Involves creation of network and activites transcending
-economic
-social
-geographical boundaries
---creating a borderless world
Outcomes of globalisation
1.outsourcing-intensified due to growth of fast mode of communication
Reason for india at receiving end of outsourcing
1.cheaper cost
2.reasonable degree of skill and accuracy
Features
1.role of MNC
2.good and services are produced globally-save 50-60% cost eg-garmernts, football production in india, london magazine printing in India
3.consumed globally
Eg-china cheap manufacturing location, mexico and eastern europe for closeness to market, india skilles engineer and english speaking
4.many MNC have wealth exceeding the entire budget of developing countries
Factors of mnc
1.close to market
2.where skilled and unskilled labour at low cost
3.availobility of other fwctor of production
4.govt policies
Benefit of MNC to local companies or country
1.money for additional investment
2.tech for production
3.export increases eg-ford plant in India
4.foreign trade increases
5.transport facilities improves
6.new jobs created-local companies supplying raw materials
7.increase in foreign investment
8.greater access to global market
9.professionalism
10.If we redefine elitism by education rather than wealth (those at the top end of the education spectrum who might not necessarily be at the top end of the wealth distribution), globalization also delivers rich dividends for this group
11. Another important issue here is that freer mobility of capital across borders makes it easier for educational elites to get high-quality ideas funded—either by governments or private parties.
12.decline in global poverty, relative political stability and a reduction in global inequality.
Movement of
1.goods
2.services
3.investment
4.technology
5.people
Benefit to consumers(Major benefit to welloff section in the urban area)
1.choice
2.new design
3.reuce price
4.improved quality
5.high standard of living
6.groeth on,y in select area-regional disparity
Loss to indian company
1.increase competition
2.may loose the domestic market
3.loss of companies in sector like electronics for eg capacitor manufacturer, television companies, batteries, plastics, toys, tyres, dairy products and vegetable oil(here small manufacturer hurt most)
4.small manufacturers suffered most-employ largest no of workers next only to agriculture
5.loss of employment due to above reason.
6.exonomic disparity among nation
7.regional disparity
8.only in select areas like telecom, ITm finance, entertainment, travel and hospotality, real estate and trade
9.power sector reform effected supply of electricity to small sector industries
10.suicides by people due to loss of employment
11.unemployemnt led to withdrawal from school and sent t work
Positive
1.several top indian companies benefit from the increased competition-they have invested in newer tech and production methods
2.some gained from succesful collobration with foreign companies
3.some indian companies emerged as multinational themselves like Tata, Infy, Ranbaxy
4.new opportunities for comapnies esp in service sector
Employement
1.from dormal to casual work
2.MNC order products from indian exporters like garments but at low price thus exporter have to go for low wage workers
3.women from secured work to casual work
4.even Condition in organised sector no longer get the protection and benefit tehy enjoyed earlier
Routes of MNC
1.Buy local company
2.
Power of MNC
1.determine price
2.quality
3.labour condition
4.delivery
5.at times govt policies
India as choice of MNC
1.large markets
2.cheap labour
3.availibility of resources at cheap price
4.presence of small manufacturing who can easily and cheaply provide the input
5.closeness to other market like china
Factors that lead to globalisation
1.technology-faster delivery at low cost
A-imp in transportation
B-new communication develoment-ICT
C-container for trasnport of goods
D-cost if air transport fallen
Factor limiting the harnessing the full benefit of globalisation
1.infrastructure like electricity
2.skilled and educatwd labour force
Role of govt
1.increasing competiveness of small manufacturer by providing infrastrucure and tax benefits
2.labour laws are properly managed
3.workers get their right
4.can use trade and investment barrier
5.negotiate at WTO for fairer rules
Foreign trade
History
1.trade routes since ancient times
Reason
1.to reach beyond domestic markets
2.expanding choice of goods
Small producers need these things to compete in clobalised world(recent studies)
1.better roads, power, water-work of govt
2.raw material-givt import export policy
3.marketing and info network-old network can be rejuvinated
4.imp and modernisation of tech-collobration with MNC can help
5.timely and reasonable interest rate availibility of credit-govt role
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