1. No category

Assess the view that the main cause of globalisation is the increased significance of transnational
companies. (20)
Essentially asking you what the causes of globalisation are.
You need to examine three (or 4 to be safe) causes: increased significance of TNCs, trade liberalisation,
improved communications and technology, collapse of Communism
Increased significance of TNCs:
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TNCs are companies that operate in multiple countries worlwide
Eg. Nokia, Unilever, Coca-Cola
Increased FDI into different countries
Coca Cola operate in over 200 countries – HQ in North America, but 70% of profits are made
outside N. America
Led to increased trade
Increased global links
Trade liberalisation:
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Since WWII there has been a fall in trade barriers
Increased trade thanks to the WTO has meant that globalisation has been possible
Increased links between different countries
New trading partners
Trading blocs, like the EU has meant that trade has increased
Improved communications and technology:
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The internet has led to the death of distance
Quicker transactions
Lower transaction costs
Quicker delivery – faster shipping etc
UK call centres in India and Bangladesh etc
Collapse of Communism:
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Opening up of China – increased FDI into China
Eastern Europe opened up
Drive towards capitalism
Conclusion:
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TNCs aren’t the main reason
For me it’s trade liberalisation
Why