foreign trade & and its impact on world economy Role of MNC’s development in foreign trade - provides money for additional investment. - Bring the latest technology for production.
- Spreads their production by interacting with local
producers.
- By doing this they exert strong influences on
production and as a result production in these widely dispersed local markets get interlinked . Liberalization Policy in development of foreign trade - Before there were strict restrictions on foreign trade and foreign investment. - With the New Economic Policy in 1991, there has been a drastic change in the Indian economy. - Goods could be exported and imported easily. -Improvement of Stock Market - Foreign companies could set up factories and offices. -Economic reforms including modernisation, growth of the role of personal and capital inflows, and the establishment of a free-market economy. How does MNC’S and Liberalisation policy impact world economy?
-Investment: MNCs bring in -Liberalization help countries
investment to countries where export more products they operate & provide new leading to an increase in foreign opportunities for growth and exchange earnings and reducing development. the trade deficit. -Greater integration of -Promoting innovation and production and markets across entrepreneurship countries -improvement in stock market -Job creation -sustainable economic growth. - globalization QUIZ TIME 1-When was the new economic policy introduced ?