Key learning points

1. Top-down and bottom-up strategies to reduce global inequalities differ in scale, aims, funding and technology.
2. Strategies such as foreign direct investment contribute to globalisation, but some countries benefit more than others.
3. Foreign direct investment by TNCs can lead to large-scale, economic change; but profits leak and jobs may be short-term.
4. Loans from IGOs for large infrastructure projects can deliver technological solutions, but also risk debt problems.

Keywords

• Transnational corporation - TNCs are firms that own or control productive operations in more than one country

• Intergovernmental organisation - IGOs are established by a treaty or agreement between countries pursuing a common goal, e.g. World Bank

• Globalisation - the increased interconnectedness of the world, economically, politically and culturally

Common misconception