Economic Development: Sectors and Money · Term 2

Organised vs. Unorganised Sectors

Compare the organised and unorganised sectors, focusing on employment conditions, social security, and the challenges faced by workers in the unorganised sector.

About This Topic

Globalisation is the process of rapid integration or interconnection between countries. This topic explores how Multi-National Corporations (MNCs) spread their production across the globe to reduce costs and be closer to markets. Students learn about the role of technology, liberalisation of trade, and the World Trade Organisation (WTO) in facilitating this process.

The curriculum also addresses the 'impact' of globalisation, how it has benefited consumers and large producers but has often challenged small manufacturers and workers in the informal sector. This unit is vital for understanding the modern world. This topic comes alive when students can physically model the patterns of global production and debate the 'fairness' of international trade.

Active Learning Ideas

Simulation Game: The Global Production Chain

Students trace the 'birth' of a smartphone. They assign different 'tasks' (design in USA, parts from China, assembly in India, call centre in Philippines) to different groups to see how MNCs operate.

⏱ 45 min·Small Groups

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Formal Debate: Is the WTO Fair?

Students debate whether the WTO truly promotes free trade for all, or if it favours developed nations that continue to protect their own agriculture while forcing developing nations to open their markets.

⏱ 40 min·Whole Class

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Think-Pair-Share: The Local Impact

Students identify one 'global' brand and one 'local' brand in their neighbourhood. They pair up to discuss how the global brand has affected the local one (competition, better quality, lower prices).

⏱ 20 min·Pairs

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Watch Out for These Misconceptions

Common Misconception

Globalisation only means more foreign products in the market.

What to Teach Instead

Students often focus on 'consumption'. Peer investigation into 'Foreign Direct Investment' (FDI) helps them see that globalisation is also about foreign companies setting up factories and offices, creating jobs and bringing new technology.

Common Misconception

Liberalisation means the government has no role in the economy.

What to Teach Instead

Many think it's 'total freedom'. Peer explanation helps students understand that liberalisation is a deliberate policy choice by the government to remove certain barriers, but the state still regulates and monitors the economy.

Frequently Asked Questions

How do MNCs control production in other countries?

MNCs use several ways: 1) Setting up partnerships with local companies; 2) Using local companies for supplies (e.g., garments, footwear); and 3) Closely competing with local companies or buying them up (e.g., Cargill Foods buying Parakh Foods). This allows them to exert a tremendous influence on production in distant locations.

What is 'Liberalisation'?

Liberalisation refers to the removal of barriers or restrictions set by the government on foreign trade and investment. In India, this process began around 1991, allowing businesses to make decisions freely about what they wish to import or export. It was based on the idea that competition would improve the performance of Indian producers.

What is the role of the World Trade Organisation (WTO)?

The WTO is an international organisation whose aim is to liberalise international trade. It establishes rules regarding international trade and sees that these rules are obeyed. While it claims to promote 'free trade' for all, developing countries often argue that the rules are biased in favour of developed nations.

How can active learning help students understand globalisation?

A 'Fair Trade' simulation is very effective. Students act as 'small producers' and 'MNC buyers' and must negotiate a contract. By introducing 'shocks' like a sudden change in global fashion or a new tariff, students experience the vulnerability of small players in a globalised world, making the concept of 'fair globalisation' much more tangible.

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