Globalisation And The Indian Economy Class 10 Notes Economics Chapter 4
What are Globalisation and the Indian Economy?
Globalisation can be defined as the integration between countries through foreign trade and foreign investments by multinational corporations (MNCs).
Today’s markets are consumers’ paradise
We as consumers have a wide variety of products available for our requirements. Smart watches, smart mobile phones, smart cars, smart fridges have all become the reality of today. We have a large number of choices available in almost all the products. This was not so before two decades ago.
Modes of foreign investment by MNCs
Integration of economies
Foreign trade and foreign investments have integrated the economies of the world. By making available the same products all over the globe or the availability of same product in various countries leads to price equilibrium, foreign trade and foreign investments which signifies the integration of the economies of the world.
Globalisation is the process of integration of economies of the world in which MNCs play a vital role. These MNCs, by developing their economic interests in more than one country, sourcing their resources from various countries and supplying their products to various countries, have truly proved to be a great integrating force.
Forces influencing globalisation
|1. Globalisation : Globalisation can be defined as the integration between countries through foreign trade and foreign investments by Multinational Corporations (MNCs).||6. Trade barrier : A trade barrier refers to some restriction on the trade.|
|2. Multinational Corporations (MNCs) : An MNC is a company that owns or controls production in more than one nation.||7. Liberalisation : It refers to the relaxation of foreign trade and foreign investment rules by the government of the country.|
|3. Investment : Expenditure incurred to buy assets such as land, building, machines and other equipments for further production is called investment.||8. World Trade Organisation : World Trade Organisation (WTO) is an organisation whose aim is to liberalise international trade.|
|4. Foreign Investment : Investment made by MNCs is called foreign investment.||9. Special Economic Zone (SEZ) : SEZs are confined industrial zones that have world-class facilities like electricity, water, roads, transport, storage, recreational and educational facilities.|
|5. Foreign Trade : Foreign trade refers to the export and import of goods by various countries.|