📘 Class 10 Economics – Chapter 4
🌍 Globalisation and the Indian Economy
🏭 Production Across Countries
- Earlier, trade was the main link between distant countries.
- Today, MNCs (Multinational Corporations) play a major role.
- An MNC is a company that owns or controls production in more than one country.
- They set up factories/offices where cheap labour and resources are available to earn more profit.
🔗 Interlinking Production Across Countries
- Money spent on assets like land, machines, buildings = Investment.
- If done by MNCs → called Foreign Investment.
- MNCs strongly influence production at multiple locations, linking economies worldwide.
✅ Ways in which MNCs spread production:
- By setting up partnerships with local companies
- By using local companies as suppliers
- By competing with or buying local companies
✨ Benefits for local companies:
- Extra capital for investment (new machines, faster production)
- Access to latest technology
🌐 Foreign Trade and Market Integration
- Foreign trade allows producers to reach beyond domestic markets.
- Sellers → can sell both inside and outside the country.
- Buyers → get more choices at better prices.
- Result → Integration of markets worldwide.
🌍 What is Globalisation?
- Process of rapid integration of countries through trade, investment, technology & movement of people.
- MNCs are the driving force behind globalisation.
⚡ Factors Enabling Globalisation
- Technology
- Faster delivery of goods at low cost.
- IT & Communication → instant access to information.
- Liberalisation of Trade Policies
- Trade barriers = restrictions set by government (e.g., tax on imports).
- Removing barriers = Liberalisation → freer movement of goods/services.
🌏 World Trade Organisation (WTO)
- Aim: Liberalise international trade.
- 164 countries are members.
- Sets rules for free trade among nations.
🇮🇳 Impact of Globalisation on India
- Consumers → greater choices, better quality, lower prices.
- Standard of living has improved.
- Boost in IT & service sector jobs.
⚖️ Struggle for Fair Globalisation
- Goal: Opportunities for all + fair distribution of benefits.
✅ Role of Government:
- Ensure labour rights are implemented.
- Support small producers.
- Use trade & investment barriers if required.
- Negotiate at WTO for fairer rules.
- Cooperate with other developing nations.
