Globalisation

Which statement gives a description of a multinational company (MNC)?

Oct/Nov 2025

Which criticism of foreign direct investment (FDI) is the least justified?

Oct/Nov 2025

From 2000 to 2020, Brazilian GDP, measured in US dollars ($), increased from $1.19 trillion to $1.89 trillion at constant prices (2015). Over that same period, GDP per head climbed from $6745 to $8204 at constant prices (2015). Brazil’s economic strength comes from the range and volume of its natural resources. For instance, Brazil is among the world’s biggest exporters of agricultural commodities, especially soya and beef. There are also major mineral exports. Brazil ranks as the world’s second largest iron ore producer and extracts 3.4% of the world’s crude oil. Four large commodity traders dominate world agricultural markets by buying and selling products such as grain and soya. They have expanded through both horizontal integration and vertical integration. These traders own many large farms, process farm output and transport it to trade on international markets. Besides buying and selling, they supply seed and fertiliser to farmers and provide storage for their products. They also use agricultural by-products to make items such as biofuel. In addition, these traders offer financial services to these markets. Commodity traders play a major role in the growth of complex global food markets. Their activities affect food prices, access to scarce resources such as land and water, climate change and food security. In Brazil, the output of 15000 farmers is bought by one trader. In Brazil, the expansion of agriculture, mining and oil extraction all adds to environmental degradation. Agriculture and mining have both been linked to deforestation of the Amazon rainforest. Access roads to mining areas also cause deforestation. Waste water from mining activity is often held in reservoirs behind dams. On two occasions in the last 10 years, these dams failed to contain the water. This caused widespread flooding, the release of pollutants such as mercury into rivers, and deaths.

Oct/Nov 2025