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NCERT CBSE Class 10 Economics Chapter 4 Notes of Globalisation and the Economy make the students learn about the Indian economy and its role in globalization. They study how foreign trade and MNCs (multinational corporations) connect countries.
The chapter explains how MNCs contribute significantly to globalization. Experienced teachers created the CBSE revision notes from Extramarks, following the latest CBSE syllabus. These notes give students an overview of all topics and help them understand globalization and its effects more clearly.
Table of Contents
Production Across Countries
| Trade has been the primary link between distant countries. Large companies, now known as Multinational Corporations (MNCs), play a key role in trade. An MNC is a company that owns or controls production in multiple countries. MNCs establish offices and factories in areas with cheap labor and resources to maximise profits. |
Interlinking Production Across Countries
| The money spent on buying assets like land, buildings, machines, and equipment is called investment. When MNCs make these investments, it is called foreign investment. MNCs greatly influence production in distant locations, linking production across various areas. MNCs spread their production and interact with local producers in several ways: – Partnering with local companies.Using local companies for supplies.Competing closely with or buying local companies. When MNCs set up production with local companies, it benefits the locals by: – Providing money for additional investments, such as new machines for faster production.Bringing the latest production technology. |
Foreign Trade and Integration of Markets
| Foreign trade allows producers to expand beyond domestic markets. They can sell products both within the country and internationally. Similarly, buyers can choose from a variety of goods, including those produced abroad. This leads to the integration of markets across different countries, connecting them through trade. |
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What Is Globalisation?
| Globalization is the process of rapidly integrating and connecting countries. MNCs play a major role in globalisation. More goods, services, investments, and technology are moving between countries. Another way countries connect is through the movement of people across borders. |
Factors That Have Enabled Globalisation
Technology
| Rapid technological improvements have greatly stimulated globalization. These advancements allow for faster and cheaper delivery of goods over long distances. Developments in information and communication technology make information instantly accessible. |
Liberalisation of Foreign Trade and Foreign Investment Policy
| Trade barriers are restrictions set by governments to regulate foreign trade. They can increase or decrease trade and control the types and quantities of goods entering a country. An example of a trade barrier is a tax on imports. Removing these government-imposed trade restrictions is called liberalization. When the government reduces these restrictions, it is becoming more liberal in its trade policies. |
World Trade Organisation
| The World Trade Organisation (WTO) aims to liberalize international trade. Currently, 164 countries are members of the WTO. It sets rules for developed countries to ensure they allow free trade for all, promoting fair and open international trade practices. |
Impact of Globalisation on India
| Globalization has impacted the lives of people in India in several ways: Consumers now have greater choices, enjoying better quality products at lower prices. It has led to higher standards of living. It has created new opportunities for companies, especially in the IT sector. |
The Struggle for a Fair Globalisation
| Fair globalization creates opportunities for everyone and ensures that the benefits are shared more equally. The government can help achieve this by: – Ensuring proper implementation of labour laws to protect workers’ rights. – Supporting small producers to help them improve their performance. – Using trade and investment barriers when necessary. – Negotiating at the WTO for fairer trade rules. – Aligning with other developing countries to combat the dominance of developed countries in the WTO. |
FAQs
Ans: Economic globalization refers to the increasing integration and interdependence of economies across the world through trade, investment, technology, and the movement of goods, services, and people.
Ans: The impact of globalization is debated. Supporters argue it promotes economic growth, technological advancement, and cultural exchange. Critics argue it can lead to inequality, job loss, cultural homogenization, and exploitation of workers and the environment.
Ans: The 7 disadvantages of globalization are as follows:
Job Loss: Industries may move to countries with lower labor costs, leading to unemployment in developed countries.
Income Inequality: The benefits of globalization are often unevenly distributed, widening the gap between rich and poor.
Cultural Homogenization: Globalization can erode local cultures and traditions as Western values dominate.
Environmental Degradation: Increased production and transportation can harm the environment.
Exploitation: Workers in developing countries may face poor working conditions and low wages.
Dependency: Developing countries reliant on foreign investment and markets may lose autonomy.
Health Risks: Globalization can facilitate the spread of diseases and unhealthy lifestyles.
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