class 10 Globalisation and the indian economy notes
- What is Globalisation
- Factors that have Enabled Globalisation
- Impact of Globalisation in India
- many more
production across countries
- Trade was the main channel connecting distant countries.
- Large companies, which are now called Multinational Corporations (MNCs) play a major role in trade.
- An MNC is a company that owns or controls production in more than one nation.
- MNCs set up offices and factories for production in regions where they can get cheap labour and other resources so that the company can earn greater profits.
Interlinking production across countries
money spent to buy assets is called investment. Investment made by MNCs is called foreign investment. MNCs are exerting a strong influence on production at these distant locations. As a result, production in these widely dispersed locations is getting interlinked.
There are a variety of ways as mentioned below, in which MNCs are spreading their production and interacting with local producers in various countries across the globe.
- By setting up partnerships with local companies
- By using the local companies for supplies
- By closely competing with the local companies or buying them up
MNCs set up production jointly with local companies which benefits local companies in the following ways:
- First, MNCs can provide money for additional investments, like buying new machines for faster production.
- Second, MNCs might bring with them the latest technology for production.
What is globalisation??
Globalisation is the process of rapid integration or interconnection of countries. MNCs are playing a major role in the globalisation process.
- More and more goods and services, investments and technology are moving between countries.
- There is one more way in which the countries can be connected. This is through the movement of people between countries.
Factors that enabled globalisation
- Liberalisation of Foreign Trade and Foreign Investment Policy
World trade organisation
World Trade Organisation (WTO) is an organisation whose aim is to liberalise international trade. At present, 164 countries of the world are currently members of the WTO. It has established rules for developed countries regarding international trade so that these countries can allow free trade for all.
Impact of Globalisation in India
Globalisation has impacted the lives of people in India in the following manner:
- It has provided greater choices to consumers who now enjoy improved quality of and lower prices on several products.
- It has resulted in higher standards of living.
Globalisation has also created new opportunities for companies providing services, particularly in the IT sector.
Struggle for fair globalisation
Fair globalisation creates opportunities for all and also ensures that the benefits of globalisation are shared better. The government can play a major role in making this possible.
Some of the steps that the government take are:
- It can ensure that labour laws are properly implemented and the workers get their rights.
- It can support small producers to improve their performance.
- If necessary, the government can use trade and investment barriers.
- It can negotiate at the WTO for ‘fairer rules’.
- It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.