Globalistaion

Question 1

What is globalisation (give me 2 definitions)

Answer 1

The process whereby regional economies, societies and cultures become evermore interconnected.

The way companies, ideas and lifestyles are spreading around the world with increasing ease.

Question 2

What is a global village

Answer 2

the world considered as a single community linked by telecommunications.

Question 3

What are some reasons for globalisation?

Answer 3

1. Freedom of trade- promoted by the world trade organisation.
2. Improvements in communication - internet and mobile communication.
3. Improvements in transportation- larger ships, economies of scale, speed of transport.
4. Labour availability and skills in LEDCs- low labour costs, high skill levels, less regulation.

Question 4

What does TNC stand for

Answer 4

Trans national corporations

Question 5

What are TNCs?

Answer 5

Companies that have branches in many countries around the world.

Question 6

Where are TNC headquarters

Answer 6

Their headquarters will usually be based in MEDCs but they spread their production to other countries (usually ledcs) all around the world.

Question 7

What are 4 examples of TNCs

Answer 7

McDonald’s, ford, BMW, Nike

Question 8

Why do TNCs go global

Answer 8

To increase their profits.
Profit = revenue - costs

Question 9

Revenue

Answer 9

This is all the money the company makes from selling things

Question 10

Costs

Answer 10

This is what is spent on making and selling them (costs of materials, wages, adds, etc)

Question 11

Profit

Answer 11

This is what the company makes in the end.

Question 12

How can a TNC increase its profits by reducing its costs

Answer 12

It gets 40% off its trainers made in china.
It closes trainer factories in the USA.
It now owns no trainer or clothing factories.

Question 13

How can a TNC increase its profits by increasing sales

Answer 13

Sponsors top school sports teams.
Employs sports scientists.
Brings out new styles regularly.
Opens a branch office in Australia.

Question 14

How can a TNC increase its profits by reducing costs and increasing sales

Answer 14

Runs a website.

Question 15

What makes a companies profits higher

Answer 15

More goods sold and lower costs

Question 16

Globalisation connects us to more and more people and places all over the world even if we never see them.
Give an example of this

Answer 16

Connected to a granny who lives far away because of a phone you can call her.

Question 17

What are some things that help in the process ok keeping people and things connected?

Answer 17

Planes, trucks, phones, boats

Question 18

Give an example of a TNC of pop music

Answer 18

Spotify

Question 19

Give an example of a TNC of oil and petrol

Answer 19

Shell

Question 20

Give an example of a TNC of making cars

Answer 20

BMW

Question 21

Give an example of a TNC of making computers

Answer 21

Microsoft

Question 22

Give an example of a TNC of fast food

Answer 22

McDonald’s

Question 23

Give an example of a TNC of soft drinks

Answer 23

Coca Cola

Question 24

Give an example of a TNC of sports shoes

Answer 24

Adidas

Question 25

What are the driving forces behind globalisation

Answer 25

TNCs

Question 26

Where do TNcs put factories

Answer 26

Countries where wages are lower

Question 27

What things do TNCs move and why

Answer 27

Factories, managers, advertisements , money, raw materials. Helps profits to rise through advertising , changing managers, lower wages

Question 28

What is a WTO

Answer 28

World trade organisation

Question 29

What is the main aim of a WTO

Answer 29

To remove barriers for international trade so that companies can trade freely.

Question 30

How is the LEDC government an advantage of globalisation

Answer 30

They give people jobs. They need TNCs to exploit their resources. They improve the economy.

Question 31

How are the workers advantaged by globalisation

Answer 31

They get jobs. Some of them get good pay. They make money.

Question 32

How is the WTO an advantage of globalisation

Answer 32

It breaks down barriers between nations. Greater varieties in shops. Companies can export and import freely.

Question 33

How are the economists an advantage of globalisation

Answer 33

It helps ledcs to develop with technology and skills as well as financially.

Question 34

How is the MEDC government an advantage of globalisation

Answer 34

Spreads countries influence. Collect tax on the profits. Like seeing countries do business overseas.

Question 35

How are the TNCs an advantage of globalisation

Answer 35

They make globalisation happen. The workers are cheap. Their profits are growing. The market is large.