Write the positive as well as negative effects of Globalization and also MNCs.
Positive effects of globalisation:
- Increased investments in Indian markets by MNCs have led to the growth of the Indian economy. In many fields such as automobiles, smartphones, soft drinks, fast foods and garments, MNCs have created a vast choice of products for consumers.
- Local companies supplying raw materials to MNCs have developed and prospered. Many Indian companies such as Tata Motors and Ranbaxy have become multinational companies themselves.
- Globalisation has opened many new opportunities for companies in the service sector, especially IT companies. These companies offer their cheap but efficient consulting services to many nations. This has also created millions of jobs in India.
- Technology has been transferred to developing countries. It has enabled the production of quality goods in the international market.
- Outsourcing is the major outcome of the globalisation process.
Negative effects of globalisation:
- Growth has been witnessed only in few selected areas in the service sector such as hospital services, information and technology, and telecommunication.
- To earn maximum profits, MNCs employed Indian workers at extremely low wages. Only in urban areas, the standard of living has improved. Their income and the quality of consumption also increased. This has led to inequalities of income in the country.
- To deal with the pressure of competition from MNCs, many Indian companies have begun to employ workers on a temporary basis so that they do not have to pay the workers for all 12 months of a year. This has resulted in companies making large profits, but workers not getting their share of benefits.