India & Global Development : Trade, Aid and Investment Flashcards
When did India stop being a closed economy?
1990’s
What was an important economic reform that India made at in the 1990’s
reducing barriers to trade
What is the ratio of imports to exports?
imports > exports
Why is the trade import export ratio the way it is in India?
because of natural resources needed for development and manufacturing
Why do companies invest in India?
- many Indias speak English
- many can read and write
Why is the fact Indians can read and write good for the companies / countries?
it makes them employable
What causes economic leakage?
companies employ people from other countries in the high paying jobs, that go to their families
India’s water is privatised. Why is this a problem?
companies use large quantities leading to shortages
What are some problems caused by TNC Investment?
- low wages
- factory conditions can be harsh
- economic leakages
Why do companies do community improvement projects?
for the companies image and publicity. it improves the community but is predominantly for selfish reasons
What are benefits of FDI?
- creates jobs for locals
- multiplier effect
- pay local taxes spent on improving infrastructure for everyone e.g., roads
