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Fair Trade products are becoming increasingly popular.

Trade and Development 02

Transnational Corporations connect countries through trade, jobs and ideas. This quiz will help you explore how global companies link to development and globalisation in KS3 Geography.

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Fascinating Fact:

A Transnational Corporation (TNC) is a large company that operates in more than one country, such as global sportswear or technology brands.

In KS3 Geography, trade and development looks at how money, goods and services move between countries. You explore how Transnational Corporations, global supply chains and decisions about where to locate factories can affect wages, working conditions and levels of development in different parts of the world.

Key Terms

Transnational Corporation (TNC): A large company with operations such as factories, offices or shops in more than one country.
Globalisation: The process that makes the world more connected through trade, travel, communication and the spread of ideas.
Supply chain: The whole journey of a product, from raw materials to factories, transport, shops and finally the consumer.

Frequently Asked Questions (Click to see answers)

How do Transnational Corporations affect development?

Transnational Corporations can bring jobs, investment and new technology to a country. However, low wages, poor working conditions and profits leaving the country can limit long term development benefits.

Why do some companies move production to other countries?

Companies sometimes move production to countries where wages, land and taxes are lower. This can reduce costs and increase profits but may also raise concerns about worker rights and environmental standards.

What is the link between trade, TNCs and globalisation?

Trade and Transnational Corporations are major drivers of globalisation. By buying, making and selling goods in many countries, they create strong economic links between places around the world.

Try These Related Quizzes

1 .

When prices of raw materials go up and down they do what?

Facilitate

Flatulate

Fluctuate

Fulminate

Fluctuations in the price of raw materials can affect the prices of things in the shops

2 .

Limits on imports and exports have what name?

Quasars

Quoits

Quorums

Quotas

They can protect a country's industry from foreign competition

3 .

Why do some people not buy Fair Trade products?

Supermarkets never stock them

They are always poor quality

They are more expensive

They can only be bought in bulk

The price tries to reflect what everyone in the supply chain deserves

4 .

Which is not a famous coffee producing country?

Brazil

China

Colombia

Kenya

China is a tea-producing country

5 .

What means 'taking unfair advantage of cheap labour'?

Exhalation

Exhumation

Exploitation

Extermination

This is sometimes referred to as slave labour although the workers are not really slaves

6 .

Which group buys from poor people at a fair price?

Crafty Trading

Handicraft

Traidcraft

Traidlinks

Traidcraft was set up in Newcastle-upon-Tyne in 1979. Hundreds of thousands of people around the world are benefitting from fair trade agreements

7 .

If a country's imports cost more than its exports it will have a trade what?

Deficit

Depression

Downscale

Reduction

If it continues the country will need to borrow money

8 .

TNCs are doing more to help countries where they are based mainly due to pressure from what?

Customers

Workers

Rappers

Women's magazines

Customers may feel a TNC is exploiting the LEDC and if they feel strongly about the behaviour of the TNC, they can avoid buying its products. If enough people do the same, the managers of the TNC may be pressured into changing how they deal with the workers in an LEDC

9 .

Which product is not associated with Fair Trade?

Bread

Chocolate

Coffee

Tea

The plants that are needed for making the other three products are mainly grown in LEDCs

10 .

When TNCs make profit from LEDCs where does the money usually go?

It is shared between many LEDCs

To charity organisations

To the country of origin of the TNC

To the LEDC

TNCs are usually based in MEDCs

You can find more about this topic by visiting BBC Bitesize - Development and globalisation

Author: Jan Crompton (KS3 Geography & History Teacher, Professional Quiz Writer)

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