Superpowers EQ2 Flashcards

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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

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2
Q

Global TNCs

A

Publicly traded TNCs have shares that are owned by numerous shareholders

State-owned TNCs are owned by the government

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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
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