Globalisation Flashcards
% of UK’s population as foreign born in 2011?
12.7%
White British fall from 2001-2011?
87% to 82%
Global Production Network?
A chain of connected suppliers, of parts and matierals, that contribute to the manufactering or assembly of the consumer good
- BMW = 2500 different suppliers for Mini Car
- Windscreen = Belgium
- Engine = Brazil
- Exhaust system = UK
Outsourcing?
External delegation of one or more business processes to an external provider who administers, managers and owns the selected process to an agreed standard
Why does outsourcing bring risks?
- Natural hazards = 2011 = disrupt global supply chain
- Scandals = 2013 horsemeat scandal = many international companies supplied meat to many European supermarkets e.g. Frigilunch, Belgium > Birds Eye
- Rana Plaza factory disaster collapse - Bangladesh
+ 1100 killed
+ Bonmarche, Primark, Matalan all outsourced here…
Outsourcing example?
Apple (California > China)
What is glocalisation?
Changing design of products to meet local tastes/laws
Why does glocalisation exist?
Variations in:
- People’s tastes = Cadbury chocolate = sweeter
- Religion/culture = Dominos’ only offer veggie food in India’s Hindu neighbourhoods
- Lack of avalibility of raw matierals = SABMillar uses cassava to brew beer in Africa
Examples of glocalisation?
- MCDONALDS = notorious
- Japan = ebi shrimp
- Israel = only kosher meat
- veggie restaurant, Sikh pilgirims, Amritsar
Why do some companies not glocalise?
To keep an authentic brand
e.g. Lego, Apple
Switched On?
Nations, regions, cities that are strongly connected to others by the production and consumption of goods and services
Who wants to be more switched on?
CHINA
OBOR = global strategy to link up Eurasia
SAUDI ARABIA
VISION 2030 = reduce dependency on oil, diversify economy, improve public service
Why are some places switched off?
- Highly vulnerable to natural hazards e.g. Japan (move of it’s manuf of Nissan and Toyota = UK)
- Poor resources for agriculture e.g. Eritrea = only 12% of total land is good for farming
- Lack of skills and literacy e.g. Niger = 19%
- Politically isolated e.g. NK
- Ethnic conflict e.g. Saudi = Sunni & Iran = Shia
When was height of global shift?
1970’s
Types of industrty?
- Primary
- extractive industries .e.g mining
- 12% of UK GDP - Secondary
- manuf/ assembly - Tertiary
- services and goods provision
- 80% of UK GDP!!!
- London = hub for UK financial services - Quaternary
- research and development expertise