Globalisation

Question 1

Economics globalisation definition

Answer 1

Globalisation is the process of economic and financial integration that has progressively removed national boundaries from the financing, production, sale and distribution of goods and services.

Question 2

Causes of globalisation?

Answer 2

• Comparitive advantages
• Transportation
• Tech and Comms
• Trade liberalisation
• Capital availability
• Corporate activity

Question 3

What are the impacts of globalisation?

Answer 3

• Specialisation
• Prices
• Choice
• Economic growth
• Employment & u/e
• Income distribution
• Environment
• Dependency

Question 4

What is a Multi National Company (MNC)?

Answer 4

An MNC is an organisation that owns or controls production of goods or services in one or more countries other than their home country.

Question 5

Multi-national company facts.

Answer 5

• The 200 largest MNCs control over 25% of global economic activity
• Over 40,000 MNCs

Question 6

What are the pros and cons of a MNC?

Answer 6

Advantages:
- Economies of scale
- Foreign direct investment
- Knowledge sharing
- Job creation
- Economic growth
- Product choice

Disadvantages:
- Tax avoidance
- Cultural dilution
- Resource depletion
- Environmental destruction
- Worker exploitation
- Influence
- Income distribution