Year 9 Economics Retrieval Practice

Globalisation

• the way in which participants in the economy, such as producers and consumers, rely on each other to produce and

  consume goods and services.

• the process that involves all the countries of the world being linked together, resulting in an exchange of views, ideas, products and culture

• an enterprise that is involved with the international production of goods or services, foreign investments, or income and asset management in more than one country.

• refers to the many links or activities that are required to move a product or service from a supplier to a consumer.

Transnational Corporation

• the way in which participants in the economy, such as producers and consumers, rely on each other to produce and

  consume goods and services.

• the process that involves all the countries of the world being linked together, resulting in an exchange of views, ideas, products and culture

• an enterprise that is involved with the international production of goods or services, foreign investments, or income and asset management in more than one country.

• refers to the many links or activities that are required to move a product or service from a supplier to a consumer.

McDonald's is a transnational corporation because it operates facilities and does business in many countries around the world. It does not consider one country its national home.

• False

• True

This is a diagram depicting a

• circular flow model

• global supply chain

• opportunity cost

Why do transnational companies spread their business across the globe?

• Keep profits high

• React more quickly to customers' needs at a local level

• Improved quality of product

• Keep costs low

Natural disasters and political unrest can disrupt global supply chains.

• True

• False

• Somewhat

The disruption in the supply of oil to Australia would greatly impact many other industries.

• True

• False

An ________ ________ is when a foreign company invests in a country by building a factory or shop.

• investment

• inward investment

• outward investment

• ancillary investment

Australia is linked to the global economy because

• it trades with other nations

• foreign companies invest here

• migration

• technology

• an international labour market

Which of the following is not an advantage of globalisation?

• Inward investment by TNCs helps countries by providing new jobs and skills for local people.

• TNCs bring wealth and foreign currency to local economies when they buy local resources, products and services

• The sharing of ideas, experiences and lifestyles of people and cultures

• Globalisation operates mostly in the interests of the richest countries, which continue to dominate world trade at the expense of developing countries.