How does the interlinking of production across the world promote globalisation ? Explain.
Generated by claude-sonnet-4-6 · 2026-06-15 06:58 · grounding rag
Model Answer
Interlinking of production across the world promotes globalisation in the following ways:
- MNCs spread production globally — They divide the production process into small parts and spread them across different countries. For example, an MNC may design products in the USA, manufacture components in China, assemble them in Mexico, and run customer care from India.
- Greater foreign trade and investment — As MNCs produce in multiple countries, foreign trade and investment between countries increase, leading to greater integration of markets.
- Cost efficiency drives expansion — MNCs seek cheap labour and resources globally, which encourages them to connect more countries into their production network, deepening globalisation.
This complex, cross-border organisation of production integrates countries more closely, promoting rapid globalisation.
Source: Chapter 4 — Globalisation and the Indian Economy, "Production Across Countries" and "What is Globalisation?"
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Explanation
Examiners look for three clear points: the role of MNCs in splitting production across countries, the resulting rise in foreign trade and investment, and how this integration of production = globalisation. The Ford/MNC example from the chapter earns credit. Avoid vague statements — link each point directly to globalisation. Three marks = three distinct, concise points.