Globalisatiom Flashcards
How countries attract MNCs
Access to specialised workers
Tax incentives
Avoiding increasing c.o.p and regulation
Pros of MNCs
EOS - greater efficiency lower prices
More R and D to improve products
Create jobs and wealth around the world
Cons of MNCs
Scope for tax avoidance loss of tax revenue
Monopoly power leads to increased prices for consumers
Benefits of the world trade organisation
Open markets to cheap imports from developing world
Better rates of trade
Why is terms of trade only beneficial for industrialised countries ?
In favour of industrialised countries and against primary producers so in order to import capital they must sell more of the primary good they produce
Terms of trade in simple terms
As export value increase ability to import more or better goods also increases
