CLASS 10 NOTES
SOCIAL SCIENCE
Globalisation and the
Indian economy
PRASHANT KIRAD
, Globalisation and the Indian
economy
Production Across Countries
MNCs operate in more than one country and control production globally.
They set up production where labour is cheap and raw materials are easily
available.
They also locate units close to markets to reduce transport cost and
increase profit.
MNCs depend on local companies for raw materials, finished goods, and
services.
Governments that offer low taxes, fewer trade barriers, cheap land, and
labour attract more MNCs.
MNCs help connect countries through investment, trade, and production.
Interlinking Production Across Countries
Interlinking of production means connecting production of goods across
different countries.
This mainly happens through Multinational Corporations (MNCs).
MNCs produce different parts of a product in different countries
→where labour is cheap,
→raw materials are available,
→and markets are nearby.
Local companies are also linked when MNCs
→buy raw materials from them,
→ give them orders to produce goods, or
→ join with them as partners.
As a result, production across countries becomes connected, and trade
between countries increases.
Foreign Trade and Integration of Markets
SOCIAL SCIENCE
Globalisation and the
Indian economy
PRASHANT KIRAD
, Globalisation and the Indian
economy
Production Across Countries
MNCs operate in more than one country and control production globally.
They set up production where labour is cheap and raw materials are easily
available.
They also locate units close to markets to reduce transport cost and
increase profit.
MNCs depend on local companies for raw materials, finished goods, and
services.
Governments that offer low taxes, fewer trade barriers, cheap land, and
labour attract more MNCs.
MNCs help connect countries through investment, trade, and production.
Interlinking Production Across Countries
Interlinking of production means connecting production of goods across
different countries.
This mainly happens through Multinational Corporations (MNCs).
MNCs produce different parts of a product in different countries
→where labour is cheap,
→raw materials are available,
→and markets are nearby.
Local companies are also linked when MNCs
→buy raw materials from them,
→ give them orders to produce goods, or
→ join with them as partners.
As a result, production across countries becomes connected, and trade
between countries increases.
Foreign Trade and Integration of Markets
