Presentation

(what is mnc- An MNC is a company that owns or controls production in more than one nation.
These companies set up offices and factories for production in regions where they can get cheap
labour and other resources. This is done to ensure that the cost of production remains low and
MNCs can earn greater profits.)

Role of Mnc’s development in foreign trade

MNC provides money for additional investment.

- Bring the latest technology for production.

- Spread their production by interacting with local producers.
- (MNCs use local companies for supply)
- By doing this they exert strong influence on production and as a result production in these
widely dispersed local get interlinked .
- (hence increasing the trade between foreign countries)

- (liberization- removal of barriers or restrictions set by the government)

- (explain about trade barriers-tb)
- (history of foreign trade in india after independence para explain)
- Before there were strict restrictions on foreign trade and foreign investment(explain why)
-
- New Economic Policy in 1991, there has been a drastic change in the Indian economy.

The Indian economy was liberalised within the year 1991.

Goods could be exported and imported easily

Foreign companies could set up factories and offices here

Economic reforms were passed to achieve a number of goals,

including modernisation, growth of the role of personal and capital inflows,

and the establishment of a free-market economy.

How did it impact world economy?

With greater foreign trade and greater foreign investment

Greater integration of production and markets across countries

Mncs play a major role in globalisation

More goods, services, investment and technology are moving b/w countries

(More people even move b/w countries in search of better income)