Podcast
Questions and Answers
What is the main reason why McDonald's is not as prevalent in Africa compared to other continents?
What is the main reason why McDonald's is not as prevalent in Africa compared to other continents?
- African customers prefer local cuisine over fast food.
- McDonald's has faced significant regulatory hurdles in establishing franchises in Africa.
- The company's focus on expansion in other regions has overshadowed efforts in Africa.
- The high cost of importing ingredients makes McDonald's burgers too expensive for many Africans. (correct)
According to the passage, what is a key benefit of tourism in The Gambia?
According to the passage, what is a key benefit of tourism in The Gambia?
- Tourism has generated a large influx of foreign investment, boosting The Gambia's GDP.
- Tourism has led to significant infrastructure development in The Gambia, improving the local economy.
- Tourism has made The Gambia a global hub for international trade, attracting foreign businesses.
- Tourism has helped to create a more gender-balanced workforce in the country. (correct)
Which of the following is NOT mentioned as a reason for Shenzhen's economic growth?
Which of the following is NOT mentioned as a reason for Shenzhen's economic growth?
- The city's strategic location as a major port and trade hub on the coast.
- Low wages and a favorable business environment attracted significant investment from multinational corporations.
- The government's commitment to promoting sustainable development practices. (correct)
- The city's large manufacturing sector, fueled by investments from TNCs and increasing domestic demand.
How do Transnational Corporations (TNCs) contribute to the expansion of global trade?
How do Transnational Corporations (TNCs) contribute to the expansion of global trade?
What is the main argument against the globalization of goods and services?
What is the main argument against the globalization of goods and services?
What is the primary reason for the standardization of container sizes in international shipping?
What is the primary reason for the standardization of container sizes in international shipping?
Which of the following is a key principle of fair trade practices?
Which of the following is a key principle of fair trade practices?
Flashcards
Globalisation
Globalisation
The process of countries trading goods and services to meet needs.
Containation
Containation
Putting products in standard containers for easy transport.
TNCs/MNCs
TNCs/MNCs
Companies that operate in multiple countries for production and sales.
Advantages of MNCs
Advantages of MNCs
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Disadvantages of MNCs
Disadvantages of MNCs
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Economic growth in Shenzhen
Economic growth in Shenzhen
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Tourism benefits in The Gambia
Tourism benefits in The Gambia
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Fair trade
Fair trade
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Study Notes
Globalization Theory
- Globalization occurs when countries trade goods they cannot produce domestically.
- This international trade often leads to lower prices due to increased competition amongst producers.
- Containerization simplifies transportation by using standardized containers.
- Transnational Corporations (TNCs/MNCs) operate in multiple countries, often to sell products.
- Examples include McDonald's, BMW, Oreo, Pizza Hut, Subway, and Monopoly.
- McDonald's presence is widespread across North America, Europe, and South America, with limited presence in Africa due to perceived price sensitivity.
Advantages and Disadvantages of MNCs
- Advantages: Investment in infrastructure, job creation, and a more developed economic base for host countries.
- Disadvantages: Over-exploitation of natural resources, insecure jobs due to labor price fluctuations and potential relocation, environmental damage from ignoring local laws, poor working conditions, and profits flowing to overseas companies rather than local communities.
Factors Contributing to Shenzhen's Economic Growth
- Low wages.
- Investment from TNCs.
- Increased wealth and demand within China.
- Numerous manufacturing industries.
- Extensive investments in transportation (coastal location, port access, major trade routes).
- Low taxes and a free port zone status.
The Gambia Case Study
- A small West African country situated along the Gambia River.
- Average monthly salaries are significantly lower than in the UK (just under US$100 per month vs. approximately £3000).
- Tourism Benefits:
- Job opportunities for women, promoting gender equality.
- Indirect economic benefits for smaller local businesses.
- Encourages local preservation of the natural environment and culture.
- Tourist amenities can also be used by local residents.
Fair Trade
- A certification for companies that pay fair wages to producers (e.g., banana farmers).
- Ensures that communities benefit from increased income (e.g., schools, safe water).
- Promotes collective bargaining by creating village cooperatives.
- Aims to reduce the influence of large companies like banana companies, reducing "middle man" exploitation.
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