriate option:

Question.1. The passage given above relates to which of the following options?

(a) Labour laws and global investment
(b) India’s preparedness to lure investment
(c) Impact of globalisation
(d) Steps to attract foreign investment in India

Question.2. By setting up more SEZs, the government wants to:

(a) reduce taxes
(b) ensure equality in public and private sector.
(c) develop infrastructure
(d) make flexible labour laws

Question.3. Which of the following is not a characteristic of SEZs?

(a) Better infrastructure
(b) Focus on attracting foreign investment.
(c) Tax relaxation for initial period of seven years
(d) Flexibility in labour laws.

Question.4. Instead of hiring workers on a regular basis, companies hire workers ‘flexibly’ for short periods when there is intense pressure of work is an evidence of:

(a) Cost reduction
(b) Globalisation
(c) Extreme competition
(d) Developed SEZ

Ans.1. (d) Steps to attract foreign investment in India
Ans.2. (c) develop infrastructure
Ans.3. (c) Tax relaxation for initial period of seven years
Ans.4. (a) Cost reduction

Type 2: Theory Type

Case Study Question 06

Read the sources given below and answer the questions that follow:

Source A : Production across countries
Until the middle of the twentieth century, production was largely organised within countries. What crossed the boundaries of these countries were raw material, food stuff and finished products. Colonies such as India exported raw materials and food stuff and imported finished goods. Trade was the main channel connecting distant countries. This was before large companies called Multinational Corporations (MNCs) emerged on the scene.

Source B : Foreign trade and integration of markets
Foreign trade creates an opportunity for the producers to reach beyond the domestic markets, i.e., markets of their own countries, Producers can sell their produce not only in markets located within the country but can also compete in markets located in other countries of the world. Similarly, for the buyers, import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced.

Source C : Impact of globalisation in India
Globalisation and greater competition among producers–both local and foreign producers–has been of advantage to consumers, particularly the well-off sections in the urban areas. There is greater choice before these consumers who now enjoy improved quality and lower prices for several products. As a result, these people today, enjoy much higher standards of living than was possible earlier.

Source A : Production across countries
Question.1. How are MNCs a major force in connecting the countries of the world?

Source B : Foreign trade and integration of markets
Question.2. How does foreign trade become a main channel in connecting countries?

Source C : Impact of globalisation in India.
Question.3. How is globalisation beneficial for consumers?

Ans.1. MNCs play an important role in the process of globalisation. They bring not only their products to a country, but also the new business policies and cultures. They also help in increasing competitiveness among the Indian companies. At present, most of us have access to latest models of cars and this could be possible only because of globalisation. Because of a large number of MNCs in our country, most of the urban Indians have become broadminded in their outlook.
Ans.2. Foreign trade becomes a main channel in connecting countries in a way that trade in the past was restricted to finished goods being produced in one market, and sold in other markets. In today’s time, besides trade- flow of capital, technology, people, and services is also taking place all over the world. Today, the world is connected in a way that even production of the same good takes place across different countries.
Ans.3. The benefits of the globalisation for the consumers are given below:
(i) It creates opportunities in terms of investment, employment for many developing and underdeveloped countries and brings about greater integration of economies.
(ii) It enhances choices to the consumers, and brings about increased movement of goods, people, and ideas.
(iii) It has led to the establishment of many foreign brands in the country, thus widening our choices and creating preferences.
(iv) It has expanded the scope of the market. [Any two]

Case Study Question 07

Read the extract and answer the questions that follow:

Tax on imports is an example of trade barrier. It is called a barrier because some restriction has been set up. Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each, should come into the country. The Indian government, after Independence, had put barriers to foreign trade and foreign investment. This was considered necessary to protect the producers within the country from foreign competition. Industries were just coming up in the 1950s and 1960s, and competition from imports at that stage would not have allowed these industries to come up. Thus, India allowed imports of only essential items such as machinery, fertilisers, petroleum etc. Note that all developed countries, during the early stages of development, have given protection to domestic producers through a variety of means. Starting around 1991, some far reaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe. It felt that competition would improve the performance of producers within the country since they would have to improve their quality. This decision was supported by powerful international organisations. Thus, barriers on foreign trade and foreign investment were removed to a large extent. This meant that goods could be imported and exported easily and also foreign companies could set up factories and offices here. Removing barriers or restrictions set by the government is what is known as liberalisation.

Question.1. What is trade barrier? Give one example.

Question.2. What do you mean by the term liberalisation?

Question.3. How does government regulate foreign trade?

Ans.1. When the government puts some restriction on the foreign trade and foreign investment, it is called trade barrier. An example of trade barrier is tax.
Ans.2. Removing barriers or restrictions set by the government is known as liberalisation.
Ans.3. Governments can use trade barriers:
(i) To increase or decrease (regulate) foreign trade.
(ii) To decide what kinds of goods and how much of each should come into the country

Case Study Question 08

Read the sources given below and answer the questions that follows:

Source A- Production across countries
Colonies such as India exported raw materials and food stuff and imported finished goods. Trade was the main channel connecting distant countries. This was before large companies called multinational corporations (MNCs) emerged on the scene. A MNC is a company that owns or controls production in more than one nation. MNCs set up offices and factories for production in regions where they can get cheap labour and other resources.

Source B- Interlinking production across countries
MNCs set up factories and offices for production. The money that is spent to buy assets such as land, building, machines and other equipment is called investment. Investment made by MNCs is called foreign investment. Any investment is made with the hope that these assets will earn profits.

Source C- Information and communication technology
Even more remarkable have been the developments in information and communication technology. In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly. Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices.

Source A- Production across countries
Question.1. Why some companies are called multinational corporations (MNCs)?

Source B- Interlinking production across countries
Question.2. What do you understand by foreign investment?

Source C- Information and communication technology
Question.3. What type of technology are used to contact one another around the world?

Ans.1. Some companies are called Multinational Corporations (MNCs) because these companies owns or controls production in more than one nation.
Ans.2. Investment made by MNCs is called foreign investment.
Ans.3. Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world.

Case Study Question 09

Read the sources given below and answer the questions that follows:

Ford Motors, an American company, came to India in 1995 and spent ₹1700 crores to set up a large plant near Chennai. By the year 2014, Ford Motors were selling 77000 cars in the Indian markets while around 77000 cars were exported to South Africa.
Identify from the following passage, whether the company is regarded as a MNC or not?

(a) Ford Motors is not a MNC.
(b) Ford Motors is a MNC.
(c) Ford Motors is an international company.
(d) None of the above

Ans. (b) Ford Motors is a MNC.

Case Study Question 10

Read the sources given below and answer the questions that follows:

‘There has been rapid development in information and communication technology, e.g., telecommunications, computers, internet etc. They have made easy access to any person or place around the world.’
Identify the concept which is indicated by the above paragraph:

(a) Globalisation
(b) Privatisation
(c) Foreign trade
(d) None of these

Ans. (a) Globalisation

Case Study Question 11

Read the sources given below and answer the questions that follows:

“Only fair globalisation can give new shape to the world economy”.
Identify the correct statement from the following statements:

(a) Small producers, workers etc. have been benefitted from globalisation.
(b) People with education, skill and wealth have made the best use of new opportunities.
(c) The government cannot play a major part in globalisation.
(d) None of the above

Ans. (b) People with education, skill and wealth have made the best use of new opportunities.

Leave a Reply

Your email address will not be published. Required fields are marked *

You cannot copy content of this page