(a) "Liberalisation of foreign trade and foreign investment policy have shown far reaching changes in India." Support the statement with suitable…

(i) Liberalisation of the economy meant the steady removal of the rules that regulated trade and finance regulations, Liberty being given to foreign companies for trade and investment like FDI, Disinvestment, etc.

(ii) Many Indian companies have become MNC and trading in other countries

(iii) Many companies have invested in newer technology and production methods have raised their production standards

(iv) Collaboration have been made with foreign companies.

(v) Side by side government put tax on imports as trade barrier.

(vi) The government could also place a limit on the number of goods that can be imported. This is known as quotas. Example – trade barrier on Chinese toys.

(vii) In this system of production and communication, rules regarding international trade are made, and see that these rules are obeyed.

(viii) Foreign trade and investment in India were supported by some very powerful international organisations.

(ix) SEZs special economic zones have been initiated to attract foreign companies with world class facilities.

(x) Govt. has allowed flexibility in the labour laws to attract foreign investment.

(b) ‘Among producers and workers, the impact of globalisation has not been uniform.’ Support the statement with suitable arguments.

(i) Among producers and workers, the impact of globalisation has not been uniform.

(ii) Firstly MNCs have increased their investments in India over the past $\displaystyle 15$ years, which means investing in India has been beneficial for them.

(iii) MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas.

(iv) In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc. to these industries have prospered.

(v) Several of the top Indian companies have been able to benefit from the increased competition.

(vi) They have invested in newer technology and production methods and raised their production standards. Some have gained from successful collaborations with foreign companies.

(vii) Moreover, globlisation has enabled some large Indian companies to emerge as multinationals themselves. Tata Motors (automobiles)

(viii) Globalisation has also created new opportunities for companies providing services, particularly those involving IT.

(ix) NEGATIVE – Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to competition. Several of the units have shut down rendering many workers jobless.

(x) Competition and Uncertain Employment : Globalisation and the pressure of competition have substantially changed the lives of workers.

(xi) Faced with growing competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers’ jobs are no longer secure.