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Globalisation and The Indian Economy
How are M.N.Cs. spreading their production across countries? Explain with an example.
MNCs spread their production across countries through the following ventures:
(i) MNCs set up offices for production and factories in regions where skilled and unskilled labour is available at low costs and other factors of production.
(ii) MNCs set up production jointly with some of the local companies of these countries.
(iii) MNC provide money for additional investments and also bring with them the latest technology for production.
Example: Cargill Foods, a very large American MNC, has brought over smaller Indian companies like Parakh foods. This includes the latter's four oil refineries. These purchases have made Cargill foods the largest producer of edible oil in India, with a capacity to make 5 million pouches daily.
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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.
'Starting around 1991, some far reaching changes in policy were made in India'. Explain.
State one positive and negative effects of globalisation in India.
'The Indian government, after independence has put many such barriers on foreign trade and foreign investment'. Explain.
Describe the advantages of foreign trade.
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