What are TNCs?
Transnational corporations
Globalization
Refers to the increasing movement of goods services and capital across national borders
What is a foreign direct investment?
It occurs when a company individual or fund invests money in another country for example by buying shares of the stock in or loaning money to a foreign firm
What are some factors that have accelerated globalization?
Technological innovation transport systems the rise of major transnational corporations cultural convergence social and political reforms
What are the important international financial and trade institutions?
World Bank
international monetary fund
and the WTO
What was the purpose of the World Bank?
It was to provide economic development loans to its member nations to help rebuild economies of Europe.
What is the purpose of the international monetary fund?
To make current exchange easier for member countries so that they can participate in global trade.
What is the purpose of the world trade organization?
It is an international body that establishes the ground rules for trade among nations. Its major objective is to promote free trade that is to eliminate barriers to trade among nations such as quotas duties and tariffs.
What are some benefits of globalization?
Increased economic productivity
Comparative advantage
Reduced price for consumers
Transfer in technology and investments
What are some of the costs of globalization?
Job insecurity
Environmental and labor standards may be weakened
Undermines cultural linguistic and religious diversity
What are the four defining features of democracy?
Fair elections
an independent media
separation of powers
An open society