NCERT Class 10 Economics Chapter 4: Globalization & Indian Economy Complete Notes Part 3

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Globalization & Indian Economy

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WTO

  • Free trade and liberalize trade – WTO

  • Formed - 1st Jan 1955

  • Headquarters – Geneva, Switzerland

  • Members – 164 states

  • Under Marakkesh Agreement – replaced GATT (General Agreement on Tariffs & Trade)

  • Focus on Doha rounds – for developing nations

  • Developed nations – unfairly retained trade barriers

  • Forced developing nations to remove trade barriers (US farmers paid huge sum of money by govt. – bring in cheap produce & is unfair)

Now what was the rule of World Trade Organization? The World Trade Organization played a major role in free trade and liberalization, it is started in 1955 with headquarters in Geneva and at present 164 members are basic facts. However, the basic idea was Under Marakkesh Agreement replaced the GATT that was the General Agreement on Tariffs & Trade. So the focus was more on to the developing nations and the developing nations are trying to push the forced developing nations to remove trade barriers.

For example let’s talk an example of United States, farmers are given subsidy as a result the finale crop that is come in to the market is much cheaper as compared to the that crops produced in the other countries. So the other country crops the people or the farmer in the other countries cannot be competitive with crops coming into the market from United States.

As a result you have to kind of bring a balance to the trade barriers so that both developed nation and developing nation stay at line.

Impact on India

  • Customers – Greater choice, improved quality & low price

  • Investment of MNCs increased – cell phone, automobile, electronics

  • Creation of new jobs

  • SEZs – with world class facilities to attract investors

  • Flexibility in labor laws – hire for short period when more work pressure

  • Investment in new technology and higher production standards

  • Indian companies as MNCs - Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts & bolts)

  • Host of services like data entry, accounting, administrative tasks, engineering

Now what are the impact of globalization on Indian economics, as said for customers it is definitely beneficially because they get greater choice, good quality they can do away because of the completion in market and there is decrease in price. Again the investment of the multinational company increases so you have more job opportunity, you have higher salary that could be offered, you have new jobs that would be created, for developing or bringing in, attracting in multinational in India. Government started the special economic zone or SEZ, now this SEZ provide world class infrastructure facilities along with idea to attract to more investors so you have more and more SEZ coming up in the country.

Again this multinational company offers flexibility, so you can work in day shift, you can work in night shift, you can who work from home. Those are kind of flexibility in labor laws that are provided specially when it is uses intense work load given, when you complete this assignment in short period of time, now investment in new technology is made easy with multinational company so they have skill sets and the it maintains the production standard and they are investing more technology.

Some of the Indian company who are playing a role as multinational companies are Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts & bolts). Now what kind of services are usually produced in India, for India is come to accounting, administrative tasks, engineering are main idea where you have the economy benefited in India.

Negative Impact on India

  • Lesser job security

  • Workers employed flexibly

  • Long work hours & night shifts

What is the AIM?

  • Fair globalization – opportunity for all

  • Proper implementation of labor laws

However India does have some negative impact of globalization, the first impact is there is decrease in job security now because of the flexibility and kind of work base incentive, you have less security for a kind of full time job that is available. Again worker are employee with flexibilities, so there is a kind of situation for the worker which is produced from either night shift or long working hours. So these are some of the negative impact countries given along fact that you are not able to bring the domestic market.

What is the aim of globalization terms is to provide fair globalization with kind of equal opportunity for all - developed as well as developing nations and what they would really require is proper implementation of labor laws.

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