Unit 3 Chapter 7

Question 0

Cultural imperialism

Answer 0

The practice of promoting, distinguishing, separating or artificially injecting the culture of one society into another. It is usually the cast that the former belongs to a larger economically or militarily more powerful nation and the latter belongs to a smaller, less important one.

Question 1

Multinational corporations

Answer 1

Businesses which are active in more than one country. They might have distribution outlets or factories abroad, or they may offer services which are bought by organisations or people located in other countries.

Question 2

Transfer pricing

Answer 2

When one part of an MNC in one country transfers goods or services to another part in another country. The price charged is the ‘transfer price’. This may be unrelated to costs incurred and can be set at a level which reduces or cancels out profit and hence the total tax paid by the MNC.

Question 3

Race to the bottom

Answer 3

Used to describe the way MNC’s move to the country that offers the lowest tax rates or the weakest environmental controls. In order to hold onto their MNC’s each country will offer them successively more advantageous terms at the expense of their own economy or environment, until the potential benefits of having an MNC are outweighed by the costs.

Question 4

Pressure groups

Answer 4

Organisations that attempt to influence public policy and especially government legislation, regarding their particular concerns and priorities.