All questions of Liberalisation , Privatisation and Globalisation : An Appraisal for Super TET Exam

Employers' preference for flexible workers

Introduction
With the increasing competition in the job market, employers are seeking to hire workers who can adapt to changing circumstances and be versatile in their roles. One of the key traits that employers look for in potential employees is flexibility.

Reasons for preferring flexible workers
Employers prefer flexible workers for several reasons, including:

1. Adaptability: Flexible workers are adaptable and can quickly learn new skills or take on new tasks. This is essential in today's fast-paced work environment where change is constant.

2. Cost-effective: Hiring flexible workers can be cost-effective for employers as they can be employed on a part-time or temporary basis. This saves the employer money on benefits and other expenses associated with full-time employees.

3. Increased productivity: Flexible workers are often highly motivated and can be more productive than full-time employees. This is because they are focused on completing specific tasks within a set timeframe.

4. Reduced risk: Employing flexible workers can help reduce the risk of over-staffing or under-staffing. This is because employers can adjust their workforce according to the demands of the business.

Types of flexible workers
There are several types of flexible workers that employers may prefer to hire, including:

1. Part-time workers: These workers are employed on a part-time basis and work fewer hours than full-time employees.

2. Temporary workers: These workers are employed for a specific period of time or until a specific project is completed.

3. Freelancers: These workers are self-employed and work on a project-by-project basis.

4. Remote workers: These workers work from home or another location outside of the office.

Conclusion
In conclusion, flexible workers are highly sought after by employers due to their adaptability, cost-effectiveness, increased productivity, and reduced risk. This trend is likely to continue as the job market becomes increasingly competitive and businesses look for ways to stay agile and adaptable.

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Building Special Economic Zones to attract foreign investment in India

One major government initiative to attract foreign companies to invest in India is to build special economic zones. These zones are designated areas where businesses can operate with fewer regulations and tax incentives.

Advantages of Special Economic Zones:

1. Tax incentives: The government offers tax incentives like exemptions from customs duties, excise duties, and income tax for a certain period to attract foreign investment.

2. Infrastructure: The government provides world-class infrastructure facilities in these zones, including power, water, and transportation.

3. Easy approvals: The approval process for setting up a business in these zones is easier and faster than in other parts of the country.

4. Employment opportunities: These zones create significant employment opportunities for the local population.

5. Export opportunities: Businesses operating in these zones are encouraged to export their products, which helps in boosting the country's economy.

Examples of Special Economic Zones in India:

1. Jawaharlal Nehru Port Trust Special Economic Zone: This zone is located in Maharashtra and is focused on the IT sector, engineering, and electronics manufacturing.

2. Noida Special Economic Zone: This zone is located in Uttar Pradesh and is focused on the software and IT-enabled services sector.

3. Cochin Special Economic Zone: This zone is located in Kerala and is focused on the manufacturing and processing of marine products.

Conclusion:

Building special economic zones has been a successful strategy in attracting foreign investment to India. The government needs to continue investing in infrastructure and providing tax incentives to make these zones more attractive for foreign businesses.

The relaxation of government restrictions in areas of social of economic policy is known as liberalization. It refers to the process of eliminating unnecessary conntrols and restrictions on the smooth functioning of business enterprise.

Challenges Faced by Small Producers Due to Globalisation

Globalisation refers to the process of interconnectedness and integration of different economies, societies, and cultures across the world. This process has led to an increase in the movement of goods, services, capital, and people across borders. While globalisation has brought about various benefits, it has also posed major challenges for small producers. Here are a few reasons why:

1. Competition from large corporations

Globalisation has led to the emergence of large multinational corporations, which have significant advantages over small producers. These large corporations have access to more resources, technology, and economies of scale, which enable them to produce goods and services at lower costs. This puts small producers at a disadvantage as they cannot compete with the lower prices offered by large corporations.

2. Limited access to markets

Small producers often have limited access to global markets due to various barriers such as tariffs, quotas, and regulatory requirements. These barriers make it difficult for small producers to sell their products in foreign markets, which reduces their market opportunities and revenue potential.

3. Dependence on local markets

Small producers are often dependent on local markets for their revenue, which limits their growth potential. This dependence on local markets also exposes them to local economic fluctuations and risks.

4. Lack of resources

Small producers often lack the resources such as capital, technology, and skilled labor needed to compete in the global market. This restricts their ability to innovate, improve their quality, and reduce their costs.

Conclusion

In conclusion, globalisation has posed major challenges for small producers due to increased competition, limited access to markets, dependence on local markets, and lack of resources. To address these challenges, small producers need to adapt to the changing global market by improving their competitiveness, accessing new markets, and innovating to reduce their costs and improve their quality.

Analysis of Statements
To evaluate the correctness of the statements regarding the central government's disinvestment targets, we need to analyze each statement individually.
Statement 1:
- The statement claims that the central government has missed its disinvestment target almost every year between 2000-01 and 2013-14, except for four years.
- This is generally supported by historical data, indicating that disinvestment targets were frequently not met during this period.
Statement 2:
- The second statement mentions that the government set a disinvestment target of Rs. 58,425 crore for the fiscal year 2014-15 but achieved less than 50% of that target.
- This is also accurate, as various reports from that period confirm that the government struggled to meet its ambitious disinvestment goals.
Conclusion:
- Both statements are correct based on historical performance data and government records.
- Therefore, the answer to the question "Which of the above statements is/are not correct?" is that neither statement is incorrect.
Final Answer:
- Since both statements are accurate, the correct choice is option 'D' (Neither 1 nor 2). This reflects the reality of the government's disinvestment efforts during the specified periods.

Because the money value of Chinese toys are too cheap but the expenditure incurred on indian toy are more and that cause people prefer Chinese toys and when the market of china is banned or using quota and tarrif is import barrier on Chinese goods so the value of this goods rises and people prefer own country good and eradicate unemployment and

Privatisation refers to the process of transferring ownership and control of public assets to the private sector. There are various ways in which privatisation can be achieved, including leasing, franchising, and contracting. Let's discuss each of these methods in detail:

1. Leasing: This involves the transfer of ownership of public assets to private individuals or companies for a specified period. The private party pays a lease fee to the government for the use of the asset. At the end of the lease period, the ownership of the asset reverts back to the government. Examples of assets that can be leased include land, buildings, and infrastructure.

2. Franchising: This involves the transfer of ownership and control of a business model or brand from the government to the private sector. The private party pays a franchise fee to the government for the use of the brand and business model. The private party operates the business under the guidelines set by the government. Examples of businesses that can be franchised include restaurants, retail stores, and service providers.

3. Contracting: This involves the transfer of ownership and control of public services from the government to the private sector. The private party provides the service to the public under a contract with the government. The private party is paid a fee by the government for the provision of the service. Examples of services that can be contracted include waste management, transportation, and healthcare.

In conclusion, privatisation can be achieved through leasing, franchising, and contracting. These methods allow for the transfer of ownership and control of public assets and services to the private sector, which can lead to increased efficiency and innovation.

Foreign direct investment (FDI) refers to the investment made by a company or individual from one country into another country. It involves the establishment of a business operation or the acquisition of assets in the foreign country. FDI is a key driver of economic growth and development as it brings in capital, technology, management expertise, and access to new markets.

Explanation:
Foreign Direct Investment (FDI) can be further elaborated as follows:

1. Definition and Characteristics:
- FDI is the investment made by a company or individual from one country (the home country) into another country (the host country).
- It involves a long-term relationship and significant control or ownership of the foreign enterprise.
- FDI can be in the form of greenfield investments (building a new facility) or mergers and acquisitions (acquiring an existing company).

2. Motives for FDI:
- Access to new markets: Companies invest in foreign markets to gain access to larger customer bases and expand their market share.
- Resource acquisition: FDI allows companies to access natural resources, raw materials, or other strategic inputs available in the host country.
- Cost advantages: Companies may invest in countries with lower labor costs or favorable tax policies to reduce production costs.
- Technology transfer: FDI facilitates the transfer of technology, knowledge, and innovation from the home country to the host country.

3. Benefits of FDI:
- Economic growth: FDI contributes to economic growth by creating jobs, increasing productivity, and promoting technological advancements.
- Foreign exchange inflows: FDI brings in foreign currency, strengthens the host country's balance of payments, and boosts foreign exchange reserves.
- Infrastructure development: FDI often involves investments in infrastructure development, such as transportation, telecommunications, and utilities.
- Skill development and knowledge transfer: FDI promotes the transfer of skills, expertise, and best practices to the local workforce.

4. Factors influencing FDI:
- Market size and growth potential: Companies are attracted to countries with large and growing markets.
- Political stability and legal framework: Stable political environment, favorable investment policies, and legal protection for investors are crucial factors.
- Infrastructure and logistics: Availability of quality infrastructure and efficient logistics networks facilitate business operations.
- Labor and production costs: Companies consider factors such as labor costs, productivity, and overall business environment.
- Market access and trade barriers: Countries with favorable trade agreements, low tariffs, and minimal trade barriers are preferred investment destinations.

In conclusion, Foreign Direct Investment (FDI) is a significant driver of economic development and international business. It allows companies to expand their operations globally, tap into new markets, and access resources and technology. The host countries benefit from FDI through increased employment, economic growth, infrastructure development, and knowledge transfer.

Cross Holding is a method of Disinvestment.

Explanation:
Cross Holding refers to the situation where two or more companies hold shares in each other's capital. In other words, it is a situation where two or more companies have invested in each other's equity capital. This is also known as reciprocal shareholding or mutual holding.

Cross Holding is a method of Disinvestment because it involves the sale or transfer of shares held by one company in another company. When a company sells its shares to another company, it is effectively disinvesting from the company. This can be done for various reasons such as raising funds, reducing debt, restructuring the company, or focusing on core business activities.

Cross Holding can also lead to conflicts of interest and create a situation where the interests of one company are aligned with the interests of the other company. This can be detrimental to the overall interests of the shareholders of both companies.

In some cases, Cross Holding can also lead to a situation where one company gains control over the other company, either directly or indirectly. This can happen when one company acquires a significant stake in the other company or when two companies enter into a joint venture.

Therefore, Cross Holding is a method of Disinvestment and it can have both positive and negative effects on the companies involved.

• Facilitating Trade: The primary aim of WTO is to facilitate international trade by creating a set of rules and regulations that govern trade between countries.


• Removing Trade Barriers: WTO works towards reducing and eliminating barriers to trade such as tariffs, quotas, and subsidies, to promote a more open and free trading system.


• Promoting Fair Competition: WTO aims to create a level playing field for all countries by ensuring fair competition and preventing unfair trade practices.


• Protecting Intellectual Property Rights: WTO also focuses on protecting intellectual property rights to encourage innovation and creativity in trade.


• Resolving Trade Disputes: Another important goal of WTO is to provide a platform for countries to resolve trade disputes through a transparent and predictable dispute settlement mechanism.

Introduction:
The income and lifestyle of people residing in urban areas are quite different from those living in rural areas. Urban areas have a higher concentration of well-off buyers, which is why industries that cater to this segment have a better chance of succeeding.

Explanation:
Out of the given industries, the automobile industry has a large number of well-off buyers in urban areas. Here's why:

1. Urbanization: With the increase in urbanization, people in urban areas have higher incomes, and they tend to spend more on luxury items like cars.

2. Increased Mobility: Urban areas are generally more congested, and people need to travel longer distances to get to their workplace, which makes owning a car a necessity.

3. Brand Value: Owning a car is also seen as a status symbol in urban areas, and people are willing to spend more on luxury car brands to maintain their social status.

4. Government Policies: The government policies in urban areas are more favorable towards the automobile industry, with better infrastructure and tax incentives.

5. Market Competition: The automobile industry is highly competitive, and companies are always trying to outdo each other by launching new and advanced models.

Conclusion:
In conclusion, the automobile industry has a large number of well-off buyers in urban areas because of various factors like urbanization, increased mobility, brand value, government policies, and market competition.

Cargill foods an MNCs has bought over the company Parakh Foods. Cargill is a very large American MNC and is the largest producer of edible oil in India. Parakh Foods had built a large marketing network in various parts of India and had 4 oil refineries which is shifted to Cargill now

Globalisation has created new opportunities for employment, emerging multinationals, and providing services. Let's explore each of these opportunities in detail below.

Opportunities for Employment:
- Globalisation has led to the creation of new jobs in various industries like IT, finance, and manufacturing.
- Multinational companies are expanding their operations globally, leading to an increase in job opportunities.
- Globalisation has also led to the growth of the service industry, which has created new job opportunities in areas like healthcare, education, and hospitality.

Opportunities for Emerging Multinationals:
- Globalisation has opened up new markets for companies to expand their operations globally.
- Emerging multinationals can take advantage of the lower labor and production costs in developing countries, enabling them to increase their profits.
- Globalisation has also made it easier for companies to access capital and technology from foreign markets, helping them to grow faster.

Opportunities for Providing Services:
- Globalisation has led to an increase in demand for services like finance, IT, and healthcare.
- Companies can now provide these services to customers all over the world, thanks to the advancements in technology and communication.
- Globalisation has also led to the development of new service-based industries like e-commerce and online education.

In conclusion, globalisation has created new opportunities for employment, emerging multinationals, and providing services. These opportunities have led to economic growth and development globally, benefiting both individuals and businesses alike.

Ford Motors Collaboration with Mahindra and Mahindra in India

Introduction:
Ford Motors is a well-known American multinational automotive company that designs, manufactures, markets, and services cars, trucks, SUVs, and luxury vehicles. It entered the Indian automobile market in collaboration with Mahindra and Mahindra in 1995.

Collaboration:
Ford and Mahindra formed a joint venture in 1995, known as Mahindra Ford India Limited (MFIL), to manufacture and sell Ford vehicles in India. The joint venture was 51% owned by Mahindra and 49% owned by Ford. The companies shared technology, manufacturing facilities, and marketing strategies to produce and sell Ford cars in India.

Products:
The joint venture produced a range of Ford cars in India, including the Ford Escort, Ford Ikon, Ford Mondeo, Ford Fusion, and Ford Fiesta. These cars were marketed under the Ford brand name and sold through a network of dealerships across India.

End of Joint Venture:
The joint venture between Ford and Mahindra ended in 2005 as part of Ford's global restructuring efforts. Ford bought back Mahindra's 49% stake in MFIL and continued to operate independently in India. However, Ford continued to collaborate with Mahindra on various projects, including the development of electric vehicles.

Conclusion:
Ford's collaboration with Mahindra was an important milestone in its entry into the Indian automobile market. The joint venture helped Ford establish a strong presence in India and provided access to Mahindra's local expertise and resources. Today, Ford operates independently in India and continues to offer a range of cars and SUVs to Indian consumers.

Economic reforms, commonly known as LPG reforms (Liberalization, Privatization, and Globalization), refer to the set of policies and measures undertaken by countries to promote economic growth, attract foreign investment, and integrate with the global economy. These reforms have had significant implications for public policies. Let's analyze each statement in detail:

1. Economic reforms have placed limits on the growth of public expenditure, especially in social sectors.
- With the objective of reducing fiscal deficits and promoting private sector participation, economic reforms have led to a reduction in government expenditure. This reduction has often been more pronounced in social sectors such as healthcare, education, and welfare. Governments have been encouraged to limit their spending and focus on creating an enabling environment for private sector growth. This statement is correct.

2. The reform policies involving tariff reduction have curtailed the scope for raising revenue through customs duties.
- As part of economic reforms, countries have embraced trade liberalization, which involves reducing tariffs and non-tariff barriers to promote international trade. While this has facilitated the flow of goods and services across borders, it has also resulted in reduced revenue from customs duties. With lower tariffs, the scope for raising revenue through import taxes has been curtailed. This statement is correct.

3. In order to attract foreign investment, tax incentives were provided to foreign investors, further reducing the scope for raising tax revenues.
- As part of their efforts to attract foreign direct investment (FDI), many countries have introduced tax incentives and concessions for foreign investors. These incentives include tax holidays, reduced tax rates, and exemptions. While these measures aim to create a favorable investment climate, they do reduce the potential tax revenue that could be generated from foreign companies operating in the country. This statement is correct.

Therefore, all three statements are correct. Economic reforms have indeed imposed limits on public expenditure, reduced revenue from customs duties due to tariff reduction, and offered tax incentives to foreign investors, which have further impacted tax revenue. These reforms have been implemented with the goal of promoting economic growth and attracting foreign investment, but they have also had implications for public policies and the government's fiscal capacity.

EFCG stands for Export Promotion Capital Goods. Let us understand what it means in detail.

Export Promotion Capital Goods (EPCG) Scheme is an export promotion scheme that allows import of capital goods for pre-production, production, and post-production at zero customs duty. This scheme promotes exports by enabling Indian manufacturers to import capital goods at a concessional rate of customs duty for producing quality goods and enhancing their competitiveness in the global market.

The EPCG scheme is administered by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, Government of India. It provides a range of benefits to Indian exporters, including reduced costs of production, improved quality, and increased competitiveness in the global market.

Some of the key features of the EPCG scheme are:

1. Zero customs duty on import of capital goods: Under the EPCG scheme, Indian manufacturers can import capital goods at zero customs duty. This reduces their production costs and helps them produce quality goods at a competitive price.

2. Export obligation: The scheme requires the beneficiary to fulfill an export obligation equivalent to six times the duty saved on the import of capital goods. This obligation must be fulfilled within a period of six years from the date of issuance of the license.

3. Validity of the license: The license issued under the EPCG scheme is valid for 24 months from the date of issuance and can be extended up to 36 months by the DGFT.

4. Eligibility criteria: To be eligible for the EPCG scheme, an exporter must have a minimum of two years of experience in the relevant field and must have earned a foreign exchange of at least Rs. 1 crore in the preceding financial year.

In conclusion, the EFCG stands for Export Promotion Capital Goods, which is an export promotion scheme that allows Indian manufacturers to import capital goods at zero customs duty for producing quality goods and enhancing their competitiveness in the global market. This scheme is administered by the DGFT and provides a range of benefits to Indian exporters, including reduced costs of production, improved quality, and increased competitiveness in the global market.

Correct Picture of Reforms

1. Domestic Economy Reforms:
- Major reforms were undertaken in the industrial and financial sectors to boost growth and competitiveness.
- These reforms aimed at improving productivity, efficiency, and overall performance of domestic industries.
- Reforms in the industrial sector included measures like deregulation, privatization, and modernization of manufacturing processes.
- Financial sector reforms focused on strengthening banking and financial institutions, enhancing access to credit, and promoting investment in key sectors.

2. External Sector Reforms:
- External sector reforms included foreign exchange deregulations to promote ease of doing business and attract foreign investments.
- Import liberalization was also a key reform undertaken to reduce trade barriers and enhance competitiveness in the global market.
- These reforms aimed at improving export competitiveness, reducing trade deficits, and attracting foreign capital to boost economic growth.

Therefore, both statements accurately depict the major reforms undertaken in the domestic economy as well as the external sector to drive economic growth and development.

Import of Chinese Toys in India

Introduction:
Toys have been an essential part of children's lives for ages. With the advent of technology, the toy industry is growing rapidly, with new and innovative toys being introduced every day. India has a significant market for toys, and the import of Chinese toys has been a significant factor in meeting the growing demand.

Current Scenario:
The import of Chinese toys in India has been increasing over the years. However, due to the recent tensions between India and China, the Indian government has banned the import of Chinese toys. This has led to a significant shift in the Indian toy market.

Impact on Indian Consumers:
The ban has affected Indian consumers in various ways. Let's take a look at some of them.

Increased prices:
The Indian toy industry is not yet mature enough to cater to the growing demand, and hence, the prices of Indian-made toys are higher than their Chinese counterparts. With the ban on Chinese toys, Indian consumers have to pay more for the same toy.

More Choice:
One of the positive effects of the ban is that Indian consumers are getting more choices. The Indian toy industry is now focusing on producing innovative and unique toys to cater to the growing demand. Hence, Indian consumers are getting more choices at cheaper rates.

Conclusion:
The ban on Chinese toys has affected the Indian toy market in various ways. While the prices of Indian-made toys have increased, Indian consumers are getting more choices. It remains to be seen how the Indian toy industry will evolve in the future.

**MNCs choose to set up production in locations with cheap labour resources because of several reasons:**

**1. Cost advantages:** One of the primary reasons why MNCs choose to set up production in certain locations is to take advantage of cheap labour resources. By employing workers from countries with lower wage rates, MNCs can significantly reduce their production costs. This enables them to offer their products at competitive prices in the global market and maximize their profits.

**2. Availability of skilled workforce:** Many developing countries have a large pool of skilled and semi-skilled workers who are willing to work at lower wages compared to developed countries. MNCs often choose to set up production in these locations to tap into this skilled workforce and benefit from their expertise.

**3. Regulatory environment:** Some countries have business-friendly regulations and policies that attract MNCs to set up production there. These regulations may include incentives such as tax breaks, subsidies, or special economic zones that provide a favorable environment for multinational corporations. This encourages MNCs to establish their production facilities in these locations.

**4. Market access:** MNCs often consider the proximity of the production location to key markets. Setting up production in a country that is close to their target market can reduce transportation costs, shorten lead times, and enhance their responsiveness to customer demands. This strategic advantage makes it more cost-effective for MNCs to produce goods in locations closer to their target market.

**5. Infrastructure and logistics:** MNCs also consider the availability of infrastructure and logistics capabilities when deciding where to set up production. Access to reliable transportation networks, ports, and utilities is crucial for efficient production and distribution. Countries with well-developed infrastructure often attract MNCs as it allows them to streamline their operations and reduce costs.

**6. Political stability:** Political stability is an essential factor for MNCs when choosing a location for production. Countries with stable political environments and favorable investment climates are more likely to attract foreign investment. MNCs prefer to operate in countries where there is a low risk of political unrest, policy changes, or nationalization of assets.

**In conclusion, MNCs choose to set up production in locations with cheap labour resources because it offers them cost advantages, access to skilled workforce, favorable regulatory environments, market proximity, infrastructure support, and political stability. These factors collectively contribute to the overall competitiveness and profitability of the multinational corporations.

• Increased Connectivity: Globalisation connects countries through trade, investment, and technology transfer.


• Access to Larger Markets: Producers now have access to larger global markets due to reduced trade barriers.


• Greater Competition: With increased connectivity and access to global markets, producers face greater competition from both domestic and international competitors.


• Efficiency and Innovation: Competition among producers drives efficiency and innovation as companies strive to differentiate themselves and offer better products and services.


• Consumer Benefits: Increased competition often leads to lower prices for consumers and a wider variety of choices.


• Challenges for Small Producers: While globalisation can benefit larger producers, small producers may struggle to compete with larger companies that have greater resources and economies of scale.

Encouraging import of all goods
c)restricted export of all goods
d)abolished all import and export duties

The correct answer is option 'C', which states that a tax on imports is an example of a trade barrier. Trade barriers are government-imposed measures that restrict international trade by either discouraging or preventing the flow of goods and services between countries. These barriers can take various forms, such as tariffs, quotas, subsidies, and regulations.

A tax on imports, also known as a tariff, is a specific type of trade barrier that involves imposing additional charges on imported goods. This tax increases the cost of imported goods, making them more expensive for consumers and businesses. As a result, it creates a disadvantage for foreign producers and protects domestic industries from foreign competition.

Below are the reasons why a tax on imports is considered a trade barrier:

1. **Protecting domestic industries:** By imposing tariffs on imports, governments aim to protect domestic industries from foreign competition. The higher cost of imported goods makes domestic products more competitive in the market, allowing local industries to thrive.

2. **Reducing imports:** Tariffs also serve as a means to reduce the amount of imported goods entering a country. By increasing the price of imported goods, tariffs make them less attractive to consumers, leading to a decrease in demand for foreign products.

3. **Generating revenue:** In addition to protecting domestic industries, tariffs can also be used as a source of revenue for the government. The revenue generated from import taxes can be used to fund various public programs and initiatives.

4. **Correcting trade imbalances:** Governments sometimes use tariffs as a tool to address trade imbalances. By imposing higher tariffs on goods from countries with which they have a trade deficit, governments aim to reduce imports and encourage domestic production, thereby narrowing the trade gap.

Overall, a tax on imports is an example of a trade barrier because it limits the free flow of goods and services across borders, protects domestic industries, reduces imports, generates revenue, and addresses trade imbalances.

Partnerships with Local Companies as the Common Route for Investment by MNCs

When investing in countries around the world, multinational corporations (MNCs) have several options available to them. However, the most common route for investments by MNCs in countries around the world is to form partnerships with local companies. This approach offers several benefits for both the MNC and the local company, including:

Access to Local Markets

Forming partnerships with local companies enables MNCs to gain access to local markets. Local companies have a better understanding of the local market, including consumer preferences, cultural nuances, and regulatory requirements. By partnering with a local company, MNCs can leverage its knowledge and expertise to navigate the local market and gain a foothold.

Reduced Risk

Investing in a new market can be risky, especially for MNCs that are not familiar with local conditions. By forming a partnership with a local company, MNCs can reduce their risk. Local companies can provide MNCs with valuable insights into the local business environment, including political, economic, and social conditions. By leveraging this knowledge, MNCs can make better-informed investment decisions and reduce their risk of failure.

Access to Local Resources

Forming partnerships with local companies also enables MNCs to gain access to local resources. Local companies often have established relationships with local suppliers, distributors, and other stakeholders. By partnering with a local company, MNCs can leverage these relationships to secure access to critical resources, such as raw materials, labor, and distribution channels.

Joint Innovation

Finally, forming partnerships with local companies enables MNCs to engage in joint innovation. Local companies often have unique knowledge and expertise that can be leveraged to develop new products, services, and business models. By working together, MNCs and local companies can create new value for customers and stakeholders.

Conclusion

In conclusion, forming partnerships with local companies is the most common route for investments by MNCs in countries around the world. This approach offers several benefits, including access to local markets, reduced risk, access to local resources, and joint innovation. By leveraging the expertise of local companies, MNCs can succeed in new markets and create value for customers and stakeholders.

Globalisation has been a significant phenomenon over the past two decades, resulting in rapid movements of goods, services, and investments between countries. The correct answer is option B, which involves the movement of goods, services, and investments between countries.

Goods
Globalisation has led to the movement of goods between countries, which has been facilitated by advancements in transportation and communication technologies. Companies are now able to produce goods in one country and sell them in another, which has led to increased competition and access to a broader range of products for consumers.

Services
Globalisation has also resulted in the movement of services between countries. This has been made possible by the growth of the internet and other technologies that allow for the delivery of services remotely. Companies can now provide services to customers in different countries, which has led to increased competition in the service sector.

Investments
Globalisation has also resulted in the movement of investments between countries. Companies can now invest in other countries, which has led to increased capital flows and economic growth. This has also led to increased competition between countries to attract foreign investment.

Conclusion
In conclusion, globalisation has resulted in rapid movements of goods, services, and investments between countries. This has been facilitated by advancements in technology and has led to increased competition and access to a broader range of products and services for consumers. Option B, which involves the movement of goods, services, and investments between countries, is the correct answer.