Globalisation EQ2 Flashcards
TNCs
Important agents of global change. Along with trade blocks they can beg described as architects of globalisation helping to build bridges between nations
what are the 3 roles of tncs
- forge connections between people in different countries by shaping common patterns of consumption
- link groups of countries through production of goods
- invest and expand through acquisitions and mergers
Glocalisation
TNCs changing their product to their target market
Outsourcing
Business makes a contract with another country to complete some of the work rather then doing it within the company - make products etc
Offshoring
Company moves part of its operation to another country often because labour costs are lower or because the economic situation is more favourable for profit making such as lower taxes
Difference between outsourcing and offshoring
The company gives some of it away in outsourcing whereas the company still has full control in offshoring
A positive social impact of globalisation
- education in Asia has improved in recent decades
- modern infrastructure brought to japan
- Asian roles now playing a leading role in quaternary sector
Negative impact of globalisation
- rising gun and drug crime
- Detroit lost 1mil residents since 1950
- depopulation linked with race
- European and American factory workers lost jobs in 1970s
- high rise development in hotspots
Positive economic impact of globalisation
- growing mass of urban working people
- 500 mil have escaped poverty
- by 2030 Asia will be home to 3 billion middle class people
- Asia’s average income has soared
- South Korea is the eleventh largest economy
Negative economic impacts of globalisation
- western factories closed in large numbers
- recently growth has slowed
Positive Environmental impact of globalisation
- Environmentally friendly technologies shared
Negative environmental impacts of globalisation
- smoke pollution
- biodiversity loss
- forest land sacrificed for urbanisation
- Nigeria’s forest has halved in size
- crop land has been destroyed by soil erosion or mining
- workers making i phones were poisoned by chemicals used to treat glass
- lots of dumping waste and over exploitation of resources
What are the three types of migrant
Displaced migrant, voluntary migrants and illegal migrants
3 pros of outsourcing
- cost saving = generated by lower wages
- tax benefit = offer tax incentives to counter hug corporate taxes
- access to talent = larger talent pool
List three negative impacts of globalisation
- cross cultured differences = different ways of viewing some problem
- communication problems = different time zone
- cost vs value = reduce customer service possibly
