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Globalization and the Indian Economy - Coggle Diagram
Globalization and the Indian Economy
Globalization
What is globalization
It is the process of integration and interconnection between countries through trade, investment, technology and cultural exchange
Main factors of Globalization
Technology
Faster Communication, Transportation and innovation
Liberalisation
Reduction of trade barriers like tariffs and import quotas
MNC's
Multi- National Company's
Company's operating in multiple countries
MNC's
Company's operating in multiple countries
Role of MNC's
Investment
Impact on production
MNCs look for low-cost production region, raw materials and skilled labor
This led to creation of global supply chain
It invest in countries by setting up factories, offices and partnerships with local businesses
Impact
Positive Effect
Improve quality of goods and services
Availability of foreign products
Growth in IT and outsourcing industries
Negative Effect
Unequal distribution of benefits
Loss of jobs in some traditional industries
Liberalization of Indian Economy
Economic Reforms of 1991
India reduced trade barriers, opened markets to foreign investment and privatized industries
Positive Impacts
Increase in foreign investments and job opportunities
Access to global markets and modern technology
Negetive Impact
Small-Scale industries face competition from global brands
Dependency on foreign companies for certain products
World Trade Organization (WTO)
WTO aims to promote free and fair trade among countries by reducing trade barriers.
Criticism
Developed countries dominate decisions
Rules often favors rich nations over developing ones
sustainability in the Global Economy
Fair trade practice ensure that producers in developing countries receive a fair price
Sustainable use of resources to reduce environmental damage