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33 views11 pages

SS Slides

Uploaded by

jomy sebastian
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as KEY, PDF, TXT or read online on Scribd
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GLOBALISATION AND THE INDIAN

ECONOMY
INTERLINKING PRODUCTION ACROSS COUNTRIES
WHAT ARE
MNCs
c

MNCs typically consist of a parent company


headquartered in one country, with subsidiaries,
branches, or joint ventures in multiple host countries.
The parent company maintains strategic control over its
global operations, setting overall goals, policies, and
standards. Subsidiaries are separate legal entities in
the countries where they operate.
Developing an international presence can open up new
markets where multinationals can sell goods or produce the
same quality of products at lower costs. MNCs can thus
reduce prices and increase the purchasing power of
consumers worldwide.
Foreign Investment
It means investment made by a company based in one country (usually
an MNC), into a company based in another country. MNCs set up the
production units by setting up factories or offices in the foreign country
Partnership/
joint ventures

Sometimes MNCs merge with local


companies and produce jointly. In this
way, MNCs provide money for additional
investments like buying new machines for
faster production and bringing the latest
technology for efficient production
Contracts to
Local Companies

MNCs also place orders with small


producers for production. The MNC
determines the price, quality,
delivery, and labour conditions for
these distant producers etc.
Local companies/Mergers

MNCs buy local production units or merge with local companies to expand production
For, example Cargill Foods of the USA has taken over Parakh Foods in India and has
become the largest producer of edible oil in India
Foreign Trade
and Integration
of Markets
Foreign trade is a trade between
different countries of the world. It is
also called international trade,
external trade, inter-regional trade.It
consists of imports and exports
How Foreign trade helps in the
integration of markets?

Facilitate movement of goods and services between countries.


Facilitate movement of people, ideas and technology.
Fives the opportunity to producers to sell their products beyond local/domestic markets.
Buyers get more choice of goods.
Increased competition among producers so better quality of goods and services.
Chinese toys in India
Conclusion

In conclusion, the interlinking of MNC production has been a


key driver of globalization and economic development. It has
allowed MNCs to optimize their production, increase profits, and
offer products globally at lower prices. At the same time, it has
created opportunities for developing nations, though challenges
like labour exploitation and environmental damage must be
addressed.
Understanding this interconnection helps us appreciate the role MNCs play
in shaping the global economy.
GEORGE J EMMANUEL

Thank you

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