Question

Answer the following question in 150 to 200 words with reference to the given points:

Impacts of multinational companies on common man due to globalisation.

1. Meaning of globalisation.
2. Meaning of multinational companies.
3. Impacts on labour market.
4. Impacts on small industries.
5. Impacts on agriculture sector.

Answer 1

1. Meaning of globalisation: The process of integrating national economies into the global economy is known as globalisation. It suggests unrestricted global trade in goods, capital, technology, and skilled labour. It has destroyed the borders that separate the nations. The globalisation trend has been aided by information technology and multinational corporations.
2. Meaning of multinational companies: Multinational corporations, sometimes referred to as transnational corporations, are businesses. It has no boundaries. Its headquarters are not located in a certain nation. It engages in global trade and manufacturing. In India, Unilever is referred to as Hindustan Unilever. Among the well-known MNCs are Nestle, Bayer, Siemens, and General Electricals.
3. Impacts on labour market: There is a migration of skilled and semi-skilled labour from one country to another. For example, these companies recruit both, skilled and semi-skilled employees. There is a lot of skilled and semi-skilled Indian labour working in West Asia, Africa, United States, Europe, etc. The growth of private sector has also increased the employment in the service sector. Various services like providing catering, delivery of goods, transport, etc. are being provided.
4. Impacts on small industries: They have to face competition from the big multinational companies. Shops and small industries that are efficient are able to compete. For example, we have seen big grocery stores and malls in cities, but despite these, the small shopkeepers, vegetable and fruit sellers continue to attract clientele. This is because they provide the necessary services to the people.
5. Impacts on agriculture sector: Today farmers are able to sell their goods directly to companies. Multinational companies have brought in new technology and opened up markets for Indian agricultural products. For example, India exports marine products, meat, rice, spices, cotton, fresh fruits and vegetables, sugar, coffee, groundnut, cashews, etc.