Globalisation Flashcards
What is globalisation
The process of connecting people, products and places across the world. The process is driven by international trade and is accelerated by advances in ICT
What is an MNC
Multi National corporation e.g Nike, Coca Cola, McDonalds
How do you work out profits
Profits = revenue - costs
What is revenue
The money the company makes from selling things
What is cost
What is spent on making and selling (cost of materials, wages etc)
What is profit
The overall value of money made from all business processes. The more goods a company sells and the lower its cost the higher its profits will be
2 positive impacts of globalisation
- countries are increasingly interdependent because they need to trade with another and exchange goods
- increased movement of people, goods, money and ideas. Cheaper and easier to communicate
3 negative impacts of globalisation
- economic power concentrated with MNCs. In 2014, 37 of the worlds 100 largest economies were MNCs, not countries
- the headquarters of MNCs are located in MEDCs, where most profits end up. LEDCs generally produce the raw materials and assemble the products. MNCs take advantage of the low wages
- However the movement leads to invasive species and diseases
What is a sweatshop
A place where people are forced to work long hours for low pay
What is a NIC
Newly industrialised country
What is the world bank
A joint bank owned by governments of over 180 countries, set up to provide loans for development
What is a transnational corporation
A business that has operations all over the world
What is the WTO
World trade organisation. Promotes free trade across the world
What is interdependence
How countries depend on each other e.g for trade or tourism
