Globalisation and the Indian Economy | Class 10 Social Science Notes

What is Globalisation?

Globalisation is the process of rapid integration or interconnection between countries, driven by increased foreign trade and foreign investment, especially by multinational corporations (MNCs). Over the past two to three decades, MNCs have sought locations worldwide that offer cost advantages for production, leading to the global organisation of production and markets. For example, Ford Motors in India produces cars not only for the Indian market but also exports to other developing countries and supplies components globally. This integration extends beyond goods to services, investments, and technology flows. While goods and services move freely, the movement of people between countries remains limited due to restrictions. The role of MNCs is central in globalisation, as they control production and trade across multiple countries, linking economies closely. Thus, globalisation represents a new phase of economic integration, making countries more interdependent than ever before.

📊 Diagram: GLOBALISATION AND THE INDIAN ECONOMY.

🧪 Activity: Answer questions on the role of MNCs and ways countries are linked; multiple-choice question on competition due to globalisation.

🔗 Connection: Explains factors enabling globalisation, starting with technology.