Learning Objective
- Production Across Countries
- Interlinking Production Across Countries
- Foreign Trade and Integration of Markets
- What Is Globalisation?
- Factors That Have Enabled Globalisation
- World Trade Organisation
- Impact of Globalisation on India
- The Struggle for a Fair Globalisation
Production Across Countries
- Trade historically served as the primary link between distant nations. Multinational Corporations (MNCs), formerly known as large companies, now dominate global trade.
- An MNC operates or controls production across multiple countries, often establishing offices and factories in regions with cheap labor and resources to maximize profits.
Interlinking Production Across Countries
Investment refers to money spent on assets like land, buildings, and equipment. When made by Multinational Corporations (MNCs), it’s termed foreign investment. MNCs significantly influence production in diverse locations, linking them together.
MNCs engage with local producers through:
- Partnerships with local companies.
- Utilizing local suppliers.
- Competing with or acquiring local companies.
Joint production ventures benefit local companies by:
- Providing funds for further investments, such as new machinery.
- Introducing advanced production technologies.
Foreign Trade and Integration of Markets
Foreign trade expands producers’ reach beyond domestic markets, enabling them to compete globally. It also provides buyers with a wider array of goods beyond domestically produced items. This interconnects markets across different countries, fostering market integration on a global scale.
What Is Globalisation?
- Globalization entails the swift integration or interconnection of countries, with Multinational Corporations (MNCs) playing a pivotal role.
- Increased flow of goods, services, investments, and technology between countries characterizes globalization.
- Additionally, countries can also be connected through the movement of people across borders.
Factors That Have Enabled Globalisation
Technology
Technological advancements have significantly driven globalization by enabling faster and more cost-effective delivery of goods across long distances. Information and communication technology developments have also made information instantly accessible.
Liberalisation of Foreign Trade and Foreign Investment Policy
- Trade barriers are government-imposed restrictions used to regulate foreign trade by controlling the types and quantities of goods entering or leaving a country. An example of a trade barrier is import taxes.
- The process of removing government-imposed trade restrictions is called liberalization. When a government reduces its trade restrictions, it is considered more liberal.
World Trade Organisation
The World Trade Organization (WTO) aims to liberalize international trade and currently has 164 member countries. It sets rules for developed countries to promote free trade globally.
Impact of Globalisation on India
Globalization has influenced people’s lives in India by:
- Offering consumers greater product choices, with improved quality and lower prices.
- Elevating standards of living.
- Creating new opportunities for service-oriented companies, notably in the IT sector.
The Struggle for a Fair Globalisation
Fair globalization involves creating opportunities for all while ensuring equitable distribution of its benefits. Government intervention can facilitate this through various measures:
- Enforcing labor laws to safeguard workers’ rights.
- Supporting small producers to enhance their productivity.
- Implementing trade and investment barriers if necessary.
- Advocating for fairer rules at the World Trade Organization (WTO).
- Collaborating with other developing countries to counter the dominance of developed nations in the WTO.
🌟 Why CBSEJanta.com for Class 10 Social Science? 🌟
✔ Complete NCERT Solutions: Step-by-step solutions for all subjects (History, Geography, Political Science, and Economics)!
✔ Chapter Summaries & Notes: Simplified explanations for quick understanding.
✔ Extra Practice Questions: Test yourself with additional exercises and questions.
✔ Interactive Learning: Engaging content to make learning Social Science fun and interesting!
📲 Download the CBSEJanta App NOW for instant access to Class 10 Social Science solutions, chapter notes, and practice materials. Ace your Social Science exams with CBSEJanta.com—your all-in-one learning guide! 🌟📖