Globalisation

Question 1

What is globalisation?

Answer 1

term used to describe how trade and technology have made the world into a more connected and interdependent place

Question 2

Why do LICs suffer when it comes to globalisation?

Answer 2

LICs export raw materials to HICs and buy back the manufactured goods and as the value of raw materials is less than that of manufactured goods they suffer a trade deficit which widens the worlds development gap

Question 3

What is a tnc?

Answer 3

transnational cooperations, a nation wide company

Question 4

What do Tncs do?

Answer 4

They produce goods and sell goods in a number of countries across the globe (sony, cococola, nike, mcondalds)

Question 5

Where do tncs locate their factories and why?

Answer 5

Factories are often located in LICs as labour is cheaper, working hours are longer and there are fewer health and safety laws

Question 6

What postivive affects can tncs bring to host countries?

Answer 6

More job opportunities
Higher wages
More education and training

Question 7

What negative affects to tncs bring to host countries?

Answer 7

Jobs created are not always secure
Factory employees often have to work long hours in poor conditions
Profits made by tncs do not stay in the host countries

Question 8

How do tncs use fdi?

Answer 8

to buy control of buisness in developing and emerging countries

Question 9

What is fdi?

Answer 9

Foreign direct investment - when a country takes controlling ownership in a business entity in another country

Question 10

Pros of globalisation

Answer 10

lower employer costs
lift people out of poverty
spread knowledge and technology

Question 11

Cons of globalisation

Answer 11

displaced from jobs as can employ someone for less
lack of local businesses
unequal economic growth
increase in global ressesions