Globalisation

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Globalisation is a process of rapid integration or interconnection between countries. It involves the flow of goods, services, investments, technology, and people across national borders, creating clo…

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1. Flow of trade - goods and services moving between countries 2. Flow of labour - migration of people in search of employment 3. Flow of capital - short-term or long-term investments over long distan…

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An MNC (Multinational Corporation) is a company that owns or controls production in more than one nation. Examples include Ford Motors, Nike, Coca-Cola, Pepsi, Honda, and Nokia. MNCs set up offices an…

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A large MNC producing industrial equipment designs products in research centres in the US, manufactures components in China, ships them to Mexico and Eastern Europe for assembly, and sells finished pr…

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MNCs select sites based on: 1. Proximity to markets, 2. Availability of skilled and unskilled labour at low costs, 3. Assured availability of other factors of production, 4. Government policies that p…

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Foreign investment is the money that MNCs spend to buy assets such as land, buildings, machines, and other equipment in other countries. This investment is made with the hope that these assets will ea…

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Foreign trade creates opportunities for producers to reach beyond domestic markets and expands choice of goods for buyers beyond what is domestically produced. This results in connecting or integratin…

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1. Technology - improvements in transportation, information and communication technology (internet, mobile phones, computers) 2. Liberalisation of foreign trade and investment policies - removal of tr…