Global Indices And TNC Role

Question 1

What index measures a country’s globalisation?

Answer 1

KOF Globalisation Index.

Question 2

What index measures a city’s globalisation?

Answer 2

AT Kearney Index.

Question 3

What is the role of TNCs in production networks?

Answer 3

Extract raw materials in 1 country then refine them in another, make components in several countries and assemble them in others. Includes selling licences to other companies.

Question 4

What is the role of TNCs in new markets?

Answer 4

Sell finished products to main markets in developed countries plus create new markets in emerging economies using global branding and marketing to meet local needs.

Question 5

What is the role of TNCs in glocalisation?

Answer 5

Change products to suit local cultures and tastes, perhaps due to religion/regulations. Global brands remain the same but they tailor their products to suit the local culture.

Question 6

What is the role of TNCs in liberal policies?

Answer 6

Use economic liberalisation of countries to locate outsourcing (another company completing some of the work at a lower cost) and offshore operations (moving some operations to another country for lower costs).