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mdian Eonomy
ch Globallsation and the

aHOSS he (outne
thyprDcluce
:Detun MNC How do
OR
finianed pmducu globatte
MNC L not ony seelung 1
and suvicesproduced
hut more Tmportant he goocts

globalyF
OR ays
organuedÎn complexo
MNCs
Procluchion by
Explau with Example produchon
0L ContoLs

A MNC a 0 Combany
that Owns
AA
han 0ne naion
Ymore pmduction tn
actvrnea for
2MNCs
set up oces aund laboun a n d ath
thty ca get Ch eap
Lheue
of þrductton
Hegions So that the C o s t
ThiA Ls done
H S DwCeA
eaAh qheat þoiA
louw and the MNCs can MNC
s
pmduction by an
SpHLading of duigns
3)or Ex ind ustrial
Equupmt
MNC, producing DS and then
A lage Centres
eseanchh chinaIhue
poduC un
manufactuted
Componena
has 1he
and Eastetn
Easton Ewtope
£utope
Mtxico
hen shipped to and h
the
e
are
wHL
a HL a4stm b led
autmbled

he pYDducs
l ove
aul
a the wonld
tht woMld
upheAe eA0ld s0tcd
producd CLAtontA caae is
caAe_s
ffnished CUAtOmta
the company' i
Meanwhle, e n t e s l o c a t e d

Call
thmugh
camitol olt
1tA
sttting ttu
udia
ex the MIC u hot only setting im/aoHtant
ant
m m ths
prvatucAglobalY,
but more imaoMt
ftviuhed
and sevices Ahe produceol glob a y
Hhe goods n
MesutproduCto
organiued
s a
APneasingly omplex ways
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d Dei mvestment and foreign mvstment

Ans The money that Lsspent t o buy aLse6 4uCh a4
Land 8uuitding machines and othes £quihmenk
Acalled mveAtment
mvestnment_ made_by MNCs s Called oreyn
mvestrment

3
POduckionun theue ordleu olspLsed locaions
s9elting intealinked explaw
OR
HOw do MINCA se upHhti pzoducHon un dirent
COuntes_
Ans> henease
vasietsouwaus in uahich MNCA aue
spHeacding the duchon by whch du peLd
Locaions 9ettinq mtuinked.
JOINT VeNTURE StHing up paxtesnhip alth
dithent Conub.aLRA
Buying Local ombantes aitu buyinguplotal
Conmpamies MACA_exbancd poducHion
Hh and we
lo ca companiesorsupbLtes
buying up puakhah foncls_by Caagil foncla
Pzoduchon smal nits i Thi mttho.d a
vea muc populas deuelopeol nattons 7h
2 boroluCE mad by sma x2oduceis
MLCAand then 1b Aupblied to
sotd undei theu_Oun
BHand names.

4 Houo dothe doca tonAbanies get benepit thngk-

MNCA!
The bentfit D MNC to
Os follouy 1ocalcombanLeA a
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the Benthit to the locaL0mbany foint

produCh on wo folcd
fiust MNCS CanpDVLdL ymoney tor addHonal
myestmenu uLe buying_heD machin es ~or
faste poduchion
gecond, MALCA might bing with them hu
Lat tattechnolo9y arpoducH0n

uhat i foxtfon trade _hat aML ii comhonent

preign tHade oHeLgn tuacde_CLLates an
nt OppDHkunty or the procluces4
Dregn trade e&ulti Ln (onnecing the aasket D
tegaouli on nmcske_in dilleuent couni7es
funcHoms e oeign tacls for prnduc
reign +ddA eeatts n obhoHtunitfpo he
pnducLAL_to each beuhnd HhedlomeAHc maHkel
1e M a s c s or thti _ouwn LOLLntnes
n
al BodALes can AUL theis bDAULA Dot only
maskeZ_Lo coLted oithin_the Lounty
hut can also
ofh e LOLntneA
m ae _maskett LocaAed_
onid

unchon_of forcign xaolo or

buyexa
o r he buye imbnito gocs bindued un
anoths_ouMAHLY_LA OMe way0 Ebandinq the
domesicay
bt QDnds heljond, ohat
Lhalce
brduced
the oheing 1brade anods
ixa vel faom
iHh
maikit to anofnLA CkoiLe 0f goods n
D ne
masKetA LAeS_

6Lohat is qlobaliiation_
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glubaliation tha processDf rapid. inbregation

6.Su Intesconnetton b ckwten Countnes
MNCs e plauinga major rnle
H e qlobaLatton paneA
ds ana SesLufces hVestmen tstechnolog
SeaoLinq betuoeen ountneA
BeLdes, tHhe move ment oqonds &eHVILRA
Mvesimtnts and teclanolequ the movement_
blealso connecing Hhe countnes

ohat uohat asAe tlu faroHs that have nabled

baAa HHon.
Rajnid movemnt_in technologs h0s bten majo
atnu that haselahled olobaliaHan

chnology Like mformakion and Lnpamunication

and_rans bortation has done e ma ukable
move b Enable alabaisatinn
LsinaII globalisa Hian-
neiA Ma02uhe bublushed r keadesu_u
Jandlon

L1he tet thaoL4Qh mtesnel sut to Dlhij

L0eAigniaq don AnOmpues

4tte brintingmaa1nSent b a s

TMonu anufoLMed thnuLghPankin

8 Define ubetalLation
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Remouinq BaALCLL Oh estncbias_LL by ThepLeIMent

Usallaat ukn.cuin as besaLiAatinn_
2 al t uheulLakion adade uL/nLAA aste_atlowedd
to 0makedeciAionanly aboul hat ihty Lwlh_to
mportA YExpor
LheLovement jmboseA bauc Less MeAlanchioru_ hn
hene d taee/ore saidtnbe_mnr LbeUL

9Pein Tode eaues

n imp0HtA A an _cxample Df trade BatAle
2 t u_caUed a BaHues becaL&e Some HAtncHons4
has bt e.n Alt up
bVeymen can e trade Baies to incALA_Oh
kinds
de aeade reon trade ano fo deude ahat
A0ods and ho Mudh eachshould co n

nlomd lzad_organiuaHon, 9% mpaut

10 Alhat u
Ad dúad) tsatakian4
organisation
ALTO 2t a n _ mEngoveamental
nequlaRA Mtennatnal
Tade
tact
a) u_establiahed in 199S And m present theae
_it
Ohe b4 countm es _membeuA

Riecs of nLrD a baAtial Though hTo

iALbposed to allow me trade fox alL but
üseen hat the deuetobed
M pratice, t
COuniries haue fauay Mttaunecl trade Basyie
ATD Hul haue oreeol deueopinq Counthlea
fo remOuL tade BaAsis
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mpact oglobaliatfon not wutom jon

all AD VANMGES)
obauatm and gmat ombtiian am.ong9
p roduce bstta toca ana forelgn podu
has been 6 Qdvantage to eonsu Mes
tu MNC hauL mueaked theL investment
u mda oveh the past a0 Veas wnLchmeans
mveting mdia has been beneioal for them
eU ed of the top mduan combanies haue
beenablt to henetit tpm-the_inoueaked
ComhhHon.
4 lo b.auuii ahon haA enabkd conme lasae mdioun
Lombonies to emeuge has multinarionala thtmstlvu_
egTata MotoHA
S LobaliA ation has also HtoLted neuo obhoHtuDiies
oY Dmbanlesb0uidinq AuiCeApasiculasty
hose involuing T

DISADYANTAGES CalegaHve inpact

Ihe Innbact of globaluatian u not Samt fon au
as Pople Lolith educatfon nd nn
oppoHuniHebut not the umeducated_ peohle
The condition o LOark and haxdship if the
workeA has become LOOHAe
3 abou Lauu aae notompely mblemented

Houo can uoe Heate_a fa globauatidn fo

all
au Globalisation onuud_cHealt opportuDitHes-
or and aua enaune that the benejiu
loballdation ase sh.aued bettts
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a e Govesiment CaMlay imaj0h MOlen malking

tLais bDsble 216p0lutismuaE o e t thi
LayieLeat28t on uy Lch and Hae poLaeul but
a Hh oeDple e LoLAzy
he Gol/eumenTL can enáuNe t a t 1abouh lauu
a 0220jotuLL imble menttcl and he uwbskeus
getatis ulaLu
t cau suphDtSmaLL 7procluceu to_imp2ow
helkbLforn2oncetheL ts ime they
oecomeStmng enouh t0 Comoete.
The qpueLment_ca e txad ano inveAtment
BauieA
can neg0tiat at thuKITOfor faue
ule
G t
can als D alLgn Hn_othe deeloping
CoLLntaA oiua similas qmip ret to_gut
domnatom0deulnbtd count mes
againát Hal
e_laL0_

3onesLNhy_ha
13 Athat aue special Economic
mey been sekup
OR
avaitasle th the
Explaunany uL facilites
Goverment
(SÉ2%_deuiopd by the
az/especlal_Pcononadc_g0ne
aLlhese
1 CE2s Lect aicity
20Hldclau faciuties ike_jatales
creation ducaion_
0adA andtranspDrt

o avis1 LA mdia.
companiës
They haue
)_They been Ret u To adrac fortlo n
Copnhaniesth_7nuest_uM adua
a Com hantes wih poduuCLOn_unLa_ tu
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9E2 do not hauefo beuytaxes r t h e

nitialpeiod SYeas
povesment hasalso alLaoedflexibiuu
mHat aboLA lauso atlract foreugm
invesitmtnt