transNational corporations for host countries Flashcards

1
Q

multiplier effect

A

(a small input has a much larger output )
increasing positives over time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

benefits brought by MNCs

A

if labour costs are low, then a product can be made cheaper and the price of the product falls

people in america, europe and asia can buy cheaper goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what is a MMC?

A

multinational corporation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what is development

A

.The process of change for the better this can be economic, social or political

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what does the term development gap mean

A

The widening difference of development between rich and poor.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is the world bank

A

An international financial institution that provides loans to developing countries for capital programmes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what is the development continuum

A

A linear scale from high developed countries to those with a low level of development.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what 4 catergories of wealth does the world bank place countries in

A

High income countries (HIC’s),
Upper-middle-income countries,
Lower-middle-income countries,
Low income countries (LIC’s)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

gross domestic product (GDP) is one way to measure economic development. what is it?

A

The total value of all goods and services produced within a country in a year (Total value of the economy)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

the average wage of a countries population is known as

A

Gross national income (GNI)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

give 2 other ways we can measure economic development

A

Poverty: The percentage of the population that earn less than $1.90 per day according to the world bank.

Employment structure: The type of work people do (Primary-Like farming, Secondary-Factory work or tertiary -Services)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is purchasing power parity (PPP)

A

A way of comparing the average wealth of a country by taking the cost of living in those countries into account it converts the GNI into a figure that describes what that money will buy in local prices.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what are the limitations of using economic measures of development

A

They measure only wealth and do not include social factors, They do not recognise the inequality within a country, Without PPP it does not consider the cost of living and what people can afford within that country.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what does NIC stand for

A

Newly industrialised country - India, China, Mexico, Brazil.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

malawi is an example of an LIC country which is land locked what does this mean

A

It has no coastline and therefore has no sea ports

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what key issues does being land locked create for malawi

A

.Difficulty trading with other countries.

17
Q

what type of products does malawi export

A

Tobacco, Tea, Cotton, Sugar - Low value goods

18
Q

what type of products does malawi import

A

Oil and Farm machinery - High value products

19
Q

what do HIC’s export

A

Manufactured goods

20
Q

what do LIC’s export

A

Primary goods

21
Q

what is globalisiation

A

The process by which the world’s economies, societies and cultures have become integrated through communication, transportation and trade.

22
Q

what 4 factors drive globalisation

A

.MNC’s (Multinational companies),
Communication technologies,
Trade,
Culture

23
Q

5 ways that NIC’s such as india and china benefited from globalisation

A

Rapid economic growth, Cheap labour so manufacturing industry boomed, Changes in technology so they can invest and encourage MNC’s to locate to them, Flows of people- Migration, Flows of idea and culture - Bollywood

24
Q

5 reasons MNC’s such as nike locate to NIC’s and LIC’s

A

-Weaker legislation on staff safety, welfare and environment
-Lower labour costs
- Reduced costs of buildings and land
-Government incentives
- Closer to markets where goods are sold.

25
Q

what are the positives of MNC’s such as Nike location to NIC’s and LIC’s

A

Investment provides jobs and skills for local people, Multiplier effect

26
Q

what are the negatives of MNC’s such as Nike location to NIC’s and LIC’s

A

Profits sent back to HIC where the MNC is based
MNC’s can drive out local businesses.
If the MNC decides to close its factory to relocate people can be made redundant.
Lack of laws mean that they operate in a way that they wouldn’t be able to in a HIC e.g polluting rivers, Sweatshop conditions for workers etc.

27
Q

what country did you study for where nike produces sports wear

A

vietnam

28
Q

what is foreign direct investment

A

investment from overseas into NICs from MNCs.

29
Q

what are trade blocs? can you give an example of one

A

Trading partnerships between different countries e.g European Union,