Removal of barriers on foreign trade and foreign investment:

• Barriers on foreign trade and foreign investment were partially removed.
• Goods could be improved and exported easily.
• Foreign companies could setup factories and offices here.
• Opportunities for Indian producers to compete with producers around the globe.

Globalisation and greater competition amongproducers-both local andforeign, has been of advantage to consumers in the following ways
(i) Companies have invested in new technology to raise their production quality to compete with the MNCs, thus, ensuring that consumers get better quality products and be satisfied.
(ii) Indian companies have collaborated with MNCs to produce more functional and advanced products, thus, benefitting the consumers.
(iii) Consumer can enjoy improved quality at lower prices for several products. This has led to higher standard of living.
(iv)Due to competition the prices of various products had come down.
(v) The well off section of people in urban areas got much of the benefits of globalisation.

(i) Impact on trade : The depression immediately affected Indian trade. India’s exports and imports nearly halved between 1928 and 1934. As international prices crashed, prices in India plunged. Between 1928 and 1934 wheat prices in India fell by about 50 per cent.
(if) Impact on farmers : The fall in prices had a deep impact on the poor farmers. Though agricultural prices fell sharply, but the colonial government refused to give any relief to the farmers in taxes. Peasants producing tor the world market were the worst hit.
(iii) Impact on Urban India : The depression proved less grim for urban India. Because of falling prices those with fixed income- say town-dwelling landowners, who received rents and middle-class salaried employees now found themselves better off. Every thing low cost.
(iv) High Industrial investment : Industrial investment also grew as the government extended tariff protection to industries, under the pressure of nationalist opinion.
(v) Political Impact : The Great Depression paved way for Gandhiji to launch the Civil Disobedience movement.

• After Independence, the Indian government had put barriers on foreign trade and foreign investment.
• Initially, Indian industries were just coming up after Independence, so competition from imports wouldn’t have allowed these industries to come up.
• In 1999, the government decided that the time had come for Indian producers to compete with the producers around the globe.
• It was felt that competition would improve the performance of domestic producers since they would improve their quality.
• Thus, barriers on foreign trade and foreign investment were removed to a large extent.
• Now, goods could be imported and exported easily and foreign companies could also set up
  factories and offices here.

The various ways in which MNCs set up or control production in other countries are
(a) Buy up a local production company.
(b) Place orders for production with small producers, i.e., contract manufacturing.
(c) By setting up a partnership (joint venture) with a local company.
(d) Setting up their wholly owned subsidiary in the other country.
(e) By licensing or franchising their brand to a local company.

  International trade is considered the economic barometer for a country:
(i) Advancement of international trade of a country is an index to its economic prosperity.
(ii) As the resources are space bound, no country can survive without international trade. Export and import are the components of trade.
(iii)The balance of trade of a country is the difference between its export and import. When the value of export exceeds the value of imports, it is called a favourable balance of trade. On the contrary, if the value of imports exceeds the value of exports, it is termed as unfavourable balance of trade.                           

Significance of tourism as a trade in India is stated in the points below
(i) Our country earns foreign exchange through tourism.
(ii) It promotes national integration.
(iii) It provides support to cultural pursuits and develops international understanding about cultural heritage.

Democracy is a better form of government when compared with any other form of government because of the following reasons
(i) Promotes equality among citizens Every citizen of the country has equal rights before the law. All individuals have equal weight in electing representatives.
(ii) Enhances the dignity of the individual By giving its citizens equal rights, it enhances dignity and freedom of the individual. Democracy gives equal treatment and respect to women, disadvantaged and discriminated castes in our society.
(iii) Improves the quality of decision-making As there is open debate in major issues in democracy thus, quality of decisions is improved.
(iv) Provides a method to resolve conflicts Democracy reduces the possibility of social tension which leads to peaceful social life. It allows room to correct mistakes.
(v) A legitimate government Democracy gets the popular support of the people by regular, free and fair elections.

The principle of the Garden City was developed by architect and planner Ebenezer Howard to solve the problem of the growing congestion and pollution of the city of London. The Garden City was a pleasant space full of plants and trees, where people would both work and live.
He believed that not only it would bridge the difference between the city and the countryside and solve the housing problem of the poor, but it would also produce better quality citizens.

Various social groups which joined the movement were
(i)  Middle class people in the towns
(ii)  Plantation workers
(iii)  Peasants in rural areas
(iv) Tribal people
(v)  Business class people
Middle Class People in the Towns: In towns, middle class people who consisted of students, teachers and lawyers responded to the clarion call of non-cooperation and boycott. They saw the movement as a passport to freedom from the foreign yoke.
Peasants and Tribals : In various places peasants and tribal also participated in the movement. The movement was launched against the talukdars and landlords. For them Swaraj meant they would not be required to pay land dues i.e., land revenue, and the land they were cultivating would be distributed among them.
Plantation Workers:They participated in the movement with the hope that they would be free to move out of the confined space in which they had been enclosed. They hoped that Gandhi Raj had come and they would get land when they went back home.

Factors leading to rise of nationalism in India:

1. In India the feeling of nationalism is associated with anti colonial movement . In the process of their struggle against the colonial yoke people began to discover their own identity of belonging to one nation.
2. A variety of cultural processes, history, symbols, also played an important part in inculcating a sense of identity.
3. Identity of India came to be associated with Bharat Mata, with songs like Vande Matram and then our national anthem, also with our tri- color flag.
4. Umbrella Organization like Congress which led the nationalist struggle brought every section of Indian society under its fold. Nationalist Movement as led by Mahatma Gandhi who brought the people of country together into organized movements of mass struggle.
5. Through writings on Indian history that glorified India's past, its legacy and instilled a sense of pride and achievement in people.
6. British policy of racial discrimination, of divide and rule , instilled a feeling of nationalism among the people, which encouraged them to fight against the foreign domination.

• Credit plays a crucial role in a country’s development. By sanctioning loans to developing industries and trade, banks provide them with the necessary aid for improvement.
• This leads to increase in the production, profits and employment. However, caution must be exercised in the case of loans from the informal sector which include high interest rates that may be more harmful than good.
• For this reason, it is important that the formal sector gives out more loans so that borrowers are not duped by moneylenders, and can ultimately contribute to national development.
• For example- a loan given to a fresh post-graduate for setting up a business might contribute to employment generation, infrastructure development in the near future.

Banks play an important role in the economy:
1. They only keep about 15% of the deposits as cash. The rest is used to give loans to various people.
 2. Loans are required for various economic activities as well as investments, Banks mediate between people having surplus cash and those in need of it.
3. They give interest to the depositors and they charge interest on those taking loans from the banks. The difference between the interest rates is the main income of the bank.
4. Banks encourage depositing money by giving an interest This contributes to savings in the economy.
5. By providing credit at reasonable interest rates, they encourage investment and prevent exploitation from the informal sector.