Global flows: trade, finance and TNCs
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Question
Define foreign direct investment (FDI).
Answer
A firm **investing directly in operations in another country** — building a factory or buying a local company.
Question
Define remittances.
Answer
Money that **migrant workers send home** to their families across borders; for some states it exceeds aid and FDI.
Question
What is a TNC?
Answer
A **transnational corporation** — a firm that owns or controls operations in **more than one country**.
Question
What is a supply chain?
Answer
The **linked network of suppliers, factories and distributors** that turns raw materials into a finished product, often across many countries.
Question
Name the three connections a TNC makes between places.
Answer
A **supply chain** (parts and products), flows of **money in (FDI) and profit out**, and the **diffusion of branded ideas/culture**.
Question
What is glocalisation?
Answer
**Adapting a global product** to local tastes and culture so it sells better in different markets.
Question
List the main financial flows.
Answer
**FDI**, **aid**, **loans/lending**, and **remittances** — capital moving across borders.
Question
Core-periphery vs South-South flow?
Answer
Core-periphery = wealthy country invests in a poorer one; **South-South** = one developing country lends to another (e.g. Belt-and-Road).
Question
Name responsible-production strategies TNCs use.
Answer
**ESG self-auditing**, **sector responsibility agreements**, **net-zero** pledges, and **circular-economy** adoption.
Question
How can a state RAISE global financial flows?
Answer
**Open markets** (cut tariffs), pass **investment laws**/tax breaks, set up **export-processing zones**, and **join a trading bloc**.
Question
How can a state RESTRICT global financial flows?
Answer
Through **tariffs, sanctions and capital controls**, tight ownership laws, or **leaving a trading bloc**.
Question
For the [16] essay, list the openings vs obstacles for TNCs.
Answer
Openings: **new markets, glocalisation, low-cost zones, blocs**. Obstacles: **protectionism, anti-globalisation, supply-chain/tech risk**.
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Full study notes for Global flows: trade, finance and TNCs
Topic 4.2 hub
Global networks and flows
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Geography exam skills
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