1.

What is globalisation? Describe the role of Multinational Corporatiops (MNCs) in promoting globalisation process. 

Answer»

Globalisation: integrating the economy of a country with the economies of other countries under conditions of free flow of trade and capital and movement of persons across borders. MNCs play an important role in promoting globalisation process in the following ways: 

  • They serve as agents for the transfer of superior technology. They have provided advanced technology, manufacturing process and improved skills to underdeveloped countries. 
  • They help in the transfer of capital from countries where it is abundant to where it is scarce.
  • They help in building up knowledge base and development of human resources, (id) They help in creating large scale employment opportunities by setting up their branches and subsidiaries. 
  • The operations of MNCs have a favourable effect on the balance of payments account of the host country. 


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