Globalisation Flashcards
Globalisation
when human activities take place on a worldwide scale, meaning we increasingly live in a ‘global village’
interdependence
when countries are linked together economically, socially, culturally and politically so that they become dependant on each other
Globalisation is as the result of:
- improvements in technology
- Improvements in transport
- Growth in TNCs
- Greater political cooperation
- Trading blocs
Transnational company (TNC)
A huge company that does business in several companies.
Headquarters are normally in MEDCs whereas often locate factories and branches in LEDCs
The worlds ———- largest companies now control ——-% of the world trade
500
70%
Factors that attract TNCs to LEDCs
- cheap labour
- Raw materials
- Government - policies offer tax incentives
- Prohibit strike
- Health + safety- relaxed regulations
- Working hours
EXAMPLE tnc
McDonalds
over 30,000 restaurant chains in nearly 120 countries
helped create a single global economy
Advantages of TNCs
- brings work/uses local labour
- Improves education/work skills
- provided money for industrial preojects
- provides trade links with other countries
Disadvantages of TNCs
- poorly paid
- most profits- oversees
- products often have little value to locals
- companies may pull out at any time
- rarely consider the needs of the country
Positive effects of globalisation
- products cheaper for consumers
- better awareness of events +global issues
- Share cultures
- migration of people fills labour gaps
- TNCs- positive multiplier effect
Negative effects of globalisation
- lose cultural diversity - drowns out local traditions + langs
- migration causes social tension
- profits - MEDCs
- TNCs out compete local businesses
- Environmental problems
