Globalisation SAQ

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Questions and Answers

What are the positive effects of economies of scale in globalization?

Lower costs per unit due to access to more markets.

How do global companies create jobs?

Directly and indirectly in both developed and less developed countries.

Give an example of economic growth from global company investments.

Intel investing €3.63 billion in Kildare.

How much did Ireland earn from corporation tax in 2019?

<p>€10.9 billion.</p> Signup and view all the answers

Why are global companies beneficial for research and development?

<p>They have resources to advance technology and pharmaceuticals.</p> Signup and view all the answers

What is globalization?

<p>Flow of goods, services, people, culture, and knowledge across borders.</p> Signup and view all the answers

What role does the Internet play in globalization?

<p>Enables instant communication for firms and individuals.</p> Signup and view all the answers

How has increased trade promoted globalization?

<p>Through organizations like the World Trade Organization and trade deals.</p> Signup and view all the answers

How has increased trade promoted globalization?

<p>Through organizations like the World Trade Organization and trade deals.</p> Signup and view all the answers

What is Foreign Direct Investment (FDI)

<p>Investment in capital goods or capital formation by foreign entities.</p> Signup and view all the answers

How does FDI contribute to employment?

<p>By creating over 245,000 indirect jobs in Ireland.</p> Signup and view all the answers

What impact does FDI have on tax revenue?

<p>Contributes through labor and corporation taxes.</p> Signup and view all the answers

How does FDI support exports?

<p>Goods produced by MNCs are often exported.</p> Signup and view all the answers

What is a negative effect of over-reliance on FDI for employment?

<p>Job losses if an MNC shuts down operations.</p> Signup and view all the answers

Why is Ireland criticized for its corporation tax?

<p>Accusations of being a tax haven.</p> Signup and view all the answers

List a negative environmental impact of globalization.

<p>Over-exploitation of natural resources.</p> Signup and view all the answers

How might globalization lead to worker exploitation?

<p>Through poor working conditions in low-wage economies.</p> Signup and view all the answers

What is repatriation of profits?

<p>Profits sent back to the MNC's home country, not reinvested locally</p> Signup and view all the answers

Why do MNCs avoid paying taxes?

<p>Using tax loopholes to reduce liabilities.</p> Signup and view all the answers

What is the potential risk of MNCs having no loyalty to the host country?

<p>They can leave anytime, causing unemployment.</p> Signup and view all the answers

Why is Ireland attractive for FDI?

<p>Low corporation tax, skilled workforce, and free access to the EU market.</p> Signup and view all the answers

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