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 5060% 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 (email or voice talk – negligible cost), satellite devices
Payment wallets and ebanking (upcoming)

Liberalization
What if taxes on import of toys from China?
Trade barrier – taxes on import – govt. use to ↑↓ foreign trade
Quota – limit number of goods imported
India had trade restrictions till 195060s 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/IASFlex...

For competitive exam preparation visit https://www.doorsteptutor.com/Exams/ #examrace #upsc #ugcnet