CBSE Class 10 - Economics - GLOBALISATION AND THE INDIAN ECONOMY (Important Points To Remember) (#cbseNotes)

GLOBALISATION AND THE INDIAN ECONOMY 

(Important Points To Remember) 

Special Economic Zone

 ① Globalisation refers to the integration of the domestic economy with the economies of the world. 

② An MNC is a company that owns and controls production in more than one nation.

③ Foreign Investment is an investment made by MNCs.

④ Liberalisation means the removal of barriers and restrictions set by the government on foreign trade.



⑤ Around 1991, government India adopted the policy of liberalisation.

⑥ World Trade Organization (WTO) was started at the initiative of the developed countries.

⑦ Its main objective is to liberalize international trade.

⑧ Privatisation means the transfer of ownership of property from the public sector to private sector.

⑨ Governments use trade barriers to increase or decrease (regulate) foreign trade to protect the domestic industries from foreign competition. Eg. Tax on imports.

⑩ Business Process Outsourcing (BPO) is the contracting of non-primary business activities and functions to a third-party service provider.

⑪ Multilateral Agreement is an agreement entered by a group of countries.

⑫ Mixed economy is a system in which private and public sector works together.

⑬ Economic Reforms or New Economic Policy is a policy adopted by the Government of India since July 1991. Its key features are Liberalization, Privatisation and Globalisation (LPG).

⑭ Special Economic Zones are set up by the central and state governments to attract foreign capital investment.