What is the consequence of globalisation?
Increasing independence between countries all over the world
People in one country or region being affected more and more by economic events or decisions made in other parts of the world, thousands of kilometres away from where they live
Why is there exchange between different countries?
Because if the country is something another doesn’t or cannot make cheaply they exchange or trade and in doing so become dependant on one another
What can poor countries supply?
- Varied environments for tourists
- Low priced manufactured goods
- Tropical food
- Raw materials including minerals and timber
What can rich countries supply?
- Knowledge of modern technology
- High-tech manufactured goods
- People seeking different/new holiday new destinations
- Skilled workers
Why has globalisation taken place?
Revolution in global communications
- For people
- For goods
Why has globalisation taken place for people?
- Allows instant contact by email, fax, text over the Internet
- Jet aircraft allows company’s to fly to most countries in less than 24 hours
Why has globalisation taken place for goods?
- Containers for moving goods by Sea
- Ease of transport
- Security
- Cheapness
What does globalisation involve flows of?
- Ideas (religion, tech. Transferred by media, TV)
- Goods (transferred by container ships, airplanes)
- Infomation (transferred through stock exchange, Internet)
- Capital (transferred through banks, cheques)
- People (transferred by airplanes, ships, trains)
What is a TNC?
Transnational Organisation
- A firm which has its headquarters in one country while having factories and other offices/shops and others
Some examples of TNCs
BP and Shell (oil and mining)
Ford and Toyota (Motor Vehicles)
Coca Cola and Nestle (Food and drinks)
Advantages of TNCs
- Bring capital, modern technology and infrastructure to less developed countries
- Create jobs
Disadvantages of TNCs
Economic, Social and Enviromental
- Low wages, tax avoidance, profits taken out of the country to developed countries, TNCs can leave as quickly as they came
- Poor working conditions, low safety standards
- Water and air pollution, pollution controls are weak or ignored
What is globalisation?
- The spread of customs from other countries like products. When these customs are spread there is also a spread of knowledge people and ideas.
- Increasing importance of international operations of people and companies
- The process of international integration arising from the interchange of worldviews product ideas and other aspects of culture
