CHAPTER 16 TEXTBOOK CARDS

2 aspects which indicate and have affected globalisation?
1.Growing importance of international trade 2.Growth of companies that can be referred to as multinational corporations
1 of 10
4 points of impact that multinational corporations will have on developing countries
1.Their willingness to accommodate to needs of local economy 2.Ability of host governments to regulate their activities 3.MNC may expect incentives like abolition of trade restrictions 4.MNC may relocate closing their facilities causing unemployment
2 of 10
4 points of trade between developed countries?
1.Developed see developing as source of raw materials but now exploit comparative advantage 2.Reduction in price of manufactured goods increased 3.Move of manufacturing led to need of job protection 4.Move of manufacturing to LEDC = clean environment
3 of 10
3 points of trade between developing countries?
1.Specialisation leads to productive, allocative & dynamic efficiency 2.Worldwide selling opens larger markets for countries with low comparative advantage 3.Expansion of firms should bring eco growth & rising living standards for country
4 of 10
6 realities of theory of comparative advantage?
1.Assumes perfect competition 2.Assumes constant costs & perfectly mobile factors of production 3.Ignores problems by fluctuating currency 4.Countries actually likely to protect goods with strategic value 5.Ignores time period 6.Ignores transport cos
5 of 10
4 arguments for protection on trade?
1.Infant industry argument 2.Maintain domestic employment 3.Prevent dumping 4.Avoid unfair competition
6 of 10
4 arguments against protection?
1.Welfare loss will occur 2.Retaliation 3.Protection props up inefficient & monopoly producers 4.Distributes income in favour of protected
7 of 10
6 techniques of protection?
1.Tariffs 2.Subsidies 3.Embargoes 4.Quotas 5.Administrative restrictions 6.Voluntary export restraints
8 of 10
4 outcomes that have occurred from globalisation?
1.Foreign competition has entered markets once the prerogative of domestic business 2.Unemployment & de industrialisation occurs 3.Globalisation meant greater economies of scale 4.Merged & joint ventures occur
9 of 10
4 factors that have increased the speed of globalisation?
1.Technological change 2.Revolution has occurred in transportation with containerisation 3.Growth of Eastern European market based economies 4.Trade gradually becoming more liberated
10 of 10

Other cards in this set

Card 2

Front

4 points of impact that multinational corporations will have on developing countries

Back

1.Their willingness to accommodate to needs of local economy 2.Ability of host governments to regulate their activities 3.MNC may expect incentives like abolition of trade restrictions 4.MNC may relocate closing their facilities causing unemployment

Card 3

Front

4 points of trade between developed countries?

Back

Preview of the front of card 3

Card 4

Front

3 points of trade between developing countries?

Back

Preview of the front of card 4

Card 5

Front

6 realities of theory of comparative advantage?

Back

Preview of the front of card 5
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