Factors That Have Enabled Globalisation :
·    Technology
Rapid improvement in technology has been one major factor that has stimulated the globalisation process. For instance, the past fifty years have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs.
The development in information and communication technology. In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly. 
Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. As you would be aware, computers have now entered almost every field of activity. You might have also ventured into the amazing world of internet, where you can obtain and share information on almost anything, you want to know. Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.

Liberalisation of foreign trade and foreign investment policy
Let us come to the example of imports of Chinese toys in India. Suppose the Indian government puts a tax on import of toys. What would happen? Those who wish to import these toys would have to pay tax on-this... Because of the tax, buyers will have to pay a higher price on imported toys. Chinese toys will no longer be as cheap in the Indian markets and imports from China will automatically reduce. Indian toy-makers will prosper.
Tax on imports is an example of trade barrier. It is called a barrier because some restriction has been set up. Governments can use trade barriers to increase or decrease (regulate) 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. 
This was considered necessary 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.
Starting around 1991, some far-reaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe. 

It felt that competition would improve the performance of producers within the country since they would have to improve their quality. This decision was supported by powerful international organisations.
Thus, barriers on foreign trade and foreign investment were removed to a large extent.
This meant that goods could be imported and exported easily and also foreign companies could set up factories and offices here.
Removing barriers or restrictions set by the government is what is known as  liberalisation. 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.

·    World Trade Organization
We have seen that the liberalisation of foreign trade and investment in India was supported by some very powerful international organisations. These organisations say that all barriers to foreign trade and investment are harmful. There should be no barriers. Trade between countries should be ‘free’. All countries in the world should liberalise their policies.
World Trade Organisation (WTO) is one such organisation whose aim is to liberalise international trade. Started at the initiative of the developed countries, WTO establishes rules regarding international trade, and sees that these rules are obeyed. 149 countries of the world are currently members of the WTO (2006).
Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers. An example of this is the current debate on trade in agricultural products (cotton).

Impact of Globalization in India :
Globalisation and greater competition among producers - both local and foreign producers - has been of advantage to consumers, particularly the well-off sections in the urban areas.
There is greater choice before these consumers who now enjoy improved quality and lower prices for several products.
As a result, these people today, enjoy much higher standards of living than was possible earlier.
Among producers and workers, the impact of globalisation has not been uniform.
Firstly, MNCs have increased their investments in India over the past 15 years, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas.
These products have a large number of well-off buyers. In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc. to these industries have prospered.
Secondly, several of the top Indian companies have been able to benefit from the increased competition. They have invested in newer technology and production methods and raised their production standards.
Some have gained from successful collaborations with foreign companies.
Globalisation has enabled some large Indian companies to emerge as multinationals themselves. Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts and bolts) are some Indian companies which are spreading their operations worldwide.

Globalisation has also created new opportunities for companies providing services, particularly those involving IT. The Indian company producing a magazine for the London based company and call centres are some examples. Besides, a host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in countries such as India and are exported to the developed countries.

Small producers: Compete or perish
For a large number of small producers and workers globalisation has posed major challenges.
Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to competition. Several of the units have shut down rendering many workers jobless.

Competition and Uncertain Employment
Globalisation and the pressure of competition have substantially changed the lives of workers. Faced with growing competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers jobs are no longer secure.
The conditions of work and the hardships of the workers described above have become common to many industrial units and services in India. Most workers, today, are employed In the unorganised sector. Moreover, increasingly conditions of work in the organised sector have come to resemble the unorganised sector. Workers in the organised sector no longer get the protection and benefits that they enjoyed earlier.

The Struggle for a fair Globalisation :
The above evidence indicates that not everyone has benefited from globalisation. People with education, skill and wealth have made the best use of the new opportunities. On the other hand, there are many people who have not shared the benefits.
·    Since globalisation is now a reality, the question is how to make globalisation more fair? Fair globalisation would create opportunities for all, and              also ensure that the benefits of globalisation are shared better.
·    The government can play a major role in making this possible. Its policies must protect the interests, not only of the rich and the powerful, but all the         people in the country.
        For instance, the government can ensure that labour laws are properly implemented and the workers get their rights.
·    It can support small producers to improve their performance till the time they become strong enough to compete.
·    If necessary, the government can use trade and investment barriers. It can negotiate at the WTO for ‘fairer rules’. 
·    It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.
In the past few years, massive campaigns and representation by people’s organisations have influenced important decisions relating to trade and investments at the WTO. This has demonstrated that people also can play an important role in the struggle for fair globalisation.

Illustration 5
  
 Which factors are responsible for bringing MNC’s to India?
Solution
 
   (i)    India has highly skilled engineers who can understand technical aspects of production.
    (ii)    India also has educated youth who can provide customer care services.

Illustration 6
    
Which are the considerations of MNC for setting up production?
Solution
  
 (i)    Closeness to markets
    (ii)    Skilled and unskilled labour at low cost.
    (iii)    Availability of other factors of production on like raw material, water, power etc.
    (iv)    Government policies

Illustration 7
  
 What is Investment?
Solution
  
 Money spent to buy asset, such as land, building, machines and other equipment is called investment. It is done with a hope of earning profits.


 

Factors That Have Enabled Globalisation :
·    Technology
Rapid improvement in technology has been one major factor that has stimulated the globalisation process. For instance, the past fifty years have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs.
The development in information and communication technology. In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly. 
Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. As you would be aware, computers have now entered almost every field of activity. You might have also ventured into the amazing world of internet, where you can obtain and share information on almost anything, you want to know. Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.

Liberalisation of foreign trade and foreign investment policy
Let us come to the example of imports of Chinese toys in India. Suppose the Indian government puts a tax on import of toys. What would happen? Those who wish to import these toys would have to pay tax on-this... Because of the tax, buyers will have to pay a higher price on imported toys. Chinese toys will no longer be as cheap in the Indian markets and imports from China will automatically reduce. Indian toy-makers will prosper.
Tax on imports is an example of trade barrier. It is called a barrier because some restriction has been set up. Governments can use trade barriers to increase or decrease (regulate) 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. 
This was considered necessary 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.
Starting around 1991, some far-reaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe. 

It felt that competition would improve the performance of producers within the country since they would have to improve their quality. This decision was supported by powerful international organisations.
Thus, barriers on foreign trade and foreign investment were removed to a large extent.
This meant that goods could be imported and exported easily and also foreign companies could set up factories and offices here.
Removing barriers or restrictions set by the government is what is known as  liberalisation. 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.

·    World Trade Organization
We have seen that the liberalisation of foreign trade and investment in India was supported by some very powerful international organisations. These organisations say that all barriers to foreign trade and investment are harmful. There should be no barriers. Trade between countries should be ‘free’. All countries in the world should liberalise their policies.
World Trade Organisation (WTO) is one such organisation whose aim is to liberalise international trade. Started at the initiative of the developed countries, WTO establishes rules regarding international trade, and sees that these rules are obeyed. 149 countries of the world are currently members of the WTO (2006).
Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers. An example of this is the current debate on trade in agricultural products (cotton).

Impact of Globalization in India :
Globalisation and greater competition among producers - both local and foreign producers - has been of advantage to consumers, particularly the well-off sections in the urban areas.
There is greater choice before these consumers who now enjoy improved quality and lower prices for several products.
As a result, these people today, enjoy much higher standards of living than was possible earlier.
Among producers and workers, the impact of globalisation has not been uniform.
Firstly, MNCs have increased their investments in India over the past 15 years, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas.
These products have a large number of well-off buyers. In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc. to these industries have prospered.
Secondly, several of the top Indian companies have been able to benefit from the increased competition. They have invested in newer technology and production methods and raised their production standards.
Some have gained from successful collaborations with foreign companies.
Globalisation has enabled some large Indian companies to emerge as multinationals themselves. Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts and bolts) are some Indian companies which are spreading their operations worldwide.

Globalisation has also created new opportunities for companies providing services, particularly those involving IT. The Indian company producing a magazine for the London based company and call centres are some examples. Besides, a host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in countries such as India and are exported to the developed countries.

Small producers: Compete or perish
For a large number of small producers and workers globalisation has posed major challenges.
Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to competition. Several of the units have shut down rendering many workers jobless.

Competition and Uncertain Employment
Globalisation and the pressure of competition have substantially changed the lives of workers. Faced with growing competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers jobs are no longer secure.
The conditions of work and the hardships of the workers described above have become common to many industrial units and services in India. Most workers, today, are employed In the unorganised sector. Moreover, increasingly conditions of work in the organised sector have come to resemble the unorganised sector. Workers in the organised sector no longer get the protection and benefits that they enjoyed earlier.

The Struggle for a fair Globalisation :
The above evidence indicates that not everyone has benefited from globalisation. People with education, skill and wealth have made the best use of the new opportunities. On the other hand, there are many people who have not shared the benefits.
·    Since globalisation is now a reality, the question is how to make globalisation more fair? Fair globalisation would create opportunities for all, and              also ensure that the benefits of globalisation are shared better.
·    The government can play a major role in making this possible. Its policies must protect the interests, not only of the rich and the powerful, but all the         people in the country.
        For instance, the government can ensure that labour laws are properly implemented and the workers get their rights.
·    It can support small producers to improve their performance till the time they become strong enough to compete.
·    If necessary, the government can use trade and investment barriers. It can negotiate at the WTO for ‘fairer rules’. 
·    It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.
In the past few years, massive campaigns and representation by people’s organisations have influenced important decisions relating to trade and investments at the WTO. This has demonstrated that people also can play an important role in the struggle for fair globalisation.

Illustration 5
  
 Which factors are responsible for bringing MNC’s to India?
Solution
 
   (i)    India has highly skilled engineers who can understand technical aspects of production.
    (ii)    India also has educated youth who can provide customer care services.

Illustration 6
    
Which are the considerations of MNC for setting up production?
Solution
  
 (i)    Closeness to markets
    (ii)    Skilled and unskilled labour at low cost.
    (iii)    Availability of other factors of production on like raw material, water, power etc.
    (iv)    Government policies

Illustration 7
  
 What is Investment?
Solution
  
 Money spent to buy asset, such as land, building, machines and other equipment is called investment. It is done with a hope of earning profits.


 

Factors That Have Enabled Globalisation :
·    Technology
Rapid improvement in technology has been one major factor that has stimulated the globalisation process. For instance, the past fifty years have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs.
The development in information and communication technology. In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly. 
Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. As you would be aware, computers have now entered almost every field of activity. You might have also ventured into the amazing world of internet, where you can obtain and share information on almost anything, you want to know. Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.

Liberalisation of foreign trade and foreign investment policy
Let us come to the example of imports of Chinese toys in India. Suppose the Indian government puts a tax on import of toys. What would happen? Those who wish to import these toys would have to pay tax on-this... Because of the tax, buyers will have to pay a higher price on imported toys. Chinese toys will no longer be as cheap in the Indian markets and imports from China will automatically reduce. Indian toy-makers will prosper.
Tax on imports is an example of trade barrier. It is called a barrier because some restriction has been set up. Governments can use trade barriers to increase or decrease (regulate) 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. 
This was considered necessary 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.
Starting around 1991, some far-reaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe. 

It felt that competition would improve the performance of producers within the country since they would have to improve their quality. This decision was supported by powerful international organisations.
Thus, barriers on foreign trade and foreign investment were removed to a large extent.
This meant that goods could be imported and exported easily and also foreign companies could set up factories and offices here.
Removing barriers or restrictions set by the government is what is known as  liberalisation. 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.

·    World Trade Organization
We have seen that the liberalisation of foreign trade and investment in India was supported by some very powerful international organisations. These organisations say that all barriers to foreign trade and investment are harmful. There should be no barriers. Trade between countries should be ‘free’. All countries in the world should liberalise their policies.
World Trade Organisation (WTO) is one such organisation whose aim is to liberalise international trade. Started at the initiative of the developed countries, WTO establishes rules regarding international trade, and sees that these rules are obeyed. 149 countries of the world are currently members of the WTO (2006).
Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers. An example of this is the current debate on trade in agricultural products (cotton).

Impact of Globalization in India :
Globalisation and greater competition among producers - both local and foreign producers - has been of advantage to consumers, particularly the well-off sections in the urban areas.
There is greater choice before these consumers who now enjoy improved quality and lower prices for several products.
As a result, these people today, enjoy much higher standards of living than was possible earlier.
Among producers and workers, the impact of globalisation has not been uniform.
Firstly, MNCs have increased their investments in India over the past 15 years, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas.
These products have a large number of well-off buyers. In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc. to these industries have prospered.
Secondly, several of the top Indian companies have been able to benefit from the increased competition. They have invested in newer technology and production methods and raised their production standards.
Some have gained from successful collaborations with foreign companies.
Globalisation has enabled some large Indian companies to emerge as multinationals themselves. Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts and bolts) are some Indian companies which are spreading their operations worldwide.

Globalisation has also created new opportunities for companies providing services, particularly those involving IT. The Indian company producing a magazine for the London based company and call centres are some examples. Besides, a host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in countries such as India and are exported to the developed countries.

Small producers: Compete or perish
For a large number of small producers and workers globalisation has posed major challenges.
Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to competition. Several of the units have shut down rendering many workers jobless.

Competition and Uncertain Employment
Globalisation and the pressure of competition have substantially changed the lives of workers. Faced with growing competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers jobs are no longer secure.
The conditions of work and the hardships of the workers described above have become common to many industrial units and services in India. Most workers, today, are employed In the unorganised sector. Moreover, increasingly conditions of work in the organised sector have come to resemble the unorganised sector. Workers in the organised sector no longer get the protection and benefits that they enjoyed earlier.

The Struggle for a fair Globalisation :
The above evidence indicates that not everyone has benefited from globalisation. People with education, skill and wealth have made the best use of the new opportunities. On the other hand, there are many people who have not shared the benefits.
·    Since globalisation is now a reality, the question is how to make globalisation more fair? Fair globalisation would create opportunities for all, and              also ensure that the benefits of globalisation are shared better.
·    The government can play a major role in making this possible. Its policies must protect the interests, not only of the rich and the powerful, but all the         people in the country.
        For instance, the government can ensure that labour laws are properly implemented and the workers get their rights.
·    It can support small producers to improve their performance till the time they become strong enough to compete.
·    If necessary, the government can use trade and investment barriers. It can negotiate at the WTO for ‘fairer rules’. 
·    It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.
In the past few years, massive campaigns and representation by people’s organisations have influenced important decisions relating to trade and investments at the WTO. This has demonstrated that people also can play an important role in the struggle for fair globalisation.

Illustration 5
  
 Which factors are responsible for bringing MNC’s to India?
Solution
 
   (i)    India has highly skilled engineers who can understand technical aspects of production.
    (ii)    India also has educated youth who can provide customer care services.

Illustration 6
    
Which are the considerations of MNC for setting up production?
Solution
  
 (i)    Closeness to markets
    (ii)    Skilled and unskilled labour at low cost.
    (iii)    Availability of other factors of production on like raw material, water, power etc.
    (iv)    Government policies

Illustration 7
  
 What is Investment?
Solution
  
 Money spent to buy asset, such as land, building, machines and other equipment is called investment. It is done with a hope of earning profits.


 

Factors That Have Enabled Globalisation :
·    Technology
Rapid improvement in technology has been one major factor that has stimulated the globalisation process. For instance, the past fifty years have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs.
The development in information and communication technology. In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly. 
Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. As you would be aware, computers have now entered almost every field of activity. You might have also ventured into the amazing world of internet, where you can obtain and share information on almost anything, you want to know. Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.

Liberalisation of foreign trade and foreign investment policy
Let us come to the example of imports of Chinese toys in India. Suppose the Indian government puts a tax on import of toys. What would happen? Those who wish to import these toys would have to pay tax on-this... Because of the tax, buyers will have to pay a higher price on imported toys. Chinese toys will no longer be as cheap in the Indian markets and imports from China will automatically reduce. Indian toy-makers will prosper.
Tax on imports is an example of trade barrier. It is called a barrier because some restriction has been set up. Governments can use trade barriers to increase or decrease (regulate) 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. 
This was considered necessary 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.
Starting around 1991, some far-reaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe. 

It felt that competition would improve the performance of producers within the country since they would have to improve their quality. This decision was supported by powerful international organisations.
Thus, barriers on foreign trade and foreign investment were removed to a large extent.
This meant that goods could be imported and exported easily and also foreign companies could set up factories and offices here.
Removing barriers or restrictions set by the government is what is known as  liberalisation. 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.

·    World Trade Organization
We have seen that the liberalisation of foreign trade and investment in India was supported by some very powerful international organisations. These organisations say that all barriers to foreign trade and investment are harmful. There should be no barriers. Trade between countries should be ‘free’. All countries in the world should liberalise their policies.
World Trade Organisation (WTO) is one such organisation whose aim is to liberalise international trade. Started at the initiative of the developed countries, WTO establishes rules regarding international trade, and sees that these rules are obeyed. 149 countries of the world are currently members of the WTO (2006).
Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers. An example of this is the current debate on trade in agricultural products (cotton).

Impact of Globalization in India :
Globalisation and greater competition among producers - both local and foreign producers - has been of advantage to consumers, particularly the well-off sections in the urban areas.
There is greater choice before these consumers who now enjoy improved quality and lower prices for several products.
As a result, these people today, enjoy much higher standards of living than was possible earlier.
Among producers and workers, the impact of globalisation has not been uniform.
Firstly, MNCs have increased their investments in India over the past 15 years, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas.
These products have a large number of well-off buyers. In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc. to these industries have prospered.
Secondly, several of the top Indian companies have been able to benefit from the increased competition. They have invested in newer technology and production methods and raised their production standards.
Some have gained from successful collaborations with foreign companies.
Globalisation has enabled some large Indian companies to emerge as multinationals themselves. Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts and bolts) are some Indian companies which are spreading their operations worldwide.

Globalisation has also created new opportunities for companies providing services, particularly those involving IT. The Indian company producing a magazine for the London based company and call centres are some examples. Besides, a host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in countries such as India and are exported to the developed countries.

Small producers: Compete or perish
For a large number of small producers and workers globalisation has posed major challenges.
Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to competition. Several of the units have shut down rendering many workers jobless.

Competition and Uncertain Employment
Globalisation and the pressure of competition have substantially changed the lives of workers. Faced with growing competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers jobs are no longer secure.
The conditions of work and the hardships of the workers described above have become common to many industrial units and services in India. Most workers, today, are employed In the unorganised sector. Moreover, increasingly conditions of work in the organised sector have come to resemble the unorganised sector. Workers in the organised sector no longer get the protection and benefits that they enjoyed earlier.

The Struggle for a fair Globalisation :
The above evidence indicates that not everyone has benefited from globalisation. People with education, skill and wealth have made the best use of the new opportunities. On the other hand, there are many people who have not shared the benefits.
·    Since globalisation is now a reality, the question is how to make globalisation more fair? Fair globalisation would create opportunities for all, and              also ensure that the benefits of globalisation are shared better.
·    The government can play a major role in making this possible. Its policies must protect the interests, not only of the rich and the powerful, but all the         people in the country.
        For instance, the government can ensure that labour laws are properly implemented and the workers get their rights.
·    It can support small producers to improve their performance till the time they become strong enough to compete.
·    If necessary, the government can use trade and investment barriers. It can negotiate at the WTO for ‘fairer rules’. 
·    It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.
In the past few years, massive campaigns and representation by people’s organisations have influenced important decisions relating to trade and investments at the WTO. This has demonstrated that people also can play an important role in the struggle for fair globalisation.

Illustration 5
  
 Which factors are responsible for bringing MNC’s to India?
Solution
 
   (i)    India has highly skilled engineers who can understand technical aspects of production.
    (ii)    India also has educated youth who can provide customer care services.

Illustration 6
    
Which are the considerations of MNC for setting up production?
Solution
  
 (i)    Closeness to markets
    (ii)    Skilled and unskilled labour at low cost.
    (iii)    Availability of other factors of production on like raw material, water, power etc.
    (iv)    Government policies

Illustration 7
  
 What is Investment?
Solution
  
 Money spent to buy asset, such as land, building, machines and other equipment is called investment. It is done with a hope of earning profits.


 

Factors That Have Enabled Globalisation :
·    Technology
Rapid improvement in technology has been one major factor that has stimulated the globalisation process. For instance, the past fifty years have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs.
The development in information and communication technology. In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly. 
Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. As you would be aware, computers have now entered almost every field of activity. You might have also ventured into the amazing world of internet, where you can obtain and share information on almost anything, you want to know. Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.

Liberalisation of foreign trade and foreign investment policy
Let us come to the example of imports of Chinese toys in India. Suppose the Indian government puts a tax on import of toys. What would happen? Those who wish to import these toys would have to pay tax on-this... Because of the tax, buyers will have to pay a higher price on imported toys. Chinese toys will no longer be as cheap in the Indian markets and imports from China will automatically reduce. Indian toy-makers will prosper.
Tax on imports is an example of trade barrier. It is called a barrier because some restriction has been set up. Governments can use trade barriers to increase or decrease (regulate) 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. 
This was considered necessary 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.
Starting around 1991, some far-reaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe. 

It felt that competition would improve the performance of producers within the country since they would have to improve their quality. This decision was supported by powerful international organisations.
Thus, barriers on foreign trade and foreign investment were removed to a large extent.
This meant that goods could be imported and exported easily and also foreign companies could set up factories and offices here.
Removing barriers or restrictions set by the government is what is known as  liberalisation. 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.

·    World Trade Organization
We have seen that the liberalisation of foreign trade and investment in India was supported by some very powerful international organisations. These organisations say that all barriers to foreign trade and investment are harmful. There should be no barriers. Trade between countries should be ‘free’. All countries in the world should liberalise their policies.
World Trade Organisation (WTO) is one such organisation whose aim is to liberalise international trade. Started at the initiative of the developed countries, WTO establishes rules regarding international trade, and sees that these rules are obeyed. 149 countries of the world are currently members of the WTO (2006).
Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers. An example of this is the current debate on trade in agricultural products (cotton).

Impact of Globalization in India :
Globalisation and greater competition among producers - both local and foreign producers - has been of advantage to consumers, particularly the well-off sections in the urban areas.
There is greater choice before these consumers who now enjoy improved quality and lower prices for several products.
As a result, these people today, enjoy much higher standards of living than was possible earlier.
Among producers and workers, the impact of globalisation has not been uniform.
Firstly, MNCs have increased their investments in India over the past 15 years, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas.
These products have a large number of well-off buyers. In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc. to these industries have prospered.
Secondly, several of the top Indian companies have been able to benefit from the increased competition. They have invested in newer technology and production methods and raised their production standards.
Some have gained from successful collaborations with foreign companies.
Globalisation has enabled some large Indian companies to emerge as multinationals themselves. Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts and bolts) are some Indian companies which are spreading their operations worldwide.

Globalisation has also created new opportunities for companies providing services, particularly those involving IT. The Indian company producing a magazine for the London based company and call centres are some examples. Besides, a host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in countries such as India and are exported to the developed countries.

Small producers: Compete or perish
For a large number of small producers and workers globalisation has posed major challenges.
Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to competition. Several of the units have shut down rendering many workers jobless.

Competition and Uncertain Employment
Globalisation and the pressure of competition have substantially changed the lives of workers. Faced with growing competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers jobs are no longer secure.
The conditions of work and the hardships of the workers described above have become common to many industrial units and services in India. Most workers, today, are employed In the unorganised sector. Moreover, increasingly conditions of work in the organised sector have come to resemble the unorganised sector. Workers in the organised sector no longer get the protection and benefits that they enjoyed earlier.

The Struggle for a fair Globalisation :
The above evidence indicates that not everyone has benefited from globalisation. People with education, skill and wealth have made the best use of the new opportunities. On the other hand, there are many people who have not shared the benefits.
·    Since globalisation is now a reality, the question is how to make globalisation more fair? Fair globalisation would create opportunities for all, and              also ensure that the benefits of globalisation are shared better.
·    The government can play a major role in making this possible. Its policies must protect the interests, not only of the rich and the powerful, but all the         people in the country.
        For instance, the government can ensure that labour laws are properly implemented and the workers get their rights.
·    It can support small producers to improve their performance till the time they become strong enough to compete.
·    If necessary, the government can use trade and investment barriers. It can negotiate at the WTO for ‘fairer rules’. 
·    It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.
In the past few years, massive campaigns and representation by people’s organisations have influenced important decisions relating to trade and investments at the WTO. This has demonstrated that people also can play an important role in the struggle for fair globalisation.

Illustration 5
  
 Which factors are responsible for bringing MNC’s to India?
Solution
 
   (i)    India has highly skilled engineers who can understand technical aspects of production.
    (ii)    India also has educated youth who can provide customer care services.

Illustration 6
    
Which are the considerations of MNC for setting up production?
Solution
  
 (i)    Closeness to markets
    (ii)    Skilled and unskilled labour at low cost.
    (iii)    Availability of other factors of production on like raw material, water, power etc.
    (iv)    Government policies

Illustration 7
  
 What is Investment?
Solution
  
 Money spent to buy asset, such as land, building, machines and other equipment is called investment. It is done with a hope of earning profits.


 

Factors That Have Enabled Globalisation :
·    Technology
Rapid improvement in technology has been one major factor that has stimulated the globalisation process. For instance, the past fifty years have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs.
The development in information and communication technology. In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly. 
Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. As you would be aware, computers have now entered almost every field of activity. You might have also ventured into the amazing world of internet, where you can obtain and share information on almost anything, you want to know. Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.

Liberalisation of foreign trade and foreign investment policy
Let us come to the example of imports of Chinese toys in India. Suppose the Indian government puts a tax on import of toys. What would happen? Those who wish to import these toys would have to pay tax on-this... Because of the tax, buyers will have to pay a higher price on imported toys. Chinese toys will no longer be as cheap in the Indian markets and imports from China will automatically reduce. Indian toy-makers will prosper.
Tax on imports is an example of trade barrier. It is called a barrier because some restriction has been set up. Governments can use trade barriers to increase or decrease (regulate) 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. 
This was considered necessary 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.
Starting around 1991, some far-reaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe. 

It felt that competition would improve the performance of producers within the country since they would have to improve their quality. This decision was supported by powerful international organisations.
Thus, barriers on foreign trade and foreign investment were removed to a large extent.
This meant that goods could be imported and exported easily and also foreign companies could set up factories and offices here.
Removing barriers or restrictions set by the government is what is known as  liberalisation. 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.

·    World Trade Organization
We have seen that the liberalisation of foreign trade and investment in India was supported by some very powerful international organisations. These organisations say that all barriers to foreign trade and investment are harmful. There should be no barriers. Trade between countries should be ‘free’. All countries in the world should liberalise their policies.
World Trade Organisation (WTO) is one such organisation whose aim is to liberalise international trade. Started at the initiative of the developed countries, WTO establishes rules regarding international trade, and sees that these rules are obeyed. 149 countries of the world are currently members of the WTO (2006).
Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers. An example of this is the current debate on trade in agricultural products (cotton).

Impact of Globalization in India :
Globalisation and greater competition among producers - both local and foreign producers - has been of advantage to consumers, particularly the well-off sections in the urban areas.
There is greater choice before these consumers who now enjoy improved quality and lower prices for several products.
As a result, these people today, enjoy much higher standards of living than was possible earlier.
Among producers and workers, the impact of globalisation has not been uniform.
Firstly, MNCs have increased their investments in India over the past 15 years, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas.
These products have a large number of well-off buyers. In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc. to these industries have prospered.
Secondly, several of the top Indian companies have been able to benefit from the increased competition. They have invested in newer technology and production methods and raised their production standards.
Some have gained from successful collaborations with foreign companies.
Globalisation has enabled some large Indian companies to emerge as multinationals themselves. Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts and bolts) are some Indian companies which are spreading their operations worldwide.

Globalisation has also created new opportunities for companies providing services, particularly those involving IT. The Indian company producing a magazine for the London based company and call centres are some examples. Besides, a host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in countries such as India and are exported to the developed countries.

Small producers: Compete or perish
For a large number of small producers and workers globalisation has posed major challenges.
Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to competition. Several of the units have shut down rendering many workers jobless.

Competition and Uncertain Employment
Globalisation and the pressure of competition have substantially changed the lives of workers. Faced with growing competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers jobs are no longer secure.
The conditions of work and the hardships of the workers described above have become common to many industrial units and services in India. Most workers, today, are employed In the unorganised sector. Moreover, increasingly conditions of work in the organised sector have come to resemble the unorganised sector. Workers in the organised sector no longer get the protection and benefits that they enjoyed earlier.

The Struggle for a fair Globalisation :
The above evidence indicates that not everyone has benefited from globalisation. People with education, skill and wealth have made the best use of the new opportunities. On the other hand, there are many people who have not shared the benefits.
·    Since globalisation is now a reality, the question is how to make globalisation more fair? Fair globalisation would create opportunities for all, and              also ensure that the benefits of globalisation are shared better.
·    The government can play a major role in making this possible. Its policies must protect the interests, not only of the rich and the powerful, but all the         people in the country.
        For instance, the government can ensure that labour laws are properly implemented and the workers get their rights.
·    It can support small producers to improve their performance till the time they become strong enough to compete.
·    If necessary, the government can use trade and investment barriers. It can negotiate at the WTO for ‘fairer rules’. 
·    It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.
In the past few years, massive campaigns and representation by people’s organisations have influenced important decisions relating to trade and investments at the WTO. This has demonstrated that people also can play an important role in the struggle for fair globalisation.

Illustration 5
  
 Which factors are responsible for bringing MNC’s to India?
Solution
 
   (i)    India has highly skilled engineers who can understand technical aspects of production.
    (ii)    India also has educated youth who can provide customer care services.

Illustration 6
    
Which are the considerations of MNC for setting up production?
Solution
  
 (i)    Closeness to markets
    (ii)    Skilled and unskilled labour at low cost.
    (iii)    Availability of other factors of production on like raw material, water, power etc.
    (iv)    Government policies

Illustration 7
  
 What is Investment?
Solution
  
 Money spent to buy asset, such as land, building, machines and other equipment is called investment. It is done with a hope of earning profits.


 

Factors That Have Enabled Globalisation :
·    Technology
Rapid improvement in technology has been one major factor that has stimulated the globalisation process. For instance, the past fifty years have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs.
The development in information and communication technology. In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly. 
Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. As you would be aware, computers have now entered almost every field of activity. You might have also ventured into the amazing world of internet, where you can obtain and share information on almost anything, you want to know. Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.

Liberalisation of foreign trade and foreign investment policy
Let us come to the example of imports of Chinese toys in India. Suppose the Indian government puts a tax on import of toys. What would happen? Those who wish to import these toys would have to pay tax on-this... Because of the tax, buyers will have to pay a higher price on imported toys. Chinese toys will no longer be as cheap in the Indian markets and imports from China will automatically reduce. Indian toy-makers will prosper.
Tax on imports is an example of trade barrier. It is called a barrier because some restriction has been set up. Governments can use trade barriers to increase or decrease (regulate) 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. 
This was considered necessary 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.
Starting around 1991, some far-reaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe. 

It felt that competition would improve the performance of producers within the country since they would have to improve their quality. This decision was supported by powerful international organisations.
Thus, barriers on foreign trade and foreign investment were removed to a large extent.
This meant that goods could be imported and exported easily and also foreign companies could set up factories and offices here.
Removing barriers or restrictions set by the government is what is known as  liberalisation. 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.

·    World Trade Organization
We have seen that the liberalisation of foreign trade and investment in India was supported by some very powerful international organisations. These organisations say that all barriers to foreign trade and investment are harmful. There should be no barriers. Trade between countries should be ‘free’. All countries in the world should liberalise their policies.
World Trade Organisation (WTO) is one such organisation whose aim is to liberalise international trade. Started at the initiative of the developed countries, WTO establishes rules regarding international trade, and sees that these rules are obeyed. 149 countries of the world are currently members of the WTO (2006).
Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers. An example of this is the current debate on trade in agricultural products (cotton).

Impact of Globalization in India :
Globalisation and greater competition among producers - both local and foreign producers - has been of advantage to consumers, particularly the well-off sections in the urban areas.
There is greater choice before these consumers who now enjoy improved quality and lower prices for several products.
As a result, these people today, enjoy much higher standards of living than was possible earlier.
Among producers and workers, the impact of globalisation has not been uniform.
Firstly, MNCs have increased their investments in India over the past 15 years, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas.
These products have a large number of well-off buyers. In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc. to these industries have prospered.
Secondly, several of the top Indian companies have been able to benefit from the increased competition. They have invested in newer technology and production methods and raised their production standards.
Some have gained from successful collaborations with foreign companies.
Globalisation has enabled some large Indian companies to emerge as multinationals themselves. Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts and bolts) are some Indian companies which are spreading their operations worldwide.

Globalisation has also created new opportunities for companies providing services, particularly those involving IT. The Indian company producing a magazine for the London based company and call centres are some examples. Besides, a host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in countries such as India and are exported to the developed countries.

Small producers: Compete or perish
For a large number of small producers and workers globalisation has posed major challenges.
Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to competition. Several of the units have shut down rendering many workers jobless.

Competition and Uncertain Employment
Globalisation and the pressure of competition have substantially changed the lives of workers. Faced with growing competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers jobs are no longer secure.
The conditions of work and the hardships of the workers described above have become common to many industrial units and services in India. Most workers, today, are employed In the unorganised sector. Moreover, increasingly conditions of work in the organised sector have come to resemble the unorganised sector. Workers in the organised sector no longer get the protection and benefits that they enjoyed earlier.

The Struggle for a fair Globalisation :
The above evidence indicates that not everyone has benefited from globalisation. People with education, skill and wealth have made the best use of the new opportunities. On the other hand, there are many people who have not shared the benefits.
·    Since globalisation is now a reality, the question is how to make globalisation more fair? Fair globalisation would create opportunities for all, and              also ensure that the benefits of globalisation are shared better.
·    The government can play a major role in making this possible. Its policies must protect the interests, not only of the rich and the powerful, but all the         people in the country.
        For instance, the government can ensure that labour laws are properly implemented and the workers get their rights.
·    It can support small producers to improve their performance till the time they become strong enough to compete.
·    If necessary, the government can use trade and investment barriers. It can negotiate at the WTO for ‘fairer rules’. 
·    It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.
In the past few years, massive campaigns and representation by people’s organisations have influenced important decisions relating to trade and investments at the WTO. This has demonstrated that people also can play an important role in the struggle for fair globalisation.

Illustration 5
  
 Which factors are responsible for bringing MNC’s to India?
Solution
 
   (i)    India has highly skilled engineers who can understand technical aspects of production.
    (ii)    India also has educated youth who can provide customer care services.

Illustration 6
    
Which are the considerations of MNC for setting up production?
Solution
  
 (i)    Closeness to markets
    (ii)    Skilled and unskilled labour at low cost.
    (iii)    Availability of other factors of production on like raw material, water, power etc.
    (iv)    Government policies

Illustration 7
  
 What is Investment?
Solution
  
 Money spent to buy asset, such as land, building, machines and other equipment is called investment. It is done with a hope of earning profits.