Globalisation and the rise of the TNCs by hcj


									Globalisation and the rise of the TNCs

Already in our study of the 2 case studies so far – with the change in heavy manufacturing
industry in Wales and with the growth of light manufacturing along the M4 corridor, we have
noticed the changes as industry has modernised and become more technological. However,
the impact of globalisation brought a new set of problems and issues. 50 years ago we lived
and bought goods only in a local and perhaps even a national market. Today we have a
unique window onto the world where our market can be anywhere and our customer can be
This has had implications for the industries and the jobs of the people who used to work in the
Uk . . . . .

General information about Globalisation
   1.      Page 1 and 2 are taken from a GCSE Geography text book in relation to this.
           There is a very useful introduction to Globalisation and a good explanation of what
           a Trans National Corporation is on these pages. Use this information to take some
   2.      Pages 4 and 5 also contain some good information about the role that
           globalisation plays in the world today

General information about Trans National Companies
   3.      Page 1 (Figure 2) contains some very good information and detail in relation to the
           advantages and disadvantages of TNCs. Take some notes on this.
   4.      In many ways some of the information on page 3 is slightly easier to understand.
           Compare this table with the one that you have just drawn out – can you add
           anything further to this?
Case Study: The relocation of a TNC to the LEDC world - Nike

Today in Northern Ireland there has been a terrible decline in manufacturing and in particular in
the textile industry (that NI/Ulster used to be famous for!). Over the lst few years large textile
factories such as those owned by Desmonds and Courtalds have closed their regional factories
as clothes that were previously made in NI can be made cheaper in LEDCs.

For example, a few years ago Desmonds lost a big contract which it had held with Marks and
Spencer for many years. M&S in an effort to increase the amount of profit and to cut
manufacturing costs that it had on each garment decided that the same product could be made
more cheaply in LEDCs and then shipped to the UK market.


    1.      Read Page 6 which provides a basic introduction into how Nike – a Trans National
            Compaany ha developed a network of factories around the world to produc its
            sports goods at a cheap price in order to make the maximum profit.
    2.      Pages 7 – 12 contain some further information about different aspects of the Nike
            story – looking at some of the facts of the case and some of the media coverage
            and advertising that Nike has been engaged in. Use all of this information to try
            and put together a comprehensive list of the facts of this case study onto the big
            A3 yellow case study sheet.
    3.      The main things that you will need to look into as you complete this sheet are:
            a. What are the min reasons why Nike located their manufacturing in LEDCs
                rather than in MEDCs ?
            b. When we look at the impact of the Nike factories on the people – what are the
                main advantages and disadvantages to LEDCs? (use your notes from before
                to help you with this)
            c. Finally, take a look at the environment where these people live and work –
                what are the advantages and disadvantages here as well?

To top