Flashcards
Globalisation and multinational corporations
Flashcards do conjunto (10)
- 1Use products from around the world by leading manufacturers eg: cars, shirts, phones etcTill recently, production was confined to countries.Trade was the main channel connecting distant countries.
This was before emergence of MNC's - 2A MNC is a company that owns or controls production in more than 1 nation Reason : Cost of production is lowered and they can earn greater profitsTherefore, not only selling finished products globally but also the goods and services are produced globally
eg: china provides cheap labour
mexico and eastern euro closeness to market in USA and europe
india : technical aspects - 3Results in 50 to 60 % cost savings CONDITIONS : close to market, cheap skilled and unskilled labor and availability of other factors of production is assured. (government policies)Theymakeforeign investments in hope that assets earn profits
sometimes they join with local companies BENFIT:MNC can provide money and bring the latest technology with them. However usually they buy the local comp - 4Many top MNC's have more money than the government budget of developing nati. they also place orders for production with small producers (shoes,sporting ) RESULT : production gets interlinkedFord motors ( production in 26 countries )
came to India in 1995 and spent 1700 Crores in Chennai. done in co operation with Mahindra. In 2004, 27000 cars in Indian market.24000 cars exported to S.A, mexico and Brazil. - 5Chinese Toys in India 70-80 % replaced (Good for Chinese) (Bad for Indian)Globalization is the process of rapid integration/interconnection between countries.
More goods and services, investments and technology are moving between countries
People also move between countries - 6Factors Enabling Globalization TECH : made faster delivery of goods across long distances possible at lower costs IT and COMMs:IT and COMMs: internet,email, etc
Printing of Magazines
LIBERALISATION OF FOREIGN TRADE AND INVESTMENT POLICY - 7LIBERALISATION OF FOREIGN TRADE AND INVESTMENT POLICY: no tax. Tax on imports is a TRADE BARRIER TRADE B. is used by govt to increase or decrease foreign tradeafter independence, only essential items were allowed to be imported. Around 1991, barriers on foreign trade and investment removed to a large extent
Removing barriers set up by Govt. is called liberalisation - 8World Trade ORG. aims to liberalise govt. policies. They establish rules regarding Int. trade.160 countries are members of WTO as of 2014 JuneGlobalization helps consumers ( higher standards of living).
local companies produce raw materials for the Secondary industries ( helps them ) - 9Top Indian companies benefited from it IT has helped them become MNCs as well. Tata motors,infosys,ranbaxy,Asian Paints, Sundaram Fastenersit provides new oppurtunities for companies providing services. (IT)
Call centres, data entry,admin tasts,accounting, engineering now being done in INDIA cheaply. - 10not every one benefits from it. richer people do.GOVT can help everyone benefit through LABOR LAWS, WORKER RIGHTS. supports small till they become big. negotiate with WTO for fairer rulesSUMMARY
definition of globalization
Informações
- Descrição
- FlashCards sobre Sem título, criado por Slash _WFU em 13-11-2017.
- Criado por
- Slash _WFU
- Visualizações
- 0
- Avaliação