Social Science (087) — AI-generated practice question

The economic process is globalisation — the integration of markets across the world through foreign trade and investment by MNCs.

Role of government policy: Before 1991, the Indian government imposed trade barriers (taxes, quotas) to protect domestic producers. Starting 1991, India adopted liberalisation — barriers on foreign trade and foreign investment were largely removed. This allowed goods to be freely imported and foreign companies to set up businesses in India.

Examples: Top automobile companies now sell cars in India (unlike earlier when only Ambassador and Fiat were available); leading brands of mobile phones, televisions, and processed fruit juices are now widely available in Indian markets.

Source: Chapter 4 — Globalisation and the Indian Economy; sections: Introduction, Foreign Trade and Integration of Markets, Liberalisation of foreign trade and foreign investment policy

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• Examiners look for three elements: naming the process (globalisation), explaining the pre-1991 policy (trade barriers for protection), and explaining the post-1991 shift (liberalisation).
• The word liberalisation must appear — it is a key term carrying marks.
• Use at least one concrete example from the textbook (cars, mobile phones, etc.) to score the application mark.
• Keep it focused; do not drift into impacts of globalisation (that is a different question).