10th SA 2 Economics

CHAPTER – 5
CONSUMER RIGHTS
Q1. Why is there a need for rules and regulations to ensure protection for consumers?
Or
What are the various ways by which people may be exploited in the market?
Rules and regulations are required for the protection of the consumers in the market place due to various reasons.
• Individual consumers often find themselves in a weak position.
• When there is a complaint regarding a good or service that had been bought the seller tries to shift all the responsibility on to the buyer or ask the consumers to purchase from some other shops.
• Sometimes traders indulge in unfair trade practices such as when shopkeepers weigh less than what they should or when traders add charges that were not mentioned before or when adulterated /defective goods are sold.
• Producers are powerful whereas the consumers are scattered. Wealthy producers try to manipulate the market in various ways.
• The Consumers are also sold impure products or adultered goods.
Q2. What do you think should be the role of government to protect the consumers.
The government should provide education, make consumers aware of their rights and duties and keep a check on producers.
Q3. Write about the cause for the rise of consumer movements with reference to India?
• The consumer movements arose out of dissatisfaction of the consumers in the markets.
• There was no legal system available to consumers to protect them from exploitation in the marketplace.
• It was presumed that it was the responsibility of consumers to be careful while buying a commodity or service.
• In India the movement originated with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices.
• Rampant food shortages, hoarding black marketing, adulteration of food and edible oil gave birth to the consumer movement in 1960’s.
Q4. What do you know about Consumer International?
In 1985 United Nation adopted UN Guidelines for consumer protection, This has become the foundation for consumer movement. Today Consumers International has become an umbrella body of 240 organisations from over 100 countries.
Q5. What were the outcomes of the consumer movement?
• The movement succeeded in bringing pressure on business firms as well as government to correct business conduct.
• A major step in 1986 by the Indian government was the enactment of the . popularly known as COPRA Consumer Protection Act.
Q6. How did Reji’s life was affected by the negligence of nurse and doctors?
How did his father seek justice?
Reji of class IX was admitted in a private clinic in Kerala for removal of tonsils. Due to improper anaesthesia Reji showed symptoms of some brain abnormalities and this crippled his life. His father filed a complaint in the State Consumer Disputes Redressal Commission claiming compensation of RS. 5,00,000 for medical negligence and deficiency in service. His father also appealed again in the National Consumer Disputes Redressal Commission located in New Delhi. The commission held the clinic responsible and directed it to pay the compensation.
This example shows that the consumers have the right to be protected against any kind of exploitation and injustice.
Q7. Explain the ‘Right to Information Act.
In October 2005 The Government of India enacted a law popularly known as Right to Information Act. It ensures the citizens about the functions of government departments.
In every product the details about the ingredients, price, batch number, date of manufacture and expiry date and the address of the manufacturer are mentioned. This is done because every consumer has the right to be informed about the particular of goods and services that they purchase. Consumers can also ask for compensation or replacement if the product proves to be defective in any manner.
If we buy a product and find it defective well within the expiry period, we can ask for a replacement. If the expiry period was not printed the manufacturer would blame the shopkeeper and will not accept the responsibility. If people sell medicines that have expired severe action can be taken against them. One can also protest and complain if some sells a good at more than the printed price on the packet. This is indicated by MRP – Maximum Retail Price.
Q8. How did RTI helped Amritha? Page 80
Amritha an engineering graduate after submitting all the certificates and attending the interviews for a job in a government department, did not receive any new of the result. She filed an application using the RTI Act and soon she got her call letter for appointment.
Q9. How can a person get justice when his or her ‘right to choice’ (Right to Choose) is denied? Explain with the example of Abirami. Page 81.
Abirami of Ansari Nagar joined a two year course at a local coaching institute for a professional course in New Delhi. She paid a fees of Rs. 61,020 for the entire course. After a year she wanted to leave the institute as she felt that the coaching is not satisfactory. But the institute refused to refund. She filed the case in District Consumer Court, the court directed the institute to refund Rs. 28000 saying that she had the right to choose. The institute again appealed in the State Consumer Commission. The state commission upheld the district court’s direction and further fined the institute Rs. 25000 for a frivolous appeal. It also directed the institute to pay Rs. 7000 as compensation and litigation court.
Q10. Write a short note on
a. Right to seek redressal: if any damage is done to a consumer, she or he has the right to get compensation depending on the degree of damage. For example Prakash had sent a money order to his village for his daughters’ marriage. The money did not reach his dauthter at the time when she needed it nor did it reach months later. Prakash filed a case in a district level consumer court in New Delhi. The court helps him to get back the money and also compensation for his loss. (Read page 82 and 83)
b. Right to represent: The consumer forum or consumer protection councils guide consumers on how to file cases in the consumer courts. They receive financial support from the government.
Under COPRA, a three tier quasi judicial machinery at the district state and national levels was set up for redressal of consumer disputes. This court is deals with cases involving claims between 20 lakhs and Rs. 1 crore. The consumer can also appeal in state and then in National level courts. This right enables us to have the right to represent in the consumer courts. Due to COPRA consumer awareness is spreading slowly all over India.
Q11. How does COPRA work?
Refer answer 10(b)
Q12. What is standardization? Which all products should have standardization?
ISI, AGMARK, or HALLMARK are some of the logs and certifications of products that help consumers get assured of quality while purchasing the goods and services. The products are monitored and certified by organizations and allowed to use the standard symbols.
It is not compulsory for all the producers to get certificate. For some products that affect the health and safety of consumers or of products of mass consumption like LPG cylinders, food colours and additives, cement, packaged drinking water, it is mandatory on the part of the producers to get certified buy these organizations.

Q13. When is National Consumers’ Day observed in India?
24th December. On this day that the Indian Parliament enacted the Consumer Protection Act in 1986. There are more than 700 consumer groups in the country. Only 20 to 25 are well organized and recognized.
Q14. When will be the consumer movements be more effective?
With active participation of the consumers. It requires a voluntary effort and struggle involving the participation of one and all.





Chapter 3 GLOBALISATION
What do you understand by globalization?
• Integration between countries through foreign trade and foreign investment by multinational companies (MNC’s).
• Integration of production and markets is a key idea behind the process of globalization.
• Globalization has been facilitated by improvement in technology, liberalization and World Trade Organisation.
• Until the 20th century production was within the country with the available raw material, food stuffs and finished products. Trade was the main channel of connecting distant countries.
• Now MNC’s (multinational companies) owns or controls production in more than one nation. Set up factories, offices – MNC’s earn greater profile.
• Goods and services are produced globally – Production is organized in increasingly complex ways.
• The production process is divided into small parts and spread out across the globe.
• Ex: China provides cheap manufacturing location. Mexico & Eastern Europe are useful for their closeness to markets.




Q2. What do you mean by investment?
Money spent for building machines and other equipment is called investment. Investment made by MNC’s is called foreign investment.
Q3. How do multinational companies carry globalization?
- MNCs Provide money for additional investments, like buying new machines for faster production.
- They bring latest technology for production.
- MNC’s buy local companies and then expand production
Ex: Cargill foods a very large American MNC bought small Indian companies like Parakh Foods – Parakh foods made a network in various parts of India. It has 4 oil refineries. Now their controls have been shifted to Cargil. Now Cargil is the largest producer of edible oil in India.
- MNC’s have large power to determine price quality, delivery and labour condition for these distant producers.
- MNCs link many small and big nations of the world in a single bond of trade and market.
Q4. What is the role of globalization in foreign trade and integration of markets?
- Globalization connects countries.
- Provides opportunities for the producers to reach beyond the domestic markets.
- For example, the toys made in China are sold in India at high price.
- In India, people have a choice between Indian and Chinese toys. Thus business expands.
- Foreign trade results in connecting the markets or integration of markets in different countries.

Q5. What are the factors affecting globalization?
- Globalization is the process of integration and inter connection between countries
Factors affecting globalization
- Technology and modern means of communication made faster deliveries of goods and services.
- Cell-phones, internets, emails, fax, satellites information technology, IT and communication also influence globalization.
- Liberation of foreign trade and foreign investments are the foremost factors.
- Removing barriers or restrictions set by the government have also liberated trade all over India.
- The liberations in trade barriers have made global trade easier.
- WTO has made trade a global one.
Q6. Write a short note on World Trade Organization. Give three effects of WTO that affect the Indian economy.
- WTO is one of the organizations to liberalize international trade.
- WTO organizes rules regarding international trade and sees that these rules are obeyed.
- 149 countries of the world are the members of WTO.
- It has forced the developing countries to remove trade barriers.
Effects of WTO
- Developed countries interfere in the management of domestic economy of our country.
- Benefits to Indian Economy are not many as compared to developed countries.
- Prices of many essential goods and life saving drugs go up.
- Export of agricultural products has gone down.
Q7. Explain the concept of liberalization with 3 features.
Liberalization means production and trade without restrictions.
Features
- Removing barriers set by government is called liberalization
- With liberalization of trade businessmen are allowed to make decisions freely about export and import.
- Barriers of foreign trade and foreign investment are also removed
Q8. How has competition benefited people in India? Explain 8 benefits
Globalization has greater competition amongst producers both local and foreign producers have been of advantage to consumers as well as producers in the following ways for consumers.
- There has been greater choice for consumers.
- They have improved quality of goods and now goods are available at lower prices.
- This has led to many employment opportunities.
- There is increased investment by foreigners in India.
- All these things have led to higher standards of living.
- Local producers who are supplying raw materials of MNC’s have prospered as their sale increased.
- Many large scale industries have also benefited because of the competition as new production.
- Cost of production has gone down remarkably.
Q9. How are small producers in India affected by rising competition from MNC’s. Explain?
Very large number of small producers and workers are being affected by the rising competition from MNC’s
- Small producers are affected because the government has removed restrictions on imports. Therefore these small producers have to compete with imported goods
- Since these MNC’s use better technology, their cost of production is quite low as a result they are able to sell all at low prices as compared to small producers can
Q10. What do you mean by Bilateral Trade Agreements?
Before trade with any country, the two countries come to some agreements unitedly. This is called Bilateral Trade Agreements. This agreement plays an important role in the trade relations between two countries.
Q11. What are the advantages of Globalisation?
Globalisation has resulted in many advantages. Increase in goods and services among the nations of the world. It has increased the foreign investments and improvement in technology and advancement. Globalisation has resulted in establishing healthy relationship among the nations.
Q12. How has competition benefited people in India? Explain eight benefits.
Globalisation has greater comptetion among both local and foreign producers. It has been of advantage to consumers as well as producers in the following ways:
• There has been greater choice for consumers. They have improved quality of goods and now goods are available at lower prices.
• This has led to manhy employment opportunities. There is increased investment by foreigners in India.
• Many large scale industries have also benefited because of the competition as new production methods and technology has been now used by them. Cost of production has gone down remarkably.
• Local producers who are supplying raw materials to MNCs have prospered as their sale increased.