हिंदी
Tamil Nadu Board of Secondary EducationHSC Commerce Class 12

Components of New Economic Policy - Globalisation

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Estimated time: 23 minutes
CBSE: Class 12
Maharashtra State Board: Class 11
CISCE: Class 12

Meaning

  • Globalisation means integrating the domestic economy with the world economy.
  • It involves the free flow of goods, services, capital, information, and people across national borders.
  • It leads to open competition and global governance.
CBSE: Class 12
Maharashtra State Board: Class 11

Definition: Globalisation

Integration of national economies and societies through cross-country flows of information, ideas, technologies, goods, services, capital, finance, and people.

CBSE: Class 12
Maharashtra State Board: Class 11
CISCE: Class 12

Nature of Globalisation

  • Globalisation is different from internationalisation.
  • It goes beyond just trading across borders - it involves deeper economic integration.
CBSE: Class 12
Maharashtra State Board: Class 11
CISCE: Class 12

Features of Globalisation

  • Free flow of trade and investment across countries.
  • Open competition between domestic and foreign firms.
  • Integration of national economies into a single global economy.
  • Encourages foreign collaboration and foreign capital inflows.
CBSE: Class 12
Maharashtra State Board: Class 11

Measures Taken for Globalisation (India)

  • Removal of quantitative restrictions on imports and exports.
  • Foreign capital allowed into India.
  • Convertibility of the rupee introduced.
  • Foreign collaboration permitted in various sectors.
  • Trade policy reforms undertaken.
  • Export encouragement through various schemes.
  • Tariff reduction to open markets.
  • Repatriation of profits allowed for foreign investors.
  • Special Economic Zones (SEZs) established to boost exports.
CBSE: Class 12
Maharashtra State Board: Class 11

Forms of Globalisation

  • Foreign trade policy reforms
  • Export promotion
  • Repatriation of earnings
  • Tariff reduction
  • Open competition
CBSE: Class 12
Maharashtra State Board: Class 11

Real-Life Application

  • Smartphones: Designed in the USA, components sourced from Korea and Japan, assembled in China, sold globally.
  • Brands: McDonald’s, Netflix, and Tata Motors operate in multiple countries.
CBSE: Class 12

Outsourcing

  • Outsourcing is one of the outcomes of globalisation.
  • Indian companies have established global footprints through outsourcing and global operations.
CBSE: Class 12

Indian Companies with Global Footprints

  • ONGC Videsh
  • Tata Steel (Tata-Corus)
  • HCL
  • Dr. Reddy's
  • Hero-Honda (joint venture example)
  • Maruti Suzuki (example of foreign collaboration)

Positive Impacts of Globalisation

  • Increased access to foreign markets for Indian goods.
  • Inflow of foreign capital and technology.
  • Growth of Indian companies internationally.
  • More consumer choices due to open competition.
  • Development of export-oriented sectors like SEZs.
CBSE: Class 12

Activity: Globalisation – Indian Companies with Global Operations

Indian Company Major Products/Services Countries Where They Operate
Tata Consultancy Services (TCS) IT services, software, consulting USA, UK, Canada, Australia, Japan, Germany, Singapore
Infosys IT services, digital consulting, software solutions USA, UK, Australia, Canada, Germany, France, Japan
Reliance Industries Ltd. Petroleum products, petrochemicals, telecom (Jio), retail USA, UAE, UK, Singapore, Netherlands, Saudi Arabia
Mahindra & Mahindra Tractors, SUVs, commercial vehicles, farm equipment USA, South Africa, Australia, Nepal, Sri Lanka, Brazil
Sun Pharmaceutical Industries Medicines, pharmaceutical products, healthcare USA, UK, Russia, Australia, South Africa, Canada, Japan
CBSE: Class 12
Maharashtra State Board: Class 11
CISCE: Class 12

Key Points: Globalisation

  • Globalisation = integration of the domestic economy with the world economy through free flow of goods, services, capital, information, and people.
  • It differs from mere internationalisation - it involves deeper economic integration and global governance.
  • India's key measures for globalisation include removal of quantitative restrictions, foreign capital inflows, rupee convertibility, trade policy reforms, and SEZs.
  • Forms of globalisation include foreign trade reforms, export promotion, tariff reduction, repatriation, and open competition.
  • Outsourcing is a key outcome - Indian firms like ONGC Videsh, Tata Steel, HCL, and Dr. Reddy's expanded globally.
  • Positive impacts include foreign capital inflow, technology access, export growth, and greater consumer choice.
  • Globalisation is closely linked to Liberalisation and Privatisation as part of the New Economic Policy framework.

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