Usually developed countries export valuable manufactured goods and developing countries export cheaper raw materials. This leads to inequality in trade. This inequality has many impacts.
Which of the following statements is a POSITIVE consequence of world trading patterns?
Many producers of primary products in developing countries lose out with low wages and poor standards of living
They cannot afford things such as primary education for children, and many are required to work to help the family earn a living
Sometimes multinationals invest in infrastructure in areas of the developing world
Which of the following is a POSITIVE consequence of the involvement of multinationals in developing countries?
Profits go out of the developing country, returned to the developed nations
Jobs are created
The environment can be damaged
Which of the following could be manufactured as second tier outsourcing?
Wires, screws and plastics used to make components
Laptop components, such as printed circuit boards
Memory chips or other subcomponents of a circuit board
Which of the following statements is a positive consequence of the involvement of transnational companies in developing countries?
Some TNCs are able to exert influence over developing countries directly by employing government officials participating on important national economic policy making committees, making financial contributions to political parties and even bribery
Some TNCs actively enlist the help of developed governments to further or protect their interests in developing countries; assistance which has sometimes has involved military force
Some TNCs work hard to improve conditions for their workers
Which is the best definition of globalisation?
The growth of industry in developed countries
The increasing interconnectedness of people and economies
Improvements in communications around the world