Globalisation and the Indian Economy Test - 6

Privatisation refers to a process that reduces the involvement of public sector and increases the role of private sector in economic activities of the country.

Asian Development Bank tries to help the developing member countries in reducing the poverty and improve the quality of life of their people, it has nothing to do with globalisation.

Buyer's market is one where goods are plentiful and buyers have a lot of choice. Prices in such cases tend to be low. As a result of globalisation more and more foreign products are entering Indian markets, also many foreign producers have started their production units in India due to which supply of the goods has increased considerably and thus making India a buyers market.

Availability of the labour at cheap rate will ensure them more profit.

The main motive of the MNCs is to earn profits due to which they prefer that place for production where they get cheap resources. This lowers their cost of production and ensures more profit.

GATT was replaced by WTO in 1995 after the Uruguay round which started in 1986 and was the 8th round of GATT.

Use of capital intensive techniques will increase the unemployment which is already a problem in the developing countries.

Broadly speaking there are two types of foreign investment namely foreign direct investment (FDI) and foreign portfolio investment (FPI).

It is WTO which is the main watch dog of international trade because it establishes new rules and regulations for international trade.

Transnational means operating across nations, since MNCs extend their business operations beyond the boundaries of the country in which they were originally established, therefore these are also known as transnational corporations.