Chapter 22.9 Globalisation

What does globalisation primarily facilitate?

• Decreased interaction between countries

• Increased economic, social, and political exchanges

• Reduced investment opportunities

• Higher trade restrictions

How does globalisation contribute to economic growth?

• By restricting international trade

• By creating new markets and increasing company profits

• By reducing the number of workers

• By eliminating competition between countries

What happens when companies sell more products due to globalisation?

• Profits decrease

• Companies hire more workers

• Standard of living declines

• Trade restrictions increase

How does globalisation benefit producers and consumers?

• It eliminates competition

• It forces producers to be efficient and reduces costs

• It raises the prices of goods and services

• It limits access to global markets

What is a major downside of globalisation?

• Improved working conditions for all workers

• Creation of unfair working conditions in poorer countries

• Increased trade barriers

• Reduced economic growth

Why do transnational corporations (TNCs) shift production to poorer countries?

• To support local businesses

• To benefit from cheaper labour

• To increase wages for workers

• To avoid international trade

How can globalisation negatively impact workers in a TNC’s home country?

• They receive higher wages

• They lose jobs due to outsourcing

• They are relocated to other industries

• They work fewer hours

How does globalisation affect environmental sustainability?

• It reduces pollution levels

• It increases demand for resources, leading to environmental issues

• It eliminates the use of natural resources

• It stops climate change

Why do TNCs sometimes operate in countries with weak environmental regulations?

• To avoid environmental responsibility

• To improve sustainability

• To increase consumer protection

• To promote green energy

What is one effect of TNCs undercutting smaller producers?

• Increased competition and lower prices

• Job losses and fewer consumer choices

• More companies entering the market

• Greater economic equality