Flashcards
MOB Globalisation
Cards in this deck (8)
- 1What is globalization?Globalization describes the greater integration between countries in order to facilitate the connection and interdependence of economies
- 2What is trade liberalization?Trade liberalization is the removal of trade barriers within a country
- 3What impact can globalization have on the economy?1 . Increased unemployment- increased competition may force small businesses out of the market
2 . Depletion of local resources- in an attempt to meet increased demand, local resources that are non-renewable may be exhausted
3. Opportunity for economic growth- increased trade means increased foreign exchange
4 . Illegal activities may be conducted
5 . If one major country enters a recession, a chain of countries can be affected - 4What impact can globalization have on the government?1. Loss of control over the economy as governments have to adhere to international policies
2 . Governments will have to develop policies to combat the negative impacts of globalization
3. Governments may not be able to control large multinational companies - 5What impact can globalization have on consumer behavior?1. Variety of choices
2 . Increased competition can mean better quality products and lower prices
3. Employment
4. Changes in taste and preference
5. Consumers have a responsibility to ensure MNCs are providing quality goods and services - 6What impact can globalization have on domestic business?1. Competition
2 . Economies of Scale- firms can expand to the global market
3. Technological advancement
3. Choice of location- businesses can choose to locate in different countries
3. Pricing policy- international firms may be able to sell their products at lower prices, forcing local businesses to lower prices
4. Quality assurance- products need to be of a certain quality to be exported - 7What are the advantages of multinationals to the host country?1. Gain foreign exchange
2 . An increase in the country's Gross Domestic Product (GDP)
3. Less unemployment
4. The government will receive more tax for its operations
5. Multinationals may introduce new and improved tech, forcing local firms to improve on their own tech. This results in higher quality products
6. Consumers will have a variety of choices - 8What are the disadvantages of multinationals to the host country?1. MNCs usually repatriate their profit
2 . Workers can be exploited
3. Local, non-renewable resources can be depleted
4. Increased levels of pollution can occur
5. Local competition can be forced out of business
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- Flashcards on MOB Globalisation, created by Teddy-Ann Quam on 28/10/2017.
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- Teddy-Ann Quam
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