Chapter 9: The Changing Nature of the World
•Every person in the world is part of the global village
•Globalisation brings people together from all over the world through the free flow of goods, services, money and information.
•The physical size of the world has not changed, but due to globalisation the world has “become a smaller place”.
•Globalisation is the breakdown of barriers that has allowed for changes in the way we trade and communicate.
•People can communicate easier with people due to globalisation. E.g. email…
•Transnational Corporations (TNC’s) are large companies that have their main office in one country and other smaller ones in another country/ies. These smaller offices are called subsidiaries. TNC’s provide goods in many countries and allow farmers to sell their produce to almost anywhere in the world.
•TNC’s ask themselves these questions before setting up: 1.Where is the cheapest labour?
2.Where are the resources to produce the product?
3.Where are there tax deals?
4.Where is the government the friendliest?
5.Where is land and electricity cheap?
6.Where can we sell our product?
•Some people are anti-globalisation. They are concerned that the growth in influence and the power of TNC’s has produced a wider gap between the rich and the poor, leading to many cultures losing their individuality, becoming more westernised and americanised.
•TNC’s locate their subsidiaries in developing countries. This is so as they have easy access to natural resources, lower labour costs and cheap land. Also jobs can be created by TNC’s here.
•Here are some advantages and disadvantages of TNC’s.
2.Development can expand if TNC’s share expertise and technology 3.Provides money for country in need.
1.Damage to environments
2.Use of Sweatshops
3.Improper waste disposal
4.The fact that poor countries will let TNC’s do whatever they want...