Contains details about MNCs,Helps in understanding Globalization, With Examples of Indian context.

3. What are the components of the globalization
process?
Effects of Globalisation

4. “an immense enlargement of world communication
and a world market” (Fredric Jameson)
“the intensification of world-wide social relations”
(Anthony Giddens)
“the compression of the world and the intensification of
consciousness of the world as a whole” (Roland
Robertson)
“Globalization in its current phase has been described
as an unprecedented compression of time and space
reflected in the tremendous intensification of social,
political, economic, and cultural interconnections and
interdependencies on a global scale.” (Stegler)

5. • Considering all the definitions above
GLOBLASTION :
Globalization (or globalisation) is the
process of international integration arising
from the interchange of world views,
products, ideas, and other aspects of
culture.
-- “stretching” of social relations across
the globe
-- world becomes “smaller”
-- world is experienced as “one place”
- capitalist market spreads everywhere

6. What are the components of
the globalization process?

7. Globalisation could
involve all these
things!

8. Effects of Globalisation
social relations are stretching across the globe.
capitalist markets are spreading everywhere
the negative consequences of capitalism are
spread globally
Increasing travel and migration (international tourism
and domestic diversity)
Increasing communication and interaction between
peoples (through all sorts of media)

9. Groups and cultures increasingly losing have a
territorial basis
The gap between Rich and Poor is increasing
Distance are becoming almost irrelevant (the
end of distance)
 Competition became world-wide and became
neck-tight in all aspects
Greater employment opportunities
Liberalisation of world trade , etc

10. Different ways for Globalisation

11. Most regions of the world are getting
increasingly interconnected. While this
interconnectedness across countries has many
dimensions —cultural, political, social and
Lets look at globalisation in a more limited sense. It
economic
defines globalisation as the integration between
countries through foreign trade and foreign investments
by multinational corporations (MNCs).

12. Lets understand Globalisation
and it’s impact through the
key idea of Integration of
production and integration of
markets
If we look at the past thirty years or
so, we
find that MNCs have been a major force
in the
globalisation process connecting distant
regions of the world.

13. Globalisation has been facilitated by several
factors. Three of these have been
highlighted:
rapid improvements in technology,
liberalisation of trade and investment
policies and,
pressures from international organisations
such as the WTO.

14. What are MNCs?

15. •Arguably, the first
multinational business
Knights Templar
organization was the Knights
founded in 1120, Jerusalem
Templar, founded in 1120.After
that came the British East
India Company in 1600 and
then the Dutch East India
Company, founded March 20,
1602, which would become the
largest company in the world
for nearly 200 years. British East India Company
Founded in 1600
Dutch East India Company,
founded March 20, 1602

16. Lets understad the functioning of MNCs through
an example:
Nestlé S.A.
is a Swiss multinational food and beverage
company headquartered in Vevey, Switzerland.
It is one of the largest food company in the
world
Nestlé has around 450 factories, operates in
86 countries including India, and employs around
328,000 people.
Their goods are sold World-wide

19. Coca-Cola
Corporate Office – Midtown Atlanta, Georgia | Turnover –
Unknown |
Employees – 150500+ | Business – Beverage | Country of
origin-United States Introduced-1886 Area served-Worldwide
Reliance Industries Limited
Founded-1966 Founder- Dhirubha Ambani
Headquarters-Mumbai, Maharashtra, India Area servedWorldwide
Employees-23,519 Area served-Worldwide
Sony Corporation
Corporate Office – Minato, Tokyo, Japan | Turnover – 80
Billion Dollar |
Employees – 162000+ | Business – Conglomerate Corporation
Founded-7 May 1946 (as Tokyo Tsushin Kogyo) Area servedWorldwide
IBM International Business Machines Corporation
Corporate Office – Armonk, New York, U.S.| Turnover – 107
Billion Dollar |Employees – 434246+ | Business – Computer
Hardware , Software, IT Services & Consulting | Area served-

24. Now lets focus on the

25. From Peoples view:
The role of MNCs in developing countries has been
subject ed to severe criticism.
1. MNCs exploit local labor and resources by
paying relatively lower prices and lower taxes than
local firms while obtaining high profits that are
largely repatriated.
2. By over pricing imports and under invoicing
exports that are booked through subsidiaries in tax
free ports, MNCs can repatriate more profits than
are permitted by host countries.

26. Competition from MNCs affects local industry
adversely.
In the pursuit of profit, multinational companies
often contribute to pollution and use of non
renewable resources which is putting the
environment under threat.
Tea is a
commercial
commodity
The MNCs are profit oriented. They show a strong
tendency to take up the production of those
commodities in which they can earn a high profit
margin. They ignore the production of more
important commodities if they do not give them the
required profit margin. This results into the

27. The MNCs are accustomed to use a particular type
of technology which is suitable for conditions in
developed countries. They bring that technology to the
developing countries, but that technology is not suitable
for the developing countries. There is excessive supply
of labor in developing countries. The technology
introduced by MNCs is not proper for absorbing labor.
It aggravates the problem of unemployment.
Often the MNCs give a cordial treatment to their own
persons & a step motherly treatment to the staff
belonging to the host country. This creates discontent
amongst the staff & labor.

28. The MNCs often use their money power for
bringing pressure upon the government &
political parties of the host countries. They
interfere in the administration of the developing
countries.
.MNCs often use their economic power to get
acess from host governments without giving safe
working environment for labour and tries to
close the mouth of officials.

29. While globalization 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 globalization would
create opportunities for all, and also
ensure that the benefits of
globalization are shared better.

30. Lets understand the Negatine
effects of Globalisation through
MNCs by some examples :
BHOPAL GAS TRAGEDY
Is Because of Qwench for Money
Pollution of Rivers
East India Company
Before 1857

31. BHOPAL GAS TRAGEDY
 The Bhopal disaster, also referred to as
the Bhopal gas tragedy, was a gas leak incident
in India, considered the world's worst industrial
disaster. It occurred on the night of 2–3
December 1984 at the Union Carbide India
Limited (UCIL) pesticide plant in Bhopal, Madhya
Pradesh. Over 500,000 people were exposed
to methyl isocyanate gas and other chemicals.
UCIL ,Bhopal

32. oUnion Carbide India Limited (UCIL) was a chemical
company established in 1934, eventually expanding
to employ 9,000 people working at 14 plants in five
divisions.[1] UCIL was 51% owned by Union Carbide
Corporation (UCC) and 49% by Indian investors
including the Government of India.
o UCC is now a subsidiry of an American MNC , Dow
Chemical Company
o Factors leading to the magnitude of the gas leak
mainly included problems such as; storing MIC in
large tanks and filling beyond recommended levels,
poor maintenance after the plant ceased MIC
production at the end of 1984, failure of several
safety systems due to poor maintenance, and safety
systems being switched off to save money

34. Pollution of Rivers
Expansion of MNCS led to Industrialisation in
Developing Countries It is indirectly Leading to the
Pollution of Rivers.
GANGES POLLUTION
Countless tanneries, chemical plants, textile mills,
distilleries, slaughterhouses, and hospitals
contribute to the pollution of the Ganges by dumping
untreated waste into it. Industrial effluents are
about 12% of the total volume of effluent reaching
the Ganges. Although a relatively low proportion,
they are a cause for major concern because they
are often toxic and non-biodegradable.

36. East India Company
Before 1857
Impact on Indian Silk growers
In the eighteenth century, Indian silk was in demand in European markets.
As the market expanded, East India Company officials tried to encourage silk
production to meet the growing demand. Hazaribagh, in present-day
Jharkhand, was an area where the Santhals reared cocoons. The traders
dealing in silk sent in their agents who gave loans to the tribal people and
collected the cocoons. The growers were paid Rs 3 to Rs 4 for a thousand
cocoons. The Middlemen made huge profits. The silk growers earned very
little.
EAST INDIA COMPANY
FLAG

37. What Happened to Weavers?
European trading companies – the Dutch, the French and the English – made
enormous profits out of this flourishing trade. These companies purchased cotton
and silk textiles in India by importing silver. When the English East India Company
gained political power in Bengal, it no longer had to import precious metal to buy
Indian goods. Instead, they collected revenues from peasants and zamindars in
India, and used this revenue to buy Indian textiles. This led to poverty in India. By the
beginning of the nineteenth century, English-made cotton textiles successfully
ousted Indian goods from their traditional markets in Africa, America and Europe.
European companies made no polocies to protect Indian weavers. Thousands of
weavers in India were now thrown out of employment. Bengal weavers were the
worst hit. English and European companies stopped buying
Indian goods
In this way East India Company
exploited indian economy
destroying lives of thousands of
Indians

38. Globalization is the process of investment.
rapid integration of countries. While globalisation has
This is happening through
benefited well-off consumers
greater foreign trade and
and also producers with skill,
foreign investment.
education and wealth, many
Technology, particularly IT, small producers and workers
has played a big role in
have suffered as a result of
organizing production across the
countries. Liberalization of
rising competition. Fair
trade and Summing up
globalisation would create
investment has facilitated
opportunities for all, and also
globalization by removing
ensure that the benefits of
globalisation are shared
better.
barriers to trade and