human- 3.3 Flashcards
3.3a
give 2 ways of measuring globalisation
The KOF Index
AT Kearney Index
explain the KOF Index
-uses a score of 1 to 100 (100 being most globalised nation)
MEASURES COUNTRIES
-political, economic and social factors
economic e.g. distances of flows of goods, services, capital and FDI
social e.g. telephone calls, tourist flows, internet users and cultural proximity
political e.g. international organisations, trade blocs
explain the AT Kearney Index
-assess 29 metrics across 5 dimensions
MEASURES CITIES
-political, communication, technology and business factors
1. business activity e.g. capital flow, markets
2. human capital e.g. education levels
3. information exchange e.g. internet and media
4. cultural experience e.g. museums, events
5. political engagement e.g. international organisations, political events and embassies
what are some other simple measures of globalisation?
GNI
-value of goods and services by a country
Income per capita
-mean average income per person
GDP
-measures total value of goods and services produced in a country
3.3b
TNCs about
trans-national corporations
-been around since 18-1900
-key players and drivers of globalisation
-in 2016, there were over 60,000 TNCs
what is a corporation?
a business which exists separately from its owners who are shareholders
-appoint directors to direct the business
what is a motive for global production
PROFIT
-companies minimise costs with labour and materials and maximise profits and revenye
-expand markets and take over competitors
-do this through economies of scale
-develop new markets
why do many companies expand their product range?
to future proof their sales
(if one product fails, another will succeed)
how do companies operate global production?
banking and the free flow of capital around the world has caused growths of companies
what is a fundamental factor for the spread of globalisation?
mobility
-includes faster and cheaper transport
-rapid communication systems
-new flexible technologies
what do global production networks do?
they link raw materials, finance, manufacturing, markets and sales together that are run from companies headquarters in high income countries
outsourcing
workers are contracted out to another company
offshoring
a company does work overseas
glocalisation
when a company restyles its products to suite local tastes
example of cultural globalisation and glocalisation
Disney was one of the first global TNCs to glocalise
e.g. Lion King for the African Market
Aladdin for Middle Eastern Market
Finding Nemo for Australian Market