Using examples, explain how financial flows transfer wealth between places.

“Glocalization is the most important reason why some transnational corporations (TNCs) have grown in size and influence over time.” Discuss this statement.

Financial flows (based on geography subject guide) include loans, debt relief/repayment, international aid, FDI, profit leakage and remittances (do not credit “goods”). The spatial focus could be the global core and periphery (although these terms are dynamic and contested and a variety of interpretations are acceptable, so long as named examples are also included). Some answers may additionally explain that there are legal and illegal (criminal, informal) mechanisms of money transfer; or can explain how “transfer pricing” and offshore tax havens are used by TNCs to transfer money between places.

Better answers may provide superior evidence/case study details of the wealth flows (quoting dollar values or percentage contributions to GDP, etc). They may also consider the varied directions of the flows (whether towards core/MEDCs or towards periphery/LDCs). They may even consider flows at the local scale too (eg may consider how international aid or FDI flows transfer wealth towards an LDC, yet do not necessarily reach the poorest people/parts of that state).

For band C, at least two financial flows must be described with some exemplification of one flow (either of places or the size/scale of the flows).

To access band D, expect:

• either more detailed knowledge of the major financial flows (may look at how a wider range operate; may provide much more detailed evidence for a smaller range)
• or some explanation of how some major financial flows can operate in different directions (may even consider different scales).

At band E, expect both of these elements.

Marks should be allocated according to the markbands.

Credit all content in line with the markbands. Credit unexpected approaches wherever relevant.

Responses would be expected to define glocalization, providing examples of its effectiveness as a strategy for bridging/building new markets [Guide 5].

A fully synthetic and evaluative answer should debate the statement with reference to other, possibly more important, factors. These could include growth in technology associated with globalization, for example, containers or ICT [Guide 2] or the growth of MGOs allowing easier access to markets, possibly triggering mergers and acquisitions (for example, Cemex and domestic cement companies within NAFTA trade bloc) [Guide 6]. The economic factors that triggered global shift (such as cheap labour) are important and the role of outsourcing could be discussed [Guide 3]. Other strategies employed by global brands may also be addressed that explain diffusion over time and space, such as the promotion of consumerism through brand advertising [Guide 5].

Some candidates may conceptualize TNCs as a broad category that includes energy companies and agribusinesses, which would not be expected to adopt glocalization to the same extent as branded commodity providers and the service industry (global banking).

For band C, at least one glocalization strategy must be described and its effectiveness commented on.

To access band D, expect:

• either other more detailed reasons for TNC growth (thereby allowing the truth of the statement to be discussed, using at least one other theme synthesized from the subject guide, probably the role of technology/transport)
• or some more explicit discussion of how glocalization helps some TNCs (perhaps not all) to develop their size and influence (eg cultural acceptance is gained in varied geographical contexts/new markets) over time.

At band E, expect both of these elements.