1) In Post liberalization era Multinational Corporation (MNC`s) are entering into business ventures in India. Give 2 harmful effects of the operation of MNCs on Indian Economy.
Ans. The operation of MNCs open up possibilities of interference in industrial activity of recipient country and thus resented by nationalist thinkers.
Their arguments can be summed up as follows:
1) DISTORTION OF ECONOMIC STUCTURE :
inflict heavy damage on host country, such as suppression of domestic entrepreneurship,
extension of oligopolistic practices (heavy advertising, heavy profit making)
supplying economy with unsuitable technology and unsuitable products
distorting the productiuon stucture to meet requirements of high income elites
2) POLITICAL INTERFERENCE :
MNCs have immence power and money to make decision making process in non developed countries
Though they transfer technology, but models and patterns are not in harmony with the intrest of host countries
3) TECHNOLOGY TRANSFER NOT NECESSARILY CONDUCTIVE TO DEVELOPMENT :
In case of technology transfer, behavious pattern of MNCs reveals that they do not engage in Research & development activities of underdeveloped countries
R & D activities continue to be centralised in parent country while host countries have to bear bulk of their costs.
2) The problem of “Generation Gap” has given the birth of social tension. Suggest some measures to bridge this GAP and also suggest that how the ways shown by you would be effective.
Ans.
Ans. The operation of MNCs open up possibilities of interference in industrial activity of recipient country and thus resented by nationalist thinkers.
Their arguments can be summed up as follows:
1) DISTORTION OF ECONOMIC STUCTURE :
inflict heavy damage on host country, such as suppression of domestic entrepreneurship,
extension of oligopolistic practices (heavy advertising, heavy profit making)
supplying economy with unsuitable technology and unsuitable products
distorting the productiuon stucture to meet requirements of high income elites
2) POLITICAL INTERFERENCE :
MNCs have immence power and money to make decision making process in non developed countries
Though they transfer technology, but models and patterns are not in harmony with the intrest of host countries
3) TECHNOLOGY TRANSFER NOT NECESSARILY CONDUCTIVE TO DEVELOPMENT :
In case of technology transfer, behavious pattern of MNCs reveals that they do not engage in Research & development activities of underdeveloped countries
R & D activities continue to be centralised in parent country while host countries have to bear bulk of their costs.
2) The problem of “Generation Gap” has given the birth of social tension. Suggest some measures to bridge this GAP and also suggest that how the ways shown by you would be effective.
Ans.
- Change – Law of nature
- Adapt as per pace of change
- Who don't adapt face tremendous problems
- Old people do not easily accept new trends and values of youngsters.
Some measures are as follows
- Balance of sentiments between society and individual.
- Individual should follow norms of society
- Old not too much Assertive & young not too much bohemian
- This way many cracks of castle of society could be cemented
- Old should not blame youngsters for evils in society
- Should not condemn them as selfish & rotten lot
- Should assign due importance “The temporal & Mores”(Custom & time)
- Young should share wise experience of seniors
