4 . Globalisation and the indian economy

Multinational corporations (MNCs) - A company that owns or controls production in more than one nation is called Multinational corporations (MNCs)

Example :TATA, Sumsung, Apple

MNCs setup their offices and factories in those regions where they get cheap labour and other resources so that they can reduce their cost of production and maximize the profit.

Interlinking production across countries.

Controlling and Spreading productions by Multinational corporations(MNCs)

MNC owns or controls production in more than one nation.

MNCs setup their factories in those regions where  the  markets are close, skilled and unskilled labour are available at low costs and the availability of other factors of production is assured. 

MNCs setup their factories in those regions where government policies are suitable  for them.

Some times, MNCs set up production jointly with the local companies.

Joint production provides double benefits to the local company.

(i) MNCs provide money for additional investments to local company.

(ii) MNCs bring with them the latest technology for production.

The most common route for MNC investments is to buy up local companies and then to expand production. 

Example : Cargill Foods(American MNC) has bought over smaller Indian companies Parakh Foods

Large MNCs in developed countries place orders for production to small producers, and control production. 

Small producers provide products to MNCs, which the MNCs sell to customers under their own brand names.

Thus by setting up partnerships with local companies, by using the local companies for supplies, by closely competing with the local companies or buying them up, MNCs are exerting a strong influence on production. As a result, production in these widely dispersed locations is getting interlinked.

Globalisation : Globalisation is the process of rapid integration or interconnection of countries.MNC’s are playing a major role in the globalisation process.

Impact of Globalisation in India: 
Globalisation and greater competition among producers has been of advantage to consumers, particularly the well-off sections in the urban areas. 
Globalisation provides greater choice to consumers, to enjoy improved quality and lower prices for several products.  As a result, people enjoy higher standards of living.
MNCs have increased their investment in India 
MNCs have established industries like cell phones, automobiles, electronics, soft drinks, fast food in urban areas. Due to which new jobs have been created. 
Globalisation has enabled some large Indian companies to emerge as multinationals. 
Example : Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts and bolts) 
Globalisation has also created new opportunities for companies providing services particularly in the IT sector.
Fair globalisation

Everyone has not  benefited from globalisation. Educated, skilled and wealth people have benefited from globalisation. On the other hand, there are many people who have not benefited from globalisation.

Fair globalisation would create opportunities for all. The government can play a major role in making this possible.
The government’s must protect the interests, not only of the rich and the powerful, but all the people in the country. 
The government can ensure that labour laws are properly  implemented and the workers get their rights. 
The government can support small producers to improve their performance till the time they become strong enough to compete. 
The government can use trade & investment barriers to protect the small producers.
The government  can negotiate at the WTO for ‘fairer rules’.
The government  can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.

WTO : World Trade Organisation (WTO) is one such organisation whose aim is to liberalise international trade.

According to WTO all barriers to foreign trade and investment are harmful. So Trade barriers should be abolished by the countries for free trade.

WTO establishes rules regarding international trade, and sees that these rules are obeyed.

About 160 countries of the world are currently members of the WTO.

Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers.

WTO rules have forced the developing countries to remove trade barriers.

An example of this is the current debate on trade in agricultural products

Investment: The money that is spent by a company to buy assets such as land, building, machines and other equipments is called investment. Investment made by MNCs is called foreign investment.
Special Economic Zones (SEZs) : The central and state governments in India are being set up Industrial zones to attract foreign companies to invest in India called Special Economic Zones (SEZs).

SEZs have world-class facilities such as power, water, roads, transport, storage, entertainment and educational facilities. 

Companies who set up production units in the SEZs do not have to pay taxes for an initial period of five years.

Government has also allowed flexibility in the labour laws to attract foreign investment.

Instead of hiring workers on a regular basis, companies hire workers for short periods when there is intense pressure of work.

Foreign Trade And Integration Of Markets: 

Foreign trade has been the main channel of connecting countries for a long time

In ancient times, the trade routes of India and South Asia were well connected to the East and West.

Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.

Producers can sell their products not only in markets located with in the country but can also compete in markets located in their countries of the world. 

Buyers have the options to choose among various goods beyond domestically produced goods.

In general, 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 become equal. 

Producers in the two countries closely compete against each other even though they are separated by thousands of miles!

Thus, foreign trade results in integration of markets.

Liberalisation of foreign trade and foreign investment policy.
Liberalisation :  Removing barriers or restrictions set by the government on foreign trade is known as liberalisation.
Tax on imports is an example of trade barrier.
Governments  use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each, should come into the country.
After Independence the Indian government after Independence has removed barriers on foreign trade and foreign investment to protect domestic producers from foreign competition.

Technology and globalisation 

Rapid improvement in technology has stimulated the globalisation process. 

Improvement in transport technology has made faster delivery of goods across long distances at lower costs.

The developements in information and communication technology have made information instantly accessible.

Telecommunication facilities  are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. 

Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.

1. How are MNCs a major force in connecting the countries of the world?
   MNCs form and utilize the connections between national economies.
2. State any one example of ‘Trade Barrier’.
   Tax on imports
3. How has flexibility in the labour laws affected the lives of labourers in India ?

   Instability in job has arison.
4. What was the main aim of formation of World Trade Organisation ?  

   
   The main aim of forauaion of WTO is to liberalise international trade. 
5. Why are Special Economic Zones' being set up by Central and Stae Governments in India ?

   
   Spesial Ecomomic Zones are being set up by central and sate Governments to attract foreign companies invest in India.
6. What is the meaning of investment? 

   
   The money that is spent by a company to buy assets such as land, building, machines and other equipments is called investment.
7. Give the meaning of globalisation ?

   
   Globalisation is a process of integrating a country's economy with the global economy.
8. Due to what reason are the latest models of different items available within our reach ? 
   The latest models of different items are available within our reach Due to globalisaion.
9. Explain any one benefit of removing ‘Trade Barriers’.

   Goods can be imported and exported easily

   Foreign companies can set up factories and offices in other countries.
10. How has globalisation enabled the national companies to emerge as Multinational Companies (MNCs) ?

    New opportunities have been provided to the companies/ Helped in collaboration with foreign companies/ Technological and production inputs to the companies
11. Name any two large Indian companies that emerged as multinational companies
    1. Tata Motors 2. INFOSYS
    3. RANBAXY   4. ASIAN PAINTS
    5. SUNDRAM FASTNERS
12. What is meant by trade barrier ? 

    
    Restrictions imposed on import and export of goods by the government to increase or decrease the foreign trade is called trade barrier. 
    Tax on imports is an example of trade barrier.
13. Differentiate between multinational corporations and domestic companies.
    The MNC is a company that owns or controls production in more than
    one nation where as, a domestic company owns and controls production within the country.
14. Why do MNCs setup their offices and factories in those regions where they get cheap labour and other resources ? 

    
    MNCs setup their offices and factories in those regions where they get cheap labour and other resources so that they can reduce their cost of production and maximize the profit. 
15. Differentiate between investment and foreign investment ?

    The money that is spent by a company to buy assets such as land, building, machines and other equipments is called investment whereas Investment made by MNCs is called foreign investment.
16. What is a Multinational Corporation? 
    A company that owns or controls production in more than one nation is called Multinational corporations (MNCs)
    Example :TATA, Sumsung, Apple
17. Why did the Indian government remove barriers to a large extent on foreign trade and foreign investment? 

    The Indian government realised that Indian producers had established themselves and it was the proper time to face competition and improve the quality of production. So barriers on foreign trade and investment were removed.
18. How is globalization beneficial for consumers?
    (i) Greater choice before the consumers.
    (ii) Improved quality.
    (iii)Lower prices for several products.
    (iv)People enjoying higher standards of living than was possible earlier.
19. How do common people feel the direct impact of globalisation ?

    (i) Globalisation provides more choice to consumers As a result, people enjoy higher standards of living

    (ii) Globalization ensures availability of standard quality products at lower price.
20. Examine the debate that took place in the World Trade Orgnisation for the developing countries.

    (i) Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers.

    (ii) WTO rules have forced the developing countries to remove trade barriers.

    (iii) An example of this is the current debate on trade in agricultural products.
21. Assess any three advantages of multinational corporations

    (i) MNCs provide money for additional investments and bring with them the latest technology for production.

    (ii)  MNCs have provided improved quality and lower prices goods.

    (iii) New jobs have been created by MNCs.

    (iv) People enjoy high standards of living and facilities due to MNCs.
22. How are ‘local companies’ benefited by collaborating with ‘multinational companies’ ? Evaluate any three benefits
    (i) MNCs provide money for additional investments to local company like buying new machines for faster production.
    (ii) MNCs bring with them the latest technology for production.
    (iii) They earn greater profits by invested in newer technology and production methods 
23. Describe the impact of flexibility in the labour laws on the workers in India.

    (i) Flexibility in labour laws has badly affected workers.

    (ii) MNCs employ them on a temporary basis to cut costs.

    (iii) They are not paid throughout the year.

    (iv) During peak seasons, workers are made to work for long hours and night shifts. 
24. ‘‘Globalisation and greater competition among producers has been advantageous to consumers.’’ Support the statement with examples.
    Describe any five advantages to consumers due to globalisation and greater competition among producers.
    (i) Globalisation and greater competition among producers has been of advantage to consumers, particularly the well-off sections in the urban areas. 
    (ii) Globalization ensures availability of standard quality products at lower price.
    (iii) Globalisation provides more choice to consumers. As a result, people enjoy higher standards of living.
    (iv) Due to competition the prices of various products came down.
25. Describe the role of Multinational Corporations (MNCs) in promoting globalisation process.
    (i) Multinational companies allow free flow of manpower across borders.
    (ii) They serve as agents for the transfer of superior technology in other countries.
    (iii) MNCs exchange goods, services, investments and technology between countries.
    (iv) They  provide large-scale employment.
    (v) MNCs usually set up production units across the globe.
26. “Barriers on foreign trade and foreign investment were removed to a large extent in 1991.” Analyse the statement in the context of India.

    (i) In 1991, Barriers on foreign trade and foreign investment were partially removed.

    (ii) Goods could be imported and exported easily 

    (iii) Foreign companies were allowed to set up factories in India.

    (iv) Indian producers were allowed to compete with producers around the globe.

    (v) Businesses were allowed to make decision freely about import and export.

    (vi) This decision was supported by powerful international organisations.
27. How are our markets transformed in recent years? Explain with examples.

    (i) After 1991 Indian markets have been integrated with the foreign markets.

    (ii) Barriers on foreign trade and foreign investment have been removed to large extent.

    (iii) Producers can sell their products in foreign markets.

    (iv) There is a wide choice of goods and services available in the market.

    (v) Import and export decisions are freely taken by businesses due to liberalization of trade by the govt.
28. Examine any three conditions which should be taken care of by Multinational Companies to set up their production units. 

    (i) Labour: There should be easy availability of cheap and skilled labour for the industries. This will help in reducing  the cost of production and maximizing the profit.

    (ii)  Market: The markets should be close to the production units so that there should be less expenditure on the transport cost.

    (iii) Government policies: The government policies of that particular countries should be in favour of the company.
29. Examine the factors which facilitate globalization in India.
    (i) Rapid improvement in technology.
    (ii) Improvement in Transport.
    (iii) Development of Information and Communication.
    (iv) Movement of goods and services between countries.
    (v) Foreign investment.
    (vi) Working with WTO
    (vii) Liberalized policies of the government.
30. Describe the problems created by globalisation for small producers and workers.
    (i) Globalization has hit the small producers  and workers because they are unable to compete with MNCs.
    (ii) The sdifferent mall manufacturers were not able to compete with globalization
    (iii) Several units shut down and many workers have become jobless. 
    (iv) The local manufacturers like batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil industries have been hit hard due to competition.
    (v) Flexibility in labour laws has resulted in worsening the condition of workers.
31. Indian companies have been able to benefit from the increased competition. Examine the statement.
    (i) Large Indian companies emerged as multinationals like Tata Motors.
    (ii) The local companies supplying raw materials  to the MNC’s have prospered.
    (iii) Multinational companies have increased their investment in India.
    (iv) Globalisation has also created new opportunities for companies providing services particularly in the IT sector.
    (v) Some Indian companies benefited from successful partnerships with foreign companies 
32. MNCs have been a major force in the globalisation process connecting distant regions of the world. Justify the statement with suitable arguments.
    (i) MNC owns or controls production in more than one nation.
    (ii) MNCs usually set up production units across the globe.
    (iii)MNCs form and utilize the connections between national economies of world.
    (iv)  MNCs exchange goods, services, investments and technology between countries.
    (v) Multinational companies allow free flow of manpower across borders.
    (vi) They serve as agents for the transfer of superior technology in other countries.
33. How does foreign trade become a main channel in connecting countries?
    (i)Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
    (ii)Producers can sell their produce not only in market located within the country but also compete in markets located in other countries of the world.
    (iii) In general, 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 become equal. 
34. Describe any five factors that promote the Multinational Corporations (MNCs) to setup their production units in a particular place.

    Or Examine any three conditions which should be taken care of by multinational companies to set up their production units.

    Or Why do multinational carporations set up their offices and factories in certain area only? Explain any five reasons.

    (i) MNCs setup their factories  where  the  markets are close.

    (ii) MNCs setup their factories where skilled and unskilled labour are available at low costs.

    (iii) MNCs setup their factories where government policies are suitable  for them.

    (iv)  MNCs set up  their factories where the availability of other factors of production is assured. 

    (v) Multinational companies set up their factories where developed infrastructure and security measures are available.
35. To what extent has globalization contributed to the development of the country?
    Due to globalization :
    (i) Greater competition among producers increased the quality of goods.
    (ii) Rapid improvement in technology 
    (iii) Developments in information and communication technology.
    (iv) Increased employment opportunities.
    (v) Increased trade and investment opportunities
    (vi) Globalisation has enabled some large Indian companies to emerge as multinationals like Tata Motors.
36. ‘Globalisation is a process of rapid integration between countries.’ Examine the statement

    (i) More and more goods and services, investments, and technologies are moving between countries.

    (ii) Globalisation is a medium for movement of people between nations.

    (iii) People move from one country to another in search of better income, better  jobs or better education.

    (iv)  MNCs involve substantial trade in goods and also services

    (v) Globalisation makes  a strong and well-developed connection between various countries.
37. “Liberalisation of foreign trade and foreign investment policy have shown far reaching changes in India.” Support the statement with suitable arguments.
    (i) Barriers on foreign trade and foreign investment were partially removed.
    (ii) Goods could be imported and exported easily 
    (iii) Foreign companies were allowed to set up factories in India.
    (iv) Many Indian companies have become MNC and trading in other countries
    (v) Many companies have invested in newer technology and production methods have raised their production standards
    (vi) Economic liberalisation has opened up the Indian economy to the foreign investors
38. How do large companies with huge wealth and power control production across countries ? Explain with examples.

    Large MNCs in developed countries place orders for production to small producers, and control production. 

    Small producers provide products to MNCs, which the MNCs sell to customers under their own brand names.

    Some times, MNCs set up production jointly with the local companies.

    The most common route for MNC investments is to buy up local companies and then to expand production. 
39. How do we feel the impact of globalization on our daily life ? Explain with examples.

    Or Examine the impact of globalization on the life of the Indian people.

    Or How has globalisation affected the life of Indians ? Explain with examples.

    Or Assess, how globalisation has touched the lives of larger society.

    (i) Globalization ensures availability of standard quality products at lower price.

    (ii) Globalisation provides more choice to consumers As a result, people enjoy higher standards of living.

    (iii) Globalization and greater competition among producers, has been of profitable to consumers.

    (iv) MNCs have established many industries in urban areas. Due to which new jobs have been created.

    (v) The small manufacturers were not able to compete with globalization So several units shut down and many workers have become jobless. 
40. How does World Trade Organisation facilitate free trade for all countries ? Analyse with examples

    (i) World Trade Organisation (WTO) is one such organisation whose aim is to liberalise international trade.

    (ii) According to WTO all barriers to foreign trade and investment are harmful. So Trade barriers should be abolished by the countries for free trade.

    (iii) WTO establishes rules regarding international trade, and sees that these rules are obeyed.

    (iv) Though WTO is supposed to allow free trade for all but  developed countries have unfairly retained trade barriers.

    (v) WTO rules are forced on developing countries.
41. Explain by giving examples that Multinational Corporations are spreading their productions in different ways.

    (i)  Multinational Corporations are spreading their productions by setting up partnership with local companies.

    (ii)  Multinational Corporations are spreading their productions by placing orders with local companies. eg: Garments, Footwear , Sports items etc.

    (iii)  Multinational Corporations are spreading their productions by closely competing with the local companies.

    (iv)  The most common route for MNC investments is to buy up local companies and then to expand production. 

    (v) Example : Cargill Foods(American MNC) has bought over smaller Indian companies Parakh Foods
42. Examine the role of Multinational Corporations in India.

    (i) MNCs set up their offices and factories jointly or individually in India.

    (ii) MNCs provide money for additional investments and bring with them the latest technology for production.

    (iii) MNCs play an important role in the Indian economy by providing various products and services that meet the needs of local customers.

    (iv) The most common route for MNC investments is to buy up local companies and then to expand production. 

    Example : Cargill Foods(American MNC) has bought Indian company Parakh Foods.

    (v) Large MNCs place orders for production to small producers, and control production.
43. How are multinational corporations(MNCs) controlling and spreading their productions across the world? Explain
    (i) MNCs setup their factories in those regions where  the  markets are close and  skilled and unskilled labour are available at low costs. 
    (ii) MNC owns or controls production in more than one nation.
    (iii) MNCs setup their factories in those regions where government policies are suitable  for them.
    (iv) Multinational companies set up production units by partnering with local companies
    (v) MNCs are exerting a strong influence on production by using the local companies for supplies, by closely competing with the local companies or buying them
44.  ‘Liberalisation of foreign trade involves policy framework at National and International level.’ Explain the statement.

    (i) The process of liberalizing foreign trade involves the creation of policies, regulations, and agreements at both the national and international levels.

    (ii) All barriers to foreign trade and investment are harmful. So Trade barriers should be abolished by the countries for free trade.

    (iii) World Trade Organisation (WTO) is one such organization whose aim is to liberalise international trade.

     (iv) WTO establishes rules regarding international trade, and swhat ees that these are obeyed.

     (v)  With liberalisation of trade, businesses are allowed to make decisions freely about they wish to import or export.
45. Analyse the impact of globalization on Multi-national Corporations (MNCs) in India.
    (i) Globalisation has enabled some large Indian companies to emerge as multinationals. 
    (ii) Due to globalization, multinational companies have increased their investment in India.
    (iii) MNCs have established many industries in urban areas. Due to which new jobs have been created.
    (iv) Globalisation has also created new opportunities for companies providing services particularly in the IT sector.
    (v) The local companies supplying raw materials  to the MNC’s have prospered.
    (v) The small manufacturers were not able to compete with globalization So several units shut down and many workers have become jobless. 
46. ‘‘Rapid improvement in technology has stimulated the globalization process.’’ Explain the statement with examples.

    Or Describe the contribution of technology in promoting the process of globalisation

    Or How has technology stimulated the globalisation process ? Explain with examples

    Or ‘‘Technology is the vital force in the modern form of globalization.’’ Explain the statement with suitable examples.

    (i) Rapid improvement in technology has stimulated the globalisation process. 

    (ii) Improvement in transport technology has made faster delivery of goods across long distances at lower costs.

    (iii)The developements in information and communication technology have made information instantly accessible.

    (iv) Telecommunication facilities  are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. 

    (v) Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.
47. Explain any five steps taken by the developing countries to attract Foreign investment.

    Or How is the government of India trying to attract more foreign investment? Explain with examples. 

    Examine the steps taken by the Central and State Governments in India to attract foreign companies to invest in India.

    (i) The central and state governments in India are being set up Industrial zones in India which is called Special Economic Zones (SEZs).

    (ii) Companies who set up production units in the SEZs do not have to pay taxes for an initial period of five years.

    (iii) Government has also allowed flexibility in the labour laws to attract foreign investment.

    (iv) Companies can use to hire workers flexibly for a short period of time during high pressure of work.

    (v) SEZs have world-class facilities such as power, water, roads, transport, storage, entertainment and educational facilities.
48. What is liberalisation ? Describe any four effects of liberalisation on the Indian economy.

    Removing barriers or restrictions set by the government on foreign trade is known as liberalisation.

    Impacts of Liberalisation :

    (i) Barriers on foreign trade and foreign investment were removed by liberalisation

    (ii) It allows businessmen to take decisions freely on import or export. 

    (iii) It allows foreign companies to set up factories and offices here

    (iv) Indian producers got opportunities to compete with producers around the globe.

    (v) Economic liberalisation has opened up the Indian economy to the foreign investors
49. How do Multinational Corporations (MNCs) interlink production across countries ? Explain with example.

    Or Analyse the role of Multi-National Corporation (MNCs) in interlinking production across countries.

    (i) MNC is a company that owns or controls production in more than one nation.

    (ii) MNCs setup their factories in those regions where the markets are close, skilled and unskilled labour are available at low costs and government policies are suitable  for them.

    (iii) Some times, MNCs set up production jointly with the local companies. Due to which the local company gets the double benefit of money for additional investment and latest technology for production.

    (iv) The most common route for MNC investments is to buy up local companies and then to expand production. 

    (v) Large MNCs in developed countries place orders for production with small producers and control production. 
50. ‘Fair globalization would create opportunities for all’. Examine the statement.

    Or‘‘Fair globalisation would create opportunities for all and also ensure that benefits of globalisation are shared better.’’ Support the statement.

    Or What measures can be taken by the Government of India to make globalisation more fair ? Explainl.

    Or Analyze the ways to make globalization fair.

    Or “The Government can play a major role in making a fair Globalisation.’ Examine the statement.

    Fair globalisation would create opportunities for all. The government can play a major role in making this possible.

    (i)The government’s must protect the interests, not only of the rich and the powerful, but all the people in the country. 

    (ii) The government can ensure that labour laws are properly  implemented and the workers get their rights. 

    (iii) The government can support small producers to improve their performance till the time they become strong enough to compete. 

    (iv) The government can use trade & investment barriers to protect the small producers.

    (v) The government  can negotiate at the WTO for ‘fairer rules’.
51. How is globalization a multi-dimensional concept? Explain.
    (i) Globalization is a multi-dimensional concept. It has its  economic, political, social and cultural aspects. 
    (ii) Globalization has integrated national economies into a single global economy through international trade, foreign investment, and multinational corporations.
    (iii) Globalization has led to the increasing influence of international organizations such as the UNO and WTO, as well as the development of international political networks.
    (iv) Globalisation provides greater choice to consumers, to enjoy improved quality and lower prices for several products.  As a result, people enjoy higher standards of living.
    (v) Cultural relations with other countries have improved due to globalization.
52. Analyse the contribution of communication technology in globalisation.
    Or How is information Technology connected with Globalisation? Explain.
    (i) The developements in information and communication technology have made information instantly accessible.
    (ii) Technology in the areas of telecommunications, computers , Internet has been changing rapidly.
    (iii) Telecommunication facilities  are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. 
    (iv) Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.
53. Assess the globalization in terms of foreign trade and integration of markets.
    Or How does foreign trade integrate the markets of different countries ? Explain with examples
    (ii) Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
    (iii) Producers can sell their products not only in markets located with in the country but can also compete in markets located in their countries of the world. 
    (iv) Buyers have the options to choose among various goods beyond domestically produced goods.
    (v) In general, 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 become equal. 
    (vi) Producers in the two countries closely compete against each other even though they are separated by thousands of miles. Thus, foreign trade results in integration of markets.
54. “Foreign trade has been the main channel of connecting countries for a long time.” Analyse the Statement.
    (i) In ancient times, the trade routes of India and South Asia were well connected to the East and West.
    (ii) Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
    (iii) Producers can sell their products not only in markets located with in the country but can also compete in markets located in their countries of the world. 
    (iv) Buyers have the options to choose among various goods beyond domestically produced goods.
    (v) In general, 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 become equal. 
    (vi) Producers in the two countries closely compete against each other even though they are separated by thousands of miles. Thus, foreign trade results in integration of markets.
55. Asses the impact of Globalization in india

    (i) Globalisation and greater competition among producers has been of advantage to consumers, particularly the well-off sections in the urban areas. 

    (ii) Globalization ensures availability of standard quality products at lower price.

    (iii) Globalisation provides more choice to consumers As a result, people enjoy higher standards of living.

    (iii) Globalisation has enabled some large Indian companies to emerge as multinationals. 

    For example : Tata Motors (automobiles), Infosys (IT), Ranbaxy

    (iv) Globalisation has also created new opportunities for companies providing services particularly in the IT sector.

    (v) Due to globalization, multinational companies have increased their investment in India.

    (vi) MNCs have established many industries in urban areas. Due to which new jobs have been created. 
56. ‘Among producers and workers, the impact of globalisation has not been uniform.’ Support the statement with suitable arguments.

    Impact on produsers of globalisation.

    (i) Due to globalization, multinational companies have increased their investment in India, which means investing in India has been beneficial for them.

    (ii) Globalisation has enabled some large Indian companies to emerge as multinationals like Tata Motors.

    (iii) The local companies supplying raw materials  to the MNC’s have prospered.

    (iv) Globalisation has also created new opportunities for companies providing services particularly in the IT sector.

    (v) MNC’s have invested in newer technology and production methods and raised their production.

    Impact on workers of globalisation.

    (i) Globalization has hit the small producers  and workers because they are unable to compete with MNCs.

    (ii) The small manufacturers were not able to compete with globalization so several units shut down and many workers have become jobless.

    (iv) Due to globalization and the pressure of competition, employment of workers has become uncertain.

    (v) Flexibility in labour laws has resulted in worsening the condition of workers.
57. “Globalization has certain positive and negative impacts. “ Examine the statement.

    ‘‘The impact of globalization has not been uniform.’’ Explain the statement with suitable examples.

    The positive impact of globalization

    (i) Globalization ensures availability of standard quality products at lower price.

    (ii) Globalisation provides more choice to consumers As a result, people enjoy higher standards of living.

    (iii) Globalisation has enabled some large Indian companies to emerge as multinationals like Tata Motors.

    (iv) Due to globalization, multinational companies have increased their investment in India.

    (v) The local companies supplying raw materials  to the MNC’s have prospered.

    (vi) Globalisation has also created new opportunities for companies providing services particularly in the IT sector.

    (vii) MNCs have established many industries in urban areas. Due to which new jobs have been created. 

    Negative impact of globalization

    (i) Globalization has hit the small producers  and workers because they are unable to compete with MNCs.

    (ii) The sdifferent mall manufacturers were not able to compete with globalization

    (iii) Several units shut down and many workers have become jobless. 

    (iv) The local manufacturers like batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil industries have been hit hard due to competition.

    (v) Flexibility in labour laws has resulted in worsening the condition of workers.