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    Globalisation and The Indian Economy

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    SHIVANG RUSTAGI
    The document discusses globalization and its impact on the Indian economy. It explains that globalization has led to increased trade, competition, and mobility of capital and labor. While it has benefits like greater choice of goods and economic growth, it also has drawbacks such as loss of jobs and monopoly power of multinational corporations. The government can make globalization more equitable by ensuring worker rights, supporting small businesses, and negotiating fairer trade policies.

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    Globalisation and The Indian Economy

    Uploaded by

    SHIVANG RUSTAGI
    89 views22 pages
    The document discusses globalization and its impact on the Indian economy. It explains that globalization has led to increased trade, competition, and mobility of capital and labor. While it has benefits like greater choice of goods and economic growth, it also has drawbacks such as loss of jobs and monopoly power of multinational corporations. The government can make globalization more equitable by ensuring worker rights, supporting small businesses, and negotiating fairer trade policies.

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    4. Globalisation and The Indian Economy

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    The document discusses globalization and its impact on the Indian economy. It explains that globalization has led to increased trade, competition, and mobility of capital and labor. While it has benefits like greater choice of goods and economic growth, it also has drawbacks such as loss of jobs and monopoly power of multinational corporations. The government can make globalization more equitable by ensuring worker rights, supporting small businesses, and negotiating fairer trade policies.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    89 views22 pages

    Globalisation and The Indian Economy

    Uploaded by

    SHIVANG RUSTAGI
    The document discusses globalization and its impact on the Indian economy. It explains that globalization has led to increased trade, competition, and mobility of capital and labor. While it has benefits like greater choice of goods and economic growth, it also has drawbacks such as loss of jobs and monopoly power of multinational corporations. The government can make globalization more equitable by ensuring worker rights, supporting small businesses, and negotiating fairer trade policies.

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    of 22

    Grade- 10 social science

    economics – 4. globalisation
    and the Indian economy
    Prepared By : Navya Rai
    Globalisation

    Globalization refers to
    the integration of markets in the
    global economy, leading to the
    increased interconnectedness of
    national economies.
    Navya Rai

    Navya Rai
    Impact of Globalisation

    Increased trade – Monopoly power


    Greater choice of of multinationals
    goods

    Greater Structural
    Competition- Lower unemployment-
    Price From shifting sectors

    Economies of Increased capital Tax avoidance is


    Scale – more and labour
    efficient of production
    easier
    mobility
    Navya Rai
    Demographic

    Environmental Economic

    Aspects of
    Globalisation

    Political Technological

    Cultural

    Navya Rai
    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. Navya Rai
    Interlinking Production Across
    Countries
    The money that is spent to buy
    assets such as land, building,
    machines and other equipment is
    called investment.
    An investment made by MNCs is
    called foreign investment. MNCs
    are exerting a strong influence on
    production at these distant
    locations.
    As a result, production in these
    widely dispersed locations is
    getting interlinked. Navya Rai
    MNC

    • There are a variety of ways as mentioned


    below, in which MNCs are spreading their
    production and interacting with local producers
    in various countries across the globe.
    1. By setting up partnerships with local
    companies
    2. By using the local companies for supplies
    3. By closely competing with the local companies
    or buying them up
    Navya Rai
    Navya Rai
    Benefits from MNC to Local
    Companies

    • MNCs set up production jointly with


    local companies which benefits local
    companies in the following ways:
    MNCs can provide money for additional
    investments, like buying new machines
    for faster production.
    MNCs might bring with them the latest
    technology for production.
    Navya Rai
    Foreign Trade and Integration
    of Markets
    Foreign trade creates an opportunity for the producers
    to reach beyond the domestic markets.
    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.
    Navya Rai
    Difference between Foreign Trade
    and Foreign Investment
    Foreign Trade Foreign Investment
    • Includes buying and selling • Deals with investment in
    of goods under an shares and properties on a
    agreement. foreign land.
    • Flow of goods and services • Flow of capital from one nation
    from one nation to another. to another.

    Navya Rai
    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.
    There is one more way in which the
    countries can be connected. This is
    through the movement of people
    between countries.
    Navya Rai
    Base for Globalisation
    Rapid increase in foreign investment by MNCs.
    Rise in foreign trade among countries.
    A large part of the foreign trade being managed by
    MNC.

    Navya Rai
    Foreign Trade Foreign Investment
    Navya Rai
    Factors that have
    Enabled Globalisation
    1. Technology
    Rapid improvement in technology has been one
    major factor that has stimulated the globalisation
    process.
    This has made possible much faster delivery of
    goods across long distances at lower costs.
    The developments in information and
    communication technology have made
    information instantly accessible.
    Navya Rai
    2. Liberalisation of Foreign Trade
    and Foreign Investment Policy
    Trade barriers are some restrictions that have been set
    up by governments.
    The government can use trade barriers to increase or
    decrease (regulate) foreign trade and to decide what
    kinds of goods and how much of each, should come into
    the country. Tax on imports is an example of trade
    barrier.
    Removing barriers or restrictions set by the government
    on trade is known as liberalisation. When the
    government imposes less restrictions than before, it is
    said to be more liberal.

    Navya Rai
    New Economic Policy 1991

    Purpose
    To encourage competition with foreign
    producers.
    To improve the performance of
    domestic producers.

    Navya Rai
    World Trade Organisation
    World Trade Organisation (WTO) is
    an organisation whose aim is to
    liberalise international trade.
    Set up in January 1995. Navya Rai

    It has headquarters in Geneva


    Switzerland.
    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.
    Positive Impact of Globalisation
    in India
    • Globalisation has impacted the lives of people in
    India in the following manner:
    1. It has provided greater choices to consumers who
    now enjoy improved quality of and lower prices on
    several products.
    2. It has resulted in higher standards of living.
    3. Globalisation has also created new opportunities for
    companies providing services, particularly in the IT
    sector.

    Navya Rai
    Negative Impact of Globalisation in
    India
    Liberalisation to attract foreign investment
    adversely affected working conditions of labour in
    India.
    Labourers had a bad impact.
    Local companies could not compete with MNCs.
    Their market share was captured by MNCs having
    better marketing resources.

    Navya Rai
    The Struggle for a Fair Globalisation

    • The government can play a major role in making this


    possible. Some of the steps that the government take are:
    1. It can ensure that labour laws are properly implemented and
    the workers get their rights.
    2. It can support small producers to improve their performance.
    3. If necessary, the government can use trade and investment
    barriers.
    4. It can negotiate at the WTO for ‘fairer rules’.
    5. It can also align with other developing countries with similar
    interests to fight against the domination of developed
    countries in the WTO.
    Navya Rai
    Navya Rai

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