Social Science (087) — AI-generated practice question

Globalisation benefits producers who possess skill, education, technology, and sufficient capital. Companies like Tata Motors and Infosys had the expertise, scale, and resources to compete globally and expand abroad, becoming MNCs themselves.

In contrast, small producers like capacitor manufacturers lacked the technology, capital, and ability to compete with cheaper or superior foreign goods flooding the market after trade barriers were removed. They faced intense competition they could not survive.

Thus, the key conditions are: size and capital, level of skill/technology, and ability to compete. Globalisation creates opportunities for the strong but pushes out vulnerable small producers.

Source: Chapter 4 — Globalisation and the Indian Economy, Summing Up

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• The examiner wants you to connect the two contrasting examples to general conditions that determine gains or losses — don't just describe the two companies.
• Key terms to include: skill, education, wealth/capital, competition, technology.
• The textbook explicitly states: "While globalisation has benefited well-off consumers and also producers with skill, education and wealth, many small producers and workers have suffered as a result of rising competition." Quote or paraphrase this directly — it is the core expected answer.
• Avoid padding; 3 marks = 3 clear points.