Economics is one of the most interesting branches of social science. Class 10 Economics syllabus covers multiple dimensions of the Indian Economy. It includes major economic changes since post-independence to the present time. Chapter 4 Globalisation and the Indian Economy will take you through various aspects of Globalisation and its aftereffects. This chapter primarily highlights the role of multinational companies in bringing about Globalisation to India and worldwide. Let’s go through all the important points of this chapter!
This Blog Includes:
- An Introduction to Globalisation
- Globalisation and the Indian Economy: Production Across Countries
- Dynamics Between MNCs and Local Producers
- Globalisation and the Indian Economy: Market Integration Through Global Trade
- Globalisation and the Indian Economy
- Impact of Globalisation on Indian Economy | Class 10
- Impact of Globalisation on Indian Economy PPT
- Questioning Globalisation and Its Impact
- Globalisation and the Indian Economy PPT
- Globalisation and the Indian Economy: Sample Questions
- Globalisation and the Indian Economy Class 10 MCQ
An Introduction to Globalisation
The chapter opens up with defining globalisation as the interconnectedness between countries resulting from foreign trade and investment. Multinational Companies (MNC) are a key vehicle for dispersing the ideas of Globalisation worldwide. Some of the important ideas pertinent to Globalisation as per the chapter are:
- Integration of production and markets
- Transformation of markets
- Technological advancement
- Opening up the economy
- Unequal impact for different countries and people
Globalisation and the Indian Economy: Production Across Countries
Even before the start of Globalisation, there existed a thriving international trade between kingdoms and countries. However, this foreign trade was restricted to the exchange of raw materials.
With the onset of Globalisation began the era of MNCs. MNCs can be defined as the companies which have their working offices in more than one country. Its production takes place in multiple locations across the globe. The primary purpose of manufacturing and selling at different locations is to minimize the cost of production and, consequently, maximize profits. One of the pivotal characteristics of an MNC is its ability to produce goods in a global setup.
The production carried out by the MNCs is bifurcated into various phases. These phases are then distributed to multiple companies. Therefore, the production of one good takes place in several locations.
This impact of globalisation in India is visible in the growing numbers of MNCs. Due to the ample availability of skilled workforce and cheap labour, global companies find India a good business location as stated in the chapter on Globalisation and the Indian Economy.
Dynamics Between MNCs and Local Producers
When an MNC comes to a country, it spends money on buying the factors of production. This money comes from a foreign company to domestic land is known as foreign investment. This capital aids the government’s financial resources, thereby enhancing the overall economic growth. At the same time, the MNC can make better profits. An MNC will inevitably interact with the country’s local producers. This process of interaction takes place in the following manner:
- A common approach for MNCs is to buy a local company. With this purchase, they can expand their production in the country.
- Another approach is to make direct purchases from local manufacturers. An MNC places its order with a producer from another country at the desired rates. The locals act as suppliers.
- Creating business partnerships with local producers is another viable way for MNCs.
Globalisation and the Indian Economy: Market Integration Through Global Trade[optin-monster-shortcode id=”xf2mlnjiouddzrshykdb”]
As we move further with the discussion of the chapter on Globalisation and the iNdian Economy, the next topic is the foriegn trade. Foreign Trade is one of the key instruments for connecting multiple countries. On the one hand, it enables domestic producers to expand into the international market. Also, it gives consumers a greater variety of choices.
More importantly, foreign trade facilitates the movement of goods and services from one country to another. In doing so, it accelerates Globalisation. Globalisation and the Indian economy exemplify the crucial role of seamless foreign trade in integrated markets worldwide. Indian goods are available in many countries while the Indian markets sell goods coming from various countries abroad.
Globalisation and the Indian Economy
The expansion of MNCs, coupled with advancements in foreign trade, has promoted the process of Globalisation. There is a large-scale movement of goods, services, investments, and technology across the globe. Some factors that have facilitated Globalisation are:
Technological advancement in transportation has significantly enhanced international trade. Besides, rapid development in communication, technology has made it easy to connect with anyone in the world. Satellite communication devices also facilitate access to information.
Barriers to foreign trade, like high taxes on imports, hamper the movement of goods. Liberalization is the removal of these barriers. It facilitates Globalisation as well. Indian Globalisation resulted from its policy of liberalization in 1991.
Impact of Globalisation on Indian Economy | Class 10
As described in the chapter on Globalisation and the Indian Economy, the phenomenon of Globalisation has a varied impact on different countries and people. Let us have a look at some of the impacts on our country as mentioned in the chapter-
- For Consumers: As a result of Globalisation, consumers enjoy a greater variety of choices for goods and services. They can access both imported products and domestic goods. Therefore, there is scope to upgrade their lifestyle.
- For Producers: Indian Globalisation is both a boon and bane for the producers. The more well-off manufacturers can benefit immensely from their relationships with foreign counterparts. Small businesses, however, suffer from excessive competition. Overall, companies create employment and boost economic growth.
- For Workers: Both industrial and agricultural workers face adverse consequences. Farmers and sellers face excessive competition in the agriculture sector. Alternatively, industrial workers face similar mistreatment.
Impact of Globalisation on Indian Economy PPT
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Questioning Globalisation and Its Impact
Globalisation creates wide-ranging disparities in the domestic and international community. It reaps enormous benefits for the rich while affecting the poor unfavorably. Taking this in view, there is a popular demand for fair Globalisation. Some suggestions to address this challenge are-
- Trade policies must focus on protecting the interests of all domestic producers.
- Workers, both industrial and agricultural, should not face the brunt of blinded progress.
- Governments should negotiate with the WTO for fairer rules of trade.
Globalisation and the Indian Economy PPT
Globalisation and the Indian Economy: Sample Questions
Now, that you are through with the chapter, here are some practice questions for you-
- What is your understanding of Globalisation? Explain its correlation with progress.
- What is the role of an MNC in facilitating Globalisation?
- Is the impact of Globalisation uniform across the world and nations? Give reasons for your answer.
- Explain how trade liberalization aids in expanding the scope of Globalisation for a country.
- What is the role of foreign trade in creating a globalized world? Explain with examples.
- Are MNCs beneficial for a domestic economy? Substantiate your answer with examples.
- Why is fair Globalisation a challenge for the global economic setup? What can nations do to resolve this issue?
Globalisation and the Indian Economy Class 10 MCQ
1. Removing barriers or restrictions set by the government is called:
(c) Fovourable trade
(d) Free trade
2. Rapid integration or interconnection between countries is known as:
3. Globalisation has led to improvement in living conditions:
(a) of all the people
(b) of people in the developed countries
(c) of workers in the developing countries
(d) none of the above.
4. Which one of the following Indian indus¬tries has been hit hard by globalisation?
(a) Information Technology (IT)
(b) Toy making
World Trade Organisation (WTO) was started at the initiative of which one of the following group of countries?
(a) Rich countries
(b) Poor countries
(c) Developed countries
(d) Developing countries
Thus, we hope that through these detailed notes on the chapter on Globalisation and the Indian Economy, you have now understood the chapter in detail. Reach out to our experts at Leverage Edu and they will ease out all your confusion regarding stream selection by a simple psychometric test. Hurry Up! Book an e-meeting!