Economics

Globalisation and the Indian Economy

Question:

What is meant by interlinking production across countries?

Answer:

MNCs are exerting a strong influence on production at distant locations. As a result, production in these widely dispersed locations is getting interlinked.
MNCs look into 4 major criteria before they set up production in any place.
1. The factory or company should be close to the markets.
2. Skilled and unskilled labour should be available at low costs.
3. Availability of other factors of production should be assured. (eg. Infrastructure)
4. Local Government policies should be in their interests.
When the above conditions are to their satisfaction MNCs set up factories and offices for production in different countries thus interlinking production across countries.
At times, MNCs set up production jointly with some of the local companies in other countries . Then the local company benefits in 2 ways from this joint venture. Money for additional investments, like buying new machines and the introduction of the latest technology for production is available to the local producer thus interlinking production across countries.

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Globalisation and the Indian Economy

Q 1.

What are the positive impacts of globalisation in India ?

Q 2.

Write a short note on WTO.

Q 3.

Differentiate between a ˜permanent worker ' and a ˜temporary worker'.

Q 4.

What do you understand by globalisation? Explain in your own words.

Q 5.

How would flexibility in labour laws help companies?

Q 6.

What are the factors that have enabled globalisation?

Q 7.

IT in globalisation  Discuss.

Q 8.

Mention a few negative impacts of globalisation in India.

Q 9.

How has liberalisation of trade and investment policies helped the globalisation process?

Q 10.

What are the various ways in which MNCs set up, or control, production in other countries?

Q 11.

What are the factors that have enabled globalisation ?

Q 12.

What are the positive impacts of globalisation in India?

Q 13.

Mention a few negative impacts of globalisation in India.

Q 14.

Write a short note on MNCs with an example.

Q 15.

“The impact of globalisation has not been uniform.” Explain this statement.

Q 16.

What was the reasons for putting barriers to foreign trade and foreign investment by the Indian government? Why did it wish to remove these barriers?

Q 17.

IT in globalisation “ Discuss.

Q 18.

Why do developed countries want developing countries to liberalise their trade and investment? What do you think should the developing countries demand in return?

Q 19.

How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.

Q 20.

What is meant by interlinking production across countries?