about some of these aspects in the context of service sector in Class VIII and IX
such as emergence of new job opportunities like call centres. You will also
recognise that there is a large number of consumer products available in the market.

We identify three types of flows
within international economic
exchanges. The first is the flow of trade
in goods as well as services. The second
is the flow of labour the migration of
people in search of employment. The
third is the flow of capital for short-term
or long-term investments over long
distances.

Besides, there are political and cultural dimensions of globalisation.
For instance, last year several nations in Western Asia and Northern Africa like
Tunisia, Egypt were influenced by each other’s revolutions and uprooting of
dictators. This was called ‘Arab Spring’ in the media. In these countries, media
played a crucial role. Television Channels that were owned and run by people from
other countries supported such mobilisation which resulted in regulating the powers
of local leaders. While events like civil war or natural disasters like Tsunami are
discussed within the national boundaries,they also receive support and sympathy from
around the world. Globalisation is not merely about the market, infact, ideas are
also being shared and expanded.

In this chapter our focus is mostly on the economic aspects of globalisation as
they have unfolded in the past thirty to forty years.

Production across Countries

Until the middle of the twentieth century, production was largely organised
within countries.Raw materials, food grains and finished products only crossed
the boundaries of these countries. Colonies such as India exported raw materials
and food grains and imported finished goods.

Trade was the main channel that connected distant countries. This was before the
large multinational companies (MNCs) emerged on the scene. An MNC is a company that
owns or controls production in more than one nation. MNCs set up offices and
factories for production in regions where they can get cheap labour and other
resources. This is done so that the cost of production is low and the MNCs can earn
greater profits. Consider the following example. A large MNC, producing industrial
equipment, designs its products in research centres in the United States and then
has the components manufactured in China. These are then shipped to Mexico and
Eastern Europe where the products are assembled and the finished products are sold
all over the world.

Meanwhile, the company’s customer care is carried out through
call centres located in India. (Identify these countries on a world map.)