Globalisation and the Indian Economy Test - 13

1:In recent years, the central and state governments in India are taking special steps to attract foreign companies to invest in India. Industrial zones, called Special Economic Zones (SEZs), are being set up. 

1:The World Trade Organisation (WTO) is an intergovernmental organisation which regulates international trade.
2:The WTO officially commenced on 1 January 1995 under the Marrakesh Agreement, signed by 123 nations on 15 April 1994, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948.

World Trade Organisation (WTO) is an international body, which aims at liberalising international trade. It was started at the initiative of developed countries.

• WTO establishes rules regarding international trade.
• It sees that the member countries obey these rules.
• 149 countries of the world are currently members of the WTO (2006).

Multinational Corporations (MNCs) set up their factories or production units close to markets where they can get desired type of skilled or unskilled labour at low costs along with other factors of production. After ensuring these conditions MNCs set up production units in the following ways :

• Jointly with some local companies of the existing country.
• Buy the local companies and then expand its production with the help of modern technology.      
• They place orders for small producers and sell these products under their own brand name to the customers worldwide.

1:Globalisation is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology.
2:This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.

1:Share of Indian imports by leading source country 2019. The largest share of India's exports came from China, accounting for nearly 14 percent in fiscal year 2019.
2:United States followed at close to seven percent

The Coca-Cola Company, which is headquartered in Atlanta, Georgia, is an American multinational beverage corporation, and manufacturer, retailer, and marketer of nonalcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia.

Honda Motor Co., Ltd. is a Japanese public multinational conglomerate corporation primarily known as a manufacturer of automobiles, aircraft, motorcycles, and power equipment.

Nokia Corporation, stylised as NOKIA, is a Finnish multinational communications and information technology company, founded in 1865. Nokia is headquartered in Espoo, Uusimaa, in the greater Helsinki metropolitan area.

Prior to Independence, India's foreign trade was mainly confined to Uk. But now the tables have turned. At present, India has maximum imports from and exports to the European Union. The role of Japan, U.S.S.R., USA and Organisation of Petroleum Exporting Countries (OPEC) in  India's foreign trade has increased substantially.