Going Global Flashcards
Define globalisation
The processes by which people, their cultures, money, goods and information can be transferred between countries with few or no barriers.
Explain how EasyJet is a global company
It’s a budget airline that has regional airports, e.g. Bristol (South-West) to allow people to fly for cheaper.
Explain how Tesco’s is a global company
They outsource a lot of their products from abroad, where production is cheaper, to where it’s then transferred to locations where there’s a higher demand.
Explain how language barriers link with globalisation
They have broken down due to the increase in numbers of people speaking more than one language. This can help businesses with Foreign Direct Investment (FDI).
Explain the role of globalisation in the ‘migrant crisis’
- Strain on housing, services etc…
- 283, 532 arrivals in 2014 to seek asylum.
- Rising numbers of refugees and economic migrants from areas such as, the Middle-East, Africa and the Balkans, towards the EU via the Mediterranean Sea.
- Syrians ‘DDD’ jobs which nobody wants to do, less exporting and this reduces oversea trade.
- Refugees coming from Syria, Afghanistan and Eritrea, causing multiple conflicts.
- Migrants aiming for richer EU countries, e.g. Germany, France etc…
Why are more and more people aware of events happening in Syria?
People may know about life outside Syria through the media and products that have been exported there.
Why may people want to migrate out of Syria?
Prospects of a better life with a better economy, which has spread from technological developments and politics in Western Europe.
What is colonialism?
When one country, takes over another country, with force.
What is thought to be the start of globalisation?
Colonialism.
What is the British Empire and who was under it?
Countries ruled under Britain in the 1920’s. This includes: Canada, India, Australia, Nigeria, Egypt, Nambia, South Africa, Zambia, New Zealand and Papua New Guinea.
Why would countries want to colonise?
- Power
- To spread the British culture
- To gain more people for the army
- To have more resources to sell and more links
- Thought to be the right thing to do
- Gain much more land
What is neo (modern) colonialism?
Due to colonial empires being broken up, new trade routes have developed which had lead to a wealthy core and a less wealthy periphery.
Does Britain still have links with Egypt? (who used to be owned by Britain)
Yes, because they celebrate similar events, e.g. Christmas, Easter and Good Friday. There is also a direct plane from the UK to Cairo (Egypt’s capital).
What term is used to describe the impacts of the world becoming smaller as a result of globalisation?
A shrinking world.
Since the British Empire broke up in the 1950’s, how are the other countries still connected to the UK?
- Air travel
- Media/technology
- Communication improvements
- Tourism/migration
- Aid/investment
What are the top three biggest, world-wide TNC’s?
- Coca-Cola
- McDonald’s
- Disney
How many satellites and cable companies does Disney have?
230
How many film/TV production and distribution centres does Disney have?
6 - all 7 continents apart from Antarctica.
How many magazines and newspapers does Disney have?
15
How many shops worldwide does Disney have?
728
How many theme parks does Disney have?
5
How many theatre production companies does Disney have?
2
Where did Disney all begin?
California.
What 4 strategies have helped Disney to grow?
- Expansion
- Mergers
- Take-overs
- Diversification
Give 5 facts about Tesco’s TNC’s growth and development
In 2007…
- £1 in every £8 spent in the UK was spent in Tesco’s.
- Tesco’s operates in 12 countries.
- It had 10,000 shops.
- It has expanded from groceries to technology, home stores, insurance, services and clothes etc…
- In April 2007, it’s profits exceeded £10 billion.
What benefits are there to Tesco’s customers?
- Cheaper alternative
- Larger range of goods
- Everything in one store
- Accessible
- Better deals
- Own brands for lower-income families
- 24 hour opening times
- Club card loyalties
- Efficient and effective online shopping
What problems are there to Tesco’s customers?
- Variety of competitors
- Undermines smaller businesses
- Lower quality from own brands
- Other coffee shops (Costa Coffee)
- Horse meat scam!
What benefits are there to Tesco’s suppliers?
-Guaranteed income
What problems are there to Tesco’s suppliers?
- Shed load of waste
- Needs to be good quality, otherwise Tesco won’t buy
- Mange toutes compared to a child and is ‘more important’
- Suppliers pay for visit
- Dependent on Tesco’s
- Tesco’s asserting their power
Define expansion
A business strategy in which growth is obtained by increasing the number of stores in which customers can buy a company’s products and services.
Relate expansion to Disney
Disney used to be known for their films, and not for their parks, merchandise and restaurants. They look for other business gaps.
Define merger
The combination of one or more corporations.
Relate merger to Disney
Disney owns Pixar and Vans now, where Disney have combined their ideas and clothing, as they are two separate businesses that have come together as one, but keep their separate names. Disney interacts with Disney consumer products and now have a combined revenue.
Define take over
When an acquiring company makes a bid for a target company.
Relate take over to Disney
Disney took over Marvel, but they kept their separate names. This may be due to the reputation of Disney and their audience.
Define diversification
A corporate strategy to enter into a new market or industry which the business is not currently in, whilst also creating a new product for that market.
Relate diversification to Disney
Disney was previously focused on ‘family entertainment’, but now gets a lot of revenue from theme parks and merchandise. They tend to swing between audiences; 2001 Mulan and 2005 Nemo. Film types now appeal to a wider audience - children and adults as they have grown up, newer films are aimed at them.
Define outsourcing
Where businesses send part of their business to elsewhere to where production is cheaper and sent to where consumption and demand is higher.
Define innovation - ideas over mass production
More diverse and limited edition products, diversifying products and keeping customers interested.
Define the just-in-time policy
Where they order the stock when they need it, not in advance.
Is Disney Fordist or Post-Fordist?
Post-Fordist.
Define fordism
Large batches, lower prices, same line of goods.
What are the positives of fordism?
- Straight forward
- Workers are very skilled
- Constant designing, then exporting
What are the negatives of fordism?
- Design rarely changes
- Supply is ‘basic’
- Same production
Define post-fordism
Small batches, higher prices, different line of goods - limited edition goods.
What are the positives of post-fordism?
- Workers can multitask
- Great quality/style of goods
- Limited edition goods (higher demand?)