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Question
Describe the impact of globalization on Indian economy with examples.
Solution
Globalisation has resulted in foreign investments and has created jobs in the country. In the wake of the competition from the MNCs, Indian companies have upgraded the quality of their products and services. Many Indian companies have themselves established business units in other countries. This has helped in the development of the Indian economy.
Globalisation has benefited the rich and developed nations of the world. The poor and developing nations of the world have still not received their fair share of the benefits of globalisation. Large companies have profited from globalisation, while many small manufacturers with low capital have not been able to withstand the competition from large MNCs.
Workers have not benefited by globalisation. Their jobs have become insecure and they have to work on low wages, as MNCs employ them on meagre salaries to earn profits. Because of globalisation, while the workers have become poorer, the rich have become richer.
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Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of ______________. Markets in India are selling goods produced in many other countries. This means there is increasing ______________ with other countries. Moreover, the rising number of brands that we see in the markets might be produced by MNCs in India. MNCs are investing in India because _____________. While consumers have more choices in the market, the effect of rising _______________ and _____________ has meant greater _______________ among the producers.
Match the following.
|
(i) |
MNCs buy at cheap rates from small producers |
(a) |
Automobiles |
|
(ii) |
Quotas and taxes on imports are used to regulate trade |
(b) |
Garments, footwear, sports items |
|
(iii) |
Indian companies who have invested abroad |
(c) |
Call centres |
|
(iv) |
IT has helped in spreading of production of services |
(d) |
Tata Motors, Infosys, Ranbaxy |
|
(v) |
Several MNCs have invested in setting up factories in India for production |
(e) |
Trade barriers |
