Globalisation Flashcards
What types of corporations are involved in Globalisation?
Trans National Corporations (TNCs)
What do TNCs involve?
HQ in one country and many branches throughout the world, bigger companies have HQs per country or reigon
Where do Nike design their products?
In central areas where their products are bought the most. This tends to be in America/Canada
How do companies like Nike keep the cost of producing their products down?
They finding LEDCs with a low minimum wage, so they pay the workers less and it is cheap
Where does Nike tend to make it’s products and why?
Asia as it closer to America than the other option (Africa). This cuts shipping fees
How does Nike advertise its product?
Pay celebrities to wear their products and in TV and towns, as the more we see it the more it enters our mind and you will remember it
How does a company fall out of a profit making loop?
It becomes broke or (in clothing) goes out of style
Give an example of a country which Nike makes goods in and has a branch
Russia, India, Mexico,China,Japan,Indonesia
Give an example of a country which Nike makes goods but does not have a branch
Brazil,South Africa
Give an example of a country which has a branch but does not manufacture products
Canada,UK,France,Ireland,Germany,Spain,Portugal
Give an example of a globalised company
Nike,Microsoft,Apple,Android
How can a phone help a business?
Owners can communicate easily, especially in different areas of the world so the business can expand
How can a TV help a business?
Companies can advertise their products to the world which creates more income as more people buy products
How can a computer help a business?
Design products without making them,saves money, also email which is another way to communicate with others
How can a plane help a business?
Quick way to transport goods across globe , also for employees to go to meetings/work. Gives first hand control to the buisness
How can a shipping container help a business?
Ship products a long way for a good price as the charge by container,cheap and effective way to move product all over the world
How can a computer with internet help a business?
Estimate how company is doing and advertise your own brand
What is needed to make a pair of jeans?
Metal buttons,zip,pocket linings,denim,thread
How many countries and continents are involved in making jeans?
15 countries and 5 continents
What percentage of the price of a pair of jeans £60 came from the shop?
50%
What percentage of the price of a pair of jeans £60 came from transport?
11% (£6.60)
What percentage of the price of a pair of jeans £60 came from the brand name?
25% (£15)
What percentage of the price of a pair of jeans £60 came from the materials and factory profit?
13% (£7.80)
What percentage of the price of a pair of jeans £60 came from the workers pay?
1% (£0.60)
Who are the winners in LEDCs from Globalisation?
Builders get work from factory,local people get jobs,families earn some money,can feed themselves
Who are the losers in LEDCs from Globalisation?
Locals made to move because of factories, pollutes the country and destroys the local wildlife,
no proper equipment/not good conditions
young made to leave school early and low pay
Who are the winners in MEDCs from Globalisation?
Consumers have a lot of choice
Government earn money from tax
TNCs owners earn a lot of money,
adds to economy
WHo are the losers in MEDCs from Globalisation?
Consumers pay extortionate prices as designer product, products not always good quality
Workers lose jobs and are replaced by machines/foreign workers
Small businesses cannot compete and go out of business
Define Globalisation
The spread of large corporations around the world and the way they influence the economics of the countries where they are found and the lifestyles of the people in these countries
