Globalisation
Q.1.What do you understand by Multinational corporations MNC,s ?
Ans: MNC’s are Multinational corporations or international corporations or Global
corporations. MNC is a manufacturing company which owns or controls
production in more than one nation. The main important feature of multinational
enterprises lies in the act that its controlling headquarter are located in one
country while enterprises carry out operations in Number of other countries as
well as host country
Q.2.In what different ways MNC s are different from other companies.
Ans: MNCs are global players they do the production in large scale. They use huge
amount of input and advance technology for production .They have unlimited
resources where as other small companies confined to their own country and sell
their products locally. They are not able to compete with MNCs with their limited
resources.
Q.3.what are the various ways in which MNCs set up or control
production in other countries.
Ans: MNCs spread their production and linked with local producers in following
ways
• 1.They setup their companies and offices in other countries for production.
• 2.They setup production jointly with some of the local companies of
different countries.
• 3.they buy up local companies and expand their production.
• 4.They place orders for production to other small companies such as
Garment companies ,footwear
Q.4.What are the different features of MNCs?
• Ans:1. They are large in size and their aims are making more and more
profit.
• 2. They conduct multinational operations.
• 3. The assets and sells of MNCs run into billions of dollars.
• 4. It facilitates a multinational transfer of resources.
Q 6.Mention any three location factors of MNCs
• 1. Nearness to markets.
• 2. Availability of skilled and unskilled labour in low cost regions.
• 3. Availability of other resources.
• 4. Cheap and good transportation facility areas.
Q.7.what is globalization?mention its impacts on India.
Ans: Globalization means integrating the economy of the country with the
economies of the other countries under condition of free flow of trade and
capital movement of persons across boundaries.
In simple words it means integrating our economy with the world economy.
Impacts of globalization on India
• Positive impacts
1.For consumers wide varieties of quality goods at different ranges are available
which leads to higher standard of living.
2.New jobs are created in industries.
3.Local companies has prospered through supplying new materials to these
industries.
4.Top Indian companies have gain success by the collaboration with foreign
companies.
.Negative impacts
1.It leads to widening of income in equalities among various countries.
2.It does not help in achieving sustainable development.
3.It leads to greater dependence of the under developed countries on advanced
countries.
8.Write the different impacts of globalization on workers
1. Due to globalization mainly skilled and educated workers gained a lot.
2. Due to it permanent jobs in industries converted into temporary now large no
of workers are working as casual workers.
3. Exploitation of workers increased such as long working hours , shifting jobs,
overload on workers increased etc.
9.write the importance of information technology in globalization?
ANS 1.Information and communication technology has shown remarkable
development in globalization process. It faster the process by introducing
telecommunications, internet, e-mail etc.
2.It made easier to connect the countries and contact one another around the
world to access information.
3.It make managing work easier.
4.It also helps a lot to improve trade , marketing and production process.
5.It helps in increase in production by introducing advanced technology as per
requirement.
10.What is FDI? .
Ans: Foreign direct investment refers to investment directly made in industrial set
up or other spheres of economic activity of a country by foreign investors or
MNCS with the objectives of earning profit.IN short it is a investment made
by MNCs
11.What is libralisation? How has liberalisation of trade and investment
policies help the process of globalization?
Ans: Liberalization is an economic policy of foreign trade which refers to
removal of barriers or restrictions Set by the government for attracting
Foreign investments.
• Liberalization of trade and investment policies have helped the process of
globalization in following ways: 1.Removel of restrictions and trade
barriers have lead to tremendous expansion of trade both export and
import.
• 2.This has also enabled MNCs to invest a big way on the developing
countries like India.
• 3.Due to this different Indian companies also got opportunities to invest in
other countries.
• In other words due to liberalization a two way flow of goods,
services ,capital ,labour and technology is taking place worldwide.
•
12.What are Trade barriers? give the different reasons for the imposition n of
trade barriers.
• Trade barriers refer to various restrictions which are used by the
government to increase or decrease foreign trade . Taxes on imports is a
kind of trade barriers.
Reasons behind the imposition of trade barriers.
• 1.To protect the producers with in the country from foreign competition.
• 2.To save guard the industries which were just coming up from competition
of imports.
• 3.To allow imports of only essential items.
13.what is fair globalization? what different steps can government take
to ensure achieving fair globalization.
Ans:
It refers to globalization which creates opportunities for all and ensures its
benefits shared equally.
• Government can take following steps to ensure achieving fair
globalization
• 1. labour laws should be implemented properly.
• 2. Small producers should be supported.
• 3. Use of trade and investment barriers efficiently.
4. Negotiate at the WTO for fairer rules.
Q.14.Write a short note on WTOWorld
WTO .
Ans:Trade organization has emerged as an important international
organization which has encouraged economic liberalization in the world .It
was set up in 1995 by the member countries of the united Nations to
promote international trade and help in growth in an orderly manner.
• Its aim is to liberalize international trade.(free trade between the
countries.)
•
• It establishes rules regarding international trade and monitor them.
