AQA Geography - Globalisation Notes

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Globalisation - the in creasing links between different countries throughout the world and the greater interdependence that results
from this
Interdependence - the relationship between two or more countries, usually in terms of trade
Globalisation happens because of international trade and investment
Improvements in ICT and Transport
Improvements in ICT include e-mail, the internet, mobile phones and transcontinental cables that can carry more information quicker.
This has made it easier and quicker for businesses the world over to communicate with each other. No time is lost so its very efficient.
Improvements in transport include airports, high speed train and larger ships. This has made it easier for people to communicate with
each other face to face. Its also made it easier for companies to get supplies from all over the world and to distribute their products
worldwide. They no longer have to have suppliers, headquarters, shipping and manufacturing close to each other.
Call Centres - placed in countries such as India as the cost to make a phone call there is no longer any more expensive than calling
within the UK and with labour costs of local workers being cheaper than in the UK by nearly 50% large TNC's can make huge savings
by moving jobs to India.
Localised Industrial Regions - an area of the world or country where one specific industry has become based. They are close to an
area that is useful to them and also close to each other and local manufacturing and shipping centres. An example of this is
Motorsport Valley, Oxfordshire
Motorsport Valley
Motorsport Valley is an area of Oxfordshire that is home to many car manufacturers and F1
teams. It has close links to nearby airports and main line railways. Over 12 different
manufacturers share the area, mainly because of its links to Silverstone racetrack and the
East coast shipping areas. It is also close to London where many of them have their
headquarters for the UK.
Many skilled workers and engineers live near to the area and the communication links can
allow them to communicate with the rest of the world using the internet and high speed
broadband and undersea cables.
Trans-National Corporations
Trans-National Corporations or TNC's are companies that produce and sell products or are located in ore than one country. The
increase Globalisation by linking together countries through the production and sale of goods. TNC factories are generally located in
LEDC's as the labour is cheap and often there are tax free initiatives available to TNC's from the local government, Such as Special
Economic Zones in China. Their offices, development and headquarters are generally in richer countries as better education means
there are more people with administrative skills and they will almost always speak English.
Advantages Disadvantages
TNC's create jobs in all the countries they are Employees in poorer countries my be paid less than
located in workers in richer countries
Employees in poorer countries get a more reliable Employees in poorer countries may have to work long
income compared to normal jobs like farming hours in poor conditions
TNC's spend money to improve the local Most TNC's come from richer countries so the profits
infrastructure by building new roads and airports go back there, this is called leakage
New technology (e.g. Computers and mobile The jobs created in poorer countries are secure as the
communications) and skills are brought to poorer large headquarters could close a factory very quickly
countries and with very little thought for the local workers.
Examples of TNC's include General Electrics, Vodafone, Ford, British Petroleum(BP) and General Motors.
Coca Cola
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Coca Cola
Coca-Cola is a carbonated soft drink sold in the stores, restaurants, and vending machines of more
than 200 countries.
- It is the number one manufacture of soft drinks in the world.
- Their headquarters are situated in Atlanta, Georgia, USA
- 70% of its sales are generated outside of the USA.
- Coca Cola is manufactured in 44 different countries.
- Coca cola offers training and education to those who have received little already.…read more

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Prohibition of Strikes - Chinese workers can strike but they must be forced back to work as quickly
as possible by the Chinese union (ACFTU), the only union Chinese workers can join by law.
Tax Incentives/Zones - China has SEZs (Special Economic Zones) where TNCs can pay less tax or even
no tax on imports, exports and manufacturing. Shenzhen is the most successful with over $30 billion
being invested by TNCs.…read more

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Buying Local foods helps to reduce the food miles and thus, reduces carbon dioxide emissions as it hasn't travelled a long distance.
It also helps to support local farmers and businesses.
However, if people only buy locally it can put people in LEDC's who export food out of business.
Reducing the impacts of Globalisation
Using Renewable Energy
Energy needs to be sustainable.…read more

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Key Terms
Newly Industrialised Countries- LEDC's in which manufacturing Globalisation - the system of interaction among the countries of the
industries have grown leading to economic development. world in order to develop the global economy.
Industrialisation- the development of industry on an extensive scale. Transnational Corporation- Companies that produce and sell
products in different countries.
Deindustrialisation- When the amount of manufacturing in a country Alternative Energy-electricity generated from renewable resources.
Energy- factor such as electricity needed for work to be done.…read more




George G Heal


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