Economic Development - Globalisation Flashcards
What is globalisation?
The process of countries becoming more integrated (coming together)
How have improvements in communication increased globalisation?
ICT - email, internet, mobile phones makes it quicker & easier to communicate
Transport - more available airports, high speed trains, larger ships
What is a MNC and how does it increase globalisation?
Multi national company
They produce products, sell products or are located in more than 1 country
Increase globalisation by linking countries together through the production/sales of products
How do MNCs affect economic development?
Create jobs in the area - increases wealth
More taxes improve infrastructure/buildings/services ect which makes the area more attractive to businesses
MNC factories are located in LEDCs bc labour is cheaper
MNC headquaters/research centres are located in MEDCs bc there are more skilled people
What are the positive effects of MNCs?
Create jobs - create more jobs through the multiplier effect
When they locate in LEDCs this leads to training in the area and the people can then get better jobs
Workers can get higher wages and more reliable incomes working for MNCs
MNCs spend money in the area that develop it
What are the negative affects of MNCs?
Jobs aren’t always secure - MNC could relocate
Employees in LEDCs have to work long hours in poor condition and get lower wages
Smaller local companies have to shut down
Large sites cause lots of traffic - increases pollution
Profits go back to country the MNC is from
What are the economic impacts of globalisation in MEDCs?
Deindustrialisation in MEDCs - secondary industries locate in LEDCs bc cheap labour
Unskilled workers find it harder to find work because there are few factory jobs
What are the economic impacts of globalisation on LEDCs and NICs?
Industrialisation of LEDCs and NICs
The wealth isn’t spread evenly - few people become rich
What are the environmental impacts of globalisation?
Increase in pollution and global warming
More waste
Deforestation
What are the social/cultural impacts of globalisation?
Can improve quality of life - jobs = more money
Some people feel like they’re losing their cultural heritage
