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Option: World Sociology

Globalisation, transnational corporations and world trade

  • 3 things to know
  • Component 3 Section B

Overview

Main dimensions of globalisation, transnational corporation and transfer pricing.

What you need to know

Answer each one before you reveal it.

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Key term

What are the main dimensions of globalisation?

Key term

What distinguishes hyperglobalist, sceptical and transformationalist positions?

Key term

What is the case that transnational corporations hinder development?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is globalisation?

    Model answer

    Globalisation is the increasing interconnection of societies through trade, investment, migration, communication and culture. Events and decisions in one place now have rapid consequences elsewhere.

  2. 2

    What are the main dimensions of globalisation?

    Model answer

    Economic globalisation in trade, production and finance; political globalisation in international institutions and agreements; cultural globalisation in media, consumption and communication; and the movement of people through migration.

  3. 3

    What distinguishes hyperglobalist, sceptical and transformationalist positions?

    Model answer

    Hyperglobalists hold that a genuinely global economy has displaced the nation state. Sceptics, including Hirst and Thompson, argue trade and investment remain concentrated between a few regions and that states retain power. Transformationalists, such as Held, argue globalisation is real but reshapes rather than abolishes the state.

  4. 4

    What is a transnational corporation?

    Model answer

    A transnational corporation is a firm that owns or controls production in more than one country, coordinating design, manufacture, supply and sale across national borders.

  5. 5

    What is the case that transnational corporations aid development?

    Model answer

    They bring capital that poorer countries cannot raise, create employment at wages often above local alternatives, transfer technology and management practice, generate tax revenue and connect local suppliers to export markets.

  6. 6

    What is the case that transnational corporations hinder development?

    Model answer

    Critics argue that profits are repatriated rather than reinvested, and that tax is minimised through transfer pricing. Investment is footloose and moves when concessions end. Bargaining power extracts weak regulation, and local firms are displaced.

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ASecularisation has weakened religious pressure to marry.
BCohabitation is now widely accepted.
CThe cost of a wedding deters many couples.

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Mortality counts deaths in a population.
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