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11 Cards in this Set

  • Front
  • Back

Globalisation basics


1) What is Globalisation?


2) Why does Globalisation happen?


3) What have countries become more of as a result of globalisation?


4) What Improvements have increased globalisation?

1) Globalisation is the process of all the world's economies becoming integrated - it's the whole world coming together like a single community.


2) It happens because of international trade, international investment and improvements in communications


3) Countries have become more interdependent as a result of globalisation - they rely on each other for resources or services.


4) Improvements in communications have increased globalisation (ICT and transport by increasing trade and investment)

Improvements that have increased Globalisation


1) Describe the improvements in ICT.


2) Describe the improvements in Transport.


3) What have these improvements allowed the development of?

1) Improvements in ICT include e-mail, the internet, mobile phones and phone lines that can carry more information faster. This has made it quicker and easier for business all over the world to communicate.


2) Improvements in Transport include more airports, high-speed trains and larger ships. This has made it quicker and easier for people to communicate with each other face to face. It's also made it easier for companies to get supplies from all over the world, and to distribute their product all over the world


3) Call centres abroad and Localised industrial regions

Call centres and Localised Industrial Regions [CASE STUDIES]


1) Why is a call centre used and why are call centres mostly abroad nowadays?


2) Name an insurance company that moved 950 call centre jobs from the UK to India and Sri Lanka, as it costs less there, in 2004?


3) What has allowed some industries to develop around a specific region that is useful for them.

1) Call centres are used by some companies to handle telephone enquiries about their business. Improvements of ICT mean that it's just as easy for people to call a faraway country as it is to phone people in their own country so a lot of call centres are now based abroad because the labour is cheaper, which reduces running costs.


2) AVIVA


3) Improvements in ICT and transport

Trans-National Corporations (TNCs)


Basics


1) What are TNCs and why do they increase globalisation?


2) Why are TNC factories usually located in poorer countries?


3) Why are TNC offices and headquarters usually location in richer countries?

1) They are companies that produce products, sell products or are located in more than one country. They increase globalisation by linking together countries through the production and sale of goods.


2) Because labour is cheaper, which means they make more profit


3) Because there are more people with administrative skills (because education is better)

Trans-National Corporations (TNCs)


Advantages and Disadvantages


1) What are the advantages of a TNC?


2) What are the disadvantages of a TNC?

1) They create jobs. Employees in poorer countries get a more reliable income compared to jobs like farming. They spend money to improve the local infrastructure. New techno and skills brought to poorer countries.


2) Employees in poorer countries may be paid lower wages than employees in richer countries. Employees in poorer countries may have to work long hours in poor countries. Most TNCs come from richer countries so the profits don't go there. The jobs created in poorer countries aren't secure - the TNC could relocate the jobs to another country at any time.

TNCs [CASE STUDY]: Wal-Mart


1) Where can you find Wal-Mart stores?


2) What are the advantages of Walmart?


3) What are the disadvantages of Walmart?

1) All around the world: Mexico, USA, UK, Canada, Japan, etc.


2) Every store that's built creates jobs. Wal-Mart donates hundreds of millions of dollars to improve education, healthcare and the environment in the countries that it's based in.


3) Factory workers in the USA earn around $6 /hour, but the factory workers in China earn less than $1 /hour. Some companies that supply Walmart have long working hours e.g. Beximco in Bangladesh supplies clothing. Bangladesh has a maximum 60 hour working week, but some people claim employees at Beximco usually work 80 hours a week.

The Manufacturing Industry is growing in some countries (NICs/LEDCs)...


1) What are the 5 reasons why?








NIC = Newly industrialising country



1) Cheap labour: minimum wage is much lower than in richer countries. Long working hours: rules about working hours aren't as strict. Prohibition of strikes: some NICs don't allow employees to strike. Tax incentives and tax free zones: Some NICs offer TNCs a tax reduction if they move their manufacturing to the country. Laxer health safety regulations: There are fewer health and safety regulation in NICs and they're often not enforced.



The Manufacturing Industry is declining in some countries (MEDCs)...


1) What is deindustrialisation?


2) Why does deindustrialisation happen?


3) What happens when deindustrialisation happens?

1) When manufacturing decreases in a country.


2) Manufacturers move factories abroad because they can produce good more cheaply there. Manufacturers close down because they can't compete with the price of goods manufactured abroad.


3) A lot of manual workers (factory and dock workers) lose their jobs. Also, as factories close some buildings are abandoned. But, there's often an increase in service industries like banking and insurance. These industries pay people higher wages than manufacturing so deindustrialisation isn't all bad.

Change in Manufacturing Location [CASE STUDY}


China is one of the World's Fastest Growing Industrial Economies


1) What has China become in the course of 30 years?


2)What has lots of factories in China?



1) China has gone from being a mainly agricultural economy to a strong manufacturing economy. It's now the third largest economy in the world after the US and Japan


2)TNCs

Change in Manufacturing Location [CASE STUDY}China


3) What are the reasons for the Growth in Manufacturing in China?

3) Cheap Labour: wages are low by world standards. Long working hours: Asians are reliable and work hard for long hours. Laxer health and safety regulations: Health and safety laws aren't heavily enforced . Prohibition of strikes: Chinese workers can strike but that All-China Federation of Trade Unions is required by law to get people back to work as quickly as possible. Tax incentives and tax free zones: China has many Special Economic Zones (SEZs) that offer tax incentives to foreign businesses. Foreign manufacturers usually pay no tax for the first two years in the zone.

Globalisation and Energy Demand


1) Why is the global demand for energy increasing?

1) Globalisation has increased the wealth of some people in poorer countries so people are buying more things. A lot of these things use energy (cars, fridges, tvs). Technological advances have also created loads of new devices that al need energy e.g. computers, mobile phones, etc. These are becoming more popular so more energy is needed. The world population is increasing: it was just over 6 billion and it's projected to increase to just over 9 billion in 2050 - more people means more energy needed.