Globalisation Flashcards
What is globalisation?
It is the process whereby economics and societies around the world become interconnected.
What is a TNC?
It is a Transnational corporation. They are companies that have branches in many countries around the world. (They are the driving force behind globalisation)
Why do companies like Nike spread around the world?
By moving their production to LEDCs TNCs like Nike, save huge amounts of money in labour costs and so they make more money (Revenue - costs = profit)
What are the benefits to globalisation?
Lower costs for products.
International recruiting.
Access to new cultures.
Factors leading to globalisation
Economies of scale.
Technological change.
Less protectionism.
Negatives of globalisation
Exploitation of Labour (sweatshops), domestic job loss and imbalanced trade