💳 Class 10 Economics Chapter 4 – Globalisation and the Indian Economy

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In this chapter, we’ll understand how globalisation connects countries, how it impacts our economy, and how multinational companies (MNCs) operate in India and around the world.

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🌍 I. What is Globalisation?

Globalisation refers to the process of integration and interaction among countries. It involves:

• Exchange of goods and services

• Movement of people and ideas

• Flow of capital and investments

✅ The world becomes a global village, where countries are economically connected.

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🏢 II. Role of Multinational Corporations (MNCs)

MNCs are companies that set up offices or factories in more than one country.

How MNCs operate:

• Setup production where labor is cheap

• Sell goods worldwide

• Invest capital and technology in other countries

Example:

• A US-based MNC may produce shirts in India and sell them globally

✅ MNCs aim to maximize profits by reducing costs and expanding markets

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🔁 III. Ways of Spreading Production

MNCs spread production through:

1. Joint ventures with local companies

2. Buying local companies

3. Outsourcing work to local suppliers

4. Setting up own factories or offices in other countries

✅ This creates global production networks

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🛣️ IV. Interlinking Production Across Countries

• A single product may have components made in multiple countries

• Example: A car might be designed in Germany, parts made in India, and assembled in Japan

➡️ Globalisation results in interconnected economies

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🚀 V. Factors that Enabled Globalisation

1. Technology

   • Faster transport (ships, aircraft)

   • Communication revolution (internet, mobile phones)

2. Liberalisation of Trade

   • Reduction in trade barriers like taxes and quotas

   • Countries allow foreign companies to invest and trade freely

3. Role of WTO (World Trade Organization)

   • Promotes free trade

   • Ensures trade rules are followed by all member countries

✅ India became a member of WTO in 1995

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📊 VI. Impact of Globalisation in India

Positive Effects:

• Access to foreign goods and technology

• More choices for consumers

• Growth in IT and service sector

• Creation of new jobs

Negative Effects:

• Small industries face tough competition

• Job insecurity due to outsourcing

• Unequal benefits – only certain sectors/regions grow

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🧑‍🌾 VII. Globalisation and Indian Farmers

• Mixed impact on agriculture

• Example: Indian cotton farmers affected by low global prices

• Farmers face competition from cheap imports

✅ They need support from the government to deal with challenges

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💪 VIII. Steps to Ensure Fair Globalisation

To make globalisation more inclusive, governments can:

1. Protect small producers with subsidies or support policies

2. Improve education and skills for workers

3. Encourage small industries to become globally competitive

4. Enforce labor laws and ensure fair wages

5. Negotiate fair trade rules at the WTO

✅ Fair globalisation should benefit all sections of society

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📚 IX. Key Terms

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📌 Chapter Summary

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📎 Important Q&A Topics for Exams

• What is globalisation?

• How do MNCs spread production?

• Effects of globalisation in India

• Role of WTO in global trade

• How can the government ensure fair globalisation?