Causes of Globalisation Flashcards
Define Globalisation
Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Globalisation has increased the production of goods and services.
What 4 ways do TNC’s contribute to Globalisation
1) Manufacturing by outsourcing to maximise profits
2) Foreign direct investment
3) Improvements in Transport eg just in time production
4) Advances in technology + communication
What 6 main factors accelerate globalisation ?
1) Technology/communication
2) Consumer demands
3) Transport
4) Investment: direct,inward
5) Golcalisation
6) TNCs
What are some economic benefits of Globalisation
1) Free Trade
2) Free Movement of Labour
3) Increased Investment
4) Greater choice of products
What does Globalisation involve?
- Greater free trade.
- Greater movement of labour.
- Increased capital flows.
- Growth of Multi-national companies.
- Increased integration of global trade cycle.
- Increased communication and improved transport
- Reducing barriers between countries.
What are some negatives of Globalisation
1) Free Trade can Harm Developing Economies
2) Environmental Costs (pollution)
3) Less Cultural Diversity (westernisation)
4) Labour exploitation (low wages etc)
5) Two speed world (gap between rich+poor)
How do TNCs grow?
1) Motive by maximising profit + controlling costs
2) Means from financial backing eg FDI
3) Mobility by improved transport + communication
What are the 2 case studies of TNCs
Disney and Tesco