Globalisation Flashcards
(23 cards)
What is globalisation?
Globalisation describes the process where by regional economies, societies and cultures become evermore connected. It is the way companies, ideas and lifestyles are spreading around the world with increasing ease (global village)
What are some reasons for globalisation?
Promotes freedom of trade, improvements in communication (internet and mobile communication), improvements in transportation, labour availability in LEDCs
What are some benefits for companies who make their products in LEDCs?
Low labour costs, high skill levels, less regualtions
What are some examples of improvements in transportation?
Larger shops, speed of transport and economies of scale
What does TNC stand for?
Transnational Corporations
What is a TNC?
A company that has branches in many different countries around the world. Their headquarters are usually based in MEDCs but their production is usually in LEDCs.
What are some examples of TNCs?
Nike, Volkswagen, Canon and McDonalds etc.
What is the equation for profit?
Profit = Revenue-Costs
Why do TNCs go global?
To increase their profits
What is revenue?
All the money the company has made by selling things
What are costs?
This is what is spent on making and selling things (cost of materials, wages, ads etc.)
What is profit?
What the company makes in the end
What are some things that can reduce TNCs’ costs?
Making things in LEDCs, closing factories in MEDCs, less in person stores etc.
What are some things TNCs can do to increase its sales?
Running a website, sponsor sports teams, brings out new styles regularly, opening new branch offices
Where is the Shein village?
Panyi, southern China
What are conditions like in sweat shops?
Long working hours, little time off, bad ventilation, very long working hours
What does WTO stand for?
World Trade Organisation
What is the main aim of the WTO?
To remove barriers for international trade so that companies can trade freely
Why do TNCs think globalisation is good?
The workers are cheaper, their profits are growing the market is large
Why do LEDC governments think globalisation is good?
It gives people jobs, they need TNCs to exploit their resources, it improves their economy
Why do workers like globalisation?
They get jobs and make money
Why does the WTO like globalisation?
It breaks down barriers between nations, increases variety in shops, companies can import and export freely
Why do MEDC governments like globalisation?
It’s spreads the country’s influence, collect tax on their products
