|Table of contents
|Production Across Countries
|Interlinking Production Across Countries
|Foreign Trade and Integration of Markets
|What is Globalisation?
|Factors that have Enabled Globalisation
|World Trade Organisation (WTO)
|Impact of Globalisation in India
|The Struggle for a Fair Globalisation
As consumers today, many of us have a diverse range of goods and services available. The latest models of digital cameras, mobile phones, and televisions from leading global manufacturers are easily accessible. Indian roads now feature a variety of car models each season, a departure from the past when Ambassador and Fiat were the dominant choices. This choice of brands extends to various products, from shirts to televisions to processed fruit juices.
This abundance of choices is a relatively recent development in our markets, transforming rapidly within a matter of years.
The chapter explores the factors behind these changes and their impact on people's lives.
Investment involves spending money on assets like land, buildings, machinery, and equipment. In the context of Multinational Corporations (MNCs), this investment is termed foreign investment, with the expectation of earning profits from these assets.
MNCs engage in global production through various methods of interaction with local producers:
Joint Production: MNCs form partnerships with existing local companies for joint production, allowing local producers to access new assets and advanced technologies.
Acquisition of Local Companies: MNCs acquire well-established local enterprises with extensive networks to expand their production capabilities.
Controlled Production: MNCs collaborate with local companies, sourcing materials and placing orders to achieve controlled production. The MNC's brand is utilized for marketing these products.
Interlinking Production Across Countries
The collaboration between MNCs and local businesses in establishing production benefits the latter in several ways:
MNCs can provide funds for additional investments, such as acquiring new machinery to enhance production efficiency.
Multinational corporations bring advanced manufacturing technology, contributing to the modernization of local businesses.
The way in which the world economy is integrated with the modern world is globalisation.
The process of rapid Integration or interconnection between countries is called Globalisation
All these activities help in generating employment opportunities across the world. This in turn affects the world economy.
You can think of various activities in the step of final production of a product or a service that take place around the world at different locations. This results in the interdependence of national economies around the world.
Globalisation, the process of increasing interconnectedness and integration of economies, societies, and cultures on a global scale, has been facilitated by several key factors. These factors have played a significant role in enabling globalisation and shaping its trajectory. Here are some of the most important factors:
Factors Affecting Globalisation
2. Trade Liberalisation:
3. Foreign Investment Policy:
This organisation aims to liberalise international trade. This organisation says that all countries in the world should liberalise their policies.
Globalisation has had a significant impact on India across various sectors, transforming its economy, society, and culture. Here are some of the key impacts of globalization in India:
Impact of Globalisation
Large MNCs order their products from Indian exporters.
Ensuring equitable globalisation offers opportunities to everyone, with the government playing a crucial role in achieving this goal. Some measures the government can take include:
|1. What is globalisation?
|2. What factors have enabled globalisation?
|3. What is the World Trade Organisation (WTO)?
|4. What is the impact of globalisation in India?
|5. What is the struggle for a fair globalisation?