Lectures 6-9

Question 1

What is globalisation?

Answer 1

The process by which the world is becoming increasingly interconnected as a result of increased trade and cultural exchange.

Question 2

What is bribery?

Answer 2

Giving of money or a favour to influence the judgement of another in a way that is favourable to the person giving the bribe.

Question 3

Arguments for bribery

Answer 3

1. Necessary in some parts of the world 2. Common in some parts of the world 3. Sometimes seen as a form of commission or tax

Question 4

Arguments AGAINST bribery

Answer 4

1. Illegal in most developing nations and seen as wrong 2. Managers should not deal with corrupt governments 3. Once started can create a dependence on corruption

Question 5

What is a Mutli National Corporation (MNC)?

Answer 5

Corporations that own or control production or service facilities outside the country in which they are based. 69% of the world’s top 100 economic entities are MNCs.

Question 6

What are the benefits of MNCs?

Answer 6

1. Offer host country benefits like job creation and technology transfer 2. Companies monitor their impact and can raise standards

Question 7

Downsides of MNCs?

Answer 7

1. Operate in contentious ways in some parts of the world that have less legal restrictions 2. Move investment around the globe to avoid tax 3. Take advantage of cheap wage areas

Question 8

What is meant by the race to the bottom?

Answer 8

Companies compete with country’s to lower wages and produce things where wages are the lowest and the workers have the fewest rights. The WTO and the ILO monitor these types of companies and ensure they stick to the 8 fundamentals conventions like human rights and discrimination

Question 9

What is corporate governance?

Answer 9

The system by which companies are directed and controlled. There are legal, cultural and institutional arrangements that see how companies and controlled and how control is exercised.