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 anyone. 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 notes. 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. Action: 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?
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