Consumer Choice, Impact Of Globalisation & ICT

Question 1

Globalisation

Answer 1

process by which the world becomes interconnected as a result of trade, improvements in transport and communications.

Question 2

Transnational (or Multinational) Companies.

Answer 2

Companies who operate in many different countries.

Question 3

Examples of transnational/Multinational companies

Answer 3

Apple, McDonalds, Google, Instagram, Starbucks

Question 4

Reasons for Globalisation

Answer 4

Improvements in Technology
Consumer Demands
Freedom of Trade
Transport Improvements

Question 5

Improvements in Technology

Answer 5

Internet and mobile technology has improved communication between business and consumers internationally (around the world).

Question 6

Consumer Demands

Answer 6

as income levels increase and consumer awareness expands, consumer may want products from overseas.

Question 7

Freedom of Trade

Answer 7

The W orld Trade Organisation (W TO) encourages free trade between countries which leads to globalisation.

Question 8

Transport Improvements

Answer 8

Goods and people can travel quickly and easily between countries.

Question 9

Positive Impacts Of Globalisation

Answer 9

Wider Consumer Choice
New Businesses
Employment
Lower Prices

Question 10

Wider Consumer Choice

Answer 10

Consumers can buy products previously not available to them. This involves sharing experiences & culture. This means competition for Irish businesses.

Question 11

New Businesses

Answer 11

Large companies may set up a business in Ireland to meet the needs of Irish consumers. They may buy raw materials from local suppliers in Ireland which helps small Irish businesses.

Question 12

Employment

Answer 12

Large companies that set up a business in Ireland will need an educated and skilled workforce which means they will hire local people.

Question 13

Lower Prices

Answer 13

TNCs benefit from lower production costs due to economies of scale (the price per unit reduces the more items you make) and as a result they can charge less for their items than smaller businesses.

Question 14

Negative Impacts Of Globalisation

Answer 14

Benefits the rich more than the poor
Local communities
Negative environmental impacts
Crowding out

Question 15

Benefits the rich more than the poor

Answer 15

Globalisationoperatesmostlyinthe interest of the richest countries which dominate world trade at the expensive of poorer ones.

Question 16

Local communities

Answer 16

Thereisnoguaranteethatthewealthfrominwardinvestment will benefit local people where the company operates. Often profits are sent back to the home country of the multi-national organisation e.g Apple’s profits return to America.