What do you notice? What do they all share? Look at the pictures What do you notice? What do they all share?

What do you notice? What do they all share? What do you think? What do you notice? What do they all share?

Globalisation is the way in which decisions and actions in one part of the world affects other countries that may be far away and at a very different stage in development. Because of globalisation, increasingly every country is becoming increasingly dependent on others

What is interdependence? Interdependence is the reliance of a country, especially in terms of trade and aid, on other countries in the global economy.

Watch the advert for Ben & Jerry’s ice cream. How are the people and places shown as interdependent? How do they rely on one another in the production of Ben & Jerry’s ice cream?

The Tom and Jerry advert shows .. The good things that come about through globalisation and interdependence What are these good things? However, not everyone thinks this is the whole story. Look at the cartoon on the next page. What point of view is it trying to put across?

What does this cartoon tell you about interdependence?

Globalisation is blamed for many of the ills of the modern world, but it is also praised for bringing prosperity to some poorer people. The accelerating pace of globalisation affects the lives of rich and poor countries alike, transforming places from boom to bust - or vice versa. Can you think of people who have lost their jobs in the UK for instance because the jobs have moved somewhere else? What goods and services are no longer made locally but are now produced overseas? This is called outsourcing.

Trade: world trade in manufactured goods increasing more than 100 times (from $95bn to $12 trillion) in the 50 years since 1955. Transnational corporation (TNCs) locate their manufacturing plants overseas as the labour is cheaper and also their markets are closer. More recently, some multinationals like Apple have become "virtual firms" outsourcing most of their production to other companies, mainly in Asia. Many service sector jobs are now under threat from outsourcing, as global companies try to save money by shifting many functions abroad. How many times have you answered the phone from someone calling from India to try and sell you things?

Lets look at

90 billion servings of Coke’s products are consumed each day Where can I get a Coke? The company sells over 400 brands in over 312 countries or territories. Coca Cola- A consuming passion... 90 billion servings of Coke’s products are consumed each day

A multinational company A transnational corporation is one that operates in more than one country across the world. Coca Cola- A consuming passion... http://www.flickr.com/photos/lynns/110140674/

Headquarters mostly in MEDC countries. Some characteristics... Apart from operating in more than one country, TNCs also have a number of other characteristics… Well known brands Headquarters mostly in MEDC countries. Coca Cola- A consuming passion... Huge Profits Large employers http://www.flickr.com/photo_zoom.gne?id=286819826&size=o

Headquarters mostly in MEDC countries. Some characteristics... Apart from operating in more than one country, TNCs also have a number of other characteristics… Well known brands Headquarters mostly in MEDC countries. Coca Cola- A consuming passion... Atlanta, Georgia, USA Huge Profits $24 billion dollars 71,000 people worldwide Large employers http://www.flickr.com/photo_zoom.gne?id=286819826&size=o

Basically the World is shrinking. What is s ? The term globalisation is contested, a general definition is… Basically the World is shrinking. Coca Cola- A consuming passion... An increase in the flow of goods, services, people, capital across national borders in order to create a more integrated and interdependent world economy. http://en.wikipedia.org/wiki/Globalization

Coca Cola- A consuming passion... Improved transport means that people and goods can be moved around the world more quickly. Distance between places hasn’t changed, but the time needed to cover those distances has. Advances in transport 10 mph for boats and horses Coca Cola- A consuming passion... 65 mph for trains;36 mph for boats horses 300-400 mph for planes 700 mph for jets http://www.flickr.com/photos/danoots/165294639/

Communication and technology Improvement in technology, such as the internet, has meant that capital (money) can be transferred instantly between locations. People can also use telephones and the internet to communicate more easily in ‘real time’. Coca Cola- A consuming passion...

Development of mass media Improvements in technology have also lead to the development of a mass media, television, radio and internet, far off places now seem much closer… we can even see them in real time. Coca Cola- A consuming passion... Shrinking world... These factors have lead to increased interdependence between places… they also seem much closer than they did.

Coca Cola- A consuming passion... Why a global location? Coca Cola- A consuming passion...

Bottled in 200 countries across the world. Coca Cola- A consuming passion... why? http://www.flickr.com/photos/jamesonroper/400400410/

Low labour costs = higher profits. Why a global location? Manufacturing your product in the country you sell it has a number of advantages. Coca Cola- A consuming passion... Labour costs may be lower in some countries, especially LEDC countries. Low labour costs = higher profits.

Less transport = higher profits. Why a global location? Tranport Costs Manufacturing your product in the country it is sold reduces transport costs. Less transport = higher profits. Coca Cola- A consuming passion...

Relaxed legalisation = lower overheads= more profit. Why a global location? Legalisation Legalisation on working conditions, workers’ rights, health and safety, and the environment may be less strict in some countries. Relaxed legalisation = lower overheads= more profit. Coca Cola- A consuming passion...

More favourable taxation = lower overheads= more profits. Why a global location? Business conditions Some countries may try to encourage multinationals to invest in their country by offering lower tax rates and financial incentives. More favourable taxation = lower overheads= more profits. Coca Cola- A consuming passion...

More consumers= more profit. Why a global location? Market It widens your market. More consumers= more profit. Coca Cola- A consuming passion... Brand Status The status of your brand is raised. More status = more consumers = more profit

More local = more consumers = more profit Why a global location? Local feel Producing your product in a country and adapting to the local market makes it seem more ‘local’. More local = more consumers = more profit Coca Cola- A consuming passion...

Does Coke show corporate responsibility? But how ethical is Coke? Does Coke show corporate responsibility? Coca Cola- A consuming passion...