ECONOMICS Done by

GLOBALIZATION AND Mrinali

Grade - x
THE INDIAN ECONOMY
CONTENTS
Production across countries
Interlinking production across countries
Foreign trade and integration of markets
What is globalization?
Factors that have been enabled globalization
World trade globalization
Impact of globalization in India
The struggle for a fair globalization
PRODUCTION ACROSS Lets have a look
COUNTRIES
MID 20 TH CENTURY
Production largely organized within
countries.
Raw materials, food stuff and
finished products crossed countries.
TRADE was the main channel to
connect distant boundaries
MNCs = MultiNational Corporations
emerged then..
They are the companies that own
or control production in more than
on nation
CAN YOU NAME SOME
MNCS??
MNCS
Setup offices and factories for
production in regions where they
can get cheap labour and other
resources
=> this helps in greater profits to
the company as his supply is still in
process, there is production at a
region where the company has not
paid much and te demand n supply
or WANTED finished goods is
taking place.
MORE OF MNCS
Their goods and services are
produced globally
RESULT = production is organized
in increasingly complex ways.
Production is divided in small parts
across the globe to gain advantage
for their closeness to the markets of
every country and can be easily
produced there.
 INTERLINKING
PRODUCTION ACROSS

COUNTRIES
MNCS
Setup production offices and
factories on the basis of the
availability of skilled and unskilled
labour at cheap prices.
They look at the government
policies for their interests.
INVESTMENT
= the money that is spent on to buy
assets such as,
LAND, BUILDING, MACHINES
AND ON OTHER EQUIPMENTS
= made in the hope of earning
profits.
- MADE BY MNCs is called
FOREIGN INVESTMENTS.
MNCS SETUP PRODUCTION
WITH THE LOCAL
COMPANIES
ADVANTAGE LARGE MNCs in developed
countries place orders for
Joint production is 2 fold production with small producers.
MNCs can provide additional
investments like, buying new
machines for faster production
MNCs might bring them the latest
technology
MNCs investments is to buy up
local companies and then expand
production
The products are supplied to the
MNCs, which then sell there their
own brand names to the customers.
The MNCs have tremendous power
to determine price,
Quality,
Delivery, and
Labour conditions for these distant
products.
By setting up partnerships with
local companies, by using the local
companies for supplies, by closely
competing with local companions
or buying them up.
MNCs are exerting a strong
influence on production at there
distant locations.
As a result, production in these
widely dispersed locations is
getting interlinked.
FOREIGN TRADE AND
INTEGRATION OF Lets see how this one is

MARKETS
For a long time foreign countries have Foreign trade thus results in
been THE MAIN channel connecting connecting the markets or integration
countries. of markets in different countries.
This creates the opportunity for the
producers to reach beyond the
domestic markets i.e. markets of their
own country.
Producers can then sell their good not
only within their country but also
around the globe.
With this the production increases,
employment of labour, capital, and with
the help of technology newly designed
products hit the market from each
MNC. Competition increases.
 WHAT IS
GLOBALIZATION?
GLOBALIZATION
Globalization is the process of rapid
integration or interconnection between
countries.
MNCs play a major role in the
globalization process.
More and more good, services,
technologies, investments etc. r moving
around countries.
Besides these movements one such
movement is also there through which
countries can be connected that is the
MOVEMENT OF PEOPLE BETWEEN
COUNTRIES. This movement takes
place in search of better jobs, better
income, and better education.
FACTORS THAT HAVE
ENABLED There are 2 factors

GLOBALIZATION
1. TECHNOLOGY
Rapid improvement in technology
has been a major factor that has
stimulated the globalization
process.
This has made much faster delivery
of goods across long distance
possible at lower costs.
2. INFORMATION AND
COMMUNICATION
TECHNOLOGY
Telecommunication,computers,inter Using IT in globalization
net has been changing rapidly.
Telecommunication facilties are Information and communication
used to contact one another around technology (or IT in short) has
the world and to communicate from played a major role in spreading
remote areas. out production of services across
countries.
Examples; telegraph, telephone,
including mobile phones, fax, etc.
 LIBERALIZATION OF FOREIGN
TRADE AND INVESTMENT
POLICY
Liberalization - the act of making less The Indian government, after
strict.
Tax on imports Is an example of trade
barrier.
It is called a barrier because some
restriction has been set up.
Governments can 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.
Independence, had put barriers to
foreign investment.
This way considered necessary to
protect the producers from within the
country from foreign competition.
In 1991, the government decided that
time had come for Indian producers to
compete with producers around the
globe. It felt that competition would
improve the performance of producers
within the country since they would
have to improve their quality.
This decision was supported by
powerful international organisations.
BARRIERS OR
RESTRICTIONS
SET BY THE
GOVERNMENT IS
WHAT IS KNOWN
AS
Liberalization of trade, businesses are allowed
LIBERALIZATION.
to make decisions freely about what they wish
to import or export.
WORLD TRADE WTO
ORGANIZATION
AS WE HAVE
UNDERSTOOD
THE ABOVE
MENTIONED
SLIDES. WHAT
DO U THINK
WORLD TRADE
ORGANIZATION
MEANS?
It is one such organization whose
aim is to liberalize international
trade.
149 countries of the world are
currently of the members of WTO
(2006)
Thought WTO is suppose to allow
free trade for all, in practice, but it is
seen that the developed countries
have unfairly retained trade
barriers.
 IMPACT OF
GLOBALIZATION IN In the last 15 years

INDIA
Globalization and greater
competition among as- has been of
advantage to consumers.
There is greater choice who now
enjoy improved quality and lower
prices for several products.
As a result these people today.
Enjoy much higher standards of
living than was possible earlier.
1. firstly , MNCs have increased
their investments in India over the
past 15 years, which means
investing in India has been
interested in industries such as cell
phones , auto mobiles, electronics ,
soft drinks , fat foods or services
such as banking in urban areas.
These products have a large
number of well-off buyers. In the
industries and services new jobs
are created.
TOP INDIAN COMPANIES
Secondly, several of the TOP
INDIAN COMPANIES have
benefited from increased
competition.
They have invested in newer
technology and production methods
and raised their standards.
Some gained from successful
collaboration with foreign
companies.
Globalization has enabled some
large Indian companies to emerge
as multinations
Example TATA MOTORS,
INFOSYS (IT) ASIAN PAINTS, etc.,
are some Indian companies which
are spreading their operations world
wide.
Globalization, created new
opportunities for companies
providing services, specially
involving IT.
 LETS RE- CAP
OF WHAT WE
HAVE
UNDERSTOOD
ABOUT THE
CHAPTER AS
Have a group discussion and understand the

YET.
experience of every individual and make sure
you have understood everything RIGHT!
NO DIFINITION JUST EXPLAIN!
PROS AND CONS OF Let us see what to people have

GLOBALIZATION to say

Globalization lets countries do what they
can do best. If, for example, you buy
cheap steel from another country you
dont have to make your own steel. You
can focus on computers or other things.
Globalization gives you a larger market.
You can sell more goods and make more
money. You can create more jobs.
Consumers also profit from globalization.
Products become cheaper and you can
get new goods more quickly.
Globalization causes unemployment in
industrialized countries because firms move
their factories to places where they can get
cheaper workers.
Globalization may lead to
more environmental problems. A company may
want to build factories in other countries
because environmental laws are not
as strict as they are at home. Poor countries in
the Third World may have to cut down more
trees so that they can sell wood to richer
countries.
Some of the poorest countries in the
world, especially in Africa, may get even
poorer. Their population is not as educated as
in developed countries and they dont have
the new technology that we do.
Human, animal and
plant diseases can spread more quickly
through globalization.
Resources of different countries are used
for producing goods and services they
are able to do most efficiently.
Consumers to get much wider variety of
products to choose from. Consumers get
the product they want at more
competitive prices.
Companies are able to procure input
goods and services required at most
competitive prices. Companies get
access to much wider markets
It promotes understanding and goodwill
among different countries. Businesses
and investors get much wider
opportunities for investment.
Adverse impact of fluctuations in
agricultural productions in one area can
be reduced by pooling of production of
different areas.
Developed countries can stifle
development of undeveloped and under-
developed countries.
Economic depression in one country can
trigger adverse reaction across the
globe.
It can increase spread of communicable
diseases.
Companies face much greater
competition. This can put smaller
companies, at a disadvantage as they do
not have resources to compete at global
scale.
THE STRUGGLE FOR A The final segment
FAIR GLOBALIZATION
BEFORE READING THE
FURTHER SLIDES READ THE
TWO STORIES AND HAVE A
GROUP DISCUSSION TO BE
ABLE TO RECEIVE A BETTER
UNDERSTANDING OVER THE
TOPIC.
Not everyone is benefited from Fair globalization would create
globalization. opportunities for all, and also-
ensure that the benefits of
People with education, skill and globalization are shared better.
wealth have made the best use of
the new opportunities.
On the other hand there are many
people who have not shared the
benefits.
Since GLOBALIZATION is not a
REALITY, the question is how to
make it more FAIR?
HOW DO U THINK CAN WE
SHARE GLOBALIZATION?
HOW DO WE MAKE IT FAIR FOR
EVERYONE?
The government can play a major It can negotiate at the WTO for fair
role in making globalization fair. rules.
Its policies must protect the It can also align with other
interests, not only of the rich and developing countries with similar
the powerful, but all the people in interests to fight against the
the country. domination of developed countries
in the WTO.
The government can ensure that
labour laws are properly
implemented and the workers get
their rights.
It can help the small producers to
improve to that they can strengthen
themselves enough to compete.
WE ARE ALMOST
THERE
 WHAT HAVE YOU Discussrecap! SUMMARY!
LEARNT TILL NOW?
SORRY NO QUESTIONS! I
THINK WE HAVE BEEN ABLE TO
UNDERSTAND THE CHAPTER. IF
ANY DOUBT PLEASE REFER THE
TEXTBOOK AND SHARE YOUR
VIEWS.
THANK YOU!