Globalisation Flashcards
What is globalisation
It is the process whereby economies and societies around the world have become INTERCONNECTED.
TNC stands for
Transnational cooperation
What are TNC’S
A tnc is a company which has branches in many countries across the world
Where are TNC’S headquarters located
MEDC’S
Where a TNC’S productions located
LEDC’S
For example what percentage of Nike is made in an LEDC and what percentage of Nike is made in an MEDC
99% made in LEDC
1% made in MEDC
Where is most of Nike made
Asia
Why might Nike’s headquarters be located in the northwest of USA
Because lots of people in the north west of USA will have money to spend on brands like nike as it is an MEDC and design and advertising will happen their and their will be lots of people to see it
Why might Nike have a factory in Vietnan
Because it is cheaper labour costs so they will maximise profits
Why might TNC’S go global
By moving their production to LEDC’S TNC’S like Nike, save huge amounts of money in labour costs and so can make for profit
What is the equation of profits for TNC’S
Revenue (what it makes) - costs (spent on making and selling and labour) = profit (what is left)
The good things about globalisation
Local environment
Boosts LEDC wealth
Boost TNC profits
The bad things about globalisation
Exploited workers (sweatshops low wage)
No investment locally
Local job loses
Local pollution
Fill gaps
Although globalisation is probably helping to create more ——— in ———— countries. It is not helping to close the —- between the worlds poorest and richest countries
- Wealth
- Developing
- Gap
