5. A huge company that has branches all over the World!A huge company that has branches all over the World!
Research and development
= MEDC’s
•Tertiary industries:
Decision making /
development of ideas and
technology / sales /
marketing etc.
Finland (HQ)
UK
USA
Production
= LEDC’s
•Primary industries:
Drilling for oil – Middle
East
Collecting the raw
material coltan – Congo
•Secondary industries:
Making SIM cards –
Singapore, Taiwan
Battery manufacturing –
China
6. A huge company that has branches all over the World!A huge company that has branches all over the World!
Research and development
= MEDC’s
Skilled labour
Access to sales (markets)
Company image
Production
= LEDC’s
Cheap labour
Cheap land
Close to materials
7. Provides jobs
Increases earnings
Families have more disposable
income
Families can afford education
More money can be spent in local
businesses
Shops and services can expand
Local economy grows
Image of the place improves
Working conditions can be poor;
- long hours
- low pay
- unsafe
- child labour
- no rights
- no holidays
- no breaks
Working conditions can be poor;
- long hours
- low pay
- unsafe
- child labour
- no rights
- no holidays
- no breaks
Positive multiplier effectPositive multiplier effect
8. It ensures the free movement of people,
goods, services, and capital between member
countries.
Jobs – foreign workers do dirty,
difficult, dangerous jobs that
nationals wouldn’t.
Fill jobs that are needed e.g. in
healthcare and seasonal work
Enhances competitiveness
and creates new jobs.
Some countries may lose skilled workers
that are needed in their country
(brain drain)
May be too competitive for some jobs,
locals feel negative about ‘foreign
workers’.
Some countries may lose skilled workers
that are needed in their country
(brain drain)
May be too competitive for some jobs,
locals feel negative about ‘foreign
workers’.
Remember: people may
chose o move because
of push & pull factors!
Example of a Trade BlocExample of a Trade Bloc
9. Foreign investment
Big companies chose to
locate in India bringing
jobs and money
(positive multiplier
occurs)
Improved communication
There is an increased demand for
consumer items.
Business profits increase,
businesses expand, more money
for the economy
Flows of ideas and
cultures
e.g. Bollywood
Industries spread
worldwide – profits
come back to India
Flows of people
e.g. Migrants in UK
People work and
live abroad –
money and skills
reinvested in India.
India is dependent on other countries to invest money in their country.
Other countries depend on India e.g. for providing a labour force.
India is dependent on other countries to invest money in their country.
Other countries depend on India e.g. for providing a labour force.
10. Benefits Problems
Economic Increase of money in the economy
at local and national level.
This money can hep towards
improvements in services and
infrastructure (e.g. Schools, health
care, roads)
Loss of industry in some areas =
loss of income for local families.
This results in a reduction in the
local economy.
Environmental Cars produced are low polluting –
if these can replace other cars
then pollution may decrease along
with associated health problems
Loss of agricultural land – less
natural, more polluting.
Increased car ownership – increase
in which may lead to congestion
and pollution health problems.
Social Jobs provided by the company.
People have more opportunities
through car ownership – jobs,
leisure, education.
Loss of livelihoods in some
locations leading to hunger and
malnutrition.
What are the advantages and disadvantages of
increased interdependence in India?
e.g. Tata – the big company that makes the Nano
Only £1,400
Very fuel
efficient
Safe
Tata - MNC
Earned $62.5 billion
07/08
Employ 350,000
worldwide.
61% of workers
outside India.
2008 announced it
was to make the
worlds cheapest car.
Tata - MNC
Earned $62.5 billion
07/08
Employ 350,000
worldwide.
61% of workers
outside India.
2008 announced it
was to make the
worlds cheapest car.
11. Foreign Investment in IndiaForeign Investment in India
Foreign investment is another
outcome of globalisation.
There may be costscosts and benefitsbenefits
for the places where investment
occurs.
E.G – COCA-COLA in INDIA
Benefits:
• Jobs,
•Money for economy,
•Improved Services,
•Community Projects
Costs:
•Take water from drought prone areas
•Dump toxic waste (rivers & land)
•Loss of livelihoods, lack of education
•Water shortages
12.
13. Before you have finished eating
your breakfast this morning, you’ve
already depended on more than
half the world.
Before you have finished eating
your breakfast this morning, you’ve
already depended on more than
half the world.
What do you think he meant by this?
List all of the things you used before
leaving for school this morning.
Where do you think these things came form?
14. The UK gets
goods, products &
services from other
countries...
...but it also sells
goods, products and
services to other
countries
These are called:
IMPORTS
These are called:
EXPORTS
15. True / False
1.Both of these places import and export goods.
2.The UK imports more agricultural products than Ghana.
3.The UK exports more agricultural products than Ghana.
4.The biggest import to the UK are fuels and mining products.
5.Other products account for the highest proportion of exports from Ghana.
6.About 65% of the UK’s imports are manufactured goods.
7.The proportion of imports of manufactured goods are similar in the UK and Ghana.
8.Ghana imports more fuel than the UK.
9.The UK exports more mining products than Ghana.
16. Use the graph to compare
trade in the two countries.
These may help...
• Ghana imports more/less .... than the UK.
• Imports of .............. account for .......% in the UK whereas in Ghana.....
• Manufactured goods account for a significantly higher amount of exports
in ............... In comparison to .....................
Key Points...
Look for patterns – anything similar or significantly different
Give figures
Use words like – similarly, whereas, on the other hand
17. What is free trade?
What are the advantages of it?
What are the disadvantages?
How can these problems be managed?
What are the problems of current trade patterns?
What is free trade?
What are the advantages of it?
What are the disadvantages?
How can these problems be managed?
What are the problems of current trade patterns?