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Examine the impact of global trading patterns in relation to both producer and consumer regions, with reference to one multinational company (MNC) that you have studied. - Leaving Cert Geography - Question 14 - 2013
Question 14
Examine the impact of global trading patterns in relation to both producer and consumer regions, with reference to one multinational company (MNC) that you have stud... show full transcript
Worked Solution & Example Answer:Examine the impact of global trading patterns in relation to both producer and consumer regions, with reference to one multinational company (MNC) that you have studied. - Leaving Cert Geography - Question 14 - 2013
Step 1
Identify the Global Trading Patterns
Answer
Global trading patterns have shifted significantly over time, influenced by factors such as globalization, advancements in technology, and trade agreements. These patterns can be examined through the lens of both producer regions, where goods are manufactured, and consumer regions, where those goods are sold. A multinational company (MNC), such as Unilever, can be utilized as a reference to illustrate these impacts.
Step 2
Analyze the Impact on Producer Regions
Answer
Producer regions experience both benefits and challenges from global trading patterns. For instance, Unilever has production facilities in various countries, taking advantage of lower labor costs and access to raw materials. This not only boosts local employment but also contributes to economic development. However, it can create dependency on global demand, making local economies vulnerable to international market fluctuations.
Step 3
Evaluate the Impact on Consumer Regions
Answer
In consumer regions, the presence of MNCs leads to increased product availability and competitive pricing. Unilever's products, available globally, offer consumers a wide range of choices. However, reliance on imported goods can also lead to economic challenges, such as trade imbalances. Moreover, consumer preferences may impact the sustainability practices of these MNCs, influencing production decisions.
Step 4
Conclusion
Answer
In summary, the examination of global trading patterns reveals a complex interaction between producer and consumer regions. The case of Unilever exemplifies the multifaceted impacts of globalization, highlighting the need for careful management of trade policies to balance local and global interests.