Globalisation Flashcards
1
Q
What is a quota?
A
The limits on the amount of products imported
2
Q
What are tariffs
A
The taxes imposed on imports
3
Q
What is globalisation
A
It is the process by which the world is becoming increasingly interconnected and independent
4
Q
What is an MNC
A
Multinational company
5
Q
What is a TNC
A
Transnational company
6
Q
What is independence
A
When countries rely on each other or are linked in some way
7
Q
Benefits of globalisation
A
Positive multiplier effect
MNC’s bring foreign currency to local economies
Investment by MNCs provides new jobs and skills for local people
8
Q
Why globalisation could be a threat
A
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
