Social Science — CBSE Class 10 board question

Foreign Trade and Liberalisation:
Before 1991, the Indian government put barriers like high taxes (tariffs) and import quotas on foreign goods to protect domestic producers. Liberalisation meant removing these restrictions. For example, after liberalisation, Chinese toys entered Indian markets at cheaper prices, giving buyers greater choice and forcing Indian producers to compete — this integrated markets across countries.

Foreign Investment and Liberalisation:
Earlier, MNCs faced restrictions on investing in India. After liberalisation, barriers were removed to attract foreign investment. The government set up Special Economic Zones (SEZs) with world-class facilities and tax exemptions for five years. MNCs like Ford Motors invested in India, producing goods both for domestic markets and for export — boosting integration of production worldwide.

Thus, liberalising trade and investment policies removed restrictions, allowed free flow of goods and capital, and accelerated globalisation.

Source: Chapter 4 — Globalisation and the Indian Economy

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• The question links two concepts: foreign trade policy (removal of tariffs/quotas) and foreign investment policy (allowing MNCs, setting up SEZs) to liberalisation and globalisation.
• Examiners expect one example for each — the Chinese toys example is ideal for trade; Ford Motors/SEZs for investment.
• Don't just define globalisation — show how removing barriers in trade AND investment leads to it.
• Avoid padding; 5 marks = ~5 focused points or 2 tight paragraphs + conclusion.