Production Across Countries (CBSE Class 10 – Globalisation and the Indian Economy)

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1. Concept Overview

• Earlier, most goods and services were produced entirely within a single country.
• Today, the production process is ​international​. Different stages of making a product take place in different countries.
• This global style of production is mainly due to globalisation and the work of Multinational Corporations (MNCs).
• Key Point: Modern production is spread over many countries instead of just one.

Examples:

1. In the past, a village weaver made cloth from cotton grown in the same region.
2. Today, a T-shirt bought in India may have its cotton from the USA, be stitched in Bangladesh, and sold worldwide.
3. Even a simple chocolate bar could have cocoa from Ghana, sugar from Brazil, and be packaged in India.

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2. How Goods and Services are Produced Across Countries

• Different parts and processes in making a product are often done in different countries.
• This division of work is based on:
  • Cost of production,
  • Quality of resources,
  • Expertise,
  • Access to markets.

Examples:

1. Car Manufacturing:

   • Design: Germany,
   • Parts: Made in China, Japan, USA,
   • Assembly: India, Mexico,
   • Sales: Across the world.
   • A single car may have tyres from Thailand, chips from South Korea, engines from the UK.

2. Smartphone Production:

   • Apple iPhone:
     • Designed in the USA,
     • Assembled in China,
     • Camera lens from Japan,
     • Processors from South Korea,
     • Display screens from Vietnam.
   • A simple smartphone gets components from five or more countries!

3. Clothing Industry:

   • Cotton grown in India,
   • Fabric made in Bangladesh,
   • Dyeing and printing in China,
   • Stitching in Vietnam,
   • Finished clothing packed in Sri Lanka and shipped to Europe or America.

Important Point:
Everyday items come from a mix of countries – not just one!

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3. Role of Multinational Corporations (MNCs)

• MNCs are companies with production operations in two or more countries.
• They often have their headquarters in one country and branches or factories across the globe.
• MNCs help organise, control and connect different stages of production efficiently.

Functions of MNCs:

• Set up factories, offices, and research centres in various countries,
• Invest money (capital) in foreign branches,
• Spread modern technology and skilled management,
• Build large-scale production and global supply chains,
• Make use of local advantages: cheap labour, raw materials, or big markets.

Examples:

1. Coca-Cola: Headquarters in the USA but factories and sales in over 200 countries.

   • Coca-Cola in India may use sugar from local farmers, but the recipe is from the USA.

2. Nestlé: Based in Switzerland, produces Maggi noodles in India, sources milk for chocolates locally in each market.

   • This reduces costs and adapts products for local tastes.

3. Adidas/Nike (Sportswear):

   • Designed in Europe/USA,
   • Produced in Bangladesh, Vietnam, Indonesia (due to lower costs),
   • Sold globally.

4. Tata Motors (Indian MNC):

   • Manufactures vehicles in India, UK, South Africa, and Thailand,
   • Sells in Africa, Europe, South America.

Fun Fact:
A single product may have parts from 10 different countries, all brought together by an MNC!

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4. How Do MNCs Facilitate Exchange?

• Goods: MNCs import and export raw materials and finished goods between countries.
• Capital: They invest money to build factories and develop infrastructure.
• Technology: Modern tools and methods are shared between countries.
• Managerial Skills: MNCs train workers and managers locally, improving skills everywhere.

Examples:

1. Siemens (Germany) provides technology for metro trains in India.
2. Unilever manufactures soaps in India using managers trained in the UK.
3. Ford invests money in car factories in China and South Africa.

Key Point:
MNCs connect the world by sharing goods, money, technology, and people!

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5. Impact on Indian Economy

• Positive Effects:

  • New jobs for Indian workers,
  • Advanced technology and better know-how,
  • Access to global markets,
  • Higher quality products at good prices.

• Negative Effects:

  • Tough competition for local Indian industries,
  • Some small-scale producers may lose out,
  • Cultural influence (e.g., food, fashion) becoming similar globally.

Examples:

1. Indian farmers now sell potatoes to PepsiCo for Lay’s chips using better farming methods.
2. Handmade Indian toys sometimes struggle to compete with factory-made global toys.
3. Indian companies like Infosys sell their services in Europe and the USA.

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6. More Real-Life Examples

• PepsiCo: Buys potatoes from Indian farmers, makes chips in India using global methods, sells all over India and exports.
• Samsung: Designs in South Korea, makes phones in India, Vietnam, Brazil for worldwide sales.
• McDonald’s: Uses Indian paneer in burgers for Indian customers, keeps global systems for quality.

Observation:
Global products you use every day – like phones and snacks – often have ingredients or parts from many different countries!

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7. Activities to Understand Cross-Country Production

Activity: Create Your Own “Global Product” Map

Materials Needed:

• Chart paper or notebook,
• Internet for basic research,
• Pens and coloured markers.

Steps:

1. Pick a product you use every day (example: a mobile phone, chocolate, or jeans).
2. List out the different parts or ingredients in that product.
3. Use your textbook or internet to find out where each part is made or sourced.
4. Draw a world map; mark the countries.
5. Connect the countries with arrows to show the journey of parts before the final product reaches you.
6. Present your map to the class.

Observations:

• You will see most products are truly international!
• This activity shows how joined-up today’s world is.

Example Observation:
A simple chocolate bar may connect Ghana (cocoa), Brazil (sugar), Switzerland (manufacturing), and India (packaging).

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Scenario Based Questions and Answers

1. Scenario: You notice the “Made in” tag on your new T-shirt says “Bangladesh,” but the brand is from Europe.

   • Question: What does this tell you about the nature of production across countries?
   • Answer: This shows that though the brand is European, the T-shirt was stitched in Bangladesh. It highlights how different stages of making and selling a product may take place in different countries.

2. Scenario: A new car model is being launched in India and was designed in Germany, with parts from China.

   • Question: Why do companies choose such a spread-out production process?
   • Answer: Companies do this to lower costs (cheaper materials/labour), use local expertise, and reach more markets efficiently.

3. Scenario: An Indian company starts selling its IT services in Europe.

   • Question: How does this reflect production across countries?
   • Answer: This means Indian skills and technology are being offered globally. It is an example of services being produced in one country and consumed in another.

4. Scenario: Your friend worries that big foreign companies mean fewer jobs for Indians.

   • Question: Are MNCs harmful to employment in India?
   • Answer: MNCs can create jobs (factories, offices, services). However, some local industries may face more competition. The overall effect depends on the sector and government rules.

5. Scenario: You use a smartphone assembled in India but with parts from Japan, USA, and Korea.

   • Question: What can you say about globalisation from this example?
   • Answer: It shows how globalisation connects many countries in making one product. It also shows how production is no longer limited to national borders.

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Summary

• The world is now a huge, interconnected “factory.”
• Different production stages often happen in different countries.
• MNCs organise and connect these stages.
• Everyday products are truly international.
• Globalisation brings both new opportunities and some challenges.

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