Unit2:Economic Growth and Development

Question 1

What is Globalization?

Answer 1

Globalization refers to the process by which the
world’s economies are becoming interconnected
as a result of the improvements in transportation
and communication and the removal of barriers to
trade and the flow of capital and information.

Question 2

What is a Multi-national corporation / trans-national
corporation?

Answer 2

organizations that have businesses in
more than one country

Question 3

What is the Economy?

Answer 3

the system of how industry, trade and
finance is organized in a country, region, or
worldwide to manage wealth

Question 4

What is the Global Village?

Answer 4

the way people all over the world have
become connected through technology

Question 5

How the Caribbean can benefit
from globalization?

Answer 5

1. Access to a wider range of goods and services
2. Chance to export to new and bigger markets
3. More exports:
   – increased employment
   – increased business investment
4. Improved standard of living

Question 6

What are the Disadvantages of globalization?

Answer 6

1. Communicable Diseases can easily become pandemics
2. Repatriation of profits by MNCs and TNCs which
   exploit host country resources and send profits to
   their own home countries
3. Exploitation of workers in underdeveloped and
   developing countries where labour is cheaper
4. Local businesses face increased competition from
   foreign products as barriers to international trade are
   being removed - (unemployment increases)
5. Loss of cultural uniqueness
6. Tourism can have a negative impact on the natural
   environment and on societal values (e.g. prostitution)

Question 7

Why must we in the Caribbean be concerned
about globalization?

Answer 7

1. Many Caribbean countries depend on tourism for survival.
   Outbreaks of diseases can cause
   great losses in the tourism industry because people tend to
   travel less during pandemics.
2. The cost of production in Caribbean countries is higher than
   the cost of production in larger, more developed countries.

Question 8

What are Multinational Corporations (MNCs)?

Answer 8

Multinational Corporations (MNCs), are very large
businesses that have offices and factories in several
different countries.

Question 9

What are Subsidiaries?

Answer 9

Subsidiaries located in developing countries where
labour is cheap and production costs are low.

Question 10

What are the advantages of Multinational Corporations (MNCs)?

Answer 10

1. Create employment and use local labour
2. Provide foreign training for local staff
3. Sometimes pay high salaries
4. Transfer technology to developing countries

Question 11

What are the disadvantages of Multinational Corporations (MNCs)?

Answer 11

1. Exert undue political influence over governments
2. Exploit developing nations e.g. by paying minimum
   wages or utilizing child labor
3. Create job losses in their own home countries

Question 12

What are the characteristics of a developed country?

Answer 12

• very industrialized nations
• high per capita income
• high standard of living
• access to more goods and
  services than people in
  developing countries.

Question 13

What are the characteristic of developing (3rd world) countries?

Answer 13

• lower per capita income
• lower standard of living
• access to fewer goods
  and services than people
  in developed countries

Question 14

What are characteristics of underdeveloped countries?

Answer 14

• lacks industrialization
• lacks infrastructure
• lacks developed
  agriculture
• undeveloped natural
  resources
• low per capita income

Question 15

What is communication?

Answer 15

*Communication is the transfer of
information between a sender
and a receiver

Question 16

What are the seven stages of the Communication Process?

Answer 16

1.sender
2.encodeing
3.message
4.communication channel
5.reciever
6.decodeing
7.feedback

Question 17

What is ICT?

Answer 17

*Information and Communication Technology (ICT)
are technologies which are used for transmitting and
storing information electronically.

Question 18

What is E-commerce?

Answer 18

*E-commerce or
electronic commerce is
the buying and selling of
products and services via
the internet (online) and
computer networks.

Question 19

What are some advantages of e-commerce?

Answer 19

1. Unlimited and
   convenient access
   anytime, anywhere in
   the world – 24 hours a
   day, 7 days a week
2. Consumers can purchase
   items not available
   locally
3. Saves time and energy,
   no need to visit a
   store/line up
4. Use of debit and credit
   cards reduces the need
   to carry cash
5. Consumers can avoid the high mark-ups
   placed by local retailers
6. Consumers can read customer reviews
   before purchasing
7. Businesses can sell their products all
   over the world (larger market)

Question 20

What are some advantages of e-commerce?

Answer 20

1.The
consumer’s personal information
may be stolen by an identity thief
and used to commit fraud or theft.
2. Can result in high credit card debt
as people may buy things they can
do without just because they have
a credit card. The interest rate on
unpaid credit balances is very
high and can worsen the
consumer’s debt situation.
3. There is no face-to-face contact between
parties in a transaction. Obtaining
redress may be difficult, especially if the
parties are in different countries
4. Quality is hard to assess before purchase
5. Consumers unfamiliar with the process
may be exploited or might make costly
mistakes

Question 21

What is Mass Media?

Answer 21

the different media
technologies used to reach large
numbers of people (the masses)

Question 22

What are the types of Mass Media?

Answer 22

1. Print media [newspapers]
2. Broadcast media [radio,
   film, television]
3. Electronic media
   [internet-based]

Question 23

What are the Advantages of mass media?

Answer 23

1. Allows people to share ideas, keep in touch
   and learn
2. Can promote the culture of Trinidad and
   Tobago and the Caribbean region
3. Can be used to promote good values, freedom
   of expression, national pride and identity
4. Can encourage cultural creativity e.g. music,
   films

Question 24

What are the disadvantages of mass media?

Answer 24

1. Can negatively influence the younger
   members of society
2. National and regional views are not
   usually shown on foreign/global media
   (cable)

Question 25

What is the internet?

Answer 25

A global computer network which
provides a variety of information

Question 26

What is Social Media?

Answer 26

Social media are websites and
applications that allow people to
post and share content in order to
connect with others.

Question 27

What are the advantages of Social Media?

Answer 27

1. Keeps people connected
   when physically apart
2. Useful for gathering support
   for issues
3. Businesses can build
   relationships with customers
4. Facilitates advertising and
   marketing

Question 28

What are the disadvantages of Social Media?

Answer 28

1.Addictive
2.Cyberbullying
3.Worsens loneliness
and depression
4.Catfishing

Question 29

What are the advantages of the internet?

Answer 29

1. Easy access to a wide
   range of information
2. Easy access to
   entertainment
3. Online shopping
4. Access to a wider
   audience:
   * Can raise awareness of
   news and issues

Question 30

What are the disadvantages of the internet?

Answer 30

1. Decline of publishing
   industry
2. Decline in use of libraries
3. Local culture may be lost as
   global culture spreads
4. Encourages a sedentary
   lifestyle
5. Information overload,
   resulting in anxiety & stress