Globalisation and the Indian Economy Test - 3

For a large number of small producers and workers globalisation has posed major challenges.Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to competition.

Though globalisation has created opportunities for paid work for women, the condition of employment shows that women are denied their fair share of benefits.

In the past two to three decades, more and more MNCs have been looking for locations around the world which would be cheap for their production.Foreign investment by MNCs in these countries has been rising. At the same time, foreign trade between countries has been rising rapidly.Likewise,activities of most MNCs involve substantial trade in goods and also services.

By definition globalization means integration of economies of the world resulting from free flows of trade, capital, labour and technology. Globalization is the process of interaction and integration between people, companies, and governments worldwide.

Multinational corporations are those companies that own or control production in more than one nation. A multinational company is a business that operates in many different countries at the same time. In other words, it’s a company that has business activities in more than one country.

In developing countries there is lack of technology as a result of which most of their resources remain unutilised. It is because of the modern high technology that these resources are utilised efficiently. This technology is transferred to the developing countries through multinational corporations.

Until the middle of the 20th century, production was largely organised within countries and it was towards the end of the 20th century that multinational corporations emerged on the scene.

The investment made by MNCs is known as foreign investment because these are the foreign companies investing in the host country.

Cargill foods, an American MNC has taken over a small Indian company Parakh foods. Parakh foods had five oil refineries whose control has now shifted to cargill.

GATT which was replaced by WTO was established in the year 1948 and India was one of its founding members.