Globalization and Multinational Corporations

These flashcards cover key concepts and implications of globalization and multinational corporations based on the provided lecture notes.

What is globalization?

Globalization is the process through which the world becomes one large marketplace, connecting nations through trade in goods and services.

What are multinational corporations (MNCs)?

MNCs are companies that have an established presence in multiple countries, often with standardized products that appeal globally.

What are some factors that lead to the rise of globalization?

Factors include saturated domestic markets, increased consumer demands, low labor costs, decreased transport costs, and improvements in transport and ICT.

What are the positive implications of globalization?

Positive implications include job creation, advancements in technology, economic growth in developing countries, and improved global relations.

What is a major negative implication of globalization?

Globalization widens the gap between the rich and poor, empowering those with specialist skills while disadvantaging low-skilled workers.

How does globalization impact employment?

Globalization can create jobs in MNCs but may also lead to outsourcing and off-shoring, resulting in job losses in home countries.

What role do transport improvements play in globalization?

Transport improvements enable goods to move quickly and easily global, facilitating expansion for MNCs.

How does information and communication technology (ICT) support globalization?

ICT advancements allow businesses to communicate in real-time and facilitate e-commerce, increasing international trade.

What are economies of scale in the context of MNCs?

Economies of scale refer to the cost advantages businesses gain as production increases, allowing them to compete on price.

What is foreign direct investment (FDI)?

FDI is when a foreign company invests directly in operations in a different country, such as establishing production facilities.

How does FDI contribute to Ireland's economy?

FDI brings jobs, increases exports, and invests in R&D, positively impacting economic growth.

What are the benefits of EU membership for Ireland?

Benefits include access to the single market, foreign investment opportunities, and EU support for farming and infrastructure.

What are the challenges for Irish business due to the Single European Market?

Challenges include increased competition, costs of operating in a large market, and government contracts open to EU firms.

What economic event significantly impacted Ireland's relations with the UK?

Brexit, which is the UK's decision to leave the EU, negatively affected Irish exports and labor markets.

What is the impact of low corporation tax on MNCs in Ireland?

Low corporation tax attracts MNCs to locate in Ireland, boosting profitability and economic activity.