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increasing globalisation

  • globalisation- interdependance of countries world wide due to increasing links 
  • improvements in communications 1)ict- email and skype is quick and good for meetings 2) transport- areplanes and larger ships transport goods all over the world 3) lower wages in ledc means that businesses locate in other countries 4) free trade barriers over the years have fallen
  • these improvements result in call centres abroad because its cheaper but jusr as efficient as speaking to someone in real life
  • also local industrialised regions e.g. motorsport valley
  • outsourcing- method used by companies to reduce costs by moving portions of work to outside suppliers abroad
  • offshoring- when a company develops a part of its operation in a different country


  • transnational cooporation which produce and sell products in more than one country
  • they are huge
  • trade accross the world
  • have a headquarters in a rich country and locate in LEDCs
  • ADVS- provides jobs, multiplier effect, services bring investments into local area and new technology is introduced
  • DISADVS- employes are paid lower wages, empolyes work long hours in poor condiitons, economic leakage occurs and jobs arent secure

Newely industrialising countries

  • TNC are locating in NIC because of many reasons 
  • 1)cheap labour because they dont have minimum wage
  • 2) long working hours because laws arent strict and locals are desperate
  • 3) laxer health and safety laws means that less money is spent on insuring safety
  • 4) prohibitation of strikes means that money isnt lost when empoloyees dont work
  • 5) tax free zones allow


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