'GLOBALISATION AND THE INDIAN ECONOMY'

GLOBALISATION AND THE INDIAN ECONOMY:
Today we have wide choice of goods and services before us.
There is explosion of brands.
It is a recent trend and in a matter of years our markets have been transformed. 
REASONS / FACTORS FOR THESE RAPID TRANSFORMATIONS:
--Middle of twentieth century:
Production was largely organized with in the countries
--What crossed the boundaries was mainly the raw materials, food stuff and finished products.
--Trade was the main channel connecting distant countries.
EMERGENCE OF MNCs (Multi National Corporations):
--It is a company that owns or controls production in more than one nation.
--MNC’s set up offices & factories for production in the regions where they can get cheap labour and other resources.
--This is done so that the cost of production is low and the MNC’s can earn greater profits.
--Many MNC’s have wealth exceeding the entire budgets of the developing countries , with such enormous wealth they have immense power & influence.
FACTORS/ CONDITIONS TO SET UP A MNC:
MNC’s set up production where it is
-- close to the markets.
--where there is skilled labour available at low costs.
--where the availability of other factors of production is assured.
--They look for the government policies that look after their interests.
INVESTMENT:
The money that is spend to buy assets such as land, building, machines and other equipment is called investment.
The investment made by MNCs is called foreign investment.