CLASS 10 NOTES
ECONOMICS
Globalization
and the Indian
Economy
PRASHANT KIRAD
, PRASHANT KIRAD
GLOBALISATION AND THE INDIAN ECONOMY
PRODUCTION ACROSS COUNTRIES:
Multi coris (Ms)
● A MNC is a company that owns or controls production in more
than one nation.
● MNCs set up offices and factories for production in regions
where they can get cheap labour and other resources.
● This is done so that the cost of production is low (almost
50-60%) and MNCs can earn greater profits .
● MNCs not only sell their finished products globally but also the
goods and services are produced globally .
● Eg: An American company manufactures its product in China, sells
it in Europe and its call center is in India.
INTERLINKING PRODUCTION ACROSS COUNTRIES:
MNCs link the production process of different countries. Some
ways of interlinking production across countries are:
● For Dir Inett (FI): Investment made by a
company based in our country (usually an MNC), into a
company based in another country.
● Parrp: MNCs setup production units jointly with some
of the local companies of that region . Local companies get
new technology and money to expand their factories from
this partnership.
● Loc cone: The most common route for MNC is to buy
up local companies and then expand production.
ECONOMICS
Globalization
and the Indian
Economy
PRASHANT KIRAD
, PRASHANT KIRAD
GLOBALISATION AND THE INDIAN ECONOMY
PRODUCTION ACROSS COUNTRIES:
Multi coris (Ms)
● A MNC is a company that owns or controls production in more
than one nation.
● MNCs set up offices and factories for production in regions
where they can get cheap labour and other resources.
● This is done so that the cost of production is low (almost
50-60%) and MNCs can earn greater profits .
● MNCs not only sell their finished products globally but also the
goods and services are produced globally .
● Eg: An American company manufactures its product in China, sells
it in Europe and its call center is in India.
INTERLINKING PRODUCTION ACROSS COUNTRIES:
MNCs link the production process of different countries. Some
ways of interlinking production across countries are:
● For Dir Inett (FI): Investment made by a
company based in our country (usually an MNC), into a
company based in another country.
● Parrp: MNCs setup production units jointly with some
of the local companies of that region . Local companies get
new technology and money to expand their factories from
this partnership.
● Loc cone: The most common route for MNC is to buy
up local companies and then expand production.
