Case Studies for Going Global

Question 1

Give an example of how globalisation has been caused as a result of the spread of a colony.

Answer 1

The Roman Empire spread across (and controlled) large areas of the world 2000 years ago. They brought a new political system, new technology and a new culture which remained long after they left.

Question 2

Give an early example of large companies operating in several countries.

Answer 2

In the 17th century the East India Company traded a lot with British colonies throughout Asia.

Question 3

What slowed global trade?

Answer 3

The first and second world wars- they severely damaged the European economies slowing globalisation.

Question 4

Give an example of a trade bloc

Answer 4

NAFTA- agreement between countries of North America- USA, Canada and Mexico.
Makes trade easier by removing import taxes on some goods.
Trade between countries has increased but impacts such as job losses in USA because manufacture has moved to Mexico have occurred.

Question 5

What are the G8?

Answer 5

8 of the richest countries in the world.

Hold over 60% of the gross world product and control most of the military power.

Question 6

Give an example of a merger (where two companies agree to become a bigger company).

Answer 6

BP and Amoco- helps links form between countries where the companies operate

Question 7

A major criticism of TNCs is much of the profit they make from foreign operations doesn’t remain n the foreign countries…give an example?

Answer 7

Some of the money made by Volvo cars will be invested in the ISA, not Sweden