In this post chapter 4 Globalisation And the Indian Economy Class 10 Economics Notes are explained as per the latest syllabus of class 10 Economics Chapter 4 which has covered a few topics like what is globalization and the factors that have enabled the Globalisation.Here notes of globalisation and the Indian Economy Class 10 Economics notes is comprehensively covered so that students would feel confident in his preparation for the board exams.
Globalisation and the Indian Economy Notes Class 10 Economics
What Is Globalisation?
Meaning of globalisation
Globalisation is the process of rapid integration or interconnection between countries.
•Most of the MNCs locate industries where their cost of production would be cheap and foreign investment and foreign trade have been increased rapidly in recent years by MNCs.
•A major proportion of foreign trade is controlled by MNCs as different activities related to production are done in different countries to maximize profits by reducing costs.
Eg: manufacturing plant of Ford Motors in India not only produces car for Indian market but also to exports to developing countries and export car components for its many factories around the world.
Advantages
•More and more goods and services, investment and technology are moving between countries.
•Countries can be connected in another way through the movement of people between countries in search of better income, better jobs or better education.
•People would have wide range of choices of goods and services.
•Competition help consumers to get quality products at reasonable price.
•Result of greater foreign trade and greater foreign investment lead to greater integration of production and markets across countries.
Factors that have enabled globalization
Technology
•Improvement in technology has made delivery of goods faster across long distances at lower costs.
•Technology in areas of telecommunications, computer and internet are used to connect one another around the World and from remote areas.
•Internet allows us to send instant electronic mail and talk at negligible costs across the world.
•Information and communication technology (IT) has helped in spreading out production of services across countries.
Money and Credit Class 10 Notes
Trade barriers
When tax is levied on imports of goods and services is called trade barrier.
It is called a barrier because some restriction has been imposed by government on exports and imports of goods and services.
Purpose
•Governments can use trade barriers to increase or decrease foreign trade and to decide what kinds of goods and how much of each, should come into the country.
•The Indian government, after independence, had put barriers to foreign trade and foreign investment to protect the producers within the country from foreign competition.
•Industries were just coming up in the 1950s and 1960s, and competition from imports at that stage would not have allowed these industries to come up.
Thus, India allowed imports of only essential items such as machinery, fertilisers, petroleum etc.
•all developed countries, during the early stages of development, have given protection to domestic producers through a variety of means.
Changes after 1991( Economic Reforms)
•The government decided that the time had come for Indian producers to compete with producers around the globe.
•Competition would improve the performance of producers within the country since they would have toimprove their quality.
•barriers on foreign trade and foreign investment were removed s that goods could be imported and exported easily.
•foreign companies could set up factories and offices.
Liberalisation
Removing barriers or restrictions set by the government on the export and import of goods and services across countries of the world is known as liberalisation.
Advantages
•With liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export.
•The government imposes much less restrictions than before and is therefore said to be more liberal .
Class 10 Economics Globalization and the Indian Economy Notes