Globalisation

 

MEDC = More economically developed country.

LEDC = Less economically developed country.

TNC = Transnational corporation.

 

We now communicate and share each others cultures through travel and trade, transporting products around the world in hours or days. We are in a huge global economy where something that happens in one area can have knock on effects worldwide. Thus process is called globalisation.

 

The world is interconnected as a result of massively increased trade and cultural exchange. Globalisation has increased the production of goods and services. The biggest companies are no longer national firms but multinational corporations with subsidiaries in many countries.

 

Globalisation has resulted in increased international trade, a compnay operating in more than one country, greater dependence on the global economy, freer movement of capital, goods and services, recognition of companies such as Mcdonalds and Starbucks in LEDC's.

 

Globalisation is not helping to create wealth ind eveloping companies.

 

Reasons for Globalisation:

 

Improvements in transportation (larger cargo ships mean that the cost of transporting goods between counties has decreased), Freedom of trade (organisations like the World Trade Organisation (WTO) PR, Improvements of cummunications, Labour availability and skills.

 

Transnational Corporations