Q1 of 47 Page 61

What was the main channel connecting countries in the past? How is it different now?

Trade was the main channel connecting the countries in the past. For example Silk route connected different countries of the world; as a result huge trade took place through this route. Trade in the past was restricted to finished goods being produced in one market and sold in other markets. In today’s time beside trade; capital, technology, people and services-flow is also taking place all over the world. Today the world is connected in a way where production also takes place across different countries


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6

Read the passage and answer the questions.


Ford Motors, an American company, is one of the world’s largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs 1,700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks. By the year 2004, Ford Motors was selling Rs 27,000 cars in the Indian markets, while, 24,000 cars were exported from India to South Africa, Mexico and Brazil. The company wants to develop Ford India as a component supplying base for its other plants across the globe.


In what ways is a MNC different from other companies?

 7

Read the passage and answer the questions.


Ford Motors, an American company, is one of the world’s largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs 1,700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks. By the year 2004, Ford Motors was selling Rs 27,000 cars in the Indian markets, while, 24,000 cars were exported from India to South Africa, Mexico and Brazil. The company wants to develop Ford India as a component supplying base for its other plants across the globe.


Nearly all major multinationals are American, Japanese or European, such as Nike, Coca-Cola, Pepsi, Honda, Nokia. Can you guess why?

 2

Distinguish between foreign trade and foreign investment.

 3

In recent years China has been importing steel from India. Explain how the import of steel by China will affect.

(a) Steel companies in China.


(b) Steel companies in India.


(c) Industries buying steel for production of other industrial goods in China.