Globalisation

Question 1

What is globalisation?

Answer 1

It is the process whereby economics and societies around the world become interconnected.

Question 2

What is a TNC?

Answer 2

It is a Transnational corporation. They are companies that have branches in many countries around the world. (They are the driving force behind globalisation)

Question 3

Why do companies like Nike spread around the world?

Answer 3

By moving their production to LEDCs TNCs like Nike, save huge amounts of money in labour costs and so they make more money (Revenue - costs = profit)

Question 4

What are the benefits to globalisation?

Answer 4

Lower costs for products.
International recruiting.
Access to new cultures.

Question 5

Factors leading to globalisation

Answer 5

Economies of scale.
Technological change.
Less protectionism.

Question 6

Negatives of globalisation

Answer 6

Exploitation of Labour (sweatshops), domestic job loss and imbalanced trade