What Is Globalistion Flashcards
What is Globalisation
Globalisation is the process by which countries and people are becoming more connected. Improvements in transport and
communications
enable people,
goods
,
capital
and information to move between countries.
What are TNCs
As a result of globalisation, some corporations, or large companies, now operate in more than one country. These corporations are called
TNCs
(transnational corporations).
Where are TNCs based?
TNCs have traditionally had their headquarters in the
Triad
which is made up of the
HICs
(high income countries) in Europe as well as the United States and Japan. Companies in the Triad have had an advantage as many of these countries were once
colonial powers
. Colonial powers grew richer through
exploiting
the
resources
of their colonies. This wealth has enabled large companies to grow.
MICs
More recently, some MIC countries, such as China, have grown wealthier over time. These countries have become known as
NEEs
(newly emerging economies). This has led to larger companies and TNCs developing in these countries too.
Where do TNCs manufacture products?
TNCs often manufacture products in LICs or MICs where
wages
are lower. This allows them to make more
profit
from the
products
that they sell, but it can mean that workers in LICs are
exploited.
The relocation of factories has led to
industrialisation
in many LICs and MICs and
deindustrialisation
in many HICs.
