Flashcards
Globalisation 3
Cards in this deck (41)
- 1OffshoringTNCs move parts of their own production process (factories or offices) to other countries to reduce labour or other costs
- 2OutsourcingTNCs contract another company to produce the goos and services they need rather than do it themselves. This can result in the growth of complex supply chains.
- 3Global production networksA chain of connected suppliers of parts and minerals that contribute to the manufacturing or assembly of the consumer goods. The network serves the need of a TNC, such as Apple or Tesco.
- 4Least Developed Countries (LDCs)The world's very poorest low-income nations, whose populations have little experience of globalisation. A number of these nations are describes as 'failed states' by politicians, for example, Somalia and South Sudan.
- 5What are global hubs?Global hubs are 'cores' that demonstrate a number of intense connections to the rest of the world, because others wish to connect to them. Many hubs host major TNCs and have increasingly diverse populations. Demographic/finance/trade/idea flows move there
- 6What do Transport and communication technologies help with? What does air travel and containerisation enable?Help networks to operate efficiently.
Enable the cheap and efficient movement of people and goods between these hubs. - 7Transport and communication networks are focused on the core areas, what does this increase?Increases the incentives for people and businessess to invest with core regions.
- 8Telecommunications allow what between producers and consumers?Long distance links
The internet in particular has increased the capacity of the telecommunications network to handle data, with GIS and GPS enabling accurate monitoring of flows between nodes. Creative and productive merging between well connected places had increased, best connected places are also best places to specialise and produce goods. - 9What is Cumulative Causation?The economic principle that multiple changes are set in motion by a single event. The causation might be 'forward' if the effects are positive, as in the case of the location of a new business generating more jobs, more investment oppurtunies and greater tax base communities.
- 10Measuring Globalisation KOF Globalisation Index 2002 Key InformationMeasures the extent countries are socially,politically,economically linked.
One of few measurements consider political (though some data not available)
More globalised the country, is the more links its has in terms of tourism, communication, trade and FDI. - 11Measuring Globalisation KOF Globalisation Index 2002 ExamplesIreland = most globalised country in 2015
Solomon Island = least globalised
Economic = Singapore
Social = Austria
Political = Italy - 12Measuring Globalisation Kearney 'Global/World Cities' Index Key InformationThis index measures of business activity, human capital, information exchange, cultural experience and political engagement to rank cities in terms of quantity/quality of global connection.
- 13Measuring Globalisation Kearney 'Global/World Cities' Index Examples2014 = New York on top
Emerging Economies = Jakota and Manila
Faster rate of global connections - 14Making connections, TNCs bolt together different economies and societies through their supply chains and marketing strategies. However, some parts of the world have benefited far more than others from FDI from TNCs because...Not all places are suitable sites of production for goods, for a range of physical + human reasons... accesibility natural resources, levels of education.
Not all places have enough market potential to attract retailers (LIC/culture). - 15TNCs do not/cannot always adopt the strategies of offshoring,foreign mergers,foreign acquisitions or transfer pricing in different national context. For example, internet companies have failed notably to gain access to China's market. CONTINUEOther strategies come to play as TNCs attempt to build global business. Not investing directing in offshoring of branch plants or acquiring firms, TNCs can instead forge business partnerships with other companies in countries. Most worlds biggest brand do not make their own products (use outsourcing)
- 16Large corporations ranging from (what) to (what) have established tens of thousands of outsourcing partnerships while building their global businesses. Then resulting series of arrangements is called (what).Dell
Tesco
Global Production Network (GPN) - 17A TNC manages its GPN in the same way the captain of a team manages its players. As globalisation has accelerated, so too has the size and density of (6 things). Food giant Kraft and electronics firm IBM both have (how many) supplier providing the ingredients/supplies they need.Global Production Networks, Spannin Food, Manufacturing, Retailing, Technology and Financial services.
30,000 - 18An amazing (blank) different suppliers parts to assemble (brand of car), from the engine right down to the wind-screen wipers. Some parts are (what) from supplies with the EU to avoid import tariffs. In contrast the engine comes from an offshore factory in (Where) owned by BMW2500
BMW Mini
Outsourced
Brazil - 19CASE STUDY Jaguar Land Rover OFFSHORING METHODS2011: Established assembly plant in India for several of its models
2014: JLR build a new manufacturing factory in Rio, created 400 jobs in the country.
2015: Announced plans to build a new manufacturing plant in Slovakia. - 20CASE STUDY Jaguar Land Rover OUTSOURCING METHODS2012: Established a joint partnership in China with Chinies company Chery Automobile company to produce vehicles and engines for several models. As assembly plant was build in Changsha North of Shanghai and production of the first model began in 2014.
- 21How has Developing countries benefited from GPN growth?Because outsourcing arrangements are economically benefitical. For example the local owners of calories in China's SEZ's have profited from the work that foreign TNCs have outsourced them.
- 223 examples of how outsourcing has caused problems for TNCs Why TNCs are now 're-shoring' their manufacturing closer to home.1)Natural Hazards such as 2011 Japanese Tsunami (disrupt global supply chains)
2)UK supermarkets stunned finding horsemen entering supply chains (2013)
3)Collapse of Rana Plazo Textile Factory in Bangladesh (2013) killing 1100 people making clothes for Benetoon and Walmart. - 23The strengthening of Latin American, Asian and Middle Eastern economies has promoted an explosion of what?Explosion of TNC interest in these emerging markets, where over 2 billion people have moved from dollar-a-day poverty into higher income brackets since 1990.
- 24What is glocalisation?Targeting products to local products and tastes.
- 25Ways Globalisation variesPeoples tastes: Cadbury makes chinese chocolate sweeter (prefered)
Religion/Culture: Dominoes offer vegetarian food in Indias Hindu regions, MTV avoid sexual music video on Middle Eastern Channel.
Local Interests: Reality TV big brother, gain larger audience with local people. - 26Glocalised Company Examples Walt Disney Company2009: Disney realeased first Russian film 'Book of Masters' based on fairytale, produced with local talent. Disney acquired Mariel in 2009 = rights to superheroes e.g. 'spider man india'. Story made for Indian Children, Mumbai tenneager Pavitri Prabhakar given powers. Story different from UK/USA.
- 27Glocalised Company Examples McDonald's2012: McDonalds established 35,000 restaurants in 119 countries. India has religion difficulties. Chicken burgers are served alongside McVeggies and McSpicy Paneer (indian patty). 2012, McDonalds opened vegetarian restaurant for sikh pilgrims visiting Amritsar (golden temple).
- 28NOT Glocalised Company Examples LegoLego is not glocalised. Since 1949, danish plastic brick maker, producing gradually more complex designs in four locations, Denmark,Hungary,Czech Republic and Mexico. However Lego exports identical products including China. Like Samsung and Apple... genuine appeal.
- 29Impacts of TNCs on Host Countries POSITIVE Higher Environmental StandardsTNCs have international brands to maintain and can set high environmental standards as a result. They bring good practise into countries that sometimes do not have good records of environmental protections. e.g. Unilever launched its 'sustainable living plan' in 2010.
- 30Impacts of TNCs on Host Countries POSITIVE Political StabilityIn eastern Europe and China, investment from TNCs has contributed to economic growth. In providing work for the 'floating population', TNCs have helped reduce conflict between rural and urban populations.
- 31Impacts of TNCs on Host Countries POSITIVE Raising Living StandardsFDI increased the productivity of labour force in developing countries. This leads to higher wages and rising living standards.
- 32Impacts of TNCs on Host Countries NEGATIVE Tax AvoidanceTNCs pay tax in the lowest tax regimes they can. For example, in 2012 Amazon paid only £2.4 million corporation tax on £4.2 billion of sales in the UK
- 33Impacts of TNCs on Host Countries NEGATIVE Environmental DegradationTNCs can export the negative externalities of their activities to the less developed countries where they operate. For example, they move manufacturing production out of the EU to avoid carbon taxes.
- 34Impacts of TNCs on Host Countries NEGATIVE UnemploymentOutsourcing and Offshoring can lead to unemployment in developed countries and high social security spending.
- 35Switched Off Places North Korea Divided from South Korea 1948. King Jong-un Reasons for Political Isolation...Ordinary citizens do not have access to the internet or social media
There are no undersea data cables connecting North Korea to elsewhere
Journalist observed that it was the only country that nobody knew the song 'yesterday' by the Beatles. - 36Switched Off Places The Sahel Regions Chad, Mali, Burkino Faso LDCs Some reasons for development challenges...Mismanagement of natural and human resources dating to colonial times.
LDCs lacking coastline (Chad), struggle to attract FDI- lack of accesibility.
Many LDCs have bad conditions (desertification), adverse affect on growing crops. - 37Changes that may occur to The Sahel Region.Rapid economic growth in countries like Nigeria.
Mali's folk musicians have a large global following on You-tube
Conflicts in the region involve groups linked with al-Qaeda's global terror network. - 38Reasons for Global Isolation ENVIRONMENTALDistance from market discouraging FDI
Wilderness (desert/tundra)
Lack (poor quality) of energy and mineral deposits
Low agricultural potential (short thermal growing season) - 39Reasons for Global Isolation ECONOMICHigh Level of Government Debt
- 40Reasons for Global Isolation POLITICALCorruption and presence of organised crime/terrorist groups
Weak commitment of government to development
Poor transport and telecommunications infrastructure
Civil or tribal conflict (Active or legacy), possibly a relic of colonialism. - 41—
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- A-Level Geography Flashcards on Globalisation 3, created by Ethan Molloy on 21/01/2017.
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- Ethan Molloy
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