GLOBALISATION AND THE INDIAN ECONOMY

Inter Disciplinary Project

BATCH: 2023-2024
AGENDA
• Introduction.

• What Is Globalisation.

• Production Across The Countries.

• Chinese Toys In India.

• World Trade Organization.

• The Struggle For A Fair

Globalisation.

• Conclusion.
INTRODUCTION
Globalisation is a multifaceted phenomenon that
encompasses the integration of economics,
cultures, and societies worldwide . It involves the
interconnectedness of nations through trade,
investments, information exchange, and the
movement of people. As economies become
more intertwined, production processes often
span multiple countries, creating complex global
supply chains. This project delves into Production
across the countries, Chinese toys in India, World
Trade Organization, The Struggle For A Fair
Globalisation.
WHAT IS GLOBALISATION ?
• Globalisation means it is the
integration between countries
through foreign trade and
foreign investment by
Multinational
Corporation(MNC).

• Integration of production and

integration of market is a Key
idea behind understanding the
process of Globalisation.
PRODUCTION ACROSS THE COUNTRIES
• Until the middle of 20 th century , much of the organization of production took place within the
individual nations. Colonies like India are responsible for the export of raw materials and food
things in addition to the final goods that are imported.
• The primary means communication between far-flung nations was commerce. This Activity took
place before the emergence of major corporations that are known as MULTINATIONAL
CORPORATIONS .
• A Multinational Corporation is a business that operates in more than one country, and either
owns or controls the production there.
• Multinational Corporations typically locate their administrative headquarters and manufacturing
facilities in areas of the world that have access to inexpensive labour and other resources.
• Fast improvement in transportation and correspondence innovation and the advancement of
exchange limitations and unfamiliar speculation have been the central point that has
empowered globalisation interaction.
• MNCs locate production near markets, were skilled and unskilled labour is readily available at
low rates, and where the availability of other production elements is ensured.
• Furthermore, MNCs may seek government measures that protect their interests.
PRODUCTION ACROSS THE COUNTRIES
1)Specialization: Different countries specialize in producing
certain goods or services based on their available
resources, skills, and technology.
2)Comparative Advantage: This concept explains why
countries should focus on producing what they can
produce most efficiently, and then trade with other
countries to get what they need.
3)Import and Export: Countries engage in international
trade by importing goods they can't produce efficiently and
exporting goods they produce well.
4) Factors Influencing Production: Factors like natural
resources, labor force, technology, and infrastructure impact
a country's production capacity.
5)Global Supply Chains :Many products involve production
steps in multiple countries, forming complex global supply
chains.
6)Impact of Trade: International trade affects a country's
economy, employment, and standard of living
CHINIESE TOYS IN INDIA
• Chinese Toys have taken over the vast majority of the world ; one will
scarcely discover toys from neighbourhood producers on store retires
nowadays .

• Chinese makers has the ability to fundamentally undermine costs offered

by unfamiliar contender over a wide scope of items. Today, subsequently
of the ”China Values” China has caught over 70% of the world piece of
the overall industry for toys.

• Toys can be sorted by age bunches like infants, toddlers, and grownups.
Therefore, China commands to electric market of India, because the
Chinese electronic toys are a lot less expensive than the other nation of
the white-collar class and they need more affordable products.

• The import of China toys is useful for Indian economy since it gives work
to Indian individuals. Along these lines import of China, toys are eefective
MADE IN CHINA
for the Indian economy.

• As Indian government had put a halfway restrictions on import of toys

from China during 2007, the guidelines concerning the import of toys
from China has become severe at this point.

• As a result Indian government had started ‘Make in India’ process to use

our own product which is made in our country.
CHINIESE TOYS IN INDIA
In the years between 1950 and 2000, the availability of Chinese toys
in India was limited compared to recent times. During this period,
India had trade and diplomatic relations with various countries,
including China🧸China's economy and manufacturing capabilities
were not as developed as they are today during that time period,
and India relied more on domestic production and imports from
other countries. 🧸The popularity of Chinese toys in India began to
grow in the late 1990s and early 2000s, as China's manufacturing
sector expanded and global trade became more
interconnected.🧸While some Chinese products might have been
present in the Indian market during that time, they were not as
prevalent or widespread as they are now. 🧸The significant increase
in the availability and import of Chinese toys in India has occurred
more prominently in the last couple of decades
 WORLD TRADE ORGANIZATION
• The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international
trade. With effective cooperation in the United Nations System, governments use the organization to establish, revise, and
enforce the rules that govern international trade. It officially commenced operations on 1 January 1995, pursuant to the
1994 Marrakesh Agreement, thus replacing the General Agreement on Tariffs and Trade (GATT) that had been established in
1948. The WTO is the world's largest international economic organization, with 164 member states representing over 98% of
global trade and global GDP.

• The WTO facilitates trade in goods, services and intellectual property among participating countries by providing a
framework for negotiating trade agreements, which usually aim to reduce or eliminate tariffs, quotas, and other restrictions;
these agreements are signed by representatives of member governments and ratified by their legislatures .The WTO also
administers independent dispute resolution for enforcing participants' adherence to trade agreements and resolving trade-
related disputes. The organization prohibits discrimination between trading partners, but provides exceptions for
environmental protection, national security, and other important goals.

• The WTO is headquartered in Geneva, Switzerland. Its top decision-making body is the Ministerial Conference, which is
composed of all member states and usually convenes biennially; consensus is emphasized in all decisions. Day-to-day
functions are handled by the General Council, made up of representatives from all members. A Secretariat of over 600
personnel, led by the Director-General and four deputies, provides administrative, professional, and technical services. The
WTO's annual budget is roughly 220 million USD, which is contributed by members based on their proportion of
international trade.

• Studies show the WTO has boosted trade and reduced trade barriers. It has also influenced trade agreement generally; a
2017 analysis found that the vast majority of preferential trade agreements (PTAs) up to that point explicitly reference the
WTO, with substantial portions of text copied from WTO agreements. Goal 10 of the United Nations Sustainable
Development Goals also referenced WTO agreements as instruments of reducing inequality. However, critics contend that
the benefits of WTO-facilitated free trade are not shared equally.
WORLD TRADE ORGANIZATION
1)Trade Agreements: The WTO administers various trade agreements, the most significant of
which is the General Agreement on Tariffs and Trade (GATT). Other agreements cover areas such
as trade in services (GATS) and trade-related aspects of intellectual property rights (TRIPS).

2)Trade Negotiations: The WTO serves as a forum for its member countries to negotiate trade
agreements. These negotiations cover a wide range of areas, including tariff reductions, non-tariff
barriers, services, intellectual property rights, and agricultural subsidies.

3)Trade Policy Review: The WTO conducts regular reviews of the trade policies and practices of its
member countries. This process promotes transparency and provides a platform for discussing
potential trade issues.

4)Trade and Development : The WTO aims to contribute to economic development and poverty
reduction through its trade liberalization efforts, although debates exist about the extent of its
impact on developing economies.
THE STRUGGLE FOR A FAIR GLOBALISATION
• Labor Rights and Working Conditions: •Addressing exploitative labor practices,
par ticularly in developing countries, where workers might face poor wages and
unsafe working conditions.•Advocating for fair wages, reasonable working hours,
and the right to unionize to prevent exploitation.

• Environmental Sustainability: •Mitigating the negative environmental impacts of

increased global economic activity.•Promoting sustainable production and
consumption practices to minimize resource depletion and pollution.

• Social Welfare and Inclusivity: •Ensuring that globalization benefits all segments
of society, including marginalized communities and vulnerable populations.

• Providing equal access to education, healthcare, and social services to prevent

fur ther social inequalities.

• Fair Trade Practices: •Advocating for trade agreements that prioritize fairness,
,
transparency, and ethical business practices.

• Promoting fair trade initiatives that ensure better prices for producers in
developing countries.
THE STRUGGLE FOR A FAIR GLOBALISATION

• Not everyone has benefitted from globalisation at least uniformly. People with education,
skill and wealth have made the best use of the new opportunities. On the other hand, there
are manyeople who have not shared the benefits.♤ There is a need to make Globalisation
Fair. Fair globalisation would create opportunities for all, and also ensure that the benefits of
globalisation are shared better.♤ There 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. The suggested steps are as follows:

• 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.
Foreign Trade and Integration of Markets
• Foreign trade and integration of markets refer to the process of countries
engaging in the exchange of goods, services, and investments across
international borders.

• This can lead to economic growth and increased efficiency, as markets become
more interconnected and specialized.

• Integration can occur through various means, such as trade agreements, regional
economic blocs, and globalization.

• It's important for countries to balance the benefits of foreign trade and market
integration with potential challenges, such as economic disparities and cultural
influences.
Impacts of Globalization
• Education and Knowledge Sharing: °The internet and digital technologies have made
education and knowledge-sharing more accessible globally. °People can access information,
online courses, and educational resources from anywhere in the world, promoting lifelong
learning and skill development.

• Labor Market Changes:° Globalization has led to shifts in the labor market, with some
industries outsourcing jobs to countries with lower labor costs. °This has created both
opportunities and challenges for workers, as it can lead to job displacement and wage
pressure in some regions.

• Economic Growth and Development: ° Globalization has enabled increased international

trade and investment, leading to economic growth in many countries. °It has opened up
new markets and opportunities for businesses to expand and access resources more
efficiently. °Developing countries have often experienced improved living standards due to
increased access to global markets.

• Health and Disease: °Globalization has enabled the rapid spread of diseases and health risks,
as well as the sharing of medical knowledge and resources.° It has also increased the
movement of people for medical treatment and tourism.
Steps to Attract Foreign Investment
1)Trade Agreements: Negotiate bilateral and multilateral trade agreements to
provide preferential access to international markets, making your country an
attractive base for export-oriented investments.

2)Streamlined Regulatory Processes: Simplify and expedite bureaucratic

procedures such as obtaining permits, licenses, and approvals. Reducing
administrative burdens increases investor confidence.

3)Tax Incentives: Offer targeted tax incentives to attract foreign investors, such
as reduced corporate tax rates, tax holidays, or investment tax credits for
specific sectors.

4)Transparency and Accountability: Implement transparent governance practices

to ensure fairness, accountability, and protection of investors' rights.

5)Investor Protection: Strengthen legal frameworks to protect foreign investors

from unfair treatment and provide avenues for dispute resolution.
Spreading of production by an MNC
• MNCs are spreading their production worldwide by buying local companies,
producing at distant locations or forming partnerships with local businesses.

• The most common tactic used by multinational corporations is to first purchase a

local business before increasing output.

• Through the product, MNCs also implement different strategies.

• MNCs are forming partnerships with regional firms to produce Labour – Intensive
goods like clothing.

• MNCs use regional businesses to source raw materials or accessories.

• Local businesses and MNCs compete fiercely, and thanks to their enormous financial
clout, MNCs are increasingly displacing local businesses.

• MNCs are thus having a significant impact on manufacturing in far-off places.

Competition and Uncertain Employment

Competition and uncertain employment have become significant concerns that transcend
borders and impact people across the globe. These challenges have been magnified by various
interconnected factors, such as globalization, technological innovation, and economic volatility.
Let's delve deeper into how these factors contribute to the issues of competition and uncertain
employment:

1)Globalization: The increased interconnectedness of economies has led to a globalized job

market. While this has opened up opportunities for international trade and collaboration, it has
also intensified competition. Companies can now source talent from around the world, which
means that workers are competing not only with their local counterparts but also with individuals
from different countries who might offer similar skills at potentially lower costs.

2)Technological Advancements: Rapid advancements in technology, particularly in automation,

artificial intelligence, and robotics, have revolutionized industries. While these innovations have
improved efficiency and productivity, they have also led to job displacement in certain sectors.
Routine tasks are increasingly being automated, leading to a demand for workers with higher-
level skills and adaptability. This puts pressure on individuals to continuously upgrade their skills
to remain employable.
Competition and Uncertain Employment
3)Economic Fluctuations: Economic cycles, including recessions and periods of economic
growth, influence job availability and stability. During economic downturns, companies may
resort to layoffs and cost-cutting measures, leaving workers vulnerable to job loss. Additionally,
the gig economy has gained prominence, offering flexible work arrangements but often lacking
the job security and benefits of traditional employment.

4)Education and Skills Mismatch: The pace of change in the job market often outstrips the
education system's ability to keep up. Many individuals find themselves lacking the skills
demanded by evolving industries, leading to a mismatch between available jobs and workers'
qualifications. This skills gap exacerbates competition for the limited positions that align with
individuals' skill sets.

5)Uncertainty in Traditional Career Paths: The concept of a lifelong career with a single employer
has become increasingly rare. Many industries are evolving rapidly, leading to uncertainty about
the longevity of specific job roles. This uncertainty can cause anxiety and make long-term
planning challenging for individuals.
Conclusion
• Globalisation is the process of rapid integration of countries. This is happening
through greater foreign trade and foreign investment. MNCs are playing a major role
in the globalisation process.

• More and more MNCS are looking for locations around the world that are cheap for
their production. As a result, production is being organised in complex
ways.Technology, particularly IT has played a big role in organising production across
countries.

• In addition. liberalisation of trade and investment has facilitated globalisation by

removing barriers to trade and investment. At the inter- national level, WTO has put
pressure on developing countries to liberalise trade and investment.

• Globalisation has benefited well-off consumers and also producers with skill.
education and wealth, many small producers and workers have suffered as a result of
the rising competition.

• Fair globalisation would create opportunities for all, and also ensure that the benefits
of globalisation are shared better.
Hard Work By….
NAMES: R. Gokulesh, S. Sharmi , P. Malaimathi

SCHOOL: NMS Vijayalakshmi Sanjeevimalayan Kalviyagam

GRADE: X

TOPIC: Globalisation And The Indian Economy

BATCH: 2023-2024