Globalisation Flashcards
What is globalisation
How interconnected the world is
What are the key aspects of globalisation?
What is TNC
A Trans national Corporation
HQ in a HIC but operate in other countries too
What is trade?
Selling and buying goods from other countries
What is Aid?
Assisting other countries by giving money or resources
What is import?
shipping a product INTO a country so it can be used / sold
What is Export
Sending a product made in your country to another country
Why have containers been so important in increasing globalisation?
Quicker transport times and lower costs means cheaper products for consumers and bigger profits for companies
What does Interdependence mean?
Countries rely upon each other to provide goods / services.
What is Primary Industry?
Type of employment - the extraction of raw materials - Farming or Mining.
What is Secondary Industry?
Manufacturing. Turning those raw materials in to a new product. Often in factories.
What is Tertiary Industry?
Type of employment that is high paid and focussed on delivering services such as medicine or education.
What is Inequality in Millennium Development goals?
Low paid workers mean that big companies can make bigger profits.
What does MDG mean?
Millennium Development Goals
What are Millennium Development Goals?
15 targets created by the UN to improve equality around the world.
General points about TNCs:
Large corporation operating in several countries
Headquarters usually in a HIC
Factories in LICs
Big name brands
What are the positives of TNCs?
Cheaper labour in LICs means cheaper product for consumer and bigger profits
More choice for the consumer
Brings business and employment to LICs which in turn leads to improvements in that area
What are the negatives of TNCs?
Low pay for worker - often NOT a living wage
Poor working conditions
Pollution
Loss of jobs in HICs as factories are based in LICs where labour is cheaper
Name 2 countries which export a lot of manufactured goods?
China
USA
Give 2 reasons why the UK imports manufactured goods:
Materials may not be available here
Products will be cheaper if manufactured in LICs
Explain why China imports raw materials
To manufacture goods they may not have all the materials available.
Manufacturing goods requiring many different components which need to be sourced from other countries
Give 3 reasons why research and services are based in HICs
Better infrastructure
Better / more established higher education means a better skilled workforce
Economic stability and higher standard of living attracts talented workforce and investment
Types of Aid:
What is bi-lateral aid?
Aid given directly from one country to another
Types of Aid:
What is Emergency / short term aid?
Aid given quickly at times of war or natural disaster
Types of Aid:
Tied
Aid that must be used by the receiving country to buy goods / services from the donor country
Types of Aid:
Bottom up
Development work that starts work at the ‘grass-roots’ level
What is Fairtrade?
Organisation ensuring workers in the poorest nations get a fair price for their products to improve their lives and communities
How does Fairtrade help farmers in poorer countries?
A fair and stable price for their products
They can sell direct to maximise their profits
A stable income can provide better opportunities for their families
The farmers fair-trade premium allows them to improve communities with investment in wells, hospitals, equipment of switching to organic farming
What can you remember about NIKE?
They are a TNC with headquarters in USA (HIC)
They have many factories across the world in LICs
hey can produce their products cheaper
Low paid workers mean bigger profits
They workers at the factories they contract to are low paid and work in poor conditions
Not a living wage - often can’t afford food or medicine
$1.25 a day
Kids sometimes work in th factories - child labour - which means they are not getting an education
There were job losses in USA when they moved manufacturing to LICs
Negative impact on the environment. Pollution and waste is burned .
