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In This Post we are  providing EXCESS DEMAND AND DEFICIENT DEMAND NCERT MOST IMPORTANT QUESTIONS for Class 12 BUSSINESS STUDIES which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter

NCERT MOST IMPORTANT QUESTIONS ON EXCESS DEMAND AND DEFICIENT DEMAND

1. Distinguish between inflationary gap and deflationary gap.
                                                                                                                   
Ans. The excess of Aggregate Demand above the level that is required to maintain full employment level of equilibrium, is termed as inflationary gap. Inflationary gap causes inflation and increases wage and price levels in the economy.
When there is involuntary unemployment in the economy, there is a shortage in Aggregate Demand from the level required to maintain a full employment equilibrium. This short fall is termed as deflationary gap. Deflationary gap causes reduction in wage and prices in the economy.

2. Explain the concept of excess demand in macroeconomics. Also, explain the role of open market operation in correcting it.
Ans. The situation in an economy, when Aggregate Demand is more than the Aggregate Supply corresponding to full employment level is termed as excess demand. In other words, the level of Aggregate Demand exceeds the level of Aggregate Supply even when there is full capacity production in the economy.

In the above figure, £ is the point where AD = AS, i.e. equilibrium point. But at the present. Aggregate Demand AD_ae is more than the Aggregate Supply. Hence, EF represents the excess demand in the economy.
Excess demand leads to reduction in inventories and inflation in the economy. High prices encourage producers to produce more to reach the desired level of stock. Hence, the AS will also rise and economy will attain a new equilibrium at point G with National Income of OP.
Role of Open Market Operations to Correct the Problem of Excess Demand
Open market operations refer to sale and purchase of securities by the Central Bank on behalf of government in the open market. It directly affects the supply of money in the hands of citizens of the country. –
In case of excess demand, the Central Bank sells its securities to common public and financial institutions. It reduces the supply of money in the economy and reduces the money/credit creation power of commercial banks. Thus, the Aggregate Demand comes down and the economy attains equilibrium.

3. Explain all the changes that will take place in an economy when Aggregate Demand is not equal to Aggregate Supply.
Ans. (i) AD > AS When AD is greater than AS, flow of goods and services in the economy tends to be less than their demand. The existing stocks of the producers would be sold out. To rebuild the desired stocks the producer would plan greater production. AS would increase to become equal to AD.
(ii) AD < AS When AD is less than AS, flow of goods and services in the economy tends to exceed their demand. As a result, some of the goods would remain unsold. To clear unwanted stocks, the producers would plan a cut in production. Consequently, AS would reduce to become equal to AD. This is how AS adapts itself to AD

4. Explain the meaning of under employment equilibrium. Explain two measures by which full employment equilibrium can be reached.
                                                                                                                   
Ans. In an economy, when AS = AD or S = I but without the fuller utilisation of labour force, the economy is said to be in under employment equilibrium.
Under employment equilibrium occurs when AS= AD but without the fuller utilisation of labour force.

Measures to Correct Under Employment Equilibrium
(i) Bank rate Central Bank should decrease the bank rate. A decrease in bank rate lowers the rate of interest and credit becomes cheap. Accordingly, the demand for credit expands and Aggregate Demand increases.
(ii) Open market operations By buying the government securities, the Central Bank injects additional purchasing power into the system which results in the expansion of credit. As a result Aggregate Demand increases.

5. Explain the concept of deficient demand in macroeconomics. Also, explain the role of bank rate in correcting it.

Ans. A situation in an economy, when the Aggregate Demand is less than the Aggregate Supply, corresponding to full employment level, is termed as deficient demand.

Deficient demand gives rise to a deflationary gap and leads the economy to an equilibrium level of income/output that is less than the full employment level of income. This leads to deflationary pressures on economy and increases the inventory of producers as sales falls. The producers are discouraged to produce more as price level fall. The economy therefore will attain a new equilibrium at point C with National Income of OP
Role of Bank Rate in Correcting the Problem of Deficient Demand
The rate at which the Central Bank lends money to commercial banks is termed as bank rate. In case of deficient demand, the Central Bank reduces the bank rate to increase the money supply in the economy. Reduction in bank rate increases the credit/money creation capacity of commercial banks and also reduces the market rate of interest which encourages people to borrow more. In this way, the Aggregate Demand increases to the level of Aggregate Supply and the economy attains equilibrium.

6. Explain the concept of deflationary gap. Also, explain the role of margin requirement in reducing it.
Ans. When there is involuntary unemployment in the economy, there is a short fall in Aggregate Demand from the level that is required to maintain a full employment equilibrium. This short fall is termed as deflationary gap.

Role of Margin Requirements to Reduce Deflationary Gap Margin requirement refers to the difference between the amount of loan granted and the current value of security offered for loans. In case of deflationary gap, the margin requirements are lowered to increase the flow of credit by encouraging people to borrow. As a result of that, the Aggregate Demand increases and ultimately the economy attains equilibrium.

7. Explain the role of the following in correcting deficient demand in an economy.
(i) Open market operations
(ii) Bank rate         
Ans. (i) Role of open market operations in correcting deficient demand Open market operations refers to sale and purchase of securities by the Central Bank on behalf of government in the open market. It directly affects the supply of money in the hands of commercial banks and citizens of the country. In case of deficient demand, the Central Bank purchase securities from public.
It increases the supply of money in the economy as well as credit/money creation power of commercial banks. Thus, the Aggregate Demand increases and ultimately the economy attains equilibrium.
(ii) Role of bank rate In correcting deficient demand The rate at which the Central Banks lends money to commercial bank is termed as bank rate. In case of deficient demand, the Central Bank reduces the bank rate to increase the money supply in the economy.
Reduction in bank rate increases the money/credit creation power of commercial banks and also reduces the market rate of interest which encourages people to borrow more. In this way, the Aggregate Demand increases and ultimately the economy attains equilibrium.

8. Explain the role of the following in correcting excess demand in an economy
(i) Bank rate
(ii) Open market operations
Ans. (i) Role of bank rate in correcting excess demand The rate at which the Central Bank lends money to commercial bank is termed as bank rate. In case of excess demand, the Central Bank increases the bank rate to decrease the supply of money in the economy. Increase in bank rate reduces the money creation power of commercial banks and also increases the market rate of interest which discourages public to borrow loans. The Aggregate Demand comes down and the excess demand is corrected.
(ii) Role of open market operations in correcting excess demand Open market operations refer to sale and purchase of government securities by the Central Bank in open market. In case of excess demand, the Central Bank sells the securities to public.
It reduces the supply of money and also reduces the credit creation power of commercial banks. In this way, the Aggregate Demand of economy comes down and the problem of excess demand is corrected.

9. Explain the concept of inflationary gap. Also, explain the role of legal reserves in reducing it.  
or
Define and represent inflationary gap on a diagram. Explain the role of the varying reserves requirement in removing the gap.
or
Explain the concept of inflationary gap. Use diagram. Also, explain the role of legal reserve ratio in removing the gap. 
Ans. (i) Inflationary gap occurs when AD > AS corresponding to full employment level. This inflationary gap i.e. excess of Aggregate Demand causes inflation in the economy and price levels tend to rise.

(ii) Role of legal reserves to correct the problem of inflationary gap
Legal reserves like Cash Reserve Ratio and Statutory Liquidity Ratio are the tools to correct the problems of inflationary gap.
(i) Cash Reserve Ratio (CRR) Every commercial bank has to keep a certain proportion of its total demand and time deposits in the form of cash and other liquid assets with the Central Bank. This ratio is termed as cash reserve ratio. To correct the problem of inflationary gap the Central Bank increases the CRR. It reduces the supply of money and credit money creation capabilities of commercial banks. Due to lesser supply of money, the Aggregate Demand comes down and the economy attains equilibrium situation.
(ii) Statutory Liquidity Ratio (SLR) It refers to a fixed percentage of the total assets of a bank in the form of cash or other liquid assets that is required to be maintained by the bank with themselves. During the situation of inflationary gap, SLR is increased. This reduces the credit creation capacity of commercial banks and reduces the flow of money in the economy. As a result of that, the Aggregate Demand comes down and ultimately the economy attains equilibrium again.

10. Explain the meaning of equilibrium level of income. Can there be an unemployment in the economy at an equilibrium level of income? Explain.
Ans. Equilibrium level of income is the level at which Aggregate Demand is equal to Aggregate Supply in the. economy i.e. AD = AS. In other words, when desired output equals desired expenditure , equilibrium output or income is attained.

In This Post we are  providing NATIONAL INCOME AND RELATED AGGREGATES NCERT MOST IMPORTANT QUESTIONS for Class 12 MACROECONOMICS which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter

NCERT MOST IMPORTANT QUESTIONS ON NATIONAL INCOME AND RELATED AGGREGATES

1. Distinguish between stock and flow variables with suitable examples.

Ans:- Difference between stock and flow is.

Basis	Stock	Flow
Time	It relates to a point of time	It relates to the period of time
Dimension	It is not time dimensional	It is time dimensional as per hour, per month, per year.
Impact	It influences the flow. for example, more is capital, greater is the flow of goods and services.	It influences the stock, for example, the more is the flow of investment, the greater would be the capital.
Concept	Static concept	Dynamic concept
Example	capital, wealth, bank balance	Income, expenditure, profit

2. What are capital goods? How are they different from consumption goods? 

Ans:- Capital goods are those final goods that are capable of being used for producing other goods and services. These are goods are used for generating income.

For example:- plant and machinery, equipment, etc.

Basis	Consumption Goods	Capital Goods
Meaning	These goods are purchased or own produced by consumers to satisfy their wants and not for resale	These goods are purchased or own produced by producers for the production of other goods. such goods are not meant for resale.
Use	used by consumers for consumption purposes.	Used by producers to produce other goods and services
Demand	High	Less
Example	bread, butter, tv fridge by consumers.	equipment, machinery, plant by producers

3. Which among the following are final goods and which are intermediate goods? Give reasons. 

a) Milk purchased by a tea stall
b) Bus purchased by a school
c) Juice purchased by a student from the school canteen.

Ans:-

a) Milk purchased by a tea stall is an intermediate consumption. As milk will be used as a raw material to make tea (final goods) within a year.

b) Bus purchased by a school is the final goods. As it would be used by schools for the long term and not meant for resale.

c) Juice purchased by a student from the school canteen is the final good. As it is purchased by a consumer (student) for the satisfaction of his own wants not for resale.

4. Explain with the help of an example. the basis of classifying goods into final goods and intermediate goods.

Ans:- The basis of classification of final goods and intermediate goods is the end-user or end use of the product.

If the goods are in the hand of the end-user (final user) and not going to be sold further. It is termed as final goods. For example, machines purchased by producers, food purchased by households. such goods have come out of the production boundary line and are in the hand of the final user.

On the other hand, if the goods are within the production boundary line and will still be used as raw material in making further goods or if it is final goods but meant for resale. Such products are not in the hand of end-users and are termed as intermediate goods.

5. Distinguish between final goods and intermediate goods. Give an example of each. 

Ans:- difference between intermediate goods and final goods.

Basis	Intermediate Goods	Final Goods
end-user	end-user is a producer	end-user may producer or consumer
Purpose	used as raw material in producing other goods.	is used as consumption goods by consumer or capital goods by producer
Production Boundary	is still within the production boundary	is outside the production boundary
Examples	leather used in the shoe industry, the steel used in the production of kitchen utensils	fridge purchased by households, Machine purchased by producers

6. Explain the circular flow of Income. [All India 2017], [Delhi c 2014], [All India C 2012]

Ans:- Circular flow of Income refers to unending flows of production of goods and services and income and expenditure in an economy.

It show the redistribution of income in a circular manner between production units and households

It comprises of three phases:-

Production Phase:- This phase is also called the income generation phase. In this phase, households provide factor services to production units and produce goods and services. Income is generated.

Income Distribution Phase:- Production units distribute this income to the factor owners.

Expenditure Phase:- Income received by households, spent on goods and services produced by those units. In this phase, all income received by households returns to production units.

Once, the goods and services purchased by households are completely consumed. They again demand goods. Now again producer has the opportunity to produce goods and these three phases go on in circular format again & again.

It can be better understood with the diagram given below.

7. Distinguish between real and nominal gross domestic product. [All India c 2014], [All India 2010]

Ans:- Difference between the Real and Gross domestic product is.

Basis	Real GDP	Nominal GDP
Other Name	It is also called GDP at a constant price	It is also called GDP at the current year price.
Definition	It is the market value of the final goods and services produced within the domestic territory of a country during an accounting year, as estimated at base-year prices.	It is the market value of the final goods and services produced within the domestic territory of a country during an accounting year, as estimated at current year prices.
Welfare	It is a better measure of the welfare of people than Nominal GDP	It is not a good measure of the welfare of people
Changes	Its value changes, when the quantity of output changes.	Its value can changes either quantity of output or price changes.

8. Find Net Value Added at Factor Cost.

Items	(₹ in lakh)
i) Durable use producer goods with a life span of 10 years	10
ii) Single-use producer goods	5
iii) Sales	20
iv) Unsold output produced during the year	2
v) Taxes on production	1

Ans:-

Value of Output = Sales + Change in Stock

Value of Output = iii) + iv) = ₹ 20 + ₹ 2 = ₹ 22

GVA at MP = Value of Output – Intermediate Consumption

Intermediate Consumption = Single use producer goods = ₹ 5

GVA at MP = ₹ 22 – ₹ 5 = ₹ 17

Consumption of fixed capital = Total value of durable use goods/Total life span = ₹10/₹10 = ₹ 1 lakh

Net Indirect tax = Taxes on production – subsidy of production = ₹ 1 – ₹ 0 = ₹ 1

Net Value added at FC = GVA at MP – consumption of fixed capital – Net Indirect tax (Indirect Tax – Subsidy)

NVA at FC = ₹ 17 – ₹ 1 – ₹ 1 = ₹ 15

9. Find the Net Value Added at Market Price. 

Items	(₹ in crore)
1. Output Sold (units)	800
2. Price per unit of output	20
3. Excise	1600
4. Import Duty	400
5. Net Change in Stock	– 500
6. Depreciation	1000
7. Intermediate cost	8000

Ans:-

Sales = Quantitiy * Price

Sales = 800 * 20 = ₹ 16000 crore.

Value of Output = Sales + Change in Stock

Value of Output = 16000 + (- 500)

Value of Output = ₹ 15500

GDP at MP = Value of Output – Intermeciate cost

GDP at MP = 15500 – 8000

GDP at MP = ₹ 7500 crore

NDP at MP = GDP at MP – Depreciation

NDP at MP = 7500 – 1000

NDP at MP = ₹ 6500 crore

10. Find Net Value Added at Market Price. 

Items	(₹ in crore)
1. Depreciation	700
2. Output Sold (Units)	900
3. Price per nit of Output	40
4. Closing Stock	1000
5. Opening Stock	800
6. Sales tax	3000
7. Intermediate cost	20000

Ans:-

Sales = Quantity * Price

Sales = 900 * 40 = 36000

Value of Output = Sales + Change in Stock (Closing stock – Opening stock)

Value of Output = 36000 + (1000 – 800)

Value of Output = 36200

GDP at MP = Value of Output – Intermediate cost

GDP at MP = 36200 – 20000 = 16200

NDP at MP = GDP at MP – Depreciation

NDP at MP = 16200 – 700

NDP at MP = ₹ 15500 crore

In This Post we are  providing  INTRODUCTION TO MACROECONOMICS AND ITS CONCEPTS NCERT MOST IMPORTANT QUESTIONS for Class 12 BUSSINESS STUDIES which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter

NCERT MOST IMPORTANT QUESTIONS ON INTRODUCTION TO MACROECONOMICS AND ITS CONCEPTS

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1. Describe the five major sectors in an economy according to the macroeconomic point of view.
Ans: An economy may be’ divided into different sectors depending on the nature of study. 

1. Producer sector engaged in the production of goods and services.
2. Household sector engaged in the consumption of goods and services.
   Note: Households are taken as the owners of factors of production.
3. The government sector engaged in activities like taxation and subsidies.
4. Rest of the world sector engaged in exports and imports.
5. Financial sector (or financial system) engaged in the activity of borrowing and lending.

2. What are the four factors of production and remunerations to each of these called?
Ans: 

3. What are the important features of a capitalist economy?
Ans: Features of capitalist economy are: 

1. Private ownership of land and capital.
2. Profit is the only motive.
3. Free play of the market forces of demand and supply.
4.  Government looks after growth, stability and social justice in the economy.

4. Define consumption goods and what are its categories.
Ans: Consumption goods are those which satisfy the wants of the consumers directly.
For example, cars, television sets, bread, furniture, air-conditioners, etc. Consumption goods can further be subdivided into the following categories:

1. Durable goods: These goods have an expected life time of several years and of relatively high value. They are motor cars, refrigerators, television sets, washing machines, air-conditioners, kitchen equipments, computers, communication equipments etc.
2.  Semi-durable goods: These goods have an expected life time of use of one year or slightly more. They are not of relatively great value. Examples are clothing, furniture, electrical appliances like fans, electric irons, hot plates and crockery.
3. Non-durable goods: Goods which cannot be used again and again, i.e., they lose their identity in a single act of consumption are known as non durable goods. These are food grains, milk and milk products, edible oils, beverages, vegetables, tobacco and other food articles.
   goods which satisfy the human wants directly. They cannot be seen or touched, i.e., they are intangible in nature. These are medical care, transport and communications, education, domestic services rendered by hired servants, etc.

5. Define capital goods and its categories.
Or
Define ‘capital goods’
Ans: 

1. Capital goods are defined as all goods produced for use in future productive processes.
2. For example, All the durable goods like cars, trucks, refrigerators, buildings, air crafts, air-fields and submarines used to produce goods and services for sale in the market are a part of capital goods.
3. Stocks of raw materials, semi finished and finished goods lying with the producers at the end of an accounting year are also a part of capital goods.
4. Some more examples of capital goods are machinery, equipment, roads and bridges.
5. These goods require repair or replacement over time as their value depreciate over a period of time.

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6. Explain that Domestic territory is bigger than the political frontiers of a country.
Ans: In layman terms, the domestic territory of a nation is understood to be the territory lying within the political frontiers (or boundaries) of a country. But in national income accounting, the term domestic territory is used in a wider sense. Based on ‘freedom’ criterion, the scope of economic territory is defined to cover:

1. Ships and air crafts owned and operated by normal residents between two or more countries. For example, Indian Ships moving between China and India regularly are part of domestic territory of India. Similarly, planes operated by Air India between Russia and Japan are part of the domestic territory of India. Similarly, planes operated by Malaysian Airlines between India and Japan are a part of the domestic territory of Malaysia.
2. Fishing vessels, oil and natural gas rigs and floating platforms operated by the residents of a country in the international waters where they have exclusive rights of operation. For example, Fishing boats operated by Indian fishermen in international waters of Indian Ocean will be considered a part of domestic territory of India.
3. Embassies, consulates and military establishments of a country located abroad. For example, Indian Embassy in Russia is a part of the domestic territory of India.
   ‘Consulate’ is an office or building used by consul (an officer commissioned by the government to reside in a foreign country to promote the interest of the country to which he belongs).

7. “All Producer Goods are not Capital Goods”. Explain.
Ans: Producer goods are all those goods which are used in the process of production i.e., which are used in the production of other goods. Producer goods include two types of goods:

1.  Single-use Producer Goods: Goods used as raw material by the producers. It includes raw material like coal, wood, etc. They are not capital goods as they cannot be repeatedly used in the production process.
2. Capital Goods: Goods which are used as fixed assets by the producers, like plant and machinery, which can be repeatedly used in the production process.
   So, it can be said that all capital goods are producer goods, but all producer goods are not capital goods.

8. “Machine purchased is always a final good.” Do you agree? Give reasons for your answer.
Ans: No, it is not necessary that machine purchased is a final good. It will depend upon its use.

1. If a machine is purchased by a household, then it is a final good. For example, washing machine purchased by a consumer household is a final goods.
2.  If it is purchased by a firm for its own use, then it is also a final good. For example, refrigerator purchased by a firm.
3.  If it is bought by a firm for resale, then it is an intermediate good. For example, machine purchased by a machine dealer.

9. “ Machine purchased is always a capital good.” Do you agree? Give reasons for your answer.
Ans: No, it is not necessary that machine purchased is a capital good. It will depend upon its use.

1.  If a sewing machine is purchased by a tailor, then it is a fixed asset of the tailor and considered to be a capital good. But the same machine purchased by a consumer household is considered to be a durable use consumer goods.
2. If a car purchased by a taxi driver as a taxi or if purchased by a firm for use in its business is a capital good. But the same car purchased by a consumer household is a durable use consumer goods.
   Note: So, finally, the end user of a good determine, whether it is capital good or durable use consumer goods. If an end user of a durable goods is a producer, it is a capital good. If an end user of a durable goods is a consumer household, it is a durable use consumer goods. So, capital goods are only those durable goods which are used as producer goods, not as consumer goods.

10. The concept of Normal Resident helps to estimate ‘National Product’. Defend or refute.

Ans: The concept of Normal Resident helps to estimate “National Product’. National Product includes production activities of normal residents irrespective of fact whether performed within the economic territoiy or outside it. The money value of national product is termed as National Income.

In This Post we are  providing Chapter- 12 CONSUMER PROTECTION NCERT MOST IMPORTANT QUESTIONS for Class 12 BUSSINESS STUDIES which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter

NCERT MOST IMPORTANT QUESTIONS ON CONSUMER PROTECTION

1.Which claims can be appealable bt^core the Supreme Court under Consumer
Protection Act?  
Ans. An order passed by the National Commission in a matter of its original jurisdiction is appealable before the Supreme Court. It means only those appeals where the value of goods and services in question, along with the compensation claimed exceed ? 1 crore and where the aggrieved party was not satisfied with the order of the National Commission can be taken to the Supreme Court.

2.How does a business use self regulations for consumer protection?
Ans. Enlightened business firms realise that it is in their long-term interest to serve the customers well. Socially responsible firms follow ethical standards and practices in dealing with their customers. Many firms have set up their customer service centres and grievance cells to redress the problems and grievances of their customers.

3.How are consumer grievances redressed by the three-tier machinery under CPA,
1986? Explain.
Ans. The three-tier-machinery under CPA, 1986 consist of District Forum, State Commission and the National Commission. A consumer can file a case in District Forum if the vaiue of goods and services alongwith the compensation claimed, does not exceed Rs 20 lakh, in the State Commission if the value of goods and services alongwith the compensation claimed is over Rs 20 lakh but less than rs 1 crore, and in the National commission, if the value of goods and services alongwith the compensation claimed is above Rs 1 crore.
On receiving the complaint, the District Forum/State Commission/National Commission shall refer the complaint to the party against whom the complaint is filed. If required, the goods or a sample, thereof, shall be sent for testing in a laboratory. The court shall pass an order after considering the test report and hearing to the party against whom the complaint is filed.

4.Give the definition of ‘Consumer’ as per CPA, 1986.
Ans. Under the Consumer Protection Act, 1986, the term ‘consumer’ has been defined as any person who buys goods or hires or avail any service for a consideration which has been paid or promised or partly paid and partly promised or under any system of deferred payment. It also includes any user of such goods with the approval of the buyer or any beneficiary of services when such goods or services are availed of with the approval of the person concerned but does not include a person who avails such services for any commercial purpose.

5.State any eight reliefs available to a consumer under the provision of CPA
Ans. The reliefs available to a consumer under the CPA, 1986 are:
(i) To remove the defects in goods or deficiency in services.
(ii) To replace the defective product with a new one, free from any defect.
(iii)To refund the price paid for the product.
(iv) To pay a reasonable amount of compensation for any loss suffered.
(v)To pay punitive damages in appropriate circumstances.
(vi)Not to offer hazardous goods for sale.
(vii)To withdraw the hazardous goods from sale.
(viii) To cease the manufacture of hazardous goods.

6.Anita purchased a book from Satish book stores. While reading the book, she found that ten pages were missing. She approached the book seller and complained about the missing pages. The seller promised that if the publisher was ready to change the book, he would change the same. After one week, the seller informed Anita that the publisher had refused to change the book.
Where can Anita file a complaint against the seller of the book? Give reason in support of your answer. Also, explain who is a consumer as per Consumer Protection Act, 1986. 
Ans. Anita can file a complaint against the seller of the book in the District Forum. District Forum is established by the State Government in each district. In District Forum, only such complaints can be filed in which the value of goods or services and the compensation claimed is not more than Rs 20 lakhs. Consumer as per CPA, 1986   Under the Consumer Protection Act, 1986, the term ‘consumer’ has been defined as any person who buys goods or hires or avail any service for a consideration which has been paid or promised or partly paid and partly promised or under any system of deferred payment. It also includes any user of such goods with the approval of the buyer or any beneficiary of services when such goods or services are availed of with the approval of the person concerned but does not include a person who avails such services for any commercial purpose.

7.Harish purchased a medicine from Bhatia Medical Stores for his son, who had high fever. Even after giving the medicine his son’s condition did not improve and he had to be hospitalised. Doctor informed Harish that medicine given to his son was spurious. Harish complained about this to Bhatia Medical Stores. As-a result, Bhatia Medical Stores decided to file a complaint against the manufacturer in the consumer court. Can Bhatia Medical Stores do this? Give reason in support of your answer. Also, explain who is a consumer as per Consumer Protection Act, 1986.
Ans. ‘Bhatia Medical Stores’ cannot file a complaint against the manufacturer in the consumer court because Bhatia Medical Stores is not a consumer in this case. He is not a user but has obtained medicine for resale purpose/commercial purpose.

Meaning of Consumer as per Consumer Protection Act, 1986   Anita can file a complaint against the seller of the book in the District Forum. District Forum is established by the State Government in each district. In District Forum, only such complaints can be filed in which the value of goods or services and the compensation claimed is not more than Rs 20 lakhs.
Consumer as per CPA, 1986   Under the Consumer Protection Act, 1986, the term ‘consumer’ has been defined as any person who buys goods or hires or avail any service for a consideration which has been paid or promised or partly paid and partly promised or under any system of deferred payment. It also includes any user of such goods with the approval of the buyer or any beneficiary of services when such goods or services are availed of with the approval of the person concerned but does not include a person who avails such services for any commercial purpose

8.Explain the following as ways and means of consumer protection
(i)Consumer awareness
(ii)Government
Ans. (i) Consumer awareness A well informed consumer will safeguard himself from unfair trade practices. A consumer should be well informed about his rights, duties and reliefs available to him. Only then, he would be in a position to raise his voice against unfair trade practices and safeguard his interests. In addition to this, an understanding of his responsibilities would also enable a consumer to safeguard his interest.
(ii) Government The government can protect the interest of the consumers by enacting various legislations. CPA is one of them which provides 3-tier system of redressal to the aggrieved consumers. The legal framework in India encompasses various legislations which provide protection to consumers.

9.Reena purchased one litre of pure desi ghee from a shopkeeper. After using it, she had a doubt that it is adulterated. She sent it for a laboratory test which confirmed that the ghee is adulterated. State any six reliefs available to Reena, if she complains and the consumer court is satisfied about the genuineness of the complaint.
Ans. Reliefs available to Reena are:
(i) To replace the adulterated ghee.
(ii) To refund the price paid for the product.
(iii) To pay a reasonable amount of compensation for any loss or injury/sickness suffered by her due to the negligence of the manufacturer.
(iv) To pay punitive damages in appropriate circumstances.
(v)To withdraw the adulterated ghee from sale.
(vi)To cease manufacture of adulterated ghee.

10.Prakhar purchased an ISI mark electric iron from Bharat Electricals. While using,he found that it was not working properly. He approached the seller and complained for the same. The seller satisfies Prakhar by saying that he will ask the manufacturer to replace this iron. The manufacturer refused to replace and Bharat Electricals decided to file a complaint in the consumer court. Can Bharat Electricals do this. Why? Also explain who is a consumer as per Consumer Protection Act, 1986.
Ans. Bharat Electricals cannot file a complaint. This is because Bharat Electricals is not a consumer as per Consumer Protection Act, 1986 because they bought the goods for resale or for commercial purpose. Under the Consumer Protection Act, a consumer is defined as:
(i) A person who buys goods for consideration which has been paid promised, or partly paid and partly promised or under any scheme of deferred payment. It includes any user of such goods, when such use is made with the approval of the buyer but does not include a person who obtains goods for resale or any commercial purpose.
(ii) Any person who hires or avails any service for consideration which has been paid or promised or partly paid and partly promised or under any system of deferred payment. It includes any beneficiary of services when such services are availed of with the approval of the person concerned but does not include a person who avails of such services for any commercial purpose.

In This Post we are  providing Chapter- 11 MARKETING MANAGEMENT NCERT MOST IMPORTANT QUESTIONS for Class 12 BUSSINESS STUDIES which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter

NCERT MOST IMPORTANT QUESTIONS ON MARKETING MANAGEMENT

1.Distinguish between selling concept and marketing concept of marketing
management philosophies on the basis of main focus.
Ans. (i) Selling concept Firms believe that aggressive selling and promotional efforts will convince a customer to buy a product.
(ii) Marketing concept Customers’ needs and customers’ satisfaction is the key to success of an enterprises.

2.What is meant by selling concept of marketing?
Ans. Firms believe that aggressive selling and promotional efforts will convince a customer to buy a product.

Ans. The marketing management philosophy referred here is ‘Marketing concept’. This concept emphasis that in the long-run, profits can be maximised by identifying and satisfying the needs of present and potential customers. Therefore, customer satisfaction becomes the focal point of all business decisions.

3.Nisha, a school bag manufacturer, decided to improve the product for profit maximisation and thus, added a water bottle holder to the existing design.
(i)Identify the marketing management philosophy adopted by Nisha.
(ii)Explain this philosophy on the basis of (a) Main focus and (b) Means and ends
Ans. (i) Product concept or philosophy Firms which follow the product concept, propose that the way to realise business goals is by making high quality products. These firms manufacture the products of superior quality. Nisha is trying to bring improvement in quality, by corporating a new feature, i.e. adding a water bottle holder in the bag.
(ii) (a) Main focus The main focus of this concept is to improve the quality of products. The marketers now believed that potential exchange would be realised when the products are of high quality. Thus, the firm now focused on making superior products and improving them overtime.
(b) Means Product improvement.
Ends Profit through improvement in product quality.

4.Mansi, a shoe manufacturer for school students, decided to maximise her profit by producing and distributing at large scale and thereby reducing the Average Cost of production.
(i)Identify the marketing management philosophy adopted by Mansi.
(ii) Explain this philosophy or concept on the basis of
(a) Main focus              (b) Means and ends
Ans. (i) Production concept or philosophy.
(ii) (a) Main focus Main focus of this concept is to maximise the quantity of product.
(b) Means Availability and affordability of product.
Ends Earning profits through large scale production and distribution.

5.Explain market planning, product designing and development as functions of marketing. .
or
Explain any three functions of marketing.
or
Explain any two functions of marketing.
or
Explain the following functions of marketing.
(i)Marketing planning (ii)Product designing and  development
or
Explain the following functions of marketing
(i)Gathering and analysing market information
(ii) Customer support services.  
Ans. The main functions of marketing are as follows:
(i) Gathering and analysing market information A marketer has to gather information about the market. Gathering and analysing market information helps in identifying the needs of the customers. It forms the basis for product development. It also helps in identifying the opportunities, threats, strengths and weaknesses of the organisation.
(ii) Market planning The marketer develops appropriate marketing plans to capture or enhance the existing market share. It provides the guidelines to achieve the marketing objectives, e.g. a marketer of colour TVs, having 2% of current market share in the country, aims at enhancing his market share *0 20% in the next three years.
(iii) Product designing and development Product designing and development is concerned with anticipating customers’ needs, developing new products and improving the existing products so as to meet the expectations of customers, e.g. when we plan to buy any product say a motorbike, we not only see its features like cost, mileage, etc but also the design, shape, style, etc.
(iv) Customer support services Customer is the king of modern market. So customer satisfaction is the main motto of every business firm. Hence, a very important function of marketing management relates to developing customer support services such as after sale services, handling customer complaints, procuring credit services, maintenance services, technical services, and consumer information, etc. All these services aim at providing maximum satisfaction to the customers which is the key to success in modern days.

6.What is meant by production concept of marketing?
Ans. Production concept is based on the belief that profits could be maximised by producing at large scale, thereby reducing the Average Cost of production. A large number of firms believe that it is easy to exchange the products if they were widely available at an affordable price. Thus, availability and affordability were considered the key to success.

7.What is meant by selling concept of marketing?
Ans. Firms believe that aggressive selling and promotional efforts will convince a customer to buy a product. It was assumed that the customers will not buy enough, unless they are adequately convinced and motivated to do so.

Therefore, aggressive selling and promotional efforts are made to persuade the customers. The use of promotional techniques such as advertising, personal selling and sales promotion were considered essential for selling of products.

8.What is meant by product concept of marketing?
Ans. Consumers prefer products with superior quality, performance and features. The companies who believe in the philosophy of product concept are of the opinion that if the quality of goods or services is of good standard, the customers can easily be attracted towards it. The basis of this thinking is that the customers get attracted towards the products of good quality. On the basis of this philosophy, companies direct their marketing efforts to increase the quality and features of their product.

7.Define marketing and state any three functions of marketing.
or
What is meant by marketing? State any three functions of marketing.
Ans. Marketing is the sum total of all those activities which move goods and services from the producers to the consumers.
According to Philip Kotler, ‘Marketing is that social process by which individual and groups obtain what they need and want through creating offerings and freely exchanging products and services of value with others’.
The three main functions of marketing are :
(i) Marketing planning  The marketer develops appropriate marketing plans to capture or enhance the existing market share. It provides the guidelines to achieve the marketing objectives, e.g. a marketer of colour TVs, having 2% of current market share in the country, aims at enhancing his market share *0 20% in the next three years.
(ii) Production designing and development  Product designing and development is concerned with anticipating customers’ needs, developing new products and improving the existing products so as to meet the expectations of customers, e.g. when we plan to buy any product say a motorbike, we not only see its features like cost, mileage, etc but also the design, shape, style, etc.
(iii) Pricing of products It refers to the amount of money which the customers have to pay to obtain a product. Price is an important factor affecting the success or failure of a product in the market. The demand for a product or service is related to its price. Generally, lower the price, higher would be the demand for the product and vice-versa.

8.Define marketing management. State any three objectives of marketing
management.
Ans. According to Philip Kotler, ‘Marketing management is an art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer values of management’. It refers to planning, organising, directing and control of the activities which facilitate exchange of goods and services between producers and consumers of products and services.
The three main objectives of marketing management are as follows:
(i) Creation of demand The marketing manager always tries to create the demand not by unfair means but by analysing the needs and wants of the customers and then producing the products, which satisfies the customer’s need.
(ii) Market share Every business firm wants to capture a larger share of the market. Therefore, marketing techniques adopted by marketing manager help to get a big share in the market.
(iii) Goodwill and reputation Marketing management helps a firm in building the image for its products through advertising high quality, caring for customer satisfaction, after sale service, smooth supply, etc.

9.’Bending the customer according to the product’ and ‘development of the product according to customer needs’ are two important concepts of marketing management’. Identify the concepts and differentiate between the two. 
or
‘Find wants and fill them ‘and’ create products and sell them’ are the two important concepts of marketing. Identify and differentiate between these two concepts.
Ans. ‘Bending the customer according to the product’ refers to ‘selling concept’ and ‘developing the product according to the customer needs’ refers to ‘marketing concept’ of marketing management.

10.Explain the following functions of marketing
(i)Gathering and analysing market information
(ii)Product designing and development
(iii)Market planning
(iv) Customer support services.
Ans. The main functions of marketing are as follows:
(i) Gathering and analysing market information A marketer has to gather information about the market. Gathering and analysing market information helps in identifying the needs of the customers. It forms the basis for product development. It also helps in identifying the opportunities, threats, strengths and weaknesses of the organisation.
(ii) Market planning The marketer develops appropriate marketing plans to capture or enhance the existing market share. It provides the guidelines to achieve the marketing objectives, e.g. a marketer of colour TVs, having 2% of current market share in the country, aims at enhancing his market share *0 20% in the next three years.
(iii) Product designing and development Product designing and development is concerned with anticipating customers’ needs, developing new products and improving the existing products so as to meet the expectations of customers, e.g. when we plan to buy any product say a motorbike, we not only see its features like cost, mileage, etc but also the design, shape, style, etc.
(iv) Customer support services Customer is the king of modern market. So customer satisfaction is the main motto of every business firm. Hence, a very important function of marketing management relates to developing customer support services such as after sale services, handling customer complaints, procuring credit services, maintenance services, technical services, and consumer information, etc. All these services aim at providing maximum satisfaction to the customers which is the key to success in modern days.

Short Answer Type Questions:

Q1. What is worldwide interconnectedness? What are its components?

Answer

Worldwide interconnectedness means that the different countries are interconnected with each other as a result of flows among countries. This contains three components:
1. Capital Flow: It is the flow of resources through loans or business investments among the countries.
2. Trade Flows of Goods: It refers to exchange of goods among countries.
3. Labour Flow: It refers to ‘Brain drain’ by creating favourable conditions for employment.

Q2. How has technology contributed to globalisation?

Answer
The technology remains a critical element to globalisation. The invention of telegraph, the telephone, and the microchip in more recent times has revolutionised communication between different parts of the world. The ability of ideas, capital, commodities and people to move more easily from one part of the world to another has been made possible largely by technological advances.

Q3. Critically evaluate the impact of the changing role of state in the developing countries in the light of globalisation?
Answer

• Globalisation results in an erosion of state capacity, that is, the ability of government to do what they do.
• All over the world, the old ‘welfare state’ is now giving way to a more minimalist state that performs certain core functions such as the maintenance of law and order and the security of its citizens.
• State withdraws from many of its earlier welfare functions directed at economic and social well-being. In place of the welfare state, it is the market that becomes the prime determinant of economic and social priorities.
• The entry and the increased role of multinational companies all over the world leads to a reduction in the capacity of governments to take decisions on their own.

Q4. What are the economic implications of globalisation? How has globalisation impacted on India with regard to this particular dimension?

Answer

Economic aspects of globalisation shapes a large part of the content and direction of contemporary debates surrounding globalisation. Economic globalisation is related to the distribution of economic gains, i.e. who gets the most from globalisation and who gets less, indeed who loses from it.
Positive Implications of Economic Globalisation:
• It involves greater economic flows among various countries.
• It has enhanced trade in commodities among countries.
• The restrictions on the imports and movement of capital have also been reduced.
• This has spread internet and computer related services across national boundaries.

Negative Implications of Economic Globalisation:
• Economic globalisation has created diverse opinion all over the world as to benefit only a small section of society.
• It does not have equality at par the movement of people across the globe i.e. developed countrieshave carefully guarded their borders with visa policies to ensure job security to their own citizens.
• It has created disparities among states also by making the rich more richer and the poor more poorer.

Impact of Globalisation on India
• It led to the creation of many new jobs in the MNCs like cell phones, FMCG etc. but these jobs are concentrated more in the services sector.
• India companies are joining hands with many MNCs and also many Indian companies itself became MNCs such as Reliance Indutries, TATA etc.
• Globalisation provided a wide range of choice in selecting goods to consumers.

Q5. Do you agree with the argument that globalisation leads to cultural heterogeneity?

Answer

While cultural homogenisation is an aspect of globalisation, the same process also generates precisely the opposite effect. It leads to each culture becoming more different and distinctive. This phenomenon is called cultural heterogenisation. All cultures accept outside influences all the time. Sometime external influences enlarge the choices or modify our culture without overwhelming the traditions. Thus, it would be correct to say that globalisation leads to cultural heterogeneity.

Q6. How has globalisation impacted on India and how is India in turn impacting on globalisation?

Answer

Impact of Globalisation on India:
• It led to the creation of many new jobs in the MNCs like cell phones, FMCG etc.
• India is playing a crucial role among developing countries in trade and commerce by making some companies multinational themselves such as Tata, Reliance etc.
• It has invited inflow of private foreign capital and export oriented activities. India in turn impacting:After the financial crisis of 1991, Indian economy was liberalised to attract foreign direct investment.
• India introduced new trade policy reforms to remove tariffs and restrictions imposed on imports.
• Under industries, it abolished licensing system exempting few specified industries only.
• Banking operations by private sectors were permitted to expand in the country.

Long Answer Type Questions:

Q1. Explain globalisation. How has technology contributed in promoting globalisation? 
Answer: Globalisation as a concept fundamentally deals with flows. These flows could be of various kinds — ideas moving from one part of the world to another, capital shunted between two or more places, commodities being traded across borders, and people moving in search of better livelihoods to different parts of the world. The crucial element is the ‘worldwide interconnectedness’ that is created and sustained as a consequence of these constant flows.
While globalisation is not caused by any single factor, technology remains a critical element. There is no doubt that the invention of the telegraph, the telephone and the microchip in more recent years has revolutionised communication between different parts of the world. When printing initially came into being it laid the basis for the creation of nationalism. So also today we should expect that technology will affect the way we think of our personal but also our collective lives.
The ability of ideas, capital, commodities and people to move more easily from one part of the world to another has been made possible largely by technological advances. The pace of these flow may vary.

Q2. Explain any three benefits of globalisation with examples.
Answer: 1. Economic Benefits
1. It involves greater economic flows among various countries.
2. It has enhanced trade in commodities among countries.
3. The restrictions on the imports and movement of capital have also been reduced.
4. This has spread internet and computer related services across national boundaries.
2. Technological Benefits
Technical equipments as telephone, internet, telephone and microchip have contributed to globalisation by exchanging ideas, capitals and people to make convenient to move from one place to another at a fast pace to stimulate the process of globalisation.
3. Political Benefits
1. The primary status remains unchallenged on the basis of political community.
2. To some extent developing countries have received a boost to become more powerful and strong.

Q3. Assess any three basics on which globalisation is being resisted in India.
Answer: Resistance to globalisation in India has come from different quarters:
1. Left using protests to economic liberalisation was voiced through political parties as well as through forum like the Indian Social Forum.
2. Trade Unions and farmer’s interests have also organised protests against MNCs.
3. The patenting of certain plants like Neem by American and European firms has also generated protests.
4. Resistance has come from political parties also in the form of objecting to various cultural influences like availability of foreign T.V. channels provided by cable networks, celebration of Valentine’s Day and Westernisation of dress code.

Q4. How do the critics view the process of globalistion?
Answer: Globalisation has invited some strong criticisms also despite its positive impacts. Its critical arguments can be categorized as:
1. Economic 2. Political
3. Cultural
1. Economic:
(a) Reduction in subsidies on mass consumption goods to make foreign creditors powerful.
(b) It has grown disparity between the rich and the poor nations by making the rich more richer and the poor more poorer.
(c) Even states have also created the same disparities between developed and developing nations.
2. Political:
(a) Welfare functions of the state has been reduced.
Picture Based Questions
(b) Sovereignty of states has been affected.
(c) States have become weak to take their own decisions.
3. Cultural:
(a) People lose their age old values and traditions.
(b) The world begins to look more like the dominant power over less powerful society.
(c) It leads to shrinking of rich cultural heritage of the entire globe.

Short Answer Type Questions:

Q1. What were the outcomes of Rio-Summit?
Answer

• Rio-Summit produced conventions dealing with climate change, biodiversity, forestry and recommended a list of development practices called Agenda 21.
• It gave the concept of sustainable development to be combined economic growth with ecological responsibility.
• Rio-Summit developed various contentious issues like Commons, Global Commons in global politics of the environment.

Q2. What is meant by Global Commons? How are they exploited and polluted?
Answer

The areas or regions located outside the jurisdiction of any one state and region, common governance by the international community are Global Commons. They include the earth’s atmosphere, Antarctica, the ocean floor, and outer space.They are exploited and polluted due to:
• Vague scientific evidence, their lack of consensus on common environmental issues.
• North-South inequalities and their exploitative activities and competition lack proper management area out space.
• Technological and Industrial development has also affected the earth’s atmosphere and ocean floor.

Q3. What is meant by ‘Common but differentiated responsibilities’? How could we implement the idea?
Answer

Common but differentiated responsibilities was the first international step to address climate change and equally responsible for ecological conservation. It mean that the state shall cooperate in the spirit of global partnership to conserve, protect and restore the health and integrity of the earth’s ecosystem.
The developed countries acknowledge that the responsibility that they bear in the international pursuit of sustainable development in view of the pressures their societies place on the global environment and of the technological and financial resources they command. We could implement the idea with the help of conventions and declarations:• The Rio-Summit held in June 1992 produced conventions dealing with climate change, biodiversity, forestry and recommended a list of developed practices called Agenda 21.
• The 1992 United Nations Framework convention on climatic change (UNFCCC) also emphasized that the parties should act to protect the climate system on the basis of common but differentiated responsibilities.
• An international agreement is known Kyoto Protocol set targets for industrialized countries to cut their greenhouse gas emissions which support for global warming.

Q4. Why have issues related to global environmental protection become the priority concern of states since the 1990s?
Answer

Issues related to global environmental protection became the priority concern of states since the 1990s because at the global level, the environmental issues drew the attention of various states at the United Nations Conference on Environment and Development held in Rio-de-Janeiro, Brazil in June 1992 through Agenda 21:• Rio-Summit 1992 dealt with climatic change, biodiversity and forestry.
• Agenda 21 combined economic growth with ecological responsibilities.
• Kyoto Protocol set targets for greenhouse emissions.

The above-mentioned conferences and summits raised the environmental issues at the global level to take steps by various states to check environmental degradation in a co-operative manner.

Q5. Compromise and accommodation are the two essential policies required by states to save Planet Earth. Substantiate the statement in the light of the ongoing negotiations between the North and South on environmental issues.
Answer

Compromise and accommodation are the two essential policies to save Planet Earth by the states but the states from North and South have different notions towards environmental issues:
• The Northern states (developed countries) were concerned with ozone depletion and global warming, the Southern states (developing countries) were anxious to address the relationship between economic development and environmental management.
• The developed countries of the North want to discuss the environmental issues which stand equally responsible for ecological conservation.
• The developing countries of the South feel that much of the ecological degradation in the world is the product of industrial development undertaken by the developed countries. If they have caused
more degradation, they must also take more responsibility for undoing the damage now.
• The developing counties are under the process of industrialization and they should be exempted from restrictions imposed on developed countries through various conventions like protocol etc.
• The special needs of developing countries must be taken into considerations in the process of development, application, and interpretation of rules of International Environmental Law.
These provisions were accepted in Earth Summit, 1992 while adopting common but differentiated responsibilities.

Q6. The most serious challenge before the states is pursuing economic development without causing further damage to the global environment. How could we achieve this? Explain with a few examples.
Answer

The economic development can be achieved even without damaging the global environment through various measures:
• In June 1992, Earth Summit provided some conservative measures for sustainable growth without damaging the environment anymore.
• There have been  many  path-breaking agreements such as the 1959 Antarctic Treaty, the 1987
Montreal Protocol, and the 1991 Antarctic Environmental Protocol.• Kyoto protocol cut greenhouse emissions from industrialized countries to protect the environment and to develop industries also.
• The purification, consumption, reuse, disposal and treatment of solid waste should be undertaken by the government.

Long Answer Type Questions:

Q1. Explain the meaning of‘global commons’. How are environmental concerns becoming important in global politics?
Answer. ‘Commons’ are those resources which are not owned by anyone but rather shared by a community. This could be a ‘common room’, a ‘community centre’, a park or a river. Similarly, there are some areas or regions of the world which are located outside the sovereign jurisdiction of any one state, and therefore require common governance by the international community. These are known as ‘global commons’. They include the earth’s atmosphere, Antarctica, the ocean floor and outer space.
Although environmental concerns have a long history, awareness of the environmental consequences of economic growth acquired an increasingly political character from the 1960s onwards. The Club of Rome, a global think-tank, published a book in 1972 entitled Limits to Growth, dramatising the potential depletion of the earth’s resources against the backdrop of rapidly growing world population. International agencies began holding international conferences and promoting detailed studies to get a more coordinated and effective response to environmental problems. Since then, the environment has emerged as significant . issue of global politics.
The growing focus on environmental issues within the arena of global politics was firmly consolidated at the United Nations Conference on Environment and Development held in Rio de Janerio, Brazil, in June, 1992.
This was also called the Earth Summit. The Summit was attended by 170 states, thousands of NGOs and many multinational corporations. The Summit produced conventions dealing with climate change, biodiversity, forestry and recommended a list of development practices called ‘Agenda 21’. But it left unresolved considerable differences and difficulties. There was a consensus on combining economic growth with ecological responsibility. This approach to development is commonly known as ‘sustainable development’.

Q2. Explain the concept of “common but differentiated responsibilities”. How and where was it emphasised upon?
Or
States have common but differentiated responsibilities towards environment. Analyse the statement giving suitable examples.
Answer. Common but differentiated responsibilities mean that ‘the states shall cooperate in the spirit of global partnership to conserve, protect and restore the health and integrity of the earth’s eco system. As the states have common but differentiated responsibilities over various contribution of global environmental degradation. The developed countries acknowledge that the responsibility that they bear in the international pursuit of sustainable development in view of the pressures their societies place on the global environment and of the technological and financial resources they command. We could implement the idea with the help of conventions and declarations:
1. The Rio Summit held in June 1992 produced conventions dealing with climate change, biodiversity, forestry and recommended a list of developed practices called Agenda 21.
2. The 1992 United Nation’s Framework Convention on Climatic Change
(UNFCCC) also emphasised that the parties should act to protect the climate system on the basis of common but differentiated responsibilities.
3. An international agreement known by its Protocol set targets for industrialised countries to cut their greenhouse gas emissions which support for global warming.

Q3. Analyse India’s stand on any three environmental issues. Or
Analyse India’s stand on environmental issues.
Answer. India plays a dominating role among the Asian countries on environmental issues:
1. India signed and ratified the 1997 Kyoto Protocol in August 2002 which emphasised to follow the principle common but differentiated responsibility.
2. India feels this convention is the very spirit of UNFCCC. Neither does it seem fair to impose restrictions on India when the country’s rise in per capita carbon emissions by 2030 is likely to still represent less than half the world average.
3. The Indian government is also keen to launch a National Mission on Biodiesel which makes India to have one of the largest renewable energy programmes in the world.
4. The Indian government is also participating in global efforts through a number of programmes i.e. National Auto Fuel Policy, Electricity Act 2003, Energy Conservation Act, 2001, etc.

Q4. Explain any three environmental concerns in global politics.
Answer. Some environmental issues have been considered as the global issues:
1. Natural resources are being depleted i.e. cultivable area has not been sustained any more, agricultural land lost fertility and grass lands have been overgrazed.
2. Waterbodies have suffered a depletion and pollution both.
3. A steady decline in ozone layer also poses a threat to ecosystem and human health.
4. Natural forests stabilize the climate, moderate water supply and habitat various species also which are also being lost creating destruction to biodiversity through industrial pollution etc.
5. Due to land based activities, coastal pollution is also increasing which affects fisheries.

Q5. Mention the rights of indigenous peoples.
Answer. The UN defines indigenous population as the descendants of people who inhabited the present territory of a country’at the time when persons of a different culture or ethnic origin arrived there from other parts of world and overcome them. The rights of indigenous people can be summarised as follows:
1. Indigenous people speak of their struggles, agenda and fights like social movements.
2. Their voices in world politics call for the admission of indigenous people to the world community as equals.
3. Many of the present day island states in the Oceania region (including Australia, New Zealand) were inhabited by various indigenous people over the course of show for thousands of years.
4. Indigenous people appeal to government to create indigenous nations with an identity of their own.
5. The World Council of indigenous people was formed in 1975. The council became the first of 11 indigenous NGOs to receive consultative status in the UN.

Short Answer Type Questions:

Q1. What is the difference between traditional and non-traditional security? Which category would the creation and sustenance of alliances belong to?

Answer

Traditional Security:
• The traditional notion of security is also concerned with military threats, balance of power and alliance building.
• It is also concerned with internal security.
• In traditional security, there is recognition that co-operation in limiting violence is possible.
• Its main focus is on force only to achieve the target.

Non-Traditional Security:
• Non-traditional notions of security go beyond military threats to include a wide range of threats and dangers affecting the conditions of human existence.
•  It is about the protection of people more than the protection of states.
• It consists of dangers such as terrorism, human rights, global poverty and health epidemics.
• It comprises cooperation, hence it protects human or global security.

Creation and sustenance of alliances belong to traditional notion of security.

Q2. What are the differences in the threats that people in the third world face and those living in the First World face?

Answer

The security challenges facing the newly-independent third world countries and the first world in many ways:
• The newly independent countries faced the military conflicts even with their neighbouring states.
• These countries faced threats not only from outside their borders, mostly from neighbours, but also from within.
• Internally, new states worried about threats from separatist movements which wanted to form independent countries.
• Sometimes, the external and internal threats merged.
• hence for the new states, external wars with neighbours and internal wars posed a serious challenge to their security.

Q3. Is terrorism a traditional or non- traditional threat to security?

Answer

Terrorism is a non-traditional threat to wound the peace and order in the country:
• Terrorism refers to political violence that targets civilians deliberately and indiscriminately.
• Terrorist groups seek to change a political context or condition that they do not like by force or threat of force.
• Civilian targets are usually chosen to terrorise the public and to use the unhappiness of the public as a weapon against national governments or other parties in conflict.
• It involves cases such as hijacking planes or planting bombs in trains, cafes, markets and other crowded places.
• After a terrorist attack on World Trade Centre on 11 September 2001, the other governments and public also are paying more attention to terrorism.

Q4. What are the choices available to a state when its security is threatened, according to traditional security perspective?

Answer

As per traditional security perspective, in responding to the threat of war, a government has three basic choices:
• To surrender when actually confronted by war, but they will not advertise this as the policy of country.
• To prevent the other side from attacking by promising to raise the costs of war to an unacceptable level.
• To defend to protect itself when war actually breaks out so as to deny the attacking country its objectives and to turn back or to defeat the attacking forces altogether

Hence, state’s security policy is to prevent war which is called deterrence and with limiting or heading war called defence.

Q5. What is Balance of Power? How could a state achieve this?
Answer

‘Balance of Power’ is a balance between bigger and smaller countries by cooperating with each other economically and technologically. A smaller country is always suspicious to break out a war from bigger or powerful country. Hence, they maintain a balance of power to build up one’s military power together with economic and technological power-to protect one’s own security.

Q6. What are the objectives of military alliances? Give an example of a functioning military alliance with its specific objectives.

Answer

Military alliance also called ‘Alliance Building’ is an important component of traditional security
policy.An alliance is a coalition of states that coordinate their actions to deter or defend against military attack.

Objectives:

• Most alliances are formalised in written treaties and are based on a fairly clear identification of who constitutes the threat.
• Countries form alliances to increase their effective power relative to another country or alliance.
• Alliances are based on national interests and can change when national interests change.

Example: The US backed the Islamic militants in Afghanistan against the Soviet Union in 1980s, but later attacked them when Al-Qaeda, a group of Islamic militants, led by Osama Bin Laden launched terrorist strikes against America on 11th September 2001.

Q7. Rapid environmental degradation is causing a serious threat to security. Do you agree with the statement? Substantiate your arguments.

Answer

Yes, we do agree with the statement because in some situations one country may have to disproportionately bear the brunt of a global problem i.e. environmental degradation causing a serious threat to security, for example, due to global warming, a sea level rise of 1.5-2.0 meters would flood 20% of Bangladesh, inundate most of Maldives and threaten nearly half the population of Thailand, Hence, international cooperation is vital due to global nature of these problems.

Q8. Nuclear weapons as deterrence or defence have limited usage against contemporary security threats to states. Explain the statement.

Answer

Nuclear weapons have limited usage due to arms-control method of cooperation. One of the arms-control treaty was the Nuclear Non-proliferation Treaty (NPT) of 1968 to regulate the acquisition of nuclear weapons. As per this treaty those countries that had fasted and manufactured nuclear weapons before 1967 were allowed to keep their weapons and those that had not done so were to give up the right to acquire them. The NPT did not abolish nuclear weapons rather it limited the number of countries that could have them.

Q9. Looking at the Indian scenario, what type of security has been given priority in India, traditional or non-traditional? What examples could you cite to substantiate the arguments?

Answer

India has faced traditional (military) and non-traditional threats to its security that have emerged from within as well as outside its borders. Its security strategy has four broad components:

• To strengthen its military capabilities because:
(a) India has been involved in conflict with its neighbours as Pakistan in 1947-48,1965,1971 and 1999 and China in 1962.
(b) In South Asian Region, India is surrounded by nuclear armed countries. Thus, India’s decision to
conduct nuclear tests in 1998 was justified by the Indian government in terms of safeguarding national security. India first tested a nuclear device in 1974.

• To strengthen international norms and international institutions:
(a) India’s first Prime Minister J.L. Nehru supported Asian solidarity, disarmament, decolonisation and the UN as a forum to settle down international conflict.
(b) India took initiatives to bring about a universal and non- discriminatory non-proliferation regime to enjoy some rights and obligations with respect to weapons of mass destruction.
(c) It used non-alignment to help to carve out an area of peace outside the blocs.
(d) India signed Kyoto Protocol in 1997 to be a part of roadmap for reducing the emissions of greenhouse gases to check global warming.

• To meet security challenges within the country:
(a) Several militant groups from areas such as Nagaland, Mizoram, Punjab, Kashmir have sought to break away from India.
(b) India makes efforts to preserve national unity by adopting a democratic political system by providing freedom of speech and expression alongwith the right to vote.

• To develop its economy:
(a) India develops the way to lift vast mass of citizens out of poverty, misery and huge economic inequalities.
(b) A democratically elected government is supposed to combine economic growth with human development without any demarcation between the rich and the poor.

Q10. Read the cartoon below and write a short note in favour or against the connection between war and terrorism depicted in this cartoon.

Answer
In this cartoon the relation between war and terrorism has been drawn. It is showing that war is feeding terrorism. It is almost true to identify war with terror as both are counter productive. Terrorist targets civilians deliberately and indiscriminately. Civilian targets are chosen to terrorise the public and to use the unhappiness of the public as a weapon against national governments or other parties in conflict.

Long Answer Type Questions:

Q1. What is meant by Security? Mention any four components of Indian security strategy.
Answer: At its most basic, security implies freedom from threats. Human existence and the life of a country are full of threats. We generally say that only those things that threaten ‘core values’ should be regarded as being of interest in discussions of security. Thus, security relates only to extremely dangerous threats — threats that could so endanger core values that those values would be damaged beyond repair if we did not do something to deal with the situation.
India’s security strategy has four broad components which have been used in a varying combination from time to time: (i) The first component was strengthening its military capabilities because India has been involved in conflicts with its neighbours — Pakistan in 1947-48, 1965, 1971 and 1999 and China in 1962. Since it is surrounded by nuclear-armed countries in the South Asian region, India’s decision to conduct nuclear tests in 1998 was justified by the Indian government in terms of safeguarding national security.
(ii) The second component of India’s
security strategy has been to strengthen international norms and international institutions to protect its security interests.
(iii) The third component of Indian security strategy is geared towards meeting security challenges within the country. Several militant groups from areas such as Nagaland, Mizoram, the Punjab and Kashmir among others have from time to time sought to break away from India. India has tried to preserve national unity by adopting a democratic political system.
(iv) There has been an attempt in India to develop its economy in a way that the vast mass of citizens are lifted out of poverty and misery and huge economic inequalities are not allowed to exist.

Q2. Give a comparative analysis of Indian expenditure on traditional and non- traditional security.
Answer: India spends more on traditional security than non-traditional because
(i) India has been involved in conflict with its neighbours as Pakistan in 1947-48, 1965, 1971 and 1999 and China in 1962.
(ii) In South Asian Region, India is surrounded by nuclear armed countries. Hence, India’s decision to conduct nuclear test in 1990 was justified to safeguard national security.
(iii) India’s first tested nuclear device in 1974.
Though India has made efforts to develop its economy and an individual’s security from poverty but still it is lagging behind even now and we are supposed to make more efforts.

Q3. Mention and explain the components and India’s security strategy. 
Answer: India has faced traditional military and non-traditional threats to its security that have emerged from within as well as outside its borders. Its security strategy has four broad components i.e.:
1. To Strengthen its Military Capa¬bilities:
Because:
(a) India has been involved in conflict with its neighbours, as Pakistan in 1947-48,1965,1971 and 1999 and China in 1962.
(b) In South Asian Region, India is surrounded by nuclear armed countries. Hence, India’s decision to conduct nuclear test in 1990 was justified to safeguard national security.
(c) India first tested nuclear device in 1974.
2. To Strengthen International Norms and International Institu¬tions:
(a) India’s first Prime Minister J.L. Nehru supported Asian solidarity, disarmament, decolonisation and the UN as a forum to settle down international conflict.
(b) India took initiatives to bring about a universal and non- discriminatory non-proliferation regime to enjoy same rights and obligations with respect to weapons of mass destruction.
(c) It used non-alignment to help to carve out an area of place outside the blocs.
(d) India signed Kyoto Protocol in 1997 to be a part of roadmap for reducing the emissions of greenhouse gases to check global warming.
3. To Meet Security Challenges
within the Country:
(a) Several militant groups from areas such as Nagaland, Mizoram, Punjab, Kashmir have sought to break away from India.
(b) India makes efforts to preserve national unity by adopting a democratic political system by providing freedom of speech and expression alongwith the right to vote.
4. To Develop its Economy:
(a) India develops the way to lift vast mass of citizens out of poverty, misery and huge economic inequalities.
(b) A democratically elected government is supposed to combine economic growth with human development without any demarcation between the rich and the poor.

Q4. Explain the areas of operation of non- traditional notion of security.
Answer: Non-traditional concept of security includes human and global security covering a wide range of threats affecting human existence:
1. It does not cover only the states but
also the individuals and communities also.
2. It emphasises on security on nature of threat and right approach to deal with the threat.
Its sources can be identified as follows:
1. Terrorism refers to political violence to target civilians deliberately and discriminately to use it as a weapon against national government.
2. Human Rights refer to basic conditions which an individual is supposed to enjoy as a human being as political rights, freedom of speech and expression, economic rights, social and civil rights to lead an honourable and dignified life.
3. Global poverty refers to low economic growth, low national income and low standard of living of developing or least developed countries.
4. Health epidemics is a very serious threat to country’s security because severe Acute Respiratory Syndrome (ARS), HIV-AIDS, bird flue diseases spread across countries through migration, business, tourism and military operations.

Q5. Write a note on Arms control.
Answer: Arms control regulates the acquisition or development of weapons by adopting following measures:
1. The Anti Ballistic Missiles Treaty in 1992 stopped the US and Soviet Union from using ballistic missiles to limit large scale production.
2. Other arms control treaties were also signed i.e. Strategic Arms Reduction Treaty (START), Strategic Arms Limitation Treaty and Nuclear non-proliferation treaty (NPT) to limit the weapons which many bring large scale destruction.
3. NPT regulated the acquisition of nuclear weapons in 1968.
4. NPT did not abolish nuclear weapons rather it limited number of countries that could have them.

Short Answer Type Questions:

Q1. What are the functions of Security Council?

Answer

Its main function is to maintain international peace and security in the world. Its other functions are as:• To investigate any dispute or situation which might lead to international friction.
• To recommend methods of adjusting such disputes or the terms of settlement.
• To formulate plans for the establishment of a system to regulate armaments.
• To determine the existence of a threat to the peace or act of aggression and to recommend what action should be taken.
• To call on Members to apply economic sanctions and other measures not involving the use of force to prevent or stop aggression.
• To take military action against an aggressor.
• To recommend the admission of new Members.
• To exercise the trusteeship functions of the United Nations in “strategic areas”.
• To recommend to the General Assembly the appointment of the Secretary-General and, together with the Assembly, to elect the Judges of the International Court of Justice.

Q2. As a citizen of India, how would you support India’s candidature for the permanent membership of Security Council? Justify your proposal.

Answer

As a citizen of India, we may support India’s candidature for the permanent membership of Security Council through various reasons:
• India is the second most populous country in the world with one-fifth of world population.
• India is world’s largest democracy.
• India has participated in virtually all of the initiatives of the UN.
• Its role in the UN’s peacekeeping efforts is a long and substantial one.
• India’s economic emergence on the World Stage.
• India is a regular financial contributor to the UN.
• India signifies a growing importance in world affairs in conduct of its foreign policy.

Q3. Critically evaluate the difficulties involved in implementing the suggested reforms to reconstruct the UN.

Answer

There are various difficulties involved in implementing the suggested reforms to reconstruct the UN:
• How big an economic and military power may qualify to become UNSC membership?
• What level of budget contribution should be enabled?
• No guarantee to be effective as Council Member in respect for democracy and human rights.
• Why should the issue of equitable representation decided by geography? Why not by levels of economic development?
• Why not to give more seats to members of developing world?

Q4. Though the UN has failed in preventing wars and related miseries, nations prefer its continuation. What makes the UN an indispensable organisation?

Answer

• The growing connections and links between societies and issues often called ‘interdependence’—it is hard to imagine how more than seven billion people would live together without an organisation such as the UN.
• Technology promises to increase planetary interdependence, and therefore the importance of the UN will only increase.
• To tackle the issues of poverty, unemployment, environmental degradation, crime rate etc.
• To provide financial assistance to developing countries to stabilise economy all over the world,, the UN and its specialised agencies are always required.
• The UN works as an international forum to solve any international dispute among nations and sort out the best possible way.

Due to these reasons, though the UN has failed in preventing related wars and miseries, despite the nations require its continuation and helping to promote international peace and understanding.

Q5. “Reforming the UN means restructuring of the Security Council”. Do you agree with this statement? Give arguments for or against this position.

Answer

Yes, we do agree with the statement because Security Council plays a crucial role in functioning of the UN. It represents the and five permanent members and their veto power provide them valuable outstanding position. Permanent members category is mainly from developed economy which should be balanced by enhancing representation from developing countries. Other way through which Security Council to make the UN more effective is inclusion of member states should be judged on the basis of contribution to peace keeping initiatives.

Long Answer Type Questions:

Q1. Describe any six criteria for the new membership of Security Council as suggested after 1997.
Answer: A new member, as suggested after 1997, should beQ
(i ) A major economic power
(ii) A major military power.
(iii) A substantial contributor to the UN budget.
(iv) A big nation in terms of its populations.
(v) A nation that respects democracy and human rights
(vi) A country that would make the Council more representative of the world’s diversity in terms of geography, economic system, and culture.

Q2. Examine the role played by India in the implementation of UN policies and programmes.
Answer: 1. India believes that a strengthened and revitalised UN is desirable in the changing world.
2. India also supports an enhanced role for the UN in promoting development and cooperation among states.
3. India believes that the development
should be central to the UN’s agenda as it is a vital precondition for the maintenance of international peace and security.
4. India debates more representation in Security Council may enjoy greater support in world community.
5. India has major concern about restructuring of UN Security Council.
6. India supports the role of developing countries should be represented in Security Council in decision making.

Q3. How far did the UN perform its role successor fully in maintaining peace in the world? Explain.
Answer: 1. Interdependence and globalisation is not possible without the international organisations such as the UN.
2. To enhance cooperation on the issues of poverty, unemployment, environmental degradation, crime rate etc.
3. To provide financial assistance to developing countries to stabilise economy all over the world, the UN and its specialized agencies are always required.
4. The UN works as a forum to solve any international dispute among nations and sort out the best possible.
5. Hence, though the UN has failed in preventing any related wars and miseries, despite the nations require its continuation due to above mentioned reasons to promote international peace and understanding.

Q4. Suggest any six steps since 2005 to make the United Nations more relevant in the changing context.
Answer: In September 2005, the UN celebrated its 60th anniversary and leaders decided to make it more relevant in the changing context by following steps:
1. Creation of Peace Building Commission.
2. Acceptance of the responsibility of the international community in case of failures of national governments to protect their own citizens from atrocities.
3. Establishment of a Human Rights Council (Operational Since 19 June 2006).
4. Agreements to achieve the Millennium Development Goals.
5. Condemnation of terrorism in all its forms and manifestations.
6. Creation of a Democracy Fund.
7. An agreement to wind up the Trusteeship Council.

Q5. Can the UN serve as a balance against the US dominance?
Answer: No, the UN can not serve against the US dominance in a comfort zone because:
1. The US has been the only superpower after 1991 and may ignore international organisations economically and militarily.
2. Its veto power can stop any move damaging its interests.
3. The US enjoys a considerable degree of say in the selection of the UN Secretary General.
Besides the above mentioned grounds, the UN is playing an effective role to argument against the US attitudes and policies and makes compromises and concessions even or the part of the US. The EU performs as an important bloc in International Economic Organisations such as WTO but SAARC has initiated SAFTA only to cooperate economically among its member states.

Short Answer Type Questions :

Q1. What are some of the commonalities and differences between Bangladesh and Pakistan in their democratic experiences?

Answer

Commonalities
• Both Bangladesh and Pakistan were under a military rule.
• At both the places, the struggle for democracy took place in their own way.
• Pakistan’s administration began under the command of General Ayub Khan and gave up due to dissatisfaction among people giving way to Yahya’s military rule and continued with the army rule though elections were held by military rulers to give a democratic shape to their own rule.
• In the same way, Bangladesh drafted its own constitution to begin with democracy. Sheikh Mujibur Rahman formed presidential setup by abolishing all the parties except Awami Legue. But after his assassination the new military ruler Zia-ur-Rahman formed his own party and won elections in 1979. Later on he was also assassinated and another military leader Lt. Gen. H.M. Ershad took over.

Differences
• In Pakistan, military, clergy and land-owning aristocrats dominated socially to overthrow elected government whereas in Bangladesh the leaders and their party members dominated for the same.
• Pro-military groups have become more powerful due to conflict with India in Pakistan whereas in Bangladesh, pro-military groups are powerful due to friendship and encouragement of India.

Q2. List three challenges to democracy in Nepal.

Answer

The three challenges to democracy in Nepal were the result of a triangular conflict between-
• the monarchist forces
• the democrats and
• the Maoists.
These challenges created massive, countrywide, pro-democracy protest in April 2006.

Q3. Name the principal players in the ethnic conflict in Sri Lanka. How do you assess the prospects of the resolution of this conflict?

Answer

The principal players in the ethnic conflict in Sri Lanka were Sinhala and Sri Lankan Tamils.
After its independence, politics in Sri Lanka was dominated by forces that represented the interest of the majority Sinhala community. They were hostile to a large number of Tamils who had migrated from India to Sri Lanka and settled there. Sinhalese presumed Sri Lanka to be belonged to them only, hence no concession should be given to Tamils. This created militant Tamil nationalism i. e. ‘Ethnic conflict’.

In spite of the conflict, Sri Lanka has registered considerable economic growth and recorded high levels of human development. Sri Lanka was one of the first developing countries to successfully control the rate of growth of population, the first country in the region to liberalise the economy, and it has had the highest per capita gross domestic product (GDP) for many years right through the civil war. Despite the ravages of internal conflict, it has maintained a democratic political system.

Q4. Mention some of the recent agreements between India and Pakistan. Can we be sure that the two countries are well in their way to a friendly relationship?

Answer
Although Indo-Pakistan relations seem to be the story of endemic conflict and violence, there have been a series of efforts to manage tensions and build peace under the various agreements:
• Agreed to undertake confidence building measures to reduce the risk of war.
• Social activists and prominent personalities have collaborated to create an atmosphere of friendship.
• Leaders have met at summits to better understanding.
• Bus routes have been opened up between these two countries.
• Trade between the two parts of Punjab has increased substantially in the last five years.
• Visas have been given more easily.

No, despite the above mentioned agreements and initiatives, we can not be sure that both the countries are well in their way to friendship, still some areas of conflict exist there to be sorted out.

Q5. Mention two areas each of cooperation and disagreement between India and Bangladesh.

Answer

Disagreement
• Differences over the sharing of the Ganga and Brahmaputra river waters.
• Illegal immigration to India.
• Refusal to allow Indian troops to move through its territory.
• Not to export natural gas to India.

Cooperation
• Economic relations have been improved considerably within last ten years.
• Bangladesh is the part of India’s ‘Look East’ policy to link up with southeast Asia via Myanmar.
• Cooperated on the issues of disaster management and environment.
• Cooperation on identifying common threats and being more sensitive to each other’s needs.

Q6.. How are the external powers influencing bilateral relations in South Asia? Take any one example to illustrate your point.

Answer

The external powers influence bilateral relations in South Asia because no region exists in the vacuum. It is influenced by outside powers and events no matter how much it may try to insulate itself from non-regional powers:

• China and the US remain key players in South Asian politics.

• Sino-Indian relations have improved significantly in the last ten years, but China’s strategic partnership with Pakistan remains a major irritant.

• The demands of development and globalisation have brought the two Asian giants closer and their economic ties have multiplied rapidly since 1991.

• The US enjoys good relations with both India and Pakistan and works as a moderator in Indo-Pak relations.

• Economic reforms and liberal economic policies in both the countries have increased the depth of American participation.

• The large South Asian economy remains in the US and the huge size of population and markets of the region give America an added stake in the future of regional security and peace.

Q7. Write a short note on the role and the limitations of SAARC as a forum for facilitating economic cooperation among the South Asian Countries.

Answer

Role of SAARC:
• ‘South Asian Association for Regional Co-operation’ (SAARC) is a regional initiative among South Asian states to evolve cooperation since 1985 onwards.
• It consists of seven members to encourage mutual harmony and understanding.
• SAARC has initiated SAFTA (South Asian Free Trade Agreement) to free trade zones for wThole south Asia for collective economic security.
• SAARC has projected on economic development of its member states to reduce their dependencies on the non-regional powers.

Limitations:
SAARC is growing slowly due to political differences among its member states:
• Only the conflicts led to bilateral issues as Kashmir problem between India and Pak.
• Some of the India’s neighbours fear that India intends to dominate them by influencing their societies and politics.
• SAARC members are from among the developing or least developing countries which creates insufficiency of funds.

Q8. India’s neighbours often think that the Indian government tries to dominate and interfere in the domestic affairs of the smaller countries of the region. Is this a correct impression?
Answer

No, the impression is not correct because India has various problems with its smaller neighbours in the region. Given its size and power, they are bound to be suspicious of India’s intentions.
• The Indian government, on the other hand, often feels exploited by its neighbours.
• India does not like the political instability in these countries, fearing it can help outside powers to gain influence in the region.
• The smaller countries fear that India wants to be a regionally-dominant power but it not justified as major conflicts and differences, though, are between India and the others, partly because of the geography of the region, in which India is located centrally and is therefore the only country that borders the others.

The is upto the government and people of smaller neighbouring countries than any other outside power about the dominance and interference of Indian government.

Long Answer Type Questions:

Q1. Assess the positive and negative aspects of India’s relations with Bangladesh.
Answer: Bangladesh was a part of Pakistan from 1947 to 1971. It consisted of the partitioned areas of Bengal and Assam from British India. The people of this region resented the domination of Western Pakistan and the imposition of Urdu language. Soon after the partition, they began protests against the unfair treatment meted out to the Bengali culture and language. They demanded autonomy for the eastern region. But the government dominated by the West Pakistan leadership refused their demand. The Pakistan army tried to suppress the mass movement of the Bengali people. Thousands were killed by the Pakistan army. This led a large scale migration into India, creating a huge refugee problem for India. The government of India supported the demand of the people of East Pakistan for their independence and helped them financially and militarily. This resulted in a war between India and Pakistan in December 1971 that ended in surrender of the Pakistan forces in East Pakistan and the formation of Bangladesh as an independent country.

Q2. How is the South Asian Association for Regional Cooperation (SAARC) a major regional initiative by South Asian States to evolve co-operation through multilateral means? Assess.
Answer: Role of SAARC:
Role of SAARC can be identified in the following ways:
1. ‘South Asia Association for Regional Co-operation’ (SAARC) is a regional initiative among South Asian States to evolve cooperation since 1985 onwards.
2. It consists of seven members to encourage mutual harmony and understanding.
3. SAARC has initiated SAFTA (South Asian Free Trade Agreement) to form free trade zones for whole South Asia for collective economic security.
4. SAARC has projected economic development of its member states to reduce their dependencies on the non-regional powers.
South Asian free Trade Agreement (SAFTA) was signed by SAARC members in 2004 with the following features:
1. Formation of free trade zone for whole South Asia.
2. To lower trade tarrifs by 20%.
3. To sustain mutual trade and cooperation among SAARC members.

Q3. Like India why could democracy not take roots in Pakistan despite the fact that both the countries share a common part?
Or
Explain the factors responsible for Pak’s failure in building a stable democracy.
Or
Describe any two pro-democracy factors present in Pakistan which can pave the way for establishing a lasting democratic setup over there?
Or
“Since 1947 Pakistan has been experimenting with democratic system and the military rule”. In the light of above statement explain any two reasons why democratic system has not been stable there?
Answer: The following factors are responsible for Pakistan’s failure in building a stable democracy:
1. The lack of genuine international support for a democratic rule in Pakistan has encouraged to military to continue its dominance. The US and other countries have also supported military rule due to fulfilling their own interests.
2. Pakistan’s conflict with India has made paramilitary groups more powerful which have often said that political parties and democracy in Pakistan are flawed, that Pakistan’s security would be harmed by selfish minded parties and chaotic democracy, hence army stay in power is justified.
3. The social dominance of military, clergy, and owning aristocracy has led to frequent overthrow of elected governments and the establishing of military governments.
4. Global Islamic Terrorism and their apprehension that Pakistan’s nuclear arsenal might fall into hands
of these terrorist groups, the military regime in Pakistan was seen as the protector of western interests in West Asia and South Asia.
The two pro-democracy factors present in Pakistan that can pave the way for establishing a lasting democratic set up over there are:
1. Pakistan bears a courageous and entirely free press.
2. Pakistan enjoys strong human rights movement.

Q4. What are the major differences between SAARC and European Union as an alternative centres of poor?
Answer: 1. The European Union bears economic political-diplomatic and military influence all over the region and its closest neighbours whereas SAARC is limited towards its South Asian Region only.
2. The member states of European Union are maximum from among the developed countries while SAARC members are from among least developed countries (LOCs)
3. The EU behaves like a nation state by having its own anthem and currency but SARRC does not enjoy these.
4. The EU performance as an important bloc in international economic organisations such as WTO but SAARC has initiated SAFTA only to cooperate economically among its member states.