Globalisation and the Indian Economy Class 10 Notes CBSE Economics Chapter 4

Globalisation and the Indian Economy Class 10 Notes Economics Chapter 4

In Class 10 Economics Chapter 4 Notes, students will learn about the Indian economy and how it affects globalisation. Students will learn about the integration between countries through foreign trade and foreign investment by MNCs in Class 10 Chapter 4 Economics Notes. They will learn how MNCs played a huge role in globalisation. The Economics CBSE revision notes provided by Extramarks have been created by experienced teachers according to the latest CBSE syllabus. These notes will provide students with an overview of all the topics and help them understand the process of globalisation and its impact in a better way.

Chapter 4 Economics Class 10 Notes explains all the concepts in simple language so that students will not have trouble comprehending the chapter. In addition to Class 10 Economics Notes Chapter 4, students can access and download CBSE past years’ questions papers and CBSE sample papers from the Extramarks website. Students can develop time management skills and understand the exam format by practising sample papers.

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Production Across Countries

Trade served as the primary means of contact between distant countries. It is influenced by large firms, also called Multinational Corporations (MNCs).

• A multinational corporation (MNC) owns or manages production across several nations.

• These MNCs locate production centres, headquarters and factories in areas where the resources and labour are cheap. It keeps production costs down and allows MNCs to make more money.
• MNCs locate production close to markets, where trained and unskilled labour is cheap and easily accessible, and other production components are also available.
• MNCs may also ask the government to take action to safeguard their interests.

Interlinking Production Across Countries

• Production across countries requires investment. It refers to the sum of money spent on the assets, such as land, buildings, machinery and other equipment. 
• The investment made by MNCs is referred to as foreign investment made with the hope of profiting from the assets.

Over the years, the MNCs have expanded their business and have interacted with the local producers in numerous ways:

• Joint Production: MNCs collaborate or partner with an established local business in joint production. The funding enables regional producers to acquire cutting-edge technologies and new and enhanced assets.
• Acquisition of Local Companies: Several MNCs purchase local enterprises with vast networks to grow their production.
• Controlled Production: MNCs source materials and make orders with the local companies who create goods, resulting in carefully regulated output. The MNC markets the products under its brand name.

Foreign Trade and Integration of Markets

• Exporting enables producers to reach markets outside their native markets or markets located within their nations.
• In addition to home markets, producers also have the option of selling their goods in international markets.
• By importing items manufactured in other countries, some producers can increase their options beyond what is offered domestically.

Globalisation

Globalisation is the process of integrating a nation’s economy with the global economy. It is the result of numerous actions that have been taken to make the world more interconnected and integrated.

It involves creating networks and undertaking projects to remove social, economic, and geographic obstacles. Globalisation strives to create connections such that events in India can be influenced by those thousands of miles away. In other words, globalisation is the process of individuals, businesses, and governments cooperating and coming together from all over the world.

Globalisation has Been Enabled by the Following Factors

• Technology
• Rapid technological advancement has accelerated the globalisation process. This has made transporting goods over long distances much quicker and more affordable.
• Information is now easily available due to the development in information and communication technologies.
• These developments made it possible for workers to be spread out across different locations and still be a part of a virtual workspace, which helped to fuel the IT revolution in India.
• Advanced computing capabilities have made it possible to automate production, control it precisely, and achieve homogeneity.
  
• Trade Liberalisation
• The government imposes different trade barriers to regulate trade flow within international boundaries. Levying import taxes is an example of trade barriers. 
• The process of liberalisation involves removing trade restrictions or barriers imposed by the government. The government is said to be more liberal when there are fewer limitations.
• Trade limitations can support increased growth and productivity in a developing economy. However, it might be hazardous once it reaches a particular stage of development.
• In 1991, India liberalised its trade, allowing businesses to freely import and export commodities and materials. Organisations like the World Bank supported this.
  
• Foreign Investment Policy
• Foreign direct investments (FDI) refer to a company’s significant financial investments in foreign enterprises. 
• The investment can be used to expand a company’s territory and establish an international presence. 

World Trade Organisation (WTO)

• The World Trade Organisation (WTO) was formed in 1947 from the General Agreement on Tariffs and Trade (GATT).
• WTO encompasses 164 member countries that regulate international trade rules. 
• The goal of the WTO is to maintain a smooth and predictable trade flow.
• WTO also works to settle any trade disputes that may occur.

Impact of Globalisation in India

MNCs have expanded their investments in India over the last 20 years. 

• MNCs have expressed interest in urban sectors like banking, automobiles, electronics, soft drinks, and fast food.
• Many wealthy people like to purchase these items. These industries have created new jobs. Local companies that provide these industries’ raw materials and other essentials have also prospered.

The increased competition has helped several Indian firms.

• They have raised their production standards by investing in cutting-edge technology and production methods. 
• Some people have benefited from successful ties with MNCs.

The Struggle for a Fair Globalisation

Fair globalisation ensures that the benefits of globalisation are spread more fairly while simultaneously opening up opportunities for everyone. 

Here are some steps government can take to make this happen:

• The government can help small producers increase their output.
• It can guarantee that labour laws are adhered to and that workers’ rights are upheld.
• The government can use trade and investment barriers if necessary.
• It can bargain with the WTO for “fairer rules.”
• It can also join forces with other developing nations to fight the wealthy nations’ dominance in the WTO.

Important Question and Answer for globalisation class 10 notes

Chapter 4 Economics Class 10 Notes contains a list of important questions and answers. Students can download PDF versions of these questions from the Extramarks website. These important questions and answers are prepared by qualified teachers according to the latest NCERT books and guidelines. Learning these questions will help students perform well in the board exams. In addition to important questions, the revision notes for Class 10 feature formulas and CBSE extra questions. 

Highlights of Globalisation and the Indian Economy Class 10 Notes

• Important information about globalisation.
• Investments and foreign trade by MNCs.
• MNCs role in globalisation.
• Impact of globalisation.
• Contribution of globalisation to the process of development.
• Integration of production and markets.

Class 10 Chapter 4  Economics Notes highlights the points mentioned above. Students can study from the notes provided by Extramarks to better understand the concepts and achieve good marks in the exam.

Factors that Caused a Transformation in the Market – Globalisation Class 10

Interlinking Production Across Countries – Any type of money that is invested or used to purchase land, machinery, or equipment is referred to as an investment. Foreign investment means the investment made by multinational companies. MNCs interact with local producers and market their products globally through partnerships, and local businesses also benefit from it.

Production Across Countries – Without the involvement of MNCs in commerce, this would not have been possible. The maintenance of the relationship between the nations depends heavily on trade. These multinational companies build up factories and offices using low-cost labour to increase profits and control production in many nations.

Foreign Trade and Integration of Markets – A nation must look at the possibilities in international trade if it wants to expand beyond the domestic market. Foreign commerce increases a company’s chances of growing since it shifts the company’s level of competition from domestic to global. As purchasers can select from various goods and services according to their needs and budgets, this also contributes to improving the standard of living in a nation. Each of these projects significantly contributes to the market’s integration and connectivity.

Approaches to Consider for a Fair Globalisation

Fair globalisation is anticipated to improve a country’s chances of development. The government can use specific strategies to promote fair globalisation. Some of the approaches are as follows:

• Government can develop strategies to assist and motivate small producers to increase their output.
• The government must ensure that the labour rules are correctly implemented and that workers receive their rights.
• The government must negotiate with WHO because they can contribute significantly to fair globalisation.
• Finally, to achieve the goal of fair globalisation, the government must step up and take the required actions toward the dominance of developed nations.

Did You Know?

• The rapid integration of countries can help MNCs play a significant role in globalisation. 
• Through constructive plans, the government can help with the development of globalisation.
• WTO seeks to liberalise international trade. It has formulated regulations for developed nations to allow free international trade for all.