Globalisation and the Changing Nature of Global Industry

What is globalisation?

• The process of countries becoming politically dominant over others

• The process of countries becoming self-sufficient and independent from each other

• The process of countries becoming economically, socially, culturally, and politically interdependent

• The process of countries isolating themselves from the rest of the world

What are the drivers of globalisation?

• Improvements in technology, improvements in telecommunications, improvements in transport, and growth of multinationals

• Decrease in technology, decrease in telecommunications, decrease in transport, and decrease in multinationals

• No specific drivers, globalisation happens naturally

• Only improvements in technology

What is a multinational corporation (MNC)?

• A company that operates in multiple countries

• A company that operates in only one country

• A company that operates in low-income countries only

• A company that operates in high-income countries only

Why do multinational corporations often have factories in low to middle income countries?

• Because of cheaper labour, access to cheap raw materials, access to markets, and friendly government policies

• Because of expensive labour, lack of raw materials, lack of markets, and strict government policies

• Because of cheaper labour, lack of raw materials, lack of markets, and strict government policies

• Because of expensive labour, access to cheap raw materials, access to markets, and friendly government policies

What are the advantages of multinational corporations locating in a country?

• Destruction of jobs, lack of education and skills, lack of infrastructure, and exploitation of natural resources

• Creation of jobs, lack of education and skills, lack of infrastructure, and exploitation of natural resources

• Creation of jobs, improved education and skills, investment in infrastructure, and help in exploiting natural resources

• No advantages, multinational corporations only bring disadvantages

What are the disadvantages of multinational corporations locating in a country?

• Poor working conditions, protection of the environment, profits stay in the host country, and factories are stable

• Good working conditions, protection of the environment, profits stay in the host country, and factories are stable

• Poor working conditions, damage to the environment, profits go back to the headquarters country, and factories are footloose

• No disadvantages, multinational corporations only bring advantages

What is the meaning of the term 'footloose' in the context of multinational corporations?

• Factories are easily movable and jobs are insecure

• Factories are stable and jobs are secure

• Factories are easily movable but jobs are secure

• Factories are stable but jobs are insecure

What is the main reason for the growth of globalisation?

• No specific reason, globalisation happens naturally

• Decrease in technology

• Improvements in technology

• Decrease in political cooperation

What is the cycle of poverty?

• The process of countries becoming self-sufficient and independent from each other

• The process of countries being trapped in a cycle of low income and limited opportunities

• The process of countries becoming politically dominant over others

• The process of countries becoming economically prosperous

What are the positive consequences of globalisation?

• Increased economic growth, improved living standards, and cultural exchange

• Decreased economic growth, worsened living standards, and cultural isolation

• No positive consequences, globalisation only brings negative effects

• Increased economic growth, worsened living standards, and cultural exchange