1. Advantages & Disadvantages of TNCS
Measuring Development
Globalisation Globalisation is the process by which the world is becoming increasingly 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
Key terms and definitions
Imports
.This is where a country brings in goods from another country to sell ( eg – toys from China is common )
Exports
Exports are where countries send good abroad to be sold ( eg – The West Indies sell bananas to the Uk )
Containerisation
Containerisation is a system of standardized transport, that uses a common size of steel container to transport goods around the world
Trading Bloc
Trading blocs are usually groups of countries in specific regions that manage and promote trade activities
Factors Causing Uneven Development
Physical Environment
Health
Soil erosion, desertification, climate change, overgrazing and infertile soils affect farming.
Areas without fertile land, natural resources, water and energy suffer.
Natural hazards make little progress with development e.g. Haiti.
Diseases can make people too weak to work or go to school.
80% of all developing world disease is water-related. 2 million die a year.
LIC’s are unable to invest in good quality health care
Trade
History
Trade blocs favour its members.
Primary products sold by LIC’s are sold for cheap prices that can fluctuate. HICs make more expensive products so earn more..
Poor infrastructure or conflict means some people cannot sell their goods at all.
Colonialism: Many countries in Asia, S. America and Africa have spent a lot of time and money on civil wars and political struggles for power since being made separate from European superpowers.
Many LICs haven’t had time to develop fully.
better prices, decent working conditions and a fairer deal for farmers in developing countries
The Fairtrade system currently works with over 1.65 million farmers and workers.
There are 1,411 Fairtrade producer organisations across 73 countries.
23% of all Fairtrade farmers and workers are women
Year 8 Global World
creation of jobs
stable income and more reliable than farming
improved education and skills
investment in infrastructure, eg new roads - helps locals as well as the TNC
help to exploit natural resources
a better developed economic base for the country
BURKINA FASO
CHINA/ MEXICO
UK/ USA
Tertiary jobs increase as services are needed for factory workers.
Most people live off the land
and work in the primary sector
Country increases wealth and factories are built, secondary jobs increase
Advantages & Disadvantages of TNCS
fewer workers employed, considering the scale of investment
poorer working conditions
damage to the environment by ignoring local laws
profits going to companies overseas rather than locals
little reinvestment in the local area
factories are often footloose and jobs insecure. If labour costs increase, the company may move elsewhere
natural resources being over-exploited