What does Globalisation describe
Describes the process where by regional economies, societies and cultures become evermore interconnected
What is globalisation
The way companies, ideas and lifestyles are spreading around the world with increasing ease
Reasons for globalisation
Freedom of trade
Improvements in communication
Improvements in transportation
Labour availability and skills in LEDCs
What are improvements in communication
Internet and mobile communication
Improvements in transportation
Larger ships
Economics of scale
Speed of transport
What does TNC stand for
Trans national cooperation
What is a TNC
Companies with branches in many countries
Headquarters usually in MEDC
Products go to LEDCs and MEDCs
Labour availability and skills in LEDCs
Low labour costs
High skill levels
Less regulations
Egs of TNCs
McDonalds
Nike
Starbucks
Costa
Why do TNCs go global
Revenue - costs = profit
What does WTO stand for
World trade organisation
What is the aim of the WTO
To remove barriers to trade between countries, so that companies can trade freely everywhere.
