Assertion & Reason Test: Globalization & the Indian Economy - 1

(i) MNCs buy at cheap rates from small producers: MNCs buy Garments, Footwear, Sports items at cheap rates from small producers because it reduces their cost of production and using their brand value they sell them at high prices and earn profits.

(ii) Quotas and taxes on imports are used to regulate trade: Quotas and taxes on imports are used to regulate trade items received through import. These are called Trade barriers. These are imposed to protect the domestic industries from the competition by foreign goods. In the absence of trade barriers the imports would flood the domestic market.

(iii) Indian companies who have invested abroad: Tata motors, Ranbaxy and Infosys are the Indian companies which have invested in foreign countries.

(iv) IT has helped in spreading of production of services: With the development of satellite communication and e-mail, the Information technology led to the establishment of call centres for the easy dissemination of information.

(v) Several MNCs have invested in setting up factories in India for production: Because of the presence of huge population and improving living standards, the number of automobiles in India are increasing. Also, because of the increase in Foreign direct investment, several companies have established automobile industries in India.

(i) Tata Motors: Tata Motors Limited is an Indian multinational automotive manufacturing company, headquartered in Mumbai, Maharashtra which is part of Tata Group.

(ii) Asian Paints: Asian Paints Ltd is an Indian multinational paint company, headquartered in Mumbai. The company is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home decor, bath fittings and providing of related services.

(iii) Infosys: Infosys Limited is an Indian multinational information technology company that provides business consulting, information technology and outsourcing services. The company was founded in Pune and is headquartered in Bangalore.

(iv) Sundaram Fasteners: “Now, Sundram Fasteners is not just a fastener company any more, but a broad-based engineering company capable of undertaking the manufacture of various components and assembly systems for automotive and other engineering applications in India and abroad.

(iii) A large MNC, Producing industrial equipment, designs its products in research centres in the United States.

(ii) And then have the components manufactured in China.

(iv) These are then shipped to Mexico and Eastern Europe where the products are assembled and the finished products are sold all over the world.

(i) Meanwhile, the company ’s customer care is carried out through call centres located in India.

(ii) The designing is done on a Computer. After printing the magazines are sent by air to London.

(iv) The text of the magazines is sent through is sent through Internet to the Delhi office The designers in Delhi office get orders on how to design the magazine from the office in London using telecommunication facilities.

(i) A news magazine published for London readers is to be designed and printed in Delhi.

(iii) The payment of money for designing and printing from a bank in London to a bank in Delhi is done instantly through the Internet (E-banking) .