*******What is globalization?
A.
1.Globalization is the process of rapid integration and interconnection of countries.
2.Globalization is occurred across the globe in the late 20th century.
3. Globalisation has political, cultural and economic dimensions.
*Classify the flows with in international economic exchanges.
A.
There is three types of flows. They are:
• The flow of trade in goods as well as services.
• The flow of labour -the migration of people in search of employment.
• The flow of capital -for short-term or long-term investments over long distances.
*What is a Multinational Company (MNC)?
A.
1.An MNC is a company that owns or controls production in more than one nation.
2.Some examples of MNCs are Ford Motors, Cargill Foods, Nike, Coca-Cola, Pepsi, Honda, Nokia.
3.MNCs set up offices and factories for production in regions where they can get cheap labour and other resources.
4.The main aim of the MNCs is to reduce production cost and earn greater profits.
*What is Arab Spring?
A.
• The revolutions and uprooting of dictators in West Asian and North African countries like Tunisia, Egypt, and Libya.
• This was called ‘Arab Spring’ in the media.
*What is liberalization of foreign trade/ economic liberalization?
A.
1.Removing barriers or restrictions set by the government is known as liberalisation.
2.With liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export.
*What are Special Economic Zones (SEZs)? Give examples for the facilities provided there.
A.
1.The industrial zones set up by state and central governments with all facilities to attract foreign companies to invest in India are called Special Economic Zones.
2.SEZs are to have world class facilities: electricity, water, roads, transport, storage,
recreational and educational facilities along with Tax exemptions and flexibility in labour laws.
*What are joint ventures?
A.
At times MNCs setup production jointly with the local companies in these countries. They are called joint ventures.
*What are the differences between other/local companies and multinational companies?
A.
Local/Other companies:
1.Production process takes place in one country.
2.Production is on a small scale.
Multinational companies:
1.Production process takes place in many countries.
2.Production is on a large scale.
*Give examples for foreign multinational companies in India.
A.
Ex: 1.Nike
2.Coca - Cola
3. Pepsi
4.Honda
*What are the factors that have enabled globalization?
A.
1.Technology.
2.Liberalisation of foreign trade and foreign investment policy.
3.Multinational companies.
4.Institutions of global governance.
*Give examples for telecommunications services.
A.
1. Telegraph.
2. Telephone.
3. Mobile phone.
4. Fax service.
5. Email service.
6. Internet service.
*What is the relation between globalization and information technology?
A.
1.Information technology is used to get information instantly from remote places across the world.
2.With this, the inter linking of countries improved, thus facilitating globalization.
*What is the role of Multinational companies (MNCs) in the process of globalization?
A.
1.Foreign trade between countries will increase with the foreign investments by multinational companies.
2.More foreign Investments and foreign trade improve the inter linking of countries, paving the way for globalization.
*What are the criteria for selecting a site for operations of MNCs?
A.
They are mainly four:
1. Proximity to the markets.
2. Availability of labour at low costs.
3. Assured availability of other factors of production.
4. Government policies that protect their interests.
*What is Foreign Investment?
A.
The money that MNCs spend to buy assets such as land, building, machines and other equipment is called foreign investment.
*Why is nearly all major multinationals American, Japanese or European?
A.
All these countries have been industrialized long before and are now developed countries.
*Distinguish between foreign trade and foreign investment?
A.
Foreign trade
1.The trade between countries through imports and exports is called Foreign trade.
2.It results in connecting the markets in different countries.
Foreign investment
1.The money that MNCs spend to buy assets such as land, building, machines and other equipment is called foreign investment.
2.It results in connecting the production in different countries.
*What is the basic function of foreign trade?
A.
It is to create an opportunity for the producers to reach beyond domestic markets.
*Give examples for some Indian MNCs.
A.
1.Tata motors
2. Infosys
3. Ranbaxy
4. Asian paints
*What are trade barriers? Give an example?
A.
1.Some restrictions imposed by the government to regulate foreign trade is called
Trade barrier.
2.Governments can use trade barriers to increase or decrease (regulate) foreign
trade.
3.Tax on imports is an example of trade barrier.
*How has the competition benefitted the people of India with the advent of MNCs?
A.
1.Improved quality of the products.
2.Lower prices of products.
3.Greater choice among different products.
4.Creation of new jobs.
*Why do governments try to attract more foreign investment?
A.
Because
1.The local people will get job opportunities.
2.The local companies supplying raw materials will be benefited.
3.The government will get income the form of various taxes.
*What is referred as World Bank? And what does it do?
A.
1.The International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) are referred as World Bank.
2.World Bank is able to advice and impact the way the governments frame their policies and guide them.
*What is Cultural Homogenization?
A.
The impact of modern Communication and Technology has led to the spread of only few cultures and ideas which have marginalized local and small cultures. This situation is called Cultural Homogenization.
