Q. 245.0( 2 Votes )
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In India, on one hand, there are large companies where the work is automated and on the other, there are small home based productions.
The characteristics of the automated work in the large companies are:
1. In large companies where the work is automated, there is less requirement of the human workforce as the machinery are replacing human beings.
2. The manager is employed by the owner who looks after the workers and the production. The task of the manager is to control workers to get more work from them. Either the working hours are increased or the other way is to increase the amount that is produced within a given period of time.
3. Machinery helps to increase production.
4. The work is organized by using the technique called ‘Scientific Management’ as propounded by Fredrick Wilson Taylor. According to this work is broken down into its smallest repetitive elements and divided between workers.
On the other hand, there are small home-based productions which are an important part of the economy. These industries or productions include cottage industries, woodworks, bread maker, leather manufacture, candle making, etc. The characteristics are:
1. Small revenue and market area: The revenue generated is small because the production is less and the market area is also small.
2. Few employees: these businesses have smaller teams of employees than the companies which operate on a large scale.
3. These are run entirely by small teams or single individuals.
4. Profit generated is also small. They have no equipment to keep their cost lower just like the established automated businesses.
Globalization refers to the growing interdependence between different peoples, regions, and countries in the world as social and economic relationships come to stretch world-wide. Globalization has been driven by many factors like economic factors and information and communication techniques.
Liberalization of the economy meant the steady removal of rules that regulated Indian trade and financial regulations. These measures are also called economic reforms.
The effects of Globalization and Liberalization policy in the Indian industrial sector are the following:
1. Through these reforms, the Indian economy witnessed a series of reforms in all major sectors like agriculture, industry, trade, foreign investment, and technology, public sector, financial institutions.
2. India then had access to the loans from the international financial institutions like the World Bank and International Monetary Fund (IMF) for setting up more and more industries.
3. The liberalization policy also involved the policy of structural adjustments. These adjustments usually meant cut in the state expenditure on the public sector and helping the private sector thus to evolve.
4. Licenses are no longer required to set up an industry.
5. Foreign direct investment is encouraged after the adoption of liberalization policies.
6. Imports are now easily available which has created a competitive environment for the domestic industries. Domestic industries suffer due to changes in the consumer taste.
7. Multinational companies had overtaken the domestic industries. These companies are reducing employment and creating income inequality.
So there are both negative and positive sides of globalization and liberalization.
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