Going Global 1.4.2 Flashcards
Enquiry Question: Which organisations are involved in globalisation and what are their roles? (35 cards)
How do TNCs contribute to globalisation?
By operating across borders, they create global flows of goods, capital, technology, and culture.
What is outsourcing in the context of TNCs?
Outsourcing is when a TNC hires another company to complete part of its product or service.
What is offshoring?
Moving production to another country, often to reduce costs.
How do TNCs take advantage of economic liberalisation?
They enter newly opened markets to access cheaper labour and resources.
Give one social benefit of TNC outsourcing to developing countries.
Job creation and income for local communities.
Give one economic cost of TNC outsourcing to developing countries.
Local firms may be outcompeted or exploited with little long-term development.
Name one environmental cost of TNC activity in emerging countries.
Pollution or resource depletion due to weak environmental regulations.
How can TNCs help spread culture globally?
Through branding, advertising, and consumer products (e.g., McDonald’s or Apple).
Why might TNCs face criticism for exploiting workers?
They may pay low wages, have poor working conditions, or use child labour.
What is glocalisation?
When a TNC adapts its products or services to suit local markets.
How can TNCs influence political decisions in host countries?
By pressuring governments for tax breaks or relaxed regulations.
How do national governments promote globalisation through free market liberalisation?
By reducing government control of the economy and allowing more private enterprise.
What is privatisation?
The sale of state-owned businesses to private companies.
Why do governments encourage business start-ups?
To boost innovation, employment, and attract investment.
What is a special economic zone (SEZ)?
A designated area with tax breaks and relaxed laws to attract foreign investors.
How do government subsidies encourage globalisation?
By supporting industries to make them competitive globally.
What is FDI and why do governments support it?
Foreign Direct Investment—brings capital, jobs, and technology into a country.
What is the role of the IMF in globalisation?
It lends money to developing countries under conditions promoting free-market policies.
How can the IMF’s policies be controversial?
They often force privatisation and spending cuts that can hurt social services.
What does the World Bank do?
Loans money to developing countries for infrastructure and development projects.
Why is the World Bank criticised?
Like the IMF, it may promote debt and reduce national sovereignty.
What is the main aim of the WTO?
To promote free trade and reduce trade barriers globally.
Why is the WTO considered ineffective by some critics?
It has failed to stop powerful nations from using protectionist policies.
What is a trade bloc?
A group of countries that agree to reduce or eliminate trade barriers among themselves.
