NBSE Class-10| Social Science Notes/Solutions| Chapter-4| Trade and Globalism

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I This chapter NBSE Class-10| Social Science Notes/Solutions| Chapter-4| Trade and Globalism .  which is a part of the class 10 syllabus of social science for students studying under Nagaland Board of School Education:

NBSE Class-10| Social Science Notes/Solutions| Chapter-4| Trade and Globalism

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I. Multiple Choice Questions

1.’Globalisation’ today mainly refers to:

(a) Trade, migration of people in search of work 

(c) An economic system that has emerged in the last 50 years

(b) Movement of capital

(d) Cultural links among world societies 

Ans: (a) Trade, migration of people in search of work

2. The decision-making in the IMF and the World Bank is controlled by:

(a) All the member-nations of these two banks 

(b) Western industrial powers and the US’s right to veto over key IMF and World Bank decisions 

(c) The Asian-African bloc

(d) A majority vote by all the nations

Ans: (b) Western industrial powers and the US’s right to veto over key IMF and World Bank decisions

3.Multinational Corporations (MNC’s) are 

(a) Foreign companies that flourish in the developing countries

(b) Large companies that operate in several countries at the sam time

(c) Large companies that try to exploit small companies

(d) West European and Japanese companies which exploit the developing countries

Ans: (b) Large companies that operate in several countries at the sam time

4. The IMF was established on

(a) December 27, 1945

(b) December 30,1946 

(c) January 15, 1947

(d) January 26, 1947

Ans: (a) December 27, 1945

II. Very Short Answer Questions

1. Name the pioneer of mass production of cars.

Ans: Henry Ford

2. Who started the New Deal?

Ans: Franklin D. Roosevelt

3. Name the Bretton Woods Institutions.

Ans: IBRD and IMF

4. What did the G-77 demand?

Ans: The G-77 demanded a New International Economic Order (NIEO)

III. Short Answer Questions

1. Define globalisation.

Ans: The free movement of capital, goods, technology, ideas and people is called globalization.

2. Define the term ‘migrant’. 

Ans: The term migrant means traveler or worker who moves from one region or country to another.

3. What is popular name of the international bank, set up for reconstruction and development?

Ans: The International Bank for Reconstruction and Development (IBRD)

IV. Long Answer Questions 

1. Mention the two crucial influences that marked the post-war reconstruction.

Ans: The post-war reconstruction was marked by two crucial influences. First was the US’s emergence as a dominant political, economic and military power in the western world. Second was the dominance of the Soviet Union. It made huge sacrifices to defeat Nazi Germany and transformed itself from a backward agricultural economy into a world power when the world was trapped in the Great Depression.

2. List the chief features of the Bretton Woods system.

Ans: The chief features of the Bretton Woods system was to adopt a monetary policy that maintained the exchange rate of its currency within a fixed value – plus or minus one per cent – in terms of gold and the ability of the IMF to bridge temporary imbalances of payments.

3. Examine why the Great Depression was a catastrophic event for the USA.

Ans: Great Depression was a Catastrophic or disastrous event for USA because of following reasons:- 

(i)With the fall in prices and the prospects of depression, the US Bank also slashed domestic lendings, and called back loans. 

(ii) Farms were unable to sell their harvest

(iii) The number of unemployed started rising and in 1933, it touched 17 million

4. What changes did Franklin D. Roosevelt’s New Deal bring about?

Ans: In 1933, Franklin D. Roosevelt, the new US President, promised a ‘New Deal”. This introduced protection for people’s savings and new regulation of banks. Farm prices were supported and many programmes of construction were started to create employment.

5. Explain the causes of the Great Depression.

Ans: The important causes of the Great Depression are as follows:

(a) Over production in Agriculture:- The agricultural production went up but the purchasing capacity of people came down, The prices of the goods declined. The farmers tried to expand productions and brought more produce in the market. However, the prices further came down. So it caused the Great Depression.

(b) Shortage of Loans:- Many countries financed their investments through loans from the U.S. but the U.S. overseas lenders panicked at the economic crisis. In the first half of 1928 US overseas loans amounted to over $ 1 billion. A year later it was one quarter of that amount. Hence the nations which depended on US loans began to face serious economic crisis. Thus it caused the Great Depression.

(c) Multiple Effect:-In such economic crisis the US lenders stopped giving loans. Hence it caused the failures of major banks and currencies. In Latin America and elsewhere it intensified the stump in all these factors contributed to the growth of Great Depression.

(d) Conditions created by the war:- There was an immense industrial expansion in view of the increased demands of goods related to army during the 1st World War. Even after the war the demands for military and war products increased which gave birth to economic depression. 

6.  Write the factors that made the post-World War I recovery difficult for Britain.

Ans: At the end of the war, Britain was over-burdened with huge external debts. The war had caused an economic boom. This meant that it resulted in large increases in demand, employment and production. When the war ended, production declined and unemployment increased. One in every five British workers was out of work in 1921. Many agricultural economies were also in great crisis. For example, Eastern Europe was a major supplier of wheat in the world before the war. When this supply was interrupted, wheat production in America, Canada and Australia expanded. Production in Eastern Europe revived after the war was over. Grain prices fell, rural incomes declined and farmers were under debt.

7. Explain the impact of globalisation.

Ans: The impact of globalization on the world are:-

(i ) In the garb of globalisation, poor and underdeveloped countries were forced to lift all non-tax restrictions on international trade and to cut custom duties to bring them to the international level. This benefited the developed countries and the underdeveloped countries suffered a loss of millions of dollars.

(ii) The developed countries talk about free flow of finished products primary goods, financial and insurance services and capital bu object to the free flow of labour on the ground that it would increase supply of labour in their country, bring down wages and cause unemployment.

(iii) The experience of a number of developing countries tells that the developed countries are interested in investing in those secton where the gestation period is short and returns are high and overal risk is little.

(iv) Financial assistance to poor countries is associated with advers conditions. Because of low credit rating and high rate of inflation the rate of interest is higher.

(v) The cut in customs duties harms the poor countries in two ways First, it reduces revenue and makes it difficult for the government to run programmes for the welfare of the poor. Secondly, it

promotes imports which are mainly luxury goods and the country’s valuable foreign exchange reserves begin to melt.

(vi) Globalisation also reduces govemment’s participation in economic sphere. Public enterprises are privatised, number of posts is reduced in the name of rationalization, government is forced to resort to deficit financing and curtail subsidy on foodgrains as also to cut expenditure on education and healthcare services.

(vii) Globalisation and liberalization has increased disparity of income and wealth distribution.

(viii) Globalisation has changed consumption pattern. The demand for luxury goods like cars, televisions, air conditioners, refrigerators, cold drinks and fast food etc. has gone up and the production of goods used by the poor has either declined or stagnated.

                   THINGS TO DO


Divide the class in two groups. One group prepares on why Bretton Woods System came into being and their benefit. The Second Group prepares a paper on why the Bretton Woods System failed to satisfy and what replaced it. Choose a leader from each group to read out their paper.


Why it came into being and their benefits.
Why it failed and what replaced it.
✓ Bretton Woods conference took place in july 1944
✓ Under this IMF and IBRD were established.
✓ To outlaw practices which were agreed to be harmful to world prosperity.
✓ To assist each other to overcome short term exchange difficulties.
✓ To make currencies convertible for trade
✓ The decline of US Currency.
✓ Rise of Western Commercial banks.
✓ Problem of Unemployment. 
✓ Rise of China and Soviet Union.
✓ Low cost structure in China.
✓ It failed to benefit the developing countries. 
✔ New International Economic Order(NIEO) was established.


Divide the class into five groups. Each group takes up a topic and prepare a chart on it, highlighting the causes, main events and consequences involved in the topic.

(a) G-77

(b) Globalisation

A. G-77

Under Bretton Wood System developing nations did not benifitas they were dominated and exploited by their colonial powers.

Therefore G-77 emerged as a group of loose coalition of developing countries. The number increased to 130 nations and this enhanced their negotiating capacity at the International level.


The concept of globalization arose in the last decade of the 20th century.

It aims to create and facilitate free flow of goods, capital, labour as well as technology. 

With the advancement of science and technology, specially in the field of information and technology, the world has become a global village now.

Globalization has also changed the consumption pattern and has reduced Government’s participation in economic sphere.

However, in the guise of globalization poor countries are forced to lift all non tax restrictions on international trade, this issue remains to be addressed.

Chapter No.Chapter’s Name
Chapter 1The Rise of Nationalism In Europe
Chapter 2The Nationalist Movement in Indo-China
Chapter 3Nationalism in India
Chapter 4Trade and Globalism
Chapter 5Resources
Chapter 6Power Resources
Chapter 7Agriculture
Chapter 8Manufacturing Industries
Chapter 9Transport and Communication
Chapter 10Map Reading
Chapter 11Working of Democracy
Chapter 12Power Sharing Mechanism in Democracy
Chapter 13Competition and Contestations in Democracy
Chapter 14Outcomes of Democracy
Chapter 15Challenges of Democracy
Chapter 16Development
Chapter 17Money and Financial System
Chapter 18Role of Services Sector in Indian Economy
Chapter 19Consumer Awareness
Geography Section

Additional Questions

I.Multiple Choice Questions

1. Which of the following statements is a true definition of what the economist identify as “flows”?

(a) Trade in goods (cloth or wheat), migration of people in search of employment and movement of capital for short term or long term investments over long distances

(b) Economic, social, cultural and technological exchanges

(c) Self-sufficiency in food and no imports of food

(d) All the above 

Ans:-(a) Trade in goods (cloth or wheat), migration of people in search of employment and movement of capital for short term or long term investments over long distances

2.The number of people who migrated from Europe to America and Australia and other parts of the world in the 19th century was nearly.

(a) 10 million from Europe and 100 million from all over the world. 

(b) 20 million from Europe and about 150 million from all over the world

(c) 50 million people from Europe to America and Australia and 150 million from all over the world migrate

(d) The number is not certain, not enough proof

Ans:-(d) The number is not certain, not enough proof

3. The dramatic changes in global agricultural economy by 1890, were:

(a) Food no longer came from a nearby village but from thousands of miles away, grown by a migrant recently arrived

 (b) Foodwas transported by railways recently built and ships manned by low-paid workers from southern Europe, Asia, Africa 

(c) Forests were converted into large farms, leading to ecological changes

(d) All the above

Ans:-(b) Food was transported by railways recently built and ships manned by low-paid workers from southern Europe, Asia, Africa

4. The reasons why inflow of fine Indian cotton to Britain and other countries declined in the 19th century were:

(a) Industrialisation and expansion of cotton manufacture in Britain 

(b) Imposition of tariff on cloth imported into Britain to protect local industries

(c) British manufacturers began to seek overseas markets for their cloth, Indians faced stiff competition in international markets 

(d) All the above

Ans:-(d) All the above

II. Very Short Answer Questions

1.When slavery was abolished?

Ans:- Slavery was abolished in 1834.

2. When was indentured labour and it was abolished?

Ans:- The Nationalist leaders opposed the system of indentured labour and it was abolished in 1921.

3. Name the world’s first mass-produced car?

Ans:-The T-model Ford was the world’s first mass-produced car.

 4. When did the Great Depression ended?

Ans:- The Depression ended in 1939 and caused major political changes.

5. What is New Deal? Who introduced it?

Ans:- New Deal involves a large scale federal relief programmes, aid to agriculture, support for labour unions. It was introduced by Franklin D. Roosevelt.

6. What was the immediate impact of Great depression on India?

Ans:- The impact of Great depression on India was that India’s exports and imports nearly halved between 1928-34.

7. What was the main aim of the post-war international economic system?

Ans:- The main aim of the post-war international economic system was to preserve economic stability and full employment in the industrial world.

8. Name three main destinations of indentured migrants.

Ans:- The main destinations of indentured migrants were the Caribbean islands (Trinidad, Surinam, Guyana), Fiji, and Mauritius.

9. What are MNCs?

Ans:-Multinational Corporations (MNCs) are large companies that operate in several countries at the same time.

MNCs have substantial direct investment in. foreign countries. They are engaged in the active management of these overseas assets. MNCs are also involved in the management, integration of operations located in different countries.

III. Short Answer Questions

1. What is Group 77? Why did Group 77 countries demand a New International Economic Order? Explain

Ans:- The developing countries formed themselves into a group-the Group of 77 (or G-77).They demanded. a new international economic order (NIEO). This was a system which would give them real control over their natural resources, fairer prices for raw materials and better access for their manufactured goods is developed countries’ markets.

2.  Explain three major features of global agricultural econom that had taken shape towards the close of the 19th century.

Ans:-(i) Food and other products: Food and other products starte flowing from faraway places. It was no longer grown by a pease tilling his own land, but by an agricultural worker.

(ii) Infrastructure: The food and other products started to be transported by railways which were otherwise transported by law paid workers from Southern Europe Asia, Africa and the Corebbean Island.

(iii) Commercialisation of Agriculture in colonies: The imperial countries took various steps to commercialise agriculture in their colonies.

3. Mention the chief features of globalisation.

Ans:-Globalisation is an important ingredient in the economic reforms package and has four features:

(i) Eliminating trade obstructions to facilitate free flow of goods,

(ii) Creating conditions conducive to free flow of capital,

(iii) Creating an environment for the free flow of technology, and

(iv) Lastly, creating an atmosphere for the free flow of labour, and this is most important from the point of view of developing countries.

4. Write a note on Silk Route?

Ans:-The Silk Route served as a trade cultural route that were central to chinese interaction through regions of the continent connecting East and West linking traders, merchants, pilgrims, monks, soldiers, nomads and urban dwellers China to the Mediterranean Sea. Trade the Silk Route was a significant factor for the development of the great civilisations China, Egypt, Mesopotamia, Persia and the Indian subcontinent and helped to lay the foundations of the modem world.

5. What is hosay?

Ans:- The annual Muharram procession in Trinidad was transformed into a riotous festival called ‘Hosay’ (for Imam Hussain) in which workers of all religions and races joined.

6.What is Chutney Music?

Ans:-Chutney music is a cultural link popular in Trinidad and Guyana was another form of expression of post-indenture experience.

IV. Long Answer Question

1.Discuss in detail the economic factors that influenced the world in the nineteenth century.

Ans:- The world had deeply changed in the nineteenth century. Economic, social, political, technological and cultural factors interacted in complex ways to transform societies and reshape external relations. Economists identify three types of movement or ‘flows’ within international economic ÿþexchanges: (i) flow of trade or trade in goods (ii) flow of labour or the migration of people for economic gains (iii) flow of capital for investment overseas. Trade developed and markets expanded in the late nineteenth century. The expansion of trade and a close relationship with the world economy meant a loss of freedom and livelihoods in many parts of the world. The late nineteenth century European conquests produced many economic, ecological and social changes through which the colonised societies were brought into the world economy.

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