Economics 4 Marks Question

Migration is shifting of a person from one place to another with the intentions of settling, permanently or temporarily in a new location. The movement is often over long distances and from one country to another . When people migrate from one country to another country it is known as external migration, on the otherhand when people shift from one state to another state it is known as internal migration.
Costs of Migration:
a. It involves higher cost of living in migrated area.
b. It involves cost of transportation.
c. It involves psychological cost of living in a foreign culture.
Benefits of Migration:
a. Higher earnings
b. Better social status

Globalisation:
Globalisation means integrating the economy of a country with the economies of other countries under conditions of free flow of trade and capital, and movement of persons across borders. Globalisation has both positive and negative impacts on an economy. These are discussed below:
Case in favour of Globalisation:
1. It will improve allocative efficiency of resources, capital output ratio, increase labour productivity, exports and inflow of capital.
2. It will bring world class technology, increase competition, and boost the rate of economic growth.
3. It will help to restructure the production and trade pattern in a capital scarce, labour abundant economy in favour of labour intensive goods and techniques.
4. Foreign capital will be attracted and with its entry, updated technology will also enter the country.
5. With the entry of foreign competition and the removal of import tariff barriers, domestic industry will be subjected to price reducing and quality improving effects in the domestic economy which will benefit consumers.
6. It creates employment opportunities in the economy.
7. It has resulted in the unrestricted flow of goods and services among different countries of the world.
Case against Globalisation:
1. It leads to redistribution of economic power and increases inequalities among nations.
2. One study reveals that in the globalising world, the economies are moving away from each other rather than coming closer.
3. Globalisation is increasing pressure on economies for structural and conceptual readjustments.
4. Public is going through the pains and uncertainties of structural and conceptual readjustments for the sake of benefits yet to come.
5. Globalisation is unfair from the view point of developing countries as none of the MN Cs has set up manufacturing plants in India or signed any technology transfer agreement with any Indian company like INTEL, AMO and CISCO.
6. It has also resulted in unemployment because of the use of capital intensive techniques.

The statement suggests that the process of economic reform has had a negative impact on the agriculture sector. This could be due to various reasons. Economic reforms, such as liberalization and globalization, often prioritize industrial and service sectors, leading to reduced government support and investment in agriculture. This can result in limited access to credit, inadequate infrastructure, and a lack of modern technology and resources for farmers. As a result, the agriculture sector may face challenges in terms of productivity, competitiveness, and income generation, thus adversely affecting its overall performance.

Difference between Self reliance and Self Sufficiency can be summarised as below:
a. An economy must have enough resources or foreign exchange to purchase all inputs required for production, if they are not available within the country. If it has enough resources to buy these resources it is said to be self-reliant. On the contrary, when a country can produce everything within its domestic territory, it is said to be selfsufficient.
b. It is possible to be self-reliant but it is not possible for an economy to be self sufficient.
c. Self-sufficiency is also not desirable economically because it may be cheaper and better to buy certain inputs from other countries. For that a country needs foreign exchange. If a country has foreign exchange, it is self-reliant. d. Self - Sufficiency means a country is possessing (or producing) all the resources it needs.
Self - Reliance is depending on own resources of the country and avoiding dependence on externals flows.