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Key Concepts: Globalisation & the Indian Economy | Social Studies (SST) Class 10 PDF Download

Globalisation means integrating the economy of a country with the economies of other countries under conditions of free flow of trade and capital and movement of persons across borders.

Key Concepts: Globalisation & the Indian Economy | Social Studies (SST) Class 10

Production Across Countries


Trade was the main channel connecting distant countries. Large companies, which are now called Multinational Corporations (MNCs) play a major role in trade.

  • An MNC is a company that owns or controls production in more than one nation.
  • MNCs set up offices and factories for production in regions where they can get cheap labour and other resources so that the company can earn greater profits

Key Concepts: Globalisation & the Indian Economy | Social Studies (SST) Class 10Interlinking Production Across Countries 


At times, MNCs set up production jointly with some of the local companies of these countries. The benefit to the local company of such joint production is two-fold.

Key Concepts: Globalisation & the Indian Economy | Social Studies (SST) Class 10

  • First, MNCs can provide money for additional investments, like buying new machines for faster production.
  • Second, MNCs might bring with them the latest technology for production.
  • Investment and Foreign Investment: The money that is spent to buy assets such as land, building, machines and other equipment is called investment. The investment made by MNCs is called foreign investment.
  • By setting up partnerships with local companies, using local companies for supplies, by closely competing with local companies or buying them up, MNCs are exerting a strong influence on production at these distant locations.

As a result, production in these widely dispersed locations is getting interlinked.

Question for Key Concepts: Globalisation & the Indian Economy
Try yourself:What is the main reason why MNCs set up offices and factories for production in regions with cheap labor and resources?
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Foreign Trade and Integration of Markets  


Foreign trade creates an opportunity for the producers to reach beyond the domestic markets. 

Small traders of readymade garments facing stiff competition from both the MNC brands and imports. Small traders of readymade garments facing stiff competition from both the MNC brands and imports. 

  • Producers can sell their products not only in markets located within the country but can also compete in markets located in other countries of the world. 
  • Similarly, buyers have the options to choose among various goods beyond domestically produced goods. 
  • Thus, foreign trade results in connecting the markets or integration of markets in different countries.

What is Globalisation?


  • Globalisation is the process of rapid integration or interconnection of countries. MNCs are playing a major role in the globalisation process. 
  • More and more goods and services, investments and technology are moving between countries.

Factors that have Enabled Globalisation


  • Improvement in Transportation Technology 
  • Improvement in Information and communication technology 
  • Liberalisation of foreign trade and foreign investment policy 
  • Pressures From World Trade Organisation 

World Trade Organisation (WTO)  


  • World Trade Organisation (WTO) is an organisation whose aim is to liberalise international trade

Key Concepts: Globalisation & the Indian Economy | Social Studies (SST) Class 10

  • At present, 164 countries of the world are currently members of the WTO
  • It has established rules for developed countries regarding international trade so that these countries can allow free trade for all.

Question for Key Concepts: Globalisation & the Indian Economy
Try yourself:What is the aim of the World Trade Organisation (WTO)?
View Solution

Impact of Globalisation in India 


It has provided greater choices to consumers who now enjoy improved quality and lower prices on several products. It has resulted in higher standards of living.

Key Concepts: Globalisation & the Indian Economy | Social Studies (SST) Class 10

The struggle for a fair globalisation 


  • It can ensure that labour laws are properly implemented and the workers get their rights.
  • It can support small producers to improve their performance.
  • If necessary, the government can use trade and investment barriers.
  • It can negotiate at the WTO for ‘fairer rules’.
  • It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.
The document Key Concepts: Globalisation & the Indian Economy | Social Studies (SST) Class 10 is a part of the Class 10 Course Social Studies (SST) Class 10.
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FAQs on Key Concepts: Globalisation & the Indian Economy - Social Studies (SST) Class 10

1. What is globalization?
Ans. Globalization is a process that involves the integration of economies, societies, and cultures across countries. It is characterized by the free flow of goods, services, and capital across national borders, as well as the spread of technology, ideas, and people.
2. What are the factors that have enabled globalization?
Ans. Several factors have enabled globalization, including advancements in transportation and communication technologies, liberalization of trade and investment policies, and the rise of multinational corporations. These factors have made it easier and cheaper for firms to operate across borders, leading to increased international trade and investment.
3. What is the World Trade Organization (WTO)?
Ans. The World Trade Organization (WTO) is an international organization that oversees and regulates global trade. It was established in 1995 as a successor to the General Agreement on Tariffs and Trade (GATT) and has 164 member countries. The WTO works to promote free and fair trade by negotiating and enforcing agreements on tariffs, subsidies, and other trade barriers.
4. What is the impact of globalization in India?
Ans. Globalization has had both positive and negative impacts on India. On the positive side, it has led to increased foreign investment, greater access to international markets, and a more diversified economy. This has helped to create jobs, boost economic growth, and reduce poverty. However, globalization has also led to increased inequality, environmental degradation, and cultural homogenization.
5. What is the struggle for a fair globalization?
Ans. The struggle for a fair globalization is a movement that seeks to ensure that the benefits of globalization are shared more equitably among all countries and people. This movement advocates for policies that promote sustainable and inclusive economic growth, protect the environment and workers' rights, and reduce inequality and poverty. It also calls for greater transparency and accountability in international trade and investment agreements.
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