What are Globalisation and the Indian Economy?

Globalisation
Globalisation can be defined as the integration between countries through
foreign trade and foreign investments by multinational corporations (MNCs).
Today’s markets are consumers’ paradise
We as consumers have a wide variety of products available for our
requirements. Smart watches, smart mobile phones, smart cars, smart fridges
have all become the reality of today. We have a large number of choices
available in almost all the products. This was not so before two decades ago.
MNCs
 An MNC is a company that owns or controls production in more than one
nation.
 The advent of MNCs or Multinational Corporations made a wide variety of
choices possible for the consumers.
 An MNC decides about establishing production facility in any country on the
basis of availability of cheap raw material, availability of cheap and quality
labour force and proximity to the markets.
Modes of foreign investment by MNCs
 By establishing production facilities itself.
 By purchasing an existing factory.
 By outsourcing or entering into joint venture with some existing company.
Integration of economies
Foreign trade and foreign investments have integrated the economies of the
world. By making available the same products all over the globe or the
availability of same product in various countries leads to price equilibrium,
foreign trade and foreign investments which signifies the integration of the
economies of the world.
Globalisation is the process of integration of economies of the world in which
MNCs play a vital role. These MNCs, by developing their economic interests in
more than one country, sourcing their resources from various countries and
supplying their products to various countries, have truly proved to be a great
integrating force.
 Forces influencing globalisation
 Technology, especially communication and transportation technologies.
 Liberalisation policies.
 International institutions like the WTO.