2.4 Globalisation

Question 1

What is a multinational company?

Answer 1

Multinational companies or MNCs (also known as transnational corporations or TNCs) are companies that operate in a number of countries around the world.

Question 2

What is a tariff?

Answer 2

A tariff is a tax on imported goods and services. Many countries place tariffs on imported goods and services to make them more expensive for businesses and consumers to buy. They do this to restrict demand. By doing this, they aim to promote and protect businesses in the home country. This is known as a protectionist measure.

Question 3

What are trading blocs?

Answer 3

A trading bloc is another potential barrier to international trade. A trading bloc is a group of countries that work together to provide special deals for trading. This promotes trade between specific countries within the bloc.

Question 4

What is E-commerce?

Answer 4

E-commerce is any business transaction that takes place using the internet.