1. Economic and Cultural Impacts of Globalisation

2. Economic Impacts Business is no longer confined to national boundaries. Businesses can produce and sell goods overseas. This has lead to the formation of Transnational Corporations (TNC) and international organisations.

3. TNCs There are different types of TNCs – Retail chains: e.g. – Oil Producers: e.g. – Car Manufacturers: e.g. – Sportswear/Fashion Makers: e.g. – Takeaway Food Outlets: e.g.

4. TNCs in Developing Countries Pros for TNC Pros for Developing Countries Cons Access to Natural Resources Lower Labour Costs Cheaper Land Increased Employment Opportunities Increased Standard of Living Improved Expertise and Access to Technology Sweatshop Use Damage to the Environment via Logging & Mining Improper Waste Disposal

5. Sweatshops Sweatshops are characterised by long work hours, extreme conditions (e.g. heat) and low wages. Sweatshop workers are usually employed by companies that TNCs purchase goods off not the TNCs themselves. NGOs/activists use the internet to protest against the use of sweatshops. Nike Sweatshops in China

6. Sweatshops The UN has identified 5 key responsibilities for TNCs: 1.Do not use compulsory labour 2.Respect the rights of children to be protected from economic exploitation 3.Provide a safe work environment 4.Pay workers enough to ensure adequate standard of living 5.Recognise the rights of employees to join unions

7. International Organisations A number of organisations oversee the flow of goods and services internationally: – World Trade Organisation (WTO): enforce trade agreements. Has 150 country members. Accounts for 97% of world trade. – International Monetary Fund (IMF): monitors the value of different countries money e.g. exchange rates and balance of payments.

8. Big Mac Index

9. Cultural Impacts The world is becoming interconnected but also more standardised (or westernised). Cultures (languages, beliefs, customs and traditions) are being changed or lost due to: – Trade – Migration – Tourism – ICT – Media

10. What Makes You Say That Students: a)Record what you see (exactly, don’t make assumptions) b)Record what the things you see mean in your opinion c)What makes you say that? (Justify your responses)

11. McDonaldisation Refers to the standardisation of a product. It means that no matter where you are in the world you can expect a standard from a product.

12. Language There are 7000 languages spoken world wide but every year 25 languages die. English has replaced many languages and this is likely to increase rapidly as English is prominently used on the internet. By 2050 approximately half the world will be able to speak English.

13. Media The same newspapers, magazines, books, shows, music, movies and video games can be accessed world wide. Most are developed in the USA or Great Britain. There are some prominent TNCs that control the media such as Time Warner, Walt Disney and News Corp.

14. Media The internet has allowed us to participate instead of just being a spectator e.g. This is known as social media. Some countries have banned social networking in order to control their people i.e. Iran and China

15. Media There are some signs of reverting back to local and national media. 20% more listeners are accessing community radio since 2004. The most common reasons: – To hear specialist radio programs – Get local news and information – Listen to Australian music – Support local artists