Globalisation and the Indian Economy Flashcards
(17 cards)
What is an MNC?
- 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.
What are complex ways of production? Explain with an example.
- 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
Where do MNCs set up their production
What is foreign investment?
Explain the ways in which MNCs exercise control and influence production in distant locations.
What are the functions of foreign trade?
What is Globalisation?
What are the factors that have enabled globalisation?
What is a trade barrier? Why had the government used trade barriers?
Why did the Indian government put a trade barrier after independence?
Why did the Indian Government remove trade barriers?
What is liberalization? State its effects
What is WTO?
Impact of globalisation has not been uniform. Explain
What are SEZs? Where are they set up?
State the harmful effects of MNCs for host countries.
How can globalisation be made fair for all?
