Economic growth

• What does globalization increase within countries?

  Investment
• How do TNCs impact the economy?

  They inject capital, increasing economic activity
• What is the effect of the multiplier on TNC investment?

  It amplifies the economic impact of investment
• Why do countries make supply-side improvements?

  To attract TNCs to operate in their countries
• What can TNCs bring to local industries?

  World-class management techniques and technology
• What are the knock-on benefits of TNCs bringing technology?

  All industries can access advanced techniques
• How does trade affect output?

  It increases output by exploiting comparative advantage
• What political issues can arise from TNC power?

  They may support unpopular, undemocratic regimes
• How can TNCs hinder certain regimes?

  By withdrawing support from non-compliant governments
• What happens to comparative cost advantages over time?

  They change, affecting TNC operations
• What is a consequence of TNCs leaving a country?

  It causes structural unemployment and reduces growth