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Globalisation and The Indian Economy
MNC is not only selling its finished products globally, but more important, the goods and services are produced globally. MNCs set up production where it is close to the markets; where there is skilled and unskilled labour available at low costs; where the availability of other factors of production is assured. In addition, MNCs might look for government policies that look their interests. MNCs also set up production jointly with some of the local companies of the respective countries.
There’s another way in which MNCs control production. Large MNCs in developed countries place orders for production with small producers. The products are then supplied to the MNCs, which they sell these under their own brand names to the customers. 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 are exerting a strong influence on production at these distant locations.
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‘The impact of globalisation has not been uniform’. Explain this statement.
How has liberalization of trade and investment policies helped the globalization process?
How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.
Globalisation will continue in the future. Can you imagine what the world would be like twenty years from now? Give reasons for your answer.
Supposing you find two people arguing : One is saying globalisation has hurt our country’s development. The other is telling, globalisation is helping India to develop. How would you respond to these arguments?
Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of ____________________. Markets in India are selling goods produced in many other countries. This means there is increasing __________________ with other countries. Moreover, the rising number of brands that we see in the markets might be produced by MNCs in India. MNCs are investing in India because _________________ While consumers have more choices in the market, the effect of rising _____________ and ________ has meant greate _____________ among the producers.
The past two decades of globalisation has seen rapid movements in:
The most common route for investments by MNCs in countries around the world is to:
Globalisation has led to improvement in living conditions.
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