Globalisation Flashcards
(31 cards)
What is globalisation
It describes the process where regional economies, societies and cultures become even more interconnected. Process is helped by transport and trade etc
Technological advances
Lessened transport costs, therefore goods and services cross borders at reduced prices.
Contemporary communications
Work can be undertaken faster and across international borders
TNC
Stands for Transnational co-operations
What are TNCs
They thrive through international trade, eg Nike, Audi, apple
They are usually based in rich MEDCs, but products are made in other parts of the world, increasing in poorer LEDCs
MEDC
More economically developed countries e.g uk, France, USA and Italy
LEDC
Less economically developed countries eg China, India, Indonesia and Kenya
Nike case study
Nike named after Greek goddess of victory
Founded in 1964 as blue ribbon sports
It is a very well known TNC worldwide
Based in USA ( HQ in Oregon) providing 500,000 jobs (mainly LEDCs)
Goods made in nearly 40 countries, sold in over 130 countries
98% of footwear (Nike) is made in Vietnam, Thailand, Indonesia and China
Timeline for Nike
1964- BRS founded
1971-logo founded
1974-rise In costs
1975-Nike goes global,costs still too high
1985-relocates to Taiwan because of costs
1995-subcontracts manufacture to Vietnam
Why go global
Nike went global to maximise its profits
Revenue-money taken from selling things
Costs-amount of money spent making things
Profits-what company is left with
How to maximise profits
By moving their production to LEDCs ,eg Asia, tncs sva huge amounts in labour costs. So they make more money
Impacts of globalisation (benefits)
Fuel growth in LEDCs e.g India
New jobs
New investment
Impacts of globalisation (problems)
Low pay
Sweatshop factories
Unsafe working conditions
What is trade
Trade is the exchange of goods between countries
Trade occurs because no one country is rich enough in raw materials and manufactured goods to be self-sufficient
Trade balance
The difference between a country’s imports and exports
What is trade surplus
If a country grows more from its exports (£££) than it spends on imports (£) it’s said to have a: trade surplus
The country grows, becomes wealthier +£££
What is trade deficit
If a country spends more on its imports (£££) than it earns from its exports (£), its said to have a: trade deficit
The county gets poorer -£££
What is a commodity
A commodity is something that is grown or mined from the earth and then traded on the world market
What is a cash crop
A cash crop is a crop people grow mainly for export
Coffee is both a commodity and a cash crop
E.g of cash crops: oil, cotton, fruits and nuts
E.g of commodities: copper, iron ore, gold and aluminium ore
Coffee
- Picking the ripe coffee cherries
- Removing beans from the cherries (creamy coloured/wet)
- Dry beans in the sun
- Parchment (skin) removal
- Roasting
- Grinding the beans
- Brewing and drinking
About coffee
It was first discovered in Ethiopia
It is grown mainly in the tropics, in countries which are LEDCS
In 2000, the ten coffee drinking countries were in MEDCs however, almost no coffee is grown there
Fairtrade
It is a charitable organisation whose aim is about :
Achieving better prices
Decent working conditions
Local sustainability
Fair terms of trade for farmers + workers in the developing world
How Fairtrade works
By requiring companies to pay sustainable prices, Fairtrade addresses the injustices of conventional trade, which traditionally discriminates against the poorest weakest producers.
It enables them to improve their position and have more control over their lives
Buying Fairtrade
With Fairtrade, you have the power to change the world everyday.
With simple shopping choices you can get farmers a better deal
This means they can : make their own decisions
Control their future
Lead the dignified life everyone does.
Choosing Fairtrade makes huge changes- We see this first hand
