12.3 Uneven Globalisation Flashcards
1
Q
Non-Glocalisation Example (4)
A
- Unlike many TNCs
- Lego has not glocalised its products
- Lego export identical products to all global markets
- Products sold in 130 countries
2
Q
Example of GPN (3)
A
2500 different suppliers provide parts to assemble BMW’s Mini Car
- Windscreen is made in Belgium
- Engine is made in Brazil
3
Q
A.T. Kearney Disadvantage (3)
A
- Only 64 countries are included in the index
- Compared to 158 countries for KOF index
- Some categories are hard to quantify, e.g. cultural experience
4
Q
Why some parts of the world have benefitted from TNCs more than others (5)
A
- Not all places are suitable sites of production
- For a range of physical/human reasons
- E.g. natural resources / government policies
- Not all places have enough market potential to attract retailers
- Due to low income/other factors
5
Q
Limitations of KOF Index (3)
A
- Validity of the criteria is questionable
- Some measures are outdated
- E.g. international letters per capita
6
Q
Glocalisation (3)
A
- Adapting products to suit local tastes/laws
- An increasingly common strategy used by TNCs
- In an attempt to conquer new markets
7
Q
Offshoring (2)
A
- TNCs moving parts of their production process abroad
- To other countries to reduce labour costs
8
Q
Outsourcing (4)
A
- TNCs contracting another company
- To produce their goods/services
- Or manage other aspects, e..g finances/customer service
- Can result in the growth of complex supply chains
9
Q
Risks of outsourcing for TNCs (4)
A
- Natural Hazards such as the 2004 Boxing Day tsunami
- Can disrupt global supply chains
- Rana Plaza factory collapse of April 2013
- Caused a PR disaster for TNCs such as Monsoon/Primark
10
Q
How TNCs use new markets (Inc Latin America, Asia, Middle East) (4)
A
- Building a GPN
- Helps TNCs gain access to these new marketa
- Additionally, in order to maximise profit
- Many TNCs have glocalised their products
11
Q
A.T. Kearney Index (5)
A
- Ranking is established by analysing a city’s
- Business activity
- Cultural experience
- Political engagement
- Data includes no. of TNC HQ’s and museums
12
Q
2 ways to measure Globalisation (2)
A
- KOF Index
- A.T. Kearney Index
13
Q
Global Production Network (4)
A
- A chain of connected suppliers of parts and materials
- That contribute to the maufacturing or assembly of the consumer goods
- As globalisation has accelerated
- So too has the size and density of GPN’s
14
Q
Glocalisation Example (4)
A
- McDonalds is a TNC operating in 119 countries
- Over 400 restaurants in India
- Caters for Hindus and Sikhs, who are traditionally vegetarian
- Created the ‘McVeggie’ and the ‘McSpicy Paneer’
15
Q
KOF Index (4)
A
- Measures 4 dimensions: Social, Political, Cultural and Economic
- Uses diverse data sets
- Such as participation in UN peacekeeping missions and tourist flows
- In 2014, Ireland and Belgium were the world’s most globalised countries according to KOF
16
Q
Why GPN’s have grown (3)
A
- Grown due to trade liberalisation
- Changing attitudes of national governments
- And improvements in technology, e.g. communication
