(a)OR(b)

(i)

“Indian economy has greatly benefitted by the process of globalisation.”

(i)

Justify the given statement with valid arguments.

(ii)

Distinguish between Multilateral Trade and Bilateral Trade.

The process of globalisation has produced positive results for the Indian economy. With the creation of a borderless world, the Indian economy has greater access to global markets and latest technology. Moreover, it has provided an increased possibility for large industries to become important players in the international arena. Furthermore, the opening of the economy has led to a rapid increase in foreign direct investment and foreign exchange reserves.

Multilateral trade is the trade by a country with more than two nations to exchange goods and services.

Whereas;

Bilateral trade refers to the exchange of goods or services between two countries.

The foreign exchange reforms undertaken by the Government of India post $\displaystyle 1991$ were as follows:

Tariffs are a tax on imported goods that make imported goods dearer and discourage their usage.

Whereas;

Quotas specify the quantity of goods that can be imported.