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The bigger Picture- An introduction to Globalisation - Coggle Diagram
The bigger Picture- An introduction to Globalisation
Globalisation – The increased interconnection and integration of the world’s economies, cultures, and populations.
Driven by international trade, foreign investment, technology, and the movement of people and information.
Why Companies Engage in Globalisation & Foreign Trade-
Access to larger markets → More customers, higher sales.
Cheaper raw materials → Reduce production costs.
Lower labour costs → Increase profitability.
Economies of scale → Produce more at a lower cost.
Diversification → Reduce dependence on one market.
Access to specialised skills or resources not available at home.
Improved competitiveness → Stay ahead of rivals.
Transnational Companies (TNCs)-
Definition
Large companies that operate in multiple countries, with:
Headquarters in one country
Production, marketing, or research facilities in others
Examples: Apple, McDonald's, Toyota.
Reasons TNCs Locate in Certain Countries
Low-cost labour
Favourable government policies (grants, tax incentives)
Access to raw materials
Proximity to large markets
Good infrastructure (transport, broadband, energy)
Political stability
Skilled workforce
How Technology Has Increased Globalisation-
Faster communication (email, video calls) → Easier to manage global operations.
E-commerce → Businesses can sell worldwide.
Automation & AI → Faster, cheaper production.
Advanced logistics technology → Faster shipping and tracking of goods.
Online banking & fintech → Easier international payments.
Digital marketing → Global advertisements instantly.
Impact of Global Companies & Technology on Consumers-
Consumer Choice
Greater variety of products from around the world.
Lower prices due to competition and cheaper production.
Higher quality standards as companies compete globally.
Access to global brands instantly through online shopping.
Consumer Behaviour
Increased online shopping due to convenience and global availability.
Brand awareness influenced by international advertising.
Higher expectations for fast delivery, low prices, and high quality.
Adoption of global trends and lifestyles (fashion, tech, food).