hello viewers welcome back to my channel and today we are going to understand the nth lesson globalization in globalization we are going to understand completely very important topics all the important topics and even what is a [Music] globalization what is globalization globalization is a major change globalization is a major change that occurred tremendously that occurred tremendously during 20th century during the last 20th century is called the globalization is called what globalization so w
hat is globalization globalization is a major change globalization is a major change that occur tremendously during 20th century is called globalization so here you know it not only it changed tremendously but also it has a great it has a great impact on culture Traditions cultural traditional and economic dimensions economic Dimensions so very important Mar this is for two marks 2 marks question is globalization is a major change that occur tremendously during 20th century is called globalizati
on it has culture traditional and economic Dimensions cultural we are not only exchanging only money or trade but also we are also changing culture our culture our traditions and economy okay that is trade right will try to understand what are the factors which leads to globalization especially the first point is the flow of trade the flow of trade that is in in Goods as well as Services the flow of trade in goods and services next point the flow of Labor the flow of Labor is in search of employ
ment in sech of job the people travel from one place to another place or not yes in search of employment next is the flow of capital flow of capital capital means money that is shortterm investment Lether shortterm Lether or long-term investment long-term investment investment with [Music] so that they Cann more and more profits so these are the three flow these are three flows of globalization on this only the globalization works on that is flow of trade in goods and services that is most proba
bly the goods are exported and services are also exported and imported yes so flow of goods so lab many of people going to USA UK West Asian countries like AR countries in this way in search of job they do in search of job and for Education the flow of capital and many of the countries they use their amount of money in various countries in various countries so that they can earn huge amount of money huge amount of profit huge profit so this is all about three fls very important the flow of trade
flow of Labor flow of capital okay now understood now now we try to understand about the multinational company MNC what is meaning of MNC multi National company so just for example only there's not any advertisement suppose you think that here iPhone the idea of iPhone is United States of America everything assume that okay so he need the raw material to make the iPhone or not iPlay so where display you will order he will order in South Korea that is Samsung mobiles okay display okay and you kn
ow fiber particles are required he will order in China where in China the raw material is available in large quantity okay and not only that in China again he will open its Factory it's Manufacturing Company where the labors are very cheap cheap labors you can get yes or not so that's why you establish other company and in India what he'll establish he'll establish service center call service center I'll tell you all this okay so in various countries various products are in various countries VAR
products are manufactured they are not everything is not manufactured in United States of America okay now see that here in China raw materials are available at cheap prices okay the plastic and plastic and due to that what happens he need not to pay the money in dollars the American iPhone company need not to pay money in dollars but instead of that what he can do he you know he establish company at very low cost way in China large number of employees will be employed here at very low cost onl
y that okay so because whose money is bigger United States of America money is bigger when compared to China okay and due to that here the labors are also you can get large number of labors and cheap labors amount he has to pay suppose think that here 30,000 R is giving per person as a salary in India but whereas in America just assume $30,000 you can imagine how much amount of money it is okay a huge amount of money so that's why here these people what they'll do they'll establish their compani
es in various countries they establish their company in various countries and in this way they will earn huge profits okay okay so he wanted to he wanted to consult with with the iPhone call iPhone service [Music] number 420 9800 something like this they'll give the numbers on so okay a person is calling from USA but the call will not connect to USS company but it will connect to India's company okay and it's a branch of it's a branch of iPhone only but here you can find in India when compared t
o America here you can find cheap labors only okay why because he has to give the money in rupes not in dollars oh why because he has to give dollars but here you have to give the company has to give rupes so that's why he will hire the and if you want to establish a company there you need in you know hundreds of dollars required but whereas here you can take the here you can take any building for rent and then you can pay okay so at very low price efficient work will be done various where the l
abors or where the raw materials are low in quantity or less in price okay so in that way this is all about multinational company and you see that here what is the main agenda the main agenda finally it's to it's to earn profal compan Indian multinational [Music] you can take T Motors okay and uh you know like par foots far Foods right Sund sundaram nuts and Bs Asian paints indan National companies so that means that they having different different branches all over the world all over the world
they having the branches and they're having a great demand all the world also so in this way the multinational works okay did you understand very nice now next topic is what is foreign investment foreign investment so next topic is what is foreign investment in this see that here a multinational company multinational company he will spend he or she will spend or the company will spend money to buy assets to buy what assets assets such as okay and various other equipments one and other equipments
it will purchase who purchases the multinational companies and in this way the huge amount of money is spent to buy all these assets okay to establish a company okay so here either this multinational companies either directly they will set up their own Industries set up their own Industries Le they will collaborate with the existing company collaborate they collaborate with the existing IND for examp okay so a foreign investment a person who is having 10 of [Music] rupes you know profitly but h
ere what he has to do here he has to if a foreigner if you wanted to invest the invest the money in the company [Music] starting he has to the advertisements ad you know [Music] C all this leads to huge amount of money huge amount of money [Music] and you know so for invest the money in the in this company okay so as he invest this company he will directly he will bring the big big machines okay big machines he will bring and the quality of the soap will increase more better than previous becaus
e it got huge amount of money okay so what it will do finally you know as the you know as these soaps are sold in large quantities and whatever the profit they get this profit is shared among the two okay that is the Foreigner and the owner of the company okay so so he not to come and invest the money to a new compy directly can invest the money in the [Music] [Music] existing a shortterm investment and 10 15 years it is a long-term investment understood what is short-term investment and what is
long-term investment and did you understand what is foreign investment yes MNC will spend money whether he or she will spend money to buy assets such as land Building machines and other equipments to set up their own Industries then it is called as foreign investment set they can collaborate they collaborate with other indries profit yes or no right this is what all about foreign investment I hope you understood this and we'll go for the next topic okay right okay guys next topic what is foreig
n trade the trade between countries the trade between countries trade between countries with the export and import export andati andati the export and import of goods of goods is called foreign trade is called as what [Music] for pay but now today in this modern world we can see that the number of countries so that happen that is possible due to the trade the trade between countries with the exports and imports of goods is called as what foreign trade okay if you see that here what are the facto
rs that enabled globalization globalization technology very important role okay liberalization of foreign trade and foreign investment foreign trade and okay and we could connect each other countries globalization Tey foreign trade and foreign investment policy now we can it became very f for us to trade with the other countries without paying any sort of taxes okay so what is trade barrier trade barrier okay trade barri so suppose any country puts restrictions on exports and imports on exports
and imports then it is called as trade value any country if any country put restrictions on exports and imports and if it takes taxes if it collects if it collects taxes on the import Goods if you collect taxes on import Goods then it is called as what trade barrier okay before 1991 we India was having trade okay 4,000 minimum it was 4,000 5,000 okay including the taxes including what taxes tax import ta and that what happen okay situation number of people they have purchased televisions the peo
ple have purchased televisions by paying the large amount of tax before 1991 so after 1991 when Congress government came p n became the Prime Minister and that time who be who who was the Finance Minister Manan Singh Manan Singh was the finance minister so if you know when became the Prime Minister he saw that there is no money in the government money in the government he found that there is no money in the government okay and finally he has gone to IMF international monetary fund okay that is c
alled World Bank okay World [Music] Bank but you have to remove you should not collect any tax collection of no tax so Indian government and Indian government has accepted and finally we have removed the trade barrier in in which year trade barrier was removed 1991 okay during when he was the Prime Minister this is all about trade barrier I hope you have understood this [Music] okay why it should not come into India because we were not ready India was not ready to compete with the world to compe
te with the world why we were not ready to the world the machines were very fast were very fast whatever production fast quality f EXC and that's why the you know the Indian government wanted them not to remove this TR so that we [Music] [Music] canat because will purchase Indian Goods okay so it's thinking it no one will purchase why because the cost will be high but quality normal but whereas the foreign Goods around cost will be less cost will be less and quality will be excellent and due to
these reasons only here due to these reasons only they not allow any foreign company Goods into India
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