Globalisation Flashcards
Define globalisation
Globalisation is the increasing interconnectedness between countries. People, information, culture and money can move more easily between countries with fewer barriers.
What is a TNc?
A TNC is defined as a Transnational Corporation - companies that operate in multiple countries
Where are tncs headquarters located and why?
Inc headwaters are generally located in the country of origin because that’s where most profit will return to, and where most of the top management is located.
Where are tnc research and development facilities usually located?
They ore often in developed countries that have a skilled workforce and high level of technology
What is Glocalisation?
Glocalisation refers to products that are distributed globally, but are adjusted to accommodate consumers in local markets.
What are the pros of tncs
Jobs created in now income countries, raised living standards, cheaper products, infrastructure built
What are the cons of TNC
Environmental suffering like oil spills, exploitation of workers rights, minimum wage violations
What are the 4 TNC case studies?
Apple, Coca-Cola, Tesco, shell
What’s economic globalisation
Economic globalisation is growth in world trade, TNCs becoming more present globally.
What’s cultural globalisation
The spread of culture through global news and tourism
What’s political globalisation
The spread of governmental influence between countries, western democracies dominate decision making
What’s demographic globalisation
Increased mixing and migrating of populations
What’s environmental globalisation
Increased prevalence of problems like climate change, they become more widespread
What are the three aspects of globalisation?
Lengthening connections, deepening connections and faster connections
What is deepening connections?
More people can connect with faraway places, through tourism, foreign food, TNCs
What’s lengthening connections?
Introducing new links between countries that are far apart
How have connections been lengthened?
Aviation- long haul flights
Containerisation - standardised shipping unit to trade lots of goods
How have connections been made faster?
Fast internet, social media, WhatsApp, zoom calls
What’s the shrinking world conecept
Physical distance between places has remained the same, but technology has allowed time to be reduced. So the shrinking world is the idea that there has been space-time compression.
Who invented containerisation
Malcom McLean
How has containerisation increased globalisation
Increases the scale of transport, and provides a standardised unit. So goods can be traded between countries at a faster rate.
How has ICT development increased globalisation?
Businesses around the globe can connect instantly through phone calls, emails and texts
How have global organisations increased globalisation?
They encourage global trade and provide loans for LICs
How has improved air transport increased globalisation?
Allows for more people to travel through budget airlines like easyJet, so culture can be shared easily between countries and tourism can thrive
How have trading blocs increased globalisation?
They have improved relationships between countries and encouraged free trade. They remove barriers for brands to grow and trade freely.
What is FDI?
Foreign direct investment - when one country invests in another, can be through finance, education or infrastructure.