Globalisation and the Indian Economy – Notes

Globalisation – Introduction

India has changed tremendously in the last two decades.

Till the 1990’s, there was hardly any choice of goods, except for what was produced in the country.

Today there is wide range of commodities for customers in India to choose from.

One major reason for this choice is the spread of MNC’s.

The rise of MNC’s resulted in the integration of production, trade, investment and markets across the globe.

Even during the colonial period, Europe-based companies carried out trade with their colonies in Asia and Africa.

However, during the colonial period, the colonies produced raw material and food stuff, while the colonising countries produced finished goods.

From the 1950’s, MNC’s grew in America, Asia and Africa to put up their factories as labour was cheap and there was a huge market potential.