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Globalisation and The Indian Economy
What are the various ways in which MNCs set up, or control production in other countries?
The ways are:
(i)MNCs set up production where it is close to the markets; where there is skilled and unskilled labour available at low costs; and where the availability of other factors of production is assured.
(ii)In addition, MNCs might look for government policies that look after their interests.
(iii)MNCs set up production jointly with some of the local companies of these countries. But the most common route for MNC investments is to buy up local companies and then to expand production.
(iv)Large MNCs in developed countries place orders for production with small producers. Garments, footwear, sports items are examples of industries where production is carried out by a large number of small producers around the world.
(v)The products are supplied to the MNCs, which then sell these under their own brand names to the customers.
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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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