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Examine the article below about a multinational company moving the location of one of its factories and answer each of the following questions - Junior Cycle Geography - Question c - 2022
Question c
Examine the article below about a multinational company moving the location of one of its factories and answer each of the following questions. A multinational comp... show full transcript
Worked Solution & Example Answer:Examine the article below about a multinational company moving the location of one of its factories and answer each of the following questions - Junior Cycle Geography - Question c - 2022
Step 1
Step 2
State one reason why a multinational company would decide to move a factory from a developed country, like Ireland, to a developing country, like Vietnam.
Answer
A multinational company may decide to move a factory to a developing country like Vietnam to take advantage of lower labor costs, which can significantly reduce overall production expenses.
Step 3
How does this decision by the multinational company to move one of its factories to another country show that we live in a globalised and interconnected world?
Answer
This decision illustrates globalization as it highlights how businesses can operate across borders, seeking efficiencies and cost savings. In today’s interconnected world, companies can leverage different regions for their strengths, such as lower labor costs in developing countries, while consumers benefit from lower prices on products. Additionally, this situation emphasizes the interdependence of global economies, as job losses in one country can impact the economic stability of the region, while increased employment opportunities in another country can lead to economic growth there.