Globalisation Flashcards
What factors have made globalisation possible?
- Relaxation of laws allowing foreign investment in countries (encouraged rise of TNCs)
- Increased provision and speed of international transport
- Developments in communication with fax, telephone and email
What is interdependence?
The relationship between two or more countries, usually in terms of trade
What are call centres?
Offices where groups of people answer telephone queries from customers. Employees use a computer to give them information that helps them answer questions
What is a transnational corporation?
A corporation or enterprise that operates in more than 1 country
What is the multiplier effect?
Where initial investment and jobs lead to a knock-on effect, creating more jobs and providing money to generate services
What is leakage?
Where profits made by the company are taken out of the country of origin and so do not benefit the host country
Advantages of TNCs
- Offer jobs in factories making supplies and services where products are sold
- Additional income benefits local businesses, creating a multiplier effect
- Training workforce helps develop skills
- Infrastructure improves as better access and communications are needed
Disadvantages of TNCs
- Leakage
- Some locations wages are very low and key jobs go to outsiders
- Worldwide economic problems or problems within the country can cause branches to close
- Working conditions are poor and and hours are long
- Health and safety is an issue
- Pollution in countries with less strict regulations
What is deindustrialisation?
A process of decline in some types of industry over a long period of time. It results in fewer people being employed in this sector and falling production
What are assisted areas/enterprise zones?
Areas that qualify for government help. Enterprise zones are on a smaller scale than assisted areas
What is globalisation? (Basic definition)
The increasing links between different countries throughout the world and the greater interdependence that results from this.
What are advanced factories?
Where buildings for production are built in the hope they will encourage businesses to buy or rent them
What types of Government legislation have been introduced that have influenced industrialisation?
- Setting up assisted areas/enterprise zones where conditions are favourable for new industry - e.g. lower taxes
- Providing advanced factories of various sizes
- Offering retraining and removal expenses
- Ensuring educational reform is high on the list in areas such as the four Asian ‘Tigers’
- Some countries have minimum wage
- Some countries have a maximum number for hours worked per week
What types of health and safety regulations have been put in place that influence industrialisation?
- Working conditions vary globally but in the UK, employees working 6+ hours are entitled to a 20 minute break
- Workers have the right to know how to do their job safely and be trained to do so, know how to get first aid, know what to do in emergency and be supplied with protective clothing
- > these regulations do not exist in some poorer countries or are not enforced
What are strikes?
Periods of time when large numbers of employees refuse to work due to disagreements over pay or other grievances
Prohibition of strikes is also an influence on industrialisation