NCERT Solutions for Class 10 Economics Chapter 4 - Globalisation and the Indian Economy

 “Globalization has not had a uniform impact.” It has benefited only trained and professional people in cities, not the unskilled. Globalization has benefited the industrial and service sectors far more than agriculture. It benefited multinational corporations at the expense of domestic producers and the industrial working class. Competition from cheaper imports has affected small producers of goods including batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil.

Liberalization of trade and investment policies has aided globalization by facilitating cross-border commerce and investment. To protect indigenous industry, numerous emerging countries had previously erected obstacles and restrictions on foreign imports and investments. These countries, on the other hand, have lowered the obstacles in order to boost the quality of their local commodities. As a result, liberalization has aided the development of globalization by allowing enterprises to make their own import and export decisions. As a result, national economies have become more integrated into a single composite whole.

Foreign trade allows both manufacturers and consumers to enter markets outside of their own countries. Merchandise is transported from one country to another. Competition reigns supreme among producers from many countries, as well as purchasers. As a result, cross-border trade leads to market integration.

During the Diwali season, for example, Indian shoppers can choose between Indian and Chinese ornamental lights and bulbs. As a result, this presents an opportunity to grow your business.

The term "globalization" refers to the process of integrating a country's economy with the economies of other countries under the conditions of free trade, money, and people move across national borders.

It involves:

• An increase in international trade.

• The export and import of products manufactured and associated techniques.

• Capital and financial flows from one country to another.

• Human migration from one country to another.

To protect indigenous producers from international competition, the Indian government erected barriers to foreign trade and foreign investment, especially when industries were only starting to emerge in the 1950s and 1960s. Import competition would have been a death blow to expanding industry at the time. As a result, India only authorized imports of necessary products.

The government wanted to abolish these obstacles in 1991's New Economic Policy because it believed domestic producers were ready to compete with foreign companies.

Foreign competition, it was believed, would actually increase the quality of goods produced by Indian industry. This judgment was also backed by a number of influential international organizations.

 Companies will be more competitive and progressive if labor rules are more flexible. Companies can negotiate compensation and fire employees based on market factors if labor rules are relaxed. The company's competitiveness will improve as a result of this.

 Multinational Corporations (MNCs) locate their factories or production units in markets where they can obtain the appropriate type of skilled or unskilled labour, as well.

As other production inputs, at affordable costs. MNCs establish production units in the following methods after ensuring these conditions:

• In collaboration with a few current country's local businesses.

• Purchase local businesses and use contemporary technology to expand their operations.

• They place orders with small producers and offer the products to customers all over the world under their own brand name.

 Developed countries desire developing countries to liberalize trade and investment so that their multinational corporations (MNCs) can set up factories in less-expensive developing countries and enhance profits with reduced production costs and the same selling price.

In exchange, emerging countries should seek some form of protection for native producers against import competition, in my opinion. Charges should also be imposed on multinational corporations trying to establish a presence in developing countries.

After twenty years, the globe will have undergone a positive transformation characterized by healthy rivalry, improved production efficiency, increased volume of output, revenue, and employment, higher living standards, and greater access to information and contemporary technology.

The following are the reasons for the above-mentioned points of view. These are the factors that favor globalization:

• Human resource availability, both in terms of quantity and quality.

• Major countries have a diverse resource and industrial base.

• Increasing the number of entrepreneurs.

• Domestic market is expanding.

 India's benefits of globalization include:

• An increase in the number of commodities and services traded.

• Private foreign capital inflows and the economy's export orientation

• Increases output volume, income, and employment.