Globalisation
Visão Geral
The phone in your pocket may have been designed in one country, built from components made in a dozen others, assembled in another, and sold to you by a company with offices on every continent. That is globalisation in action: national economies have become steadily more integrated and interdependent, connected by trade, capital, technology and the movement of people.
In this lesson you will examine why globalisation has accelerated, what multinational corporations do and why they expand abroad, and how the process affects countries, governments, producers, consumers, workers and the environment, not always in the same direction for everyone.
Objetivos
- Definition of globalisation: increased integration and interdependence of economies
- Reasons for globalisation: fewer tariffs and quotas, reduced cost of transport, reduced cost of communication, increased significance of multinational corporations (MNCs)
- Impacts of globalisation and global companies on individual countries, governments, producers and consumers, workers and the environment: rising living standards, greater choice, lower prices, reduced costs of communication, closing of traditional industries, environmental impact
- Definition of multinational corporations (MNCs): definition of foreign direct investment (FDI), reasons for emergence of MNCs/FDI (to benefit from economies of scale, to access natural resources/cheap materials, lower transport and communication costs, to access customers in different regions), advantages and disadvantages of MNCs/FDI (creating jobs, investing in infrastructure, developing skills, developing capital, contributing to taxes, avoiding paying taxes, environmental damage, moving profits abroad)
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- Which of the following best defines globalisation? A) The removal of all government spending B) The increased integration and interdependence of the world's economies C) A country's decision to leave a trading bloc D) A rise in a country's inflation rate Answer: B
- Which of the following is a reason for the growth of globalisation? A) Rising tariffs between countries B) Higher transport costs C) Reduced cost of communication D) Reduced significance of multinational corporations Answer: C
- Foreign direct investment occurs when: A) A government borrows from another government B) A firm invests in productive assets in another country C) A consumer buys an imported good D) A central bank changes the exchange rate Answer: B
- Which group is most likely to benefit directly from lower prices as a result of globalisation? A) Workers in an industry that closes due to import competition B) Consumers C) The environment D) A government losing tax revenue to profit shifting Answer: B
- 'Offshoring' refers to: A) Building a new domestic factory B) Moving part of a firm's production to another country to reduce costs C) A government reducing import tariffs D) A rise in a country's exchange rate Answer: B
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