What is the global economy? The outsourcing of jobs to LEDCs LEDCs selling goods to MEDCs The contribution of countries’ economies to the rest of the world.

Lesson objectives: To evaluate the growth of China To explain the role of Tesco as a TNC

Positives and negatives Different groups of people are affected differently: In the source countries In the host countries Governments TNCs

Environmental problems http://www.bbc.co.uk/news/world-asia-19995748 Environmental problem Causes Consequences Air pollution Water pollution Desertification

Use Geog.3 to add to your table

TNCs Add into your bag the characteristics of a successful TNC

How many TNCs can you identify?

What are Tesco’s products?

Tesco – A TNC case study Key questions: What is Tesco and what is it’s history? What products and services are provided by Tesco? Where is Tesco’s global influence? (Annotated map) Why has Tesco outsourced? What is the role of TESCO in Hong Kong, India and Sri Lanka? http://www.linkedin.com/company/tesco-international-sourcing What are the negative impacts of Tesco?

What do they do? Mainly retail – HR, finance. Clothing, footwear and accessories  • General Merchandise e.g. cookware • Electrical and connected devices  • IT, HR and Finance Where in the world do they operate? (add to your world map) Sales: Operate in 13 countries. China, Czech Republic, France (withdrew 2010), Hungary, India, Ireland, Japan, Malaysia, Poland, Slovakia, South Korea, Taiwan, Turkey and USA (withdrew from here in 2013). Stores in UK. Operations: Call centre in Bangalore, India. Sourcing hubs in Asia including Hong Kong and Sri Lanka. (products for retail sourced in HK, China, Sri Lanka). What are the impacts? (use Shameela and Sarah) Positives: 19,000 pounds for call centre employee in UK vs 2500 pounds per year for a call centre employee in India – positive for Tesco, because costs are lower. Value of outsourcing in India 24 bn pounds in 2007 – positive for the host country. More jobs and increased GDP. Wider availability of products available for the customer. Cost of products is lower. Negatives: Job losses in the UK due to outsourcing. Workers in India have to work longer hours for less pay. Most of the profits from the TNC go to the source country (UK) so don’t always benefit the host country. Environmental impacts from shipping goods from host to source country. Manufacturing products causes air pollution and emissions.

Discuss the impacts of one TNC on the host country Discuss – describe & give reasons for, explain the arguments for and against. Case study: ?

Cost benefit analysis Costs Value Benefit Total score