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
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NCERT Class 10 Economics Chapter 4 Globalisation and the Indian Economy Class 10 Notes PDF
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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.
Next & Previous Topics of NCERT/CBSE Economics Class 10 Chapter 4: Globalisation and The Indian Economy
MCQs on NCERT Economics Class 10 Chapter 4 Topic – Interlinking Production Across Countries Class 10
Here are top exam oriented mcq’s type questions on “Interlinking Production Across Countries class 10” that you should prepare for your CBSE or state board exams:
Question 1. MNCs select production locations mainly based on:
A) Climate only
B) Availability of cheap and skilled labour
C) Population size
D) Culture
Answer: B
Question 2. Which of the following also influences MNC location decisions?
A) Weather conditions
B) Government policies
C) Festivals
D) Language only
Answer: B
Question 3. Investment made by MNCs in foreign countries is called:
A) Domestic investment
B) Public investment
C) Foreign investment
D) Private saving
Answer: C
Question 4. Foreign investment is made to:
A) Reduce population
B) Earn profits
C) Promote tourism
D) Increase imports
Answer: B
Question 5. In joint production, MNCs provide:
A) Only labour
B) Only land
C) Investment and technology
D) Only raw materials
Answer: C
Question 6. Local companies benefit from MNC partnerships through:
A) Losses
B) Technology transfer and financial support
C) Reduced production
D) Higher taxes
Answer: B
Question 7. When MNCs buy local companies, it is called:
A) Export
B) Outsourcing
C) Acquisition
D) Trade
Answer: C
Question 8. Cargill Foods became a major edible oil producer in India by:
A) Exporting oil
B) Starting a new company
C) Acquiring Parakh Foods
D) Government support
Answer: C
Question 9. Outsourcing means:
A) Producing goods in own factories
B) Buying from foreign countries only
C) Getting work done by small producers
D) Selling goods abroad
Answer: C
Question 10. Through outsourcing, MNCs can control:
A) Weather
B) Prices, quality, and labour conditions
C) Government policies
D) Population
Answer: B