GLOBALISATION AND THE INDIAN ECONOMY................Part III

Q11.What are the functions of WTO?

1. World Trade Organisation's aim is to liberalise international trade .
2. WTO was started at the initiative of the developed countries. 
3. WTO establishes rules regarding international trade,and sees that these rules are obeyed.
4. 149 countries of the world are currently members of the WTO
   (2006).
5. WTO promotes free trade by abolishing trade barriers.
6. It seeks to resolve the trade disputes.
7. It enhances trade competition between the countries.

Q12.List the factors that promoted globalisation.

Factors that promoted globalisation are:
1.Technology

1. Rapid improvement in technolog has  stimulated the globalisation process.
2. In the past fifty years improvements in transportation technology has made much faster delivery of goods across long distances possible at lower costs.

2.Information and Communication technology

1. The developments in information and communication technology has played a major role in spreading out production of services across countries.
2. The computers,Internet, and Telecommunication facilities like telegraph,telephone including mobile phones, fax are now available to contact one another around the world, to access information instantly, and to communicate from remote areas. 
3. This has been facilitated by satellite communication devices.

3.  Liberalisation

1. Liberalisation of foreign trade and foreign investment policy.

4. Role of WTO

1. World Trade Organisation has led to globalisation by putting pressure on the countries to abolish trade barriers and go for free trade.

Q13. What is the impact of globalisation in India?
The impact of globalisation on the Indian economy are:- 

1. Greater competition among producers - both local and foreign producers.
2. There is greater choice before the consumers.
3. Improved quality products are available and lower prices.
4. As a result  people enjoy much higher standards of living than was possible earlier.

Q14.What do you understand by 'Fair'globalisation? How to make globalisation more ‘Fair’? Discuss the role of government in making this possible.

1. Fair globalisation means to create opportunities for all, and also to ensure that the benefits of globalisation are shared among rich and poor better.
2. The government can play a major role in making this possible. 
3. Its policies must protect the interests, not only of the rich and the powerful, but all the people in the country. 
4. The government should ensure that labour laws are properly implemented and the workers get their rights. 
5. It can support small producers to improve their performance till the time they become strong enough to compete. 
6. If necessary, the government can use trade and investment barriers. 
7. It can negotiate at the WTO for ‘fairer rules’.
8. It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.

Q15. List the positive effects of Globalisation in India.

1. MNCs have invested  in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas as a result new jobs have been created. 
2. Local companies supplying raw materials to these industries have prospered.
3. Many of the top Indian companies have benefited from the increased competition. 
4. They have invested in newer technology and production methods and raised their production standards.
5. Some have gained from successful collaborations with foreign companies.
6. Globalisation has enabled some large Indian companies to emerge as multinationals themselves such as Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts and bolts) etc.
7. Globalisation has also created new opportunities for companies
   providing services, particularly those involving IT.
8. For example:-The Indian company is producing a magazine for the London based company.
9. The call centers are the  host of services such as data entry, accounting etc.
10. Administrative tasks, engineering are done cheaply in India and are exported to the developed countries.