Dr. Manishika Jain in this lecture NCERT Class 10 Economics Chapter 4: Globalization & Indian Economy MNCs Owns or controls production in more than one nation (cheap labor & resource, low cost, more profit) NOT selling globally but producing globally (complex way) Cheap production – China Closeness to market – Mexico & Eastern Europe Skilled Engineers – India English speaking – Customer care Favorable govt. policies Save 50-60% cost of MNC Interlinking Production Investment – money to buy land, machine & building Foreign Investment – made by MNC – to earn profit MNC brings latest technology for production MNC provides money for investment (huge wealth) Cargill foods bought Indian Parakh foods – now Cargill (largest edible oil producer in India with 5 million pouches daily) MNC place order with small producers – garment, footwear – determine price, quality, delivery, and labor conditions With dispersed production locations are interlinked Foreign Trade Producer reach beyond domestic market Buyers expand choice of goods beyond what is produced domestically Chinese toys in India – cheaper, competitive, replaced Indian market Choice for goods arises – price stabilizes It connects and integrates market. Globalization Ford – manufactures for India and exports More trade + more investment + more integration or interconnection What moves? Goods, services, investment & technology Why people move? Job, education & income Globalization Interdependence of world’s economies Globalization + Connectivity & Digitization = Innovation & Value Creation Prior – Trade (export of raw material & import of finished product) Technology – Enabled Globalization Containers for transport Movement of goods and services ICT – telecom, computers, internet (e-mail or voice talk – negligible cost), satellite devices Payment wallets and e-banking (upcoming) Liberalization What if taxes on import of toys from China? Trade barrier – taxes on import – govt. use to ↑𝑜𝑟↓ foreign trade Quota – limit number of goods imported India had trade restrictions till 1950-60s to protect local artisans Only essential item imports were allowed (fertilizer, petroleum) 1991- policy changes – LPG – compete globally to improve performance No barrier on foreign trade – easy imports and exports – removing barriers - liberalization WTO Free trade and liberalize trade – WTO Formed - 1st Jan 1955 Headquarters – Geneva, Switzerland Members – 164 states Under Marakkesh Agreement – replaced GATT (General Agreement on Tariffs & Trade) Focus on Doha rounds – for developing nations Developed nations – unfairly retained trade barriers Forced developing nations to remove trade barriers (US farmers paid huge sum of money by govt. – bring in cheap produce & is unfair) Impact on India Customers – Greater choice, improved quality & low price Investment of MNCs increased – cell phone, automobile, electronics Creation of new jobs SEZs – with world class facilities to attract investors Flexibility in labor laws – hire for short period when more work pressure Investment in new technology and higher production standards Indian companies as MNCs - Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts & bolts) Host of services like data entry, accounting, administrative tasks, engineering Negative Impact on India Lesser job security Workers employed flexibly Long work hours & night shifts What is the AIM? Fair globalization – opportunity for all Proper implementation of labor laws Chapters: 0:00 Introduction: NCERT Class 10 Economics Chapter 4: Globalization & Indian Economy 0:10 Globalization & Indian Economy 1:33 MNCs 4:50 Interlinking Production 6:50 Foreign Trade 9:34 Globalization 12:45 Technology – Enabled Globalization 13:57 Liberalization 18:52 WTO 20:08 Impact on India 22:11 Negative Impact on India #Integration #Liberalization #Arises #Competitive #Stabilizes #Dispersed #Closeness #Production #Economy #Globalization #Manishika #Examrace For details on IAS visit https://www.examrace.com/IAS/IAS-FlexiPrep-Program/ For competitive exam preparation visit https://www.doorsteptutor.com/Exams/ #examrace #upsc #ugcnet