Superpowers EQ2 Flashcards
1
Q
Global organisations influence on capitalism
A
World bank: makes development loans to developing countries but within a free market model that promotes exports, trade industrialisation and private businesses
International Monetary Fund: promotes global economic security and stability, and assists countries to reform their economies
World Trade Organisation: it regulates global trade, aimed at promoting open trade and reducing protectionism
2
Q
Global TNCs
A
Publicly traded TNCs have shares that are owned by numerous shareholders
State-owned TNCs are owned by the government
3
Q
What factors has allowed the dominance of TNCs in global economy
A
- Their economies of scale mean they can outcompete smaller companies and often take them over
- Their bank balances and ability to borrow money to invest has allowed them to take advantage of globalisation through investing in new technology
- The move to free- market capitalism and free trade has opened up new markets, allowing them to expand