New
New
Economic impacts of globalisation
I can assess how FDI and TNCs have affected the UK.
Lesson 4 of 4
New
New
- Year 10
- Edexcel B
Economic impacts of globalisation
I can assess how FDI and TNCs have affected the UK.
Lesson details
Key learning points
- Globalisation has increased foreign direct investment in the UK.
- Free-trade policies have increased foreign direct investment in the UK.
- Privatisation has increased foreign direct investment in the UK.
- TNCs play a significant role in the UK economy.
Keywords
FDI - foreign direct investment. Investment in a business that operates in another country
TNC - transnational corporation. A company that operates in more than one country
Globalisation - an increased connectedness between different countries that spreads money, ideas, goods and people
Free trade - trade between countries or economic regions where no tariffs (tax) exist on imported or exported goods
Privatisation - the takeover of state-run industries by private corporations
Common misconception
The UK should be cautious of FDI and TNCs.
FDI and TNCs are crucial aspects of international business. Without FDI many businesses would not be able to operate.
Students can look into the origin of an international brand they know well and see when and how it became a TNC.
Teacher tip
Equipment
Licence
This content is © Oak National Academy Limited (2026), licensed on Open Government Licence version 3.0 except where otherwise stated. See Oak's terms & conditions (Collection 2).
Lesson video
Loading...
Prior knowledge starter quiz
6 Questions
Q1.What is globalisation?
What is globalisation?
The movement of people across borders
The creation of a single national currency
The increase in local industries
Q2.Which of the following cities has the largest population in the UK?
Which of the following cities has the largest population in the UK?
Manchester
Birmingham
Liverpool
Q3.Which of these regions in the UK has the lowest population density?
Which of these regions in the UK has the lowest population density?
South East England
London
West Midlands
Q4.How has migration affected the population of the UK?
How has migration affected the population of the UK?
Decreased the population
Led to rural depopulation
Caused unemployment to rise
Q5.What is the trend in population movement within the UK?
What is the trend in population movement within the UK?
People are moving from cities to rural areas.
People are increasingly migrating to coastal towns.
Rural areas are becoming more densely populated.
Q6.Which of these is a key economic sector driving growth in many UK cities?
Which of these is a key economic sector driving growth in many UK cities?
Manufacturing
Fishing
Agriculture
Assessment exit quiz
5 Questions
Q1.How has globalisation impacted manufacturing in the UK?
How has globalisation impacted manufacturing in the UK?
Increased domestic manufacturing jobs
Reduced outsourcing of jobs to other countries
New industries were created in rural areas
Q2.Which of the following is a positive economic effect of globalisation in the UK?
Which of the following is a positive economic effect of globalisation in the UK?
Loss of local jobs
Decline in international trade
More regional economic disparities
Q3.What does free trade mean?
What does free trade mean?
Trade controlled by government policies
Trade only within the European Union
Trade that only benefits one country
Q4.Why should the UK embrace Foreign Direct Investment (FDI) and Transnational Corporations (TNCs)?
Why should the UK embrace Foreign Direct Investment (FDI) and Transnational Corporations (TNCs)?
TNCs only benefit developing countries, not the UK.
FDI and TNCs are harmful to the UK’s economy.
FDI is unnecessary as the UK has enough domestic capital.
Q5.What is one effect of privatisation on workers in a state-owned company?
What is one effect of privatisation on workers in a state-owned company?
Higher wages and job security
Increased pension benefits
More government support
