Impact of Globalisation & Transnational Corporations (TNCs) (Cambridge (CIE) IGCSE Geography): Flashcards
Exam code: 0460 & 0976
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Define globalisation.
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Cards in this collection (40)
Define globalisation.
Globalisation is where the world has become more interconnected through the processes of economics, culture, politics, trade and tourism.
What four significant developments have driven the flows behind globalisation?
The appearance of large transnational corporations (TNCs); the growth of regional economics and trading blocs; the development of modern transport networks; and advances in IT and communications, particularly the WWW and the internet.
What is meant by the 'shrinking world'?
The idea that improvements in communication and transport have made global connections faster, deeper and longer, so distant places feel closer together — a key feature of globalisation.
What are the three ways global connections have changed under globalisation?
Faster (speeds for talking, travel and money exchange); deeper (connecting lives with faraway places); and longer (connecting links between places further apart).
What are global cities?
Cities that have developed as the focus of the world economy, a key feature of globalisation as political borders become less important and countries more interdependent.
As of 2024, roughly what proportion of the world's population has internet access?
More than 60% of the world's population has access to the internet.
How can globalisation damage cultural diversity?
Some see it as a threat to local cultures because Western practices often replace traditional ones, which can damage cultural diversity.
Which two institutions were set up to encourage economic growth and cooperation in the connected world economy?
The International Monetary Fund (IMF) and the World Bank.
Give one environmental impact of globalisation linked to technology.
E-waste contains toxic materials that can leach into soil and water as devices become outdated and are improperly discarded. (Also: pollution from manufacturing, and satellites' carbon footprint and night-sky pollution.)
How does globalisation's growing transport network harm the environment?
As economies grow, transport networks need more energy, increasing carbon emissions — shipping and haulage emit 60% of world emissions.
Infrastructure like ______ and fibre optic cables have further improved global communication, enhancing growth and quality of life worldwide.
Infrastructure like satellites and fibre optic cables have further improved global communication, enhancing growth and quality of life worldwide.
True or False?
Globalisation is a completely new phenomenon that did not exist before modern times.
False.
Globalisation is nothing new — trade between people, businesses and countries has always existed; modern transport and communications have simply made it almost instantaneous.
True or False?
Today, more than half of the world's total economic output comes from goods traded across foreign borders.
True.
More than half of the world's total economic output comes from goods that are exported and imported across foreign borders.
Define a transnational corporation (TNC).
A large organisation that manufactures and trades goods in two or more countries, operating in foreign countries without a centralised management system and with no particular country as its corporate home.
What is the key difference between a TNC and an MNC?
An MNC has a home country that makes decisions and passes them around its global companies, whereas a TNC operates independently without a centralised management system.
Why do TNCs locate R&D in HICs but factories in LICs?
R&D goes in HICs for access to highly skilled labour and funding; factories, call centres or service hubs go in LICs where labour is cheap and there are usually reduced legal restrictions.
How does McDonald's show that TNCs adapt to local markets?
It changes its menu per country — e.g. macarons and bleu cheese burgers in France, boerie and hash brown stacks in South Africa, and the Maharaja Mac in India.
How do TNCs use supply chains to drive the global economy?
They often source raw materials from one country, manufacture in another, and sell their products in multiple other countries, acting as the main investors in the global economy.
How has the movement of TNC manufacturing benefited countries like China, India and Brazil?
It has helped transform them from low-income countries (LICs) into middle-income countries (MICs), directly benefiting their populations.
Define Corporate Social Responsibility (CSR).
Voluntary actions by TNCs to improve society — e.g. donating to charity, cutting carbon footprints, paying fair wages — which can boost brand reputation, employee engagement and customer loyalty.
Give two positive social impacts of TNCs on host countries.
They bring skills, opportunities, money and technology, create jobs (so people can buy more and pay more tax), and increase social mobility through education, apprenticeships and progression.
Give two negative economic impacts of TNCs on host countries.
Small local businesses cannot compete; a labour drain as skilled workers migrate; dependence on a single TNC; and profits 'leaking' out of the host country as bonuses and dividends to shareholders.
Give one negative environmental impact of TNCs.
Lax environmental laws in developing countries can cause severe air, water and soil pollution; TNCs also deplete natural resources and contribute heavily to greenhouse gas emissions.
TNCs are powerful and are ______ to a host country's government, meaning investment can disappear as quickly as it came.
TNCs are powerful and are not loyal to a host country's government, meaning investment can disappear as quickly as it came.
True or False?
TNC jobs always develop workers' skills and offer varied, engaging work.
False.
TNC jobs are often boring and repetitive and don't develop skills, effectively trapping workers in the company; they also often pay low wages for long hours.
True or False?
The multiplier effect means a TNC can encourage other industries to grow around it.
True.
TNCs have a multiplier effect, encouraging other industries to grow around them, which raises the level of development in the host country.
What did Dubai's early economy rely on before oil?
Its economy relied heavily on pearling, fishing, and small-scale trading.
What event in 1966 dramatically altered Dubai's fortunes?
The discovery of oil.
Why did Dubai's ruling Al Maktoum family decide to diversify the economy?
To avoid overdependence on oil.
Which sector now dominates Dubai's economy, and give two examples?
The tertiary (services) sector — e.g. tourism (hotels, entertainment), finance (Dubai International Financial Centre), retail (Dubai Mall) and transport (ports, logistics, aviation).
What is Dubai's Vision 2030 aiming to create?
A knowledge-based economy, growing the quaternary sector through IT (Dubai Internet City), R&D (Dubai Science Park) and media (Dubai Media City).
Give two negative environmental impacts of Dubai's globalised development.
A high carbon footprint from air conditioning and car use; destruction of marine habitats from artificial islands; and water scarcity with reliance on desalination plants.
Give one positive cultural impact of globalisation on Dubai.
Dubai has become a multicultural city (immigrants are around 85–90% of the population), hosting global festivals.
Define Emirates Airlines.
A transnational corporation (TNC) based in Dubai. It began in 1985 with two leased planes and now runs over 3,600 flights a week from Dubai International Airport.
How much of Dubai's GDP did aviation contribute in 2020?
Over 30% of Dubai's GDP in 2020 came from aviation (Emirates and its sister company Dnata).
Give two positive impacts of Emirates Airlines on Dubai.
Direct employment (tens of thousands of jobs in aviation and ground services); support for tourism and commerce; connecting Dubai to over 150 destinations worldwide; and sustainability initiatives like biofuels and co-funding the Dubai Desert Conservation Reserve.
Only ______ of Emirates staff are Emiratis; the airline relies heavily on immigrant workers, which affects Dubai's demographics and increases pressure on housing and the cost of living.
Only 3% of Emirates staff are Emiratis; the airline relies heavily on immigrant workers, which affects Dubai's demographics and increases pressure on housing and the cost of living.
True or False?
Dubai's economy is completely protected from global events such as COVID-19.
False.
Dubai's economy remains somewhat vulnerable to global events like COVID-19, which can severely impact its tourism and service sectors.
True or False?
Dubai's primary sector declined partly because the pearling industry collapsed.
True.
The primary sector fell dramatically, partly due to the decline of the pearling industry (caused by the invention of cultured pearls) and a strategic focus on urban, service-based growth.
Give one negative cultural impact of globalisation on Dubai.
Rapid globalisation has eroded traditional Emirati culture and identity.
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