Globalisation and the Indian economy
As consumers in today's world some of us have a wide choice of goods and services for us the latest models of digital cameras ,mobile phones, and television made by the leading manufacturer of the world are within our reach mnc in new model of atom was can be seen on Indian roads are the days when Ambassador and figure out what the on the cast and Indian road today. Indians are buying cars photos by nearly at the top companies in the world is in the explosion of plants can be seen for many goods from start television to persuade juice wide-ranging price of goods in our market is relative recent phenomenon you would not have found such a wide variety of goods in Indian market.
Event two decades back in a matter of us our markets have been transformed.
production across countries
until the middle of the 20 century production was all she organised within country what was the boundaries of these countries was raw material for disturb and produce Colony in India exported from material and for disturb and imported finish good trade was the main channel. Connecting distance country Disawar before large companies health multinational corporation on the scene is a company that ontore controls production is more than one Nation MNC setup office and factories for production in regions where they can get cheap labour. And other resources this is done so that the cost of production is low and dimensions can an creator profit consider the following example.
In this example in MnC is not only selling its finished products globally but more important the goods and services produced globally as a result production is organised in increasingly Complex with the production process is divided into small parts and spread out across the globe. In the above example China but I want a job in chief manufacturing location Mexico, and Eastern Europe are useful for their closest to the markets in the US ,and Europe. India has highly skilled engineer who can understand the technical aspects of production. It also has educated English speaking youth who can provide consumer care service and all the problem can mean 50%to 60% costing for the MNC advantage of spreading out production across the water to the multinational can be truly amense.
interlinking production across countries
in general MNC are set up production where it is closer to the markets where there is skilled And unskilled Labour available at low cost. Where the availability of other factors of production is issued in addition MLC might look for government policies that look after their interest you will read more about the policy.
having a showed themselves of this condition MLC acid at page and process for production the money that is spent to buy assets such a land building ,machines and other equipment is called investment investment made by MNC is called virgin. Investment any investment is made within the hope that is asset file and profit at times in MNC setup production jointly with some of the local companies aap which companies are the benefits to the local companies of joint production is 24 date first invention provide money for additional investment. I am fine new machines for cost of production second when she might bring the themselves the latest technology for production.
But the most common root for MNC investment age to buy a local company and then to spend production MSc with huge wealth can quite easily do so to take an example for several large American MNC has brought to a very small Indian companies such as paragpur side a large built a large marketing network in which part of India. Where its brand was well reputed Alto project work food has now shifted to karyakal now the largest producer of edible oil in India. With a capacity to make 5 millions pouches daily in fact many of the top MNC have built exceeding the entire visit of the development country's government with such enormous wealth imagine the power and influence of which MNCs.
thus we see that there are a variety of ways in which time is spreading their production and interacting with local producer in various countries across the globe by setting up partnership with local companies by using the local company was supplied by closely computing with the local companies,
or buying them up as our expert in a strong influence on production as the distance location as a result production is there were only dispersed location is getting interlinked.
Chinese toys in India
Chinese manufacturers land of opportunity to export to India where Toy sold at high price day start Sporting plastic Toy 2 India price in India now have the option of choosing between Indian and the Chinese because of the cheaper price and new design Chinese toy become more popular in the Indian market with 70 to 80% of the toys of depressed Indian toy with Jon Stewart was a newspaper in the Indian market than earlier what is happening here as a result of trade Chinese toy come into the Indian markets in the competition between Indian and Chinese Chinese stripe crew beta Indian buyers have a, greater choice of twice at a lower price for the Chinese, Market this provides the opportunity to expand business this opposite of is true for Indian toy makers the resources that we are selling less price.
what is globalisation
in the past two or three decades more and more MNC have been looking for location around the world which would be cheap for their production for an investment by MSc in the country has been rising at the same time presented between countries has been rising rapidly a large part of the foreign trade is also controlled by MNCs for instance the car manufacturers plant for Ford motor in India not only produce call for the Indian market it also exports cause to developing countries and a sport car components what is likely that around the world.
impact of globalisation
in the last 20 year celebration of India in Indian economy has come a long way what has been its effect on their lives of people latest look at the sum of the evidence and greater competition among produces both local and foreign producer have been of advances to consumers party cal double of sections in the urban areas there is Greater choice report these consumers sunao enjoyed improve quality and low prices on several products as a result the people today enjoying much higher standards of living then was possible earlier among producer and workers the impact of causes and has not been uniform
1-firstly MNC have increased year investment in India over the past 20 years which means investing in India has been beneficial for them MNC have been interested in industries such as cell phone automobiles Electronics of Prince what should a services such as banking in the urban areas these products have a large number of bill of percentage industries and service new jobs have been created also local companies applying raw material etc today's industries.
2-secondary structure of the top Indian companies have been able to benefit from the increased.
Competition they have invest in your technology and production method and raised their production standard some of her again from successful collaboration with foreign companies ever globalisation has enabled some large Indian companies to image a multinational cancer Tata Motors, infosyis, Asian Paints are some Indian companies which are spreading their operation worldwide.
