Y9Ge U3D Globalisation Nov 25PP

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    Look at the
      pictures


What do you notice? What
   do they all share?


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3
4
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What do you think?


What do you notice? What
   do they all share?


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Globalisation is the way in which decisions
and actions in one part of the world affects
other countries that may be far away and at a
very different stage in development.
Because of globalisation, increasingly every
country is becoming increasingly dependent
on others




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          What is
    interdependence?
Interdependence is the reliance
of a country, especially in terms of
 trade and aid, on other countries
      in the global economy.



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    Watch the advert for Ben & Jerry’s ice cream.
       How are the people and places shown as
interdependent? How do they rely on one another in
      the production of Ben & Jerry’s ice cream?     9
The Tom and Jerry advert shows ..
 The good things that come about through
 globalisation and interdependence
 What are these good things?
 However, not everyone thinks this is the
 whole story.
 Look at the cartoon on the next page.
 What point of view is it trying to put
 across?


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What does this cartoon tell you
  about interdependence?

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• Globalisation is blamed for many of the ills of the
modern world, but it is also praised for bringing
prosperity to some poorer people.
• The accelerating pace of globalisation affects the
lives of rich and poor countries alike, transforming
places from boom to bust - or vice versa.
• Can you think of people who have lost their jobs in
the UK for instance because the jobs have moved
somewhere else? What goods and services are no
longer made locally but are now produced overseas?
• This is called outsourcing.




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• Trade: world trade in manufactured goods
increasing more than 100 times (from $95bn to $12
trillion) in the 50 years since 1955.
• Transnational corporation (TNCs) locate their
manufacturing plants overseas as the labour is
cheaper and also their markets are closer.
•More recently, some multinationals like Apple have
become "virtual firms" outsourcing most of their
production to other companies, mainly in Asia.
• Many service sector jobs are now under threat from
outsourcing, as global companies try to save money
by shifting many functions abroad.
•How many times have you answered the phone from
someone calling from India to try and sell you things?
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Lets look at


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The company sells over 400 brands in over 312 countries
                    or territories.




90 billion servings of Coke’s products are consumed
                       each day
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                  A transnational corporation
                  is one that operates in more
                  than one country across the
                              world.




http://www.flickr.com/photos/lynns/110140674/    16
                   Apart from operating in more than one country, TNCs also
                            have a number of other characteristics…


                          Well known brands


                      Headquarters mostly in
                         MEDC countries.


                                Huge Profits


                            Large employers




http://www.flickr.com/photo_zoom.gne?id=286819826&size=o                      17
                   Apart from operating in more than one country, TNCs also
                            have a number of other characteristics…


                          Well known brands


                      Headquarters mostly in
                                                           Atlanta, Georgia, USA
                         MEDC countries.


                                Huge Profits                $24 billion dollars


                                                              71,000 people
                            Large employers
                                                               worldwide




http://www.flickr.com/photo_zoom.gne?id=286819826&size=o                           18
   The term globalisation is contested, a
          general definition is…

    Basically the World is
         shrinking.
An increase in the flow of goods, services,
people, capital across national borders in
  order to create a more integrated and
     interdependent world economy.
         http://en.wikipedia.org/wiki/Globalization


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     Improved
 transport means
  that people and
   goods can be                                     10 mph for
moved around the                                     boats and
                                                      horses
    world more
quickly. Distance
 between places
 hasn’t changed,                                    65 mph for
                                                  trains;36 mph   300-400
    but the time                                     for boats    mph for
                                                      horses       planes
 needed to cover
 those distances
        has.                                                      700 mph
                                                                   for jets
http://www.flickr.com/photos/danoots/165294639/
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  Improvement in technology, such
   as the internet, has meant that
capital (money) can be transferred
instantly between locations. People
  can also use telephones and the
   internet to communicate more
         easily in ‘real time’.


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  Improvements in technology have also
lead to the development of a mass media,
television, radio and internet, far off places
now seem much closer… we can even see
              them in real time.


  These factors have lead to increased
interdependence between places… they
  also seem much closer than they did.
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                        Bottled in 200 countries
                           across the world.




http://www.flickr.com/photos/jamesonroper/400400410/   24
Manufacturing your product in
 the country you sell it has a
   number of advantages.
 Labour costs may be lower in
some countries, especially LEDC
          countries.
Low labour costs = higher profits.

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Manufacturing your product in
the country it is sold reduces
      transport costs.
Less transport = higher profits.


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    Legalisation on working
conditions, workers’ rights, health
 and safety, and the environment
   may be less strict in some
            countries.
   Relaxed legalisation = lower
    overheads= more profit.
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     Some countries may try to
encourage multinationals to invest
 in their country by offering lower
tax rates and financial incentives.
More favourable taxation = lower
   overheads= more profits.

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   It widens your market.
More consumers= more profit.


 The status of your brand is
            raised.
More status = more consumers
         = more profit         29
Producing your product in a
country and adapting to the
local market makes it seem
       more ‘local’.
More local = more consumers
        = more profit
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Does Coke show corporate
     responsibility?




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