Globalisation Flashcards
What is a quota?
The limits on the amount of products imported
What are tariffs
The taxes imposed on imports
What is globalisation
It is the process by which the world is becoming increasingly interconnected and independent
What is an MNC
Multinational company
What is a TNC
Transnational company
What is independence
When countries rely on each other or are linked in some way
Benefits of globalisation
Positive multiplier effect
MNC’s bring foreign currency to local economies
Investment by MNCs provides new jobs and skills for local people
Why globalisation could be a threat
MNCs may drive local companies out of business
It is cheaper to operate in other countries
Profits are often sent back to the MEDCs where most of the MNCs are based