xMrRand0m said:
Even though the WTO is able to place trade sanctions onto smaller economies, the larger economic forces, such as China and America, who engage in protectionalism, are going against the wants of the WTO, to create free flow for the global economy. Thus, as a result of being such large economies, the WTO's policies aren't very effectively implemented.
Explain the role and impact of TNC's in the global economy.
Impacts TNC's bring to the global economy are:
-financial flows within and between economies
-technology
-industrialization
-increase in standards of living
-trade agreements (in terms of import and export quotas, tariffs, taxes etc...)
-destruction of domestic culture and environment
With this said however, TNC's play a vital role in globalization, and the global economy. They spread the benefits throughout the world, even to the poorest countries. For example, Australian phone books are typed by skilled workers in the Philippines because it costs only a fraction of what it would cost to produce here in Australia. The final product is great quality, for a cheaper price, thus producer efficiency. TNC's allow producers to develop and seek the most efficient process of production.
Feedback please?
Why is it that some argue that globalisation is beneficial, while others argue that globalization is damaging?
