Globalisation and the Indian Economy Flashcards
1
Q
What is an MNC?
A
- Trade was the main channel that connected distant countries.
- This was before large corporations called MNCs came up.
- MNCs are companies that own production units in more than one country.
- They locate their offices and factories in areas where they can get cheap labor and other resources.
- This increases their profits and reduces the cost of production.
2
Q
What are complex ways of production? Explain with an example.
A
- MNCs are not just interested in selling their products worldwide. They are also interested in producing these goods and services globally.
- Thus, the production process is organized in increasingly complex ways.
- China has the advantage of being a cheap manufacturing location.
- Mexico and Eastern Europe are strategic locations for their closeness to markets. (US and Europe)
- India provides highly-skilled engineers and scientists to understand the technical aspects of the product. THey also have a large and educated English speaking youth to provide customer-care services.
Example - Company produces industrial equipment - Designed in the USA - manufactures components in China - shipped to Mexico and Eastern Europe where they are assembled - customer care services from India
3
Q
Where do MNCs set up their production
A
4
Q
What is foreign investment?
A
5
Q
Explain the ways in which MNCs exercise control and influence production in distant locations.
A
6
Q
What are the functions of foreign trade?
A
7
Q
What is Globalisation?
A
8
Q
What are the factors that have enabled globalisation?
A
9
Q
What is a trade barrier? Why had the government used trade barriers?
A
10
Q
Why did the Indian government put a trade barrier after independence?
A
11
Q
Why did the Indian Government remove trade barriers?
A
12
Q
What is liberalization? State its effects
A
13
Q
What is WTO?
A
14
Q
Impact of globalisation has not been uniform. Explain
A
15
Q
What are SEZs? Where are they set up?
A
