Trade: This involves the import and export of raw materials, manufactured goods, and services. Modern trade is characterized by reduced barriers, such as lower tariffs and quotas, often facilitated by regional trading blocs.
Aid: This is the transfer of resources (money, goods, or services) from one country to another for development or disaster relief. It helps developing nations build the infrastructure necessary to participate in the global market.
Foreign Investment: Capital flows from developed nations to emerging economies to fund business operations. This can be direct (building facilities) or indirect (buying shares in foreign companies).
Labour: The movement of people provides the workforce for the global economy. This includes both low-cost labor for manufacturing and highly skilled specialists for research and development.
Information: The rapid exchange of data via the internet allows companies to manage complex global operations. It also enables global marketing and advertising, which drives consumer demand for standardized products.
| Feature | Transnational Corporation (TNC) | Multinational Corporation (MNC) |
|---|---|---|
| Management | Decentralized; operates independently in various countries. | Centralized; home office makes major decisions for all branches. |
| Adaptation | High; adapts products and strategies to local tastes and conditions. | Lower; maintains a more standardized global brand and product. |
| Example Logic | A food company changing recipes for different regions. | A tech company designing all products in one central hub. |
Free Trade vs. Fair Trade: Free Trade focuses on removing government barriers (tariffs/quotas) to maximize efficiency and profit, often benefiting the companies at the top of the chain. Fair Trade emphasizes paying producers in developing countries a guaranteed fair price to ensure sustainable livelihoods.
Push vs. Pull Factors: Push factors are negative conditions in a person's place of origin (e.g., war, unemployment) that force them to leave. Pull factors are perceived positive attractions in a destination (e.g., higher wages, safety) that draw migrants toward it.
World Trade Organisation (WTO): An international body that sets the rules for global trade. Its primary goal is to reduce trade barriers and promote the free flow of goods between member nations.
International Monetary Fund (IMF): Focuses on global financial stability. It provides loans to countries facing financial crises, though these loans often come with strict conditions regarding how the country must manage its economy.
World Bank: Provides long-term financial assistance and research to developing nations. It specifically funds infrastructure projects (like dams or schools) that aim to reduce poverty and stimulate economic growth.
Non-Governmental Organisations (NGOs): Non-profit groups like the Red Cross that operate independently of governments. They provide humanitarian aid and advocate for environmental and social causes that the private sector might ignore.
Identify the Actor: When asked about global economic shifts, distinguish whether the driver is a government, a global institution (like the WTO), or a private entity (like a TNC).
Migration Classification: Always check if a move is voluntary or forced. If a person moves for a better job, it is voluntary/economic; if they move because of a natural disaster, it is forced/environmental.
Scale of Impact: Be prepared to discuss both the positive impacts (economic growth, cultural exchange) and negative impacts (inequality, loss of local identity) of globalisation.
Verify Terminology: Do not confuse 'Refugee' with 'Internally Displaced Person (IDP)'. A refugee has crossed an international border, while an IDP remains within their own country.
