Globalisation and the Indian Economy

MNC (Multinational Corporations) – these

are the companies which controls production
in more than one nation. Ex apple, amazon,
facebook, meta, Netflix, google , Volkswagen,
mcdonalds, dominos etc.

FACTORS LEADING TO SETTING UP AN MNC

1. Cheap Labour and material

2. Closeness to the markets
3. Government policies

Investment- the money used to buy assets

such as land, buildings, machines and other
equipment. Investment made by MNCs are
foreign investements.
FOREIGN TRADES
Foreign trade
creates an opportunity for the
producers to reach beyond the
domestic markets, i.e., markets of their
own countries. Producers can sell their
produce not only in markets located
within the country but can also
compete in markets located in other
countries of the world. Similarly, for the
buyers, import of goods produced in
another country is one way of
expanding the choice of goods beyond
what is domestically produced. In general,
with the opening of
trade, goods travel from one market
to another. Choice of goods in the
markets rises. Prices of similar goods
in the two markets tend to become
equal. And, producers in the two
countries now closely compete against
each other even though they are
separated by thousands of miles!
Foreign trade thus results in
connecting the markets or
integration of markets in different
countries.

Globalisation- Globalisation is this process of

rapid integration or interconnection between
countries.

FACTORS THAT HAVE ENABLED IN

GLOBALISATION

1. Technology
2. Liberalisation of foreign investment
policy and trade

Removing barriers or
restrictions set by the
government is what is
known as liberalisation.