NCERT Economics Class 10 | Interlinking Production Across Countries
Topic & sub-topics covered: Interlinking Production Across Countries: Globalisation and The Indian Economy (All single detail notes are exam-oriented).
We have discussed in-depth and exam-oriented pointers that can be asked in the board exam of class 10th about “Interlinking Production Across Countries” which is taken from the NCERT Economics notes for class 10th chapter 4 “Globalisation and The Indian Economy“.
Download the NCERT Economics for Class 10th Chapter 4 Globalisation and The Indian Economy PDF
“Download the NCERT Economics for Class 10th Chapter 4 Globalisation and The Indian Economy PDF” is essential for students. It offers insights into globalization’s impact on India’s economy, aiding comprehension of economic integration’s nuances. Students gain access to in-depth analyses, case studies, and theories, enhancing their understanding.
NCERT Class 10 Economics Chapter 4 Globalisation and the Indian Economy Class 10 Notes PDF
The PDF facilitates convenient learning, covering globalization’s historical context, theoretical frameworks, and practical implications for India. It serves as a valuable reference for educators, policymakers, researchers, and business leaders, providing a comprehensive understanding of globalization’s effects on India’s economic development. Accessing this resource empowers stakeholders to navigate globalization’s complexities effectively, fostering informed decision-making and strategic planning.
Interlinking Production Across Countries
1. Factors Influencing MNC Location:
- MNCs choose production locations based on proximity to markets, availability of skilled and low-cost labour, and assurance of other production factors.
- Government policies favourable to MNC interests also influence their location decisions.
2. Foreign Investment and Assets:
- Investment made by MNCs in foreign countries is termed foreign investment, aimed at earning profits from assets like land, buildings, and machinery.
3. Joint Production Ventures:
- MNCs often engage in joint production ventures with local companies, providing additional investment and access to advanced technology.
- Local companies benefit from MNC partnerships through financial assistance and technology transfer.
4. Acquisition Strategy:
- Many MNCs acquire local companies to expand production, gaining control over established brands and infrastructure.
- For instance, Cargill Foods acquired Parakh Foods in India, becoming the largest edible oil producer, showcasing the impact of MNC wealth on local industries.
5. Control through Outsourcing:
- MNCs exercise control over production by outsourcing to small producers worldwide, particularly in industries like garments and footwear.
- This allows MNCs to dictate terms such as price, quality, and labour conditions, influencing global production dynamics.
6. Interlinked Global Production:
- MNCs employ various strategies to spread production globally, including partnerships, acquisitions, and outsourcing, leading to interconnected production networks across different countries.
- This highlights the significant influence exerted by MNCs on global production processes.