Going global (Lessons 6-10)

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Lesson 6.
Transnational Cooperations.
Transnational cooperations; a company that has operations in more than one country e.g. Nike.
They maximises profits.
Exploit LEDC's.
Boost economies.
Can move to any country if they register.
Build business through merges e.g. Guinness with Diageo.
Assembly industries relying on a chain of suppliers e.g. 2500 suppliers for Mini (BMW).
Branch plants in most countries.
Parent company must register its profits.
Positive Impacts.
Improves infrastructure, connections & communications.
Increase jobs.
Political stabilisation.
Invest into economy.
Multiplier effect.
Transfer of technology & ideas.
Attracts other companies.
Negative Impacts.
Job losses in other countries.
Profit to big company.
Westernises the world.
Tax avoidance.
No long-term commitment (unstable jobs).
Exploitation of cheap labour.
Environmental impacts.
Monopolises markets.
2-speed world, increasing the rich & poor gap.
TNC Case Study;
Tesco's ­ Retail business.
Third biggest retailer.
Began in 1919.
Employs 240,000 people.
For every £8 spent in the UK, £1 is spent in Tesco's.
It makes 70,000 deliveries.
Has a £30 billion turnover.
Has 703 stores in the UK.

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Also has stores in Poland, Hungary, central Europe & Asia.
Has head offices in Hong Kong.
Exploring its horizons with intentions to develop in Malaysia.
They don't label their clothes with the country there made in.
Clothing range; brings insecurity for workers with worse conditions & low wages. In 2000 the
wage in China was 46p.
Has market shares of 16.2%.
Lesson 7.
Political Protests in Egypt.
Example of national/localised event affecting the globalised economy.…read more

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Escape destitution.
Makes a country wealthy.
50 years; has helped 3 billion people out of poverty.
Free market economy.
Helps politically.
Close communications.
E.g. Taiwan.
Was poorer than Africa.
Is now as rich as Spain.
Cit absolute poverty.
Wages 10 times higher than 40 years ago.
In 1950, land reform allowed people to own the land e.g. industrial growth through
Rise of manufacturing.
Encouraged small businesses & enterprise.
Transition of sweatshops maybe good in the long run.…read more

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Externalities; The range of benefits & costs generated by economic activity that are not fully
accounted for in the price-&-market system of economics, & need to be accounted for separately.
Pollution is a prime example of a negative externality, while rising literacy is a positive externality.
Deindustrialisation; The decline of regionally important manufacturing industries. It can be charted
in terms of workforce numbers or output & production measures.…read more

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Trade across national boundaries without interference from respective governments".
The case of cotton; Case study Mali.
40% of rural households (2.5 million people) are dependent on cotton trade.
In 40 years, cotton value has halved due to inflation.
Subsidies to Europe & American farmers mean an unfair price.
Eliminating these would boost process by 12.9%.
Annual loss of $250 million a year to farmers in Mali, Benin, Burkina Faso & Chad.
Suppose to give a competitive Advantage to the cheaper producer; but not with cotton.…read more

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Grow own food.
Considering transport habits.
Limit influx of chain stores ­ helping to promote local business.
Funding for renewable energy.
Local services.
Promote green areas.
Policies & Laws to cut down carbon dioxide emissions.
Grants & subsidies.
UN climate change convention e.g. cop 16.
Fair Trade & Trade Reform.
World trade organisation promotes free trade by encouraging removal of trade barriers.
Free trade relates to smaller shares in profits.
Fair trade relates to bigger proportion to producers.
Ethical/local Shopping.…read more

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Lesson 10.
How or why do populations change?
Birth rate; births per 1,000 people.
Related to birth control.
Death rate; deaths per 1,000 people.
Employment & female emancipation.
Wealth, health & life expectancy.
Development of settlements.
Population Inputs & Outputs.
Immigration ­ Industrialisation, famine & employment.
Birth rates ­ children support their parents, one child policy, no family planning, female emancipation
& fertility.
Total population.
Emigration ­ Good health care, wealth & jobs.…read more

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Birth rate; The number of births per 1,000 people per year in a region (a measure of fertility,
although actual fertility rates are highly independent upon population structure, with youthful
populations having higher fertility than greying populations).
Death rate; The number of deaths per 1,000 people per year in a region (a measure of mortality).
Economic migrant; A migrant whose primary motivation is to seek employment.…read more


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