This document discusses globalization and its impact in India. It describes how globalization has led to greater competition, more choices for consumers, and increased foreign investment in India. It then explains the key factors that have enabled globalization, including improvements in transportation, information and communication technologies. The roles of multinational corporations and international trade organizations like the WTO in facilitating globalization are also summarized.

1. MADE BY: NIKITA
MEHROTRA
CLASS: 10th -A

2. It is the process of rapid integration or
interconnection between countries.
There is one more way through which
countries are becoming closer and that
is Movement of people between countries.
People usually move from one country to
another in search of jobs or better
education.This is also a result of
Globalisation.

4. Impact of Globalisation in
India
Greater competition among producers - both
local and foreign producers has been of
advantage to consumers.
There is greater choice before these
consumers who now enjoy improvedquality
and lower prices for several products.
Foreign investment has increased.

5. FACTORS THAT HAVE
ENABLED
GLOBALISATION
TECHNOLOGY: Rapid improvement in
technology has been one major factor that has
stimulated globalisation process. Due to
technology there has been improvements in
various fields as in :

6. 1.TRANSPORTATION TECHNOLOGY.
In past fifty years this technological
improvements has led to faster delivery of
goods across long distances at lower caste.
Containers for transport of goods: have led
to huge reduction in port handling costs,
increased the speed with which goods can
reach markets.

7. c) Airlines: the cost of air transport has fallen,
this has enabled much greater volumes of
goods being transported by airlines.
2.INFORMATION AND COMMUNICATION
TECHNOLOGY:
IT, has played a major role in spreading
out production of services across countries.

8. Remarkable improvements have in the areas
of telecommunications, computers &internet.
Telecommunications: facilitated by the
satellite communication devices, facilities as
telegraph, telephone including mobiles, fax
are used to
contact around the world, to access the
information instantly,& to communicate in the
remote areas.

9. Computer and internet: computers
have entered in almost all the fields.
Internet allows one to share information on
almost every thing, we can send instant email and talk through voice-mail across the
world at almost negligible cost.

11. REASONS / FACTORS FOR
THESE RAPID
TRANSFORMATIONS?
Middle of twentieth century:
Production was largely organized with in
the countries
What crossed the boundaries was mainly
the raw materials, food stuff and finished
products.
Trade was the main channel connecting
distant countries.

12. TRADE
HISTORY:
Various trade routes connecting India and South
Asia to markets both in the East and West &
extensive trade that took place along these routes.
It was trading interest which attracted various
trading companies such as East India Company to
India.

14. Function or purpose of
foreign trade?
Foreign trade creates an opportunity for
the producers to reach beyond the domestic
markets i.e., markets of their own countries.
Producers can sell their produce not only
in markets located within the country but can
also

15. compete in markets located in other
countries of the world.
For the buyers, import of goods produced
in another country is one way of
expanding the choice of goods beyond
what is domestically produced.

16. EFFECTS OF FOREIGN
TRADE:
There are various positive & negative effects
of foreign trade. Its positive effects are
With the opening of trade, goods travel
from one market to another.
Choice of goods in the markets rises.
Prices of similar goods in the two
markets tend to become equal.

17. Producers in the two countries now
closely compete against each other
even though they are separated by
thousands of miles.
Foreign trade thus results in connecting
the markets or integration of markets in
different countries.The economies of
various countries are
getting interlinked.

18. How foriegn trade benefit to
India & to China?
To China: Chinese got an opportunity to
trade and expand their business.
--As they were selling it at high selling price,
they got high profits.
--Within an year 70-80% of toys shops have
replaced Indian toys with Chinese toys.

19. To India: Indian buyers have more choice
now.
--Prices are cheaper now.
--designs are new.
--But due to the cheaper prices & new
designs , the Indian toy makers face losses,
as their toys are selling much less.

20. MNC’S—Multi national
corporations
It is a company that owns or controls
production in more than one nation.
MNC’s set up offices & factories for
production in the regions where they can get
cheap labour and other resources.

21. This is done so that the cost of production
is low and the MNC’s can earn greater
profits.
Many MNC’s have wealth exceeding the
entire budgets of the developing countries ,
with such enormous wealth they have
immense power & influence.

23. FACTORS/ CONDITIONS TO
SET UP A MNC
MNC’s set up production where it is
close to the markets.
where there is skilled labour available at
low costs.
where the availability of other factors of
production is assured.
They look for the government policies
that look after their interests.

24. INVESTMENT:
The money that is spend to buy assets
such as land, building, machines and other
equipment is called investment.
The investment made by MNC’s is
called foreign investment.

25. VAROIUS WAYS IN WHICH
MNC’s ARE SPREADING
THEIR PRODUCTION:
There are variety of ways in which
MNC’s are spreading their production and
interacting with local producers in various
countries across the globe. They do this by
various means:

26. By setting up partnerships with local
company..
By closely competing with local
companies or buying them -the most
common route for MNC investments is to
buy up local companies and to expand
production. With their huge wealth they can
easily do so..
By using local companies for supply Large MNC’s in developed countries place
orders

27. for production with small producers.Eg.,
garments, footwear, sports item etc. The
products are supplied to MNC’s which then
sell these under their brand names ti the
customers.
As a result, production in these widely
dispersed locations is getting interlinked.
MNC’s are exerting strong influence on
production at these distant locations.

28. MNC’S are playing major role
in the Globalisation process.
MNC’s have been looking for locations around
the world , which would be cheap for their
production
As a result of greater foreign investment and
greater foreign trade ,has been greater
integration of production and markets across
countries.
More and more goods and services,

29. investments and technology are moving
between the countries.
Most regions of the world are in closer
contact with each other than a decade back
Foreign investment in the countries has
been rising.
Foreign trade between the countries has
been rising.

30. WTO-world trade
organisation
The functions of the WTO are as follows:
Establishing rules for international trade
Ensuring the rules are followed
Promoting removal of restrictions on trade
barriers
WTO is against barriers on trade in the form
of tariffs and import duties as these impede
the flow of capital, investments an
technology. These mechanisms prevent the
functioning of free trade.

32. Important questions
01. What is Globalisation?
Ans. Globalisation means opening up the economy to
facilitate its integration with the world economy.
02. Define Economic reforms of new Economic
Policy 1991.
Ans. Economic policy adopted by the Government of
India since July,1991 is termed as new economic policy
or economic reforms.
03. Define Privatisation.
Ans. Privatisation means reduced government
intervention and increased private investment in

33. 04. What is meant by Liberalisation?
Ans. Liberalisation means removing unnecessary
trade restrictions and making the economy more
competitive.
05. What is outsourcing?
Ans. Outsourcing means going out to a source
outside the company to buy regular service that
formerly used to be provided departmentally and
internally just as legal advice, computer service,
security, advertisement and accounting etc.
06. What is meant by modernisation of the
Economy?
Ans. The new economic policy accords top priority to

34. 08. How many countries are currently the
members of the World Trade Organisation (WTO)?
Ans. It has 153 member countries as on 23 July,
2008.
09. In which year, the government started to
remove barriers on foreign trade and foreign
investment.
Ans. In 1991
10. Why are the Chinese Toys popular in the
world?
Ans. Chinese Toys are comparatively cheaper and
have new designs. That is why they are popular in the
world.

35. 12. Name the organisation which lay emphasis
on liberalisation of foreign trade and foreign
investment in India.
Ans. World Trade Organisation (WTO)
13. When was the UNO established?
Ans. The UNO was established on 24 October,
1945.
14. When was the WTO established?
Ans. The WTO was established on 1st January,
1995.
15. Where is the main Head Office of WTO?