Superpowers EQ2

Question 1

Global organisations influence on capitalism

Answer 1

World bank: makes development loans to developing countries but within a free market model that promotes exports, trade industrialisation and private businesses

International Monetary Fund: promotes global economic security and stability, and assists countries to reform their economies

World Trade Organisation: it regulates global trade, aimed at promoting open trade and reducing protectionism

Question 2

Global TNCs

Answer 2

Publicly traded TNCs have shares that are owned by numerous shareholders

State-owned TNCs are owned by the government

Question 3

What factors has allowed the dominance of TNCs in global economy

Answer 3

• Their economies of scale mean they can outcompete smaller companies and often take them over
• Their bank balances and ability to borrow money to invest has allowed them to take advantage of globalisation through investing in new technology
• The move to free- market capitalism and free trade has opened up new markets, allowing them to expand