globalisation and indian economy... cbse class x social science

GLOBALISATION AND

INDIAN ECONOMY.

Globe- Global- Globalisation

-Being Global.

Pankaj Saikia/MES-2014

• Out of the food items that have been

displayed in the feat which is not found in

India. Just Think……..

• Is the dress that we are wearing is our

tradition!

• Is the language that we are speaking is of

Indian origin?

• Think about some other areas like Education,

Employment, Production, Culture!

COUNTRIES ARE INTERCONNECTED


GLOBALISATION

It is the process of rapid integration or interconnection between countries.


ECONOMIC GLOBALISATION

It is the process of rapid integration or

interconnection of investment, production, distribution,

employment and trade among countries of the world.


Multinational Company/Corporations-

The companies or corporations which have their business in more than one country are called Multinational Corporation or MNC. for example- Pepsi, Nike, Apple Microsoft, etc.

FEW IMPORTANT TERMS ;


Investment- The money that is used to

assemble the factors of production

such as land. building, machinery etc.

are called Investment.Foreign Investment- Investment made in

a country by a Multinational Company

originated from some other country is called Foreign Investment.



Foreign Trade-The trade or buying and selling activities among the different countries are called foreign trade.

• Export- Selling of goods or service to any

foreign country.

• Import- Buying of goods or services from rest

of the world.



• Spreading production across

countries……..

• Interlinking production by setting up

production centers in different

countries!

• Joint production of MNCs with domestic

companies?

• Free trade among the countries!

WAYS OF INTER CONNECTIONS


SPREADING PRODUCTION OF NOKIA MOBILE.

Technology development in USA

Headquarter and control from Finland

Hardware in ChinaSoftware by Microsoft

in India and USA

Assembled in India and China


•Quality and cheap Labour.•Low cost of production.•Wider market.•Better quality of material.•Final production near the market. •And many more…..

BENEFIT BY SPREADING

PRODUCTION ;


INTERLINKING PRODUCTION ACROSS

COUNTRIES

USA

Pakistan

India

Bangladesh

China


For MNCs-•Standard of the products produced

strictly as per the demand of the

customer.

•As the goods are produced and sold in

one country the cost of production is

less and hence can sale at a lower price.

•Better consumer response as the goods

is produced in their locality.

BENEFIT OF INTERLINKING PRODUCTION

;


•For domestic countries-•Increase employment opportunity for the

people of domestic country.

•It brings foreign capital and helps in

expansion of foreign exchange (foreign

currency) reserve.

•Helps in utilisation of unused resources.

•Customers get better quality products at a

comparatively lower price.

•Increase in countries revenue by way of tax.

BENEFIT OF INTERLINKING PRODUCTION

;


INTEGRATION OF MARKET

It refers to Export and

import of goods and

services among the

countries.


MARKET INTEGRATION


INDIASaudi Arabia

Britain

USA

Pakistan

•Better quality products.•Optimum utilisation of resources.•Wider market for the producers.•Wider choice and lower price.•Access to product produced in any place of the world. • Harmony among the countries.

BENEFIT BY MARKET INTEGRATION ;


RESTRICTIONS IN TRADE AMONG COUNTRIES

Traditionally the countries of the world

were very conservative and did not allow

the foreign trade freely. They imposed

many barriers to restrict trade. Such as-

High rate of tax-

Banning export or import of some

products-

Banning trade with some selected

countries-


• Different standard of economy.

•To protect local small and

tiny industries.

• Fear of economic colonialism

by the strong countries.

•Threat to society and culture.

CAUSES FOR IMPOSING TRADE BARRIERS.


WORLD TRADE ORGANISATION

Promoting free trade world wide..


WORLD TRADE ORGANISATION (WTO)

It is an international

organisation form by the

initiative of some developed

countries and now it has 160

member countries worldwide

till June 2014


OBJECTIVE OF WTO

To promote international

trade and assist the

producers, exporters and

importers of different

countries


WHAT WTO WANTS?

It wants, there should

no restriction for

anyone to buy or sale

anything produced by

anyone around the

globe.


Debate on Free Trade


•Developing countries most of the times oppose the idea of free world economy and refuses to remove some barriers..

•It is because-------

DEVELOPING COUNTRIES AND WTO


•Industries in developing countries are not equally developed to compete with the large MNCs. And-•Industries of developing countries who bears heavy tax burden will not be able to compete with the large producers of developed countries supported by subsidies.

WHY DEVELOPING COUNTRIES OPPOSES-Pankaj Saikia/MES-2014


FACTORS ENABLING GLOBALISATION

•Development in Technology.

•Liberlisation of Foreign trade and Investment.

FACTORS ENABLED GLOBALISATION


•Communication and Information technology.

•Production Technology.

•Transportation Technology.

•Packaging technology.

DEVELOPMENT IN TECHNOLOGY;


Liberlisation means removal of barriers by the countries on-• Foreign Trade, and-

•Foreign investment by MNCs and foreign investors

LIBERLISATION;



EFFECT OF GLOBALISATION

• Better quality products for consumers at lower price.• Wider choice.• World wide market for Indian producers• Helps in Capital Formation.• Employment outside India.• Access to better technology.

POSITIVE EFFECTS OF GLOBALISATION ;


• Brings threat to small local Producers.

• Outflow of Indian currency by way of profit of MNCs.

• Makes the country dependent on others.

• Lack of public Interest.

• Exploitation on employees.

• Disrupt the social and cultural life of the people.

NEGATIVE EFFECTS OF GLOBALISATION ;


The central and the state

governments in recent times

taking different steps to attract

foreign investment by MNCs

and foreign individuals in India.

Which includes -

• Declaration of SEZ.• Liberlisation of Labour Laws.

GOVERNMENT MEASURES


These are some selected area

which are equipped with world

class facilities of electricity,

water, roads, storage,

recreational, educational, etc

where a world class industry can

set up. The companies who set

up industry in such areas get tax

relief for first few years.

SPECIAL ECONOMIC ZONE (SEZ)


The employers in India need obey

certain rules that aims to protect the

interest of workers. Recently

government allows the companies to

ignore many rules. Which is called

Liberlisation of labour laws.

LIBERLISATION OF LABOUR LAWS Pankaj Saikia/MES-2014

Flexibility in labour laws enables the

MNCs to ignore some rules that helps

the companies in keeping the size of the

workforce under control. A company can

hire and fire as per the seasonal

variation in demand for the workforce

HOW LIBERLISATION OF LABOUR LAWS HELPS THE MNCS


??????????

Should we support or reject globalisation………?


GLOBALISATION IS THE WAY---

Globalisation is a process or

change for mankind all over the

world, where the question for

accepting or rejecting is irrelevant

today.


• Screening on arrival of goods or services.• Government support to Local Companies.• Strict implementation of labour laws .•Negotiate with WTO for fairer globalisation.

STRETEGY FOR FAIR GLOBALISATION;Pankaj Saikia/MES-2014

globalisation and indian economy... cbse class x social science

Economy & Finance

elements of afl

foreign investment investment

classroom culture

classroom practice

interconnection of investment

foreign trade

interconnectedpankaj

process of rapid integration