Social Science: Globalisation and the Indian Economy - Concept of Globalization and Factors


Why do MNCs set up their offices and factories in those regions where they get cheap labour and other resources?



Multinational companies usually set up their factories and offices for production in countries where land, labour and raw materials are available at much cheaper rates. This results in greater profits for the company.

Concept: Concept of Globalization and Factors
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2015-2016 (March) All India Set 1


"Globalisation has been advantageous to consumers as well as to producers." Support the statement with suitable examples.

Describe the impact of globalization on Indian economy with examples.

"A wide ranging choice of goods are available in the Indian markets." Support the statement with examples in context of globalisation.

Describe the conditions in which markets do not work in a fair manner.

What do you understand by globalisation? Explain in your own words.

Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of ______________. Markets in India are selling goods produced in many other countries. This means there is increasing ______________ with other countries. Moreover, the rising number of brands that we see in the markets might be produced by MNCs in India. MNCs are investing in India because _____________. While consumers have more choices in the market, the effect of rising _______________ and _____________ has meant greater _______________ among the producers.

Match the following.


MNCs buy at cheap rates from small producers




Quotas and taxes on imports are used to regulate trade


Garments, footwear, sports items


Indian companies who have invested abroad


Call centres


IT has helped in spreading of production of services


Tata Motors, Infosys, Ranbaxy


Several MNCs have invested in setting up factories in India for production


Trade barriers

Globalisation has led to improvement in living conditions.

Assess any three advantages of globalization.

Answer the following question:
Explain any five effects of globalization.


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