Globalisation — Flashcards

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Globalisation is a process of rapid integration or interconnection between countries. It has economic, political, and cultural dimensions. It is not only about markets; ideas and technology also sprea…

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The three types are: 1) trade in goods and services, 2) migration of people or labour, and 3) capital investment. These flows connect different countries and make the world more closely linked.

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An MNC is a multinational corporation that runs production in more than one country. It may design products in one place, make parts in another, assemble them elsewhere, and sell them worldwide. It do…

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MNCs look for places with cheap skilled or unskilled labour, proximity to markets, availability of resources, and government policies that protect their interests. These factors help them reduce costs…

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A large MNC can design products in the United States, manufacture components in China, assemble them in Mexico and Eastern Europe, and run customer care from India. This division of work lowers cost a…

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Foreign investment is the money spent by MNCs to buy assets such as land, buildings, machines, and other equipment in another country. It is made with the hope that these assets will earn profits.

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One route is joint production with local companies. The local company benefits from additional investment and new technology brought by the MNC. Ford Motors and Mahindra and Mahindra worked together i…

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The most common route is to buy local companies and then expand production. A major example is Cargill Foods buying Parakh Foods and becoming the largest producer of edible oil in India.