Development

Question 1

What is Globalisation?

Answer 1

The movement of people, goods, money and ideas over borders

Sped up by increasing level of technology

Question 2

What is included in the HDI?

Answer 2

Mean Years of Schooling
GDP per capita
Life Expectancy from birth

Question 3

Positives of TNCs having factories in LICs

Answer 3

More employment
Potentially better wages than current work
Improved Skills
Higher standard of living
Improved public services (e.g. healthcare & education)

Question 4

Negatives of TNCs having factories in LICs

Answer 4

Leakage of profits
Exploitation of labour
Low pay
High-skill jobs may not go to locals
Poor conditions
Lack of regulations

Question 5

Give reasons for inequality between countries

Answer 5

Geographical Location
Climate
Stability of governments
Economic Policies (e.g. EU)

Question 6

What are the positive impacts of TNCs/Globalisation?

Answer 6

Investment by TNCs create jobs (in factories)

TNCs usually pay higher wages than local businesses (giving a higher income and better standard of living)

Local people learn new skills and how to make use of new technology

Most products exported, benefiting host country’s economy

TNCs pay taxes back to Government

Question 7

Reasons for Nike having factories in South-East Asia

Answer 7

Government Incentives
Raw materials produced locally - lower transport costs
Cheap labour
Expanding market as country develops

Question 8

What are the negative impacts of TNCs/Globalisation?

Answer 8

TNCs make employees work long hours in bad conditions

Profits sent back to more developed countries rather than developing the local economy

TNCs can close factories and move elsewhere with little warning

Fewer laws on environment (TNCs may pollute the environment due to little fear of prosecution)

Host may become too dependent on TNCs, allowing Government decisions to be swayed

Question 9

Solutions of Nike’s problems

Answer 9

1992 - Introduced Code of Conduct with:
Workers' rights
Environmental impacts
Fire Safety
Air quality
2001 - Corporate Responsibility Report

Question 10

Problems with Nike factories

Answer 10

Paying low wages
Work long hours
Not providing sufficient training
Poor & unsafe working conditions
Abuse of workers

Question 11

Solutions of Nike’s problems

Answer 11

1992 - Introduced Code of Conduct