This document discusses globalization and how it has led to greater integration between countries through increased movement of goods, capital, and people across borders. Key factors driving globalization mentioned include rapid improvements in transportation and communication technologies, which have reduced costs and enabled the spread of production activities to locations around the world. As a result of globalization, markets and economies of different countries have become more interlinked through rising trade and foreign investment flows, particularly from multinational corporations seeking cheap labor abroad.

2. It is the process of rapid integration or
interconnection between countries.
There is one more way through which
countries are becoming closer and that
is Movement of people between countries.
People usually move from one country to another
in search of jobs or better education. This is
also a result of Globalisation.

4.  Greater competition among producers -
both local and foreign producers has been of
advantage to consumers.
 There is greater choice before these
consumers who now enjoy improved quality
and lower prices for several products.
 Foreign investment has increased.

5. TECHNOLOGY:
Rapid improvement in technology has
been one major factor that has
stimulated globalisation process. Due
to technology there has been
improvements in various fields as in :

6. 1. TRANSPORTATION TECHNOLOGY.
In past fifty years this technological
improvements has led to faster delivery
of goods across long distances at lower
caste.
• Containers for transport of goods:
have led to huge reduction in port
handling costs, increased the speed
with which goods can reach markets

7. Airlines: the cost of air transport has
fallen, this has enabled much greater
volumes of goods being transported by
airlines.
2.INFORMATION AND
COMMUNICATION TECHNOLOGY:
IT, has played a major role in
spreading out production of services
across countries.

8. Remarkable improvements have in the areas of
telecommunications, computers &internet.
Telecommunications: facilitated by the
satellite communication devices, facilities as
telegraph, telephone including mobiles, fax are
used to contact around the world, to access the
information instantly,& to communicate in the
remote areas.

9. Computer and internet:
computers have entered in almost all the
fields.
Internet allows one to share information
on almost every thing, we can send instant
e-mail and talk through voice-mail across
the world at almost negligible cost.

10. Function or purpose of
foreign trade?
Foreign trade creates an opportunity for the
producers to reach beyond the domestic markets i.e.,
markets of their own countries.
Producers can sell their produce not only in markets
located within the country but can also compete in
markets located in other countries of the world.

11. 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.

12. TRADE AND FOREIGN TRADE
HISTORY
Various trade routes connecting India and
South Asia to markets both in the East and
West & extensive trade that took place
along these routes.
It was trading interest which attracted
various trading companies such as East
India Company to India.

14. EFFECTS OF FOREIGN TRADE
There are various positive & negative
effects of foreign trade. Its positive
effects are
With the opening of trade, goods
travel from one market to another.
Choice of goods in the markets rises.
Prices of similar goods in the two
markets tend to become equal.

15. Producers in the two countries now
closely compete against each other
even though they are separated by
thousands of miles.
Foreign trade thus results in
connecting the markets or integration
of markets in different countries.
The economies of various countries
are getting interlinked.

16. How foreign trade benefit to
India & to China?
To China: Chinese got an opportunity to
trade and expand their business.
As they were selling it at high selling
price, they got high profits.
Within an year 70-80% of toys shops have
replaced Indian toys with Chinese toys.

17. To India: Indian buyers have more
choice now.
--Prices are cheaper now.
--designs are new.
--But due to the cheaper prices & new
designs , the Indian toy makers face
losses, as their toys are selling much
less.

18. MNC’S—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.

19. • 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.

20. 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.

21. List of Multinational
companies

22. INVESTMENT:
The money that is spend to buy
assets such as land, building,
machines and other equipment is
called investment.
The investment made by MNC’s is
called foreign investment.

23. VAROIUS WAYS IN WHICH MNC’s ARE SPREADING THEIR PRODUCTION:
There are variety of ways in which MNC’s are spreading their
production and interacting with local producers in various
countries across the globe. They do this by various means:

24. By closely competing with local companies or
buying them -the most common route for MNC
investments is to buy up local companies and to
expand production. With their huge wealth they
can easily do so..

25. As a result, production in these widely
dispersed locations is getting interlinked.
MNC’s are exerting strong influence on
production at these distant locations

26. MNC’S are playing major
role in the Globalisation
process.
MNC’s have been looking for locations around the world ,
which would be cheap for their production
As a result of greater foreign investment and greater
foreign trade ,has been greater integration of production and
markets across countries.
More and more goods and services,

27. Most regions of the world are in closer contact with each
other than a decade back
Foreign investment in the countries has been rising.
Foreign trade between the countries has been rising.

28. WTO-world trade
organisation
The functions of the WTO are as follows:
Establishing rules for international trade
Ensuring the rules are followed
Promoting removal of restrictions on trade
barriers
WTO is against barriers on trade in the form of
tariffs and import duties as these impede the flow of
capital, investments an technology. These mechanisms
prevent the functioning of free trade.

29. FOREIGN
TRADE
POLICY

30. Trade between two or more nations is called
foreign trade or international trade
Foreign trade is also known as external
trade.
Foreign trade transactions are classified
under three categories:
 Import Trade
 Export Trade
 Net Exports