Globalisation What is Globalisation Learning objectives Know what

Globalisation

What is Globalisation? Learning objectives • Know what globalisation is. • Understand the impact of globalisation. • Know the main aspects of globalisation.

What is Globalisation? • The process by which people, their cultures, money, goods and information can be transferred between countries with few or no barriers. • Because of these breakdowns in barriers, many different places become interdependent on each other.

Aspects of Globalisation?

Is this globalisation? Culture - Disney Technology - Dell Laptops Economic - Mc. Donalds

What has made this happen? • The world is effectively shrinking. • Information, goods and services can now be transferred much more quickly. • The cost of communication has fallen.

What do you think this image represents?

Task One • Pick 5 things you own to write about. • Explain how ‘globalised’ you are. • Be ready to share one of your things with the class. 10 minutes

Is globalisation a good or bad thing? • Globalisation should be a good thing – but as the rules are made by the rich and powerful, the results favour them.

What is a Trans-National Company (TNC)? • A trans-national company (TNC) is a huge company that does business in several countries. • Many TNCs are much richer than entire countries in the less developed world. • TNC’s can provide work and enrich a country's economy - or some say they can exploit the workers with low pay and destroy the environment.

Examples of TNC’s

(TNC Case Study) • Nestlé is a TNC, because like other companies they have headquarters in one place, and manufacturers in other places all over the world. • This means they can use cheaper workers and sell for high prices.

(TNC Case Study) • Nestlé is: – Switzerland's biggest industrial company, – The biggest food company in the world – Has 23, 000 employees – 456 factories worldwide • In 2008, it made a profit of $15 billion

(TNC Case Study) • For Nestlé, globalisation is great – – It can get raw materials where markets make them cheapest – It can locate factories where wage costs are lowest – Because of this, Nestlé can make sure that it can compete for prices in every market in every country.

Task Two • Using the factsheet, answer the questions below. 1. What is Nestlé’s core country? 2. Who owns Nestlé? 3. Why did Nestlé grow? 4. When was favourable for Nestlé? And why? 5. What products does Nestlé have? (name 5) 6. What do the owners of Nestlé want it to do? 7. How much profit did Nestlé make in 2008?

Homework • Pick a TNC (Nokia, Mc. Donalds, Nike, HSBC etc). • Research the TNC and complete the factfile.