Globalisation Flashcards
Define globalisation:
It is the process of the world’s economies becoming integrated into one community
What is the consequence of globalisation, which could be a bad thing, in one word:
What does this describe:
Interdependence
Countries’ reliance on each other to exchange goods and provide goods and services.
What is an MNC
What is a TNC? Where do they make their goods, where do they sell them?
What is fair trade:
Multinational Cooperation - made and sold inside one or few countries
Transnational Cooperation - Developing countries make the goods, sold in MEDCs
Better conditions for workers
How has ICT helped globalisation?
What has it done?
How has this helped globalisation, where?
What does this mean for these places?
Economy? How it affects globalisation….
Computer tech has developed.
Helped globalisation because MORE REMOTE REGIONS have access to the internet …
….and expand their businesses.
The economy can grow and the country can expand business to other countries therefore causing globalisation.
ICT has influenced the development of localised industrial regions.
TNCs
How many companies are based in Motorsport Valley?
What are the majority of the businesses related to?
How many people are employed here?
4,500
Design, research, development, and event organisation
40,000
ICT has influenced the development of localised industrial regions.
Markets in developing countries
What are the Chinese doing?
What does this make the British want to do?
What competition has this raised?
Investing large sums of money into developing racing capacity, tech and engineering skills to grow an industry of its own
UK businesses want to develop F2 on the Chinese circuit
International motor sport racing
ICT has influenced the development of localised industrial regions.
ICT
How much of their turnover is devoted to research and development?
What is used for advertising and exports?
30%
Internet
ICT has influenced the development of localised industrial regions.
Transport
How is its location ideal?
It’s close to all the London airports and Coventry - this is good for importing and exporting
Close to main roads - travelling and shipping is easy
What are the advantages of TNCs? Descriptive
International
Economy
Tourism
They bring countries together because they produce and sell internationally, spreading the money and modernity
It benefits all the countries’ economies from selling and employment in production
The money in the LEDCs allows them to build a tourism trade and gain recognition, furthering the increase in their economy
What are the advantages of TNCs for LEDCs? List
Companies improve the infrastructure of the LEDC
Money is brought in through sponsorship and employment
The company train locals to have new skills
Other companies are attracted by the presence of the TNC
Companies create jobs, especially labour intensive
What are the disadvantages of TNCs?
Safety records are often poor along with working conditions in their LEDC factories
Companies avoid taxes due to lax LEDC laws
TNCs export to the host so the LEDC gains little of the manufactured product
Low wages paid, exploit workers
Provide few jobs, using more tech and machines instead
Describe the background information for the TNC Coca Cola…
How much of the global population recognises the logo?
How often is coke product consumed by one person globally?
Who does it spend more on advertising than?
How much do they get in revenue?
What are they on the rank of economy?
94% Once every 4 days Apple and Microsoft $35.1 billion 84th largest economy, just ahead of Costa Rica
What are 3 political effects of Coca Cola?
Authorities in Northern India have ordered the closure of the CC bottling plant as they have extracted too much of the areas’ ground water
Plants have breeches their operating licenses and so officials have ordered the closure of a plant in Uttar Pradesh
What are 3 social effects of Coca Cola?
Negative affects historically as they collaborated with the Nazis
Threats to union workers inside the plants have been made in Mexico by the Paramilitary organisation the Black eagles
The 330ml coke contains 8tsps of sugar causing obesity
What are 3 economical effects of Coca Cola?
1.4 billion drinks sold everyday turning into profits and infrastructure for both LEDCs and MEDCs
The products made are shipped out of the countries, the money made leaves the LEDCs.
What are 3 environmental effects of Coca Cola?
They are taking out too much ground water so some plants have been ordered to replenish it with 2x the amount they have extracted
The effluents released by plants in India contain pollutants beyond the permissible limits
People in LEDCs can’t afford to appeal against the illegal pollution in their local rivers they drink from, e.g in Mexico
Why have call centers relocated to Bangalore?
They are less expensive
Operating costs are between 10-60% lower
Development of ICT allows fast communication so it is no worse being across the globe
The foreigners have a high work ethic as the job is valued more than in an MEDC - therefore they can pay less
What are the effects in Britain after TNCs have outsourced their call centres?
The countries are leaking their money out to LEDCs, helping those but not the MEDC economy
Thousands of people left unemployed
Why is there industrial growth in some parts of the world?
Some LEDCs are developing their Secondary and Tertiary working sectors, NICs, as there is significant industrial growth here.
These countries are developing and so need more people to work in factories to produce goods, they become big exporters to MEDCs.
Why is their de-industrialisation in some areas of the world?
It is occurring in the UK because there is less manufacture needed due to mechanisation, other countries producing goods more cheaply and wages in the MEDC being too high.
There is a growth in secondary and tertiary employment
There is an increased demand in other occupations such as retail and marketing for the products produced in the LEDCs
What are the effects of government legislation on industry? (3)
Set up enterprise zones, making conditions favourable for new industry
Providing advanced factories built by the government
Ensuring educational reform, particularly in the “Asian Tigers”
(Minimum wage has many effects too)
What are the effects of health and safety regulations on industry? (3)
Employees know how to execute their jobs safely, improving their welfare
They are supplied with protective clothing improving the standards of the factories and the lives of the employees.
When these aren’t enforced the factories break the law, but some ban trade unions to fight for their rights
What are the effects of prohibition of strikes on industry? (3)
After 15,000 Ford workers striked in September 1978 it was seen as bad for the industry
Nissan and Toyota came to the UK having the understanding strikes are not allowed, so if they happen they could have large negative implications on the economy if they leave.
Trade unionists likely to be threatened in Sri Lanka
What are the effects of tax legislation on industry? (3)
Tax free zones promote industry in Dubai and Zambia
Grants available
Rent free periods occassionally available in the UK to help businesses set up