Is Globalisation good or bad? Think about how globalisation affects you and your family. Do you think it is a good or bad process (or somewhere in between)?

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Presentation transcript:

Is Globalisation good or bad? Think about how globalisation affects you and your family. Do you think it is a good or bad process (or somewhere in between)? Write your name on a post-it note, your answer to the question and explain WHY? Stick your post-it note on the opinion line…

Why Go Global? LO: to understand why so many companies go global and consider some of the effects of this All will be able to describe how companies make profit Most will be able to explain why companies make more money by going global Some will be able to make informed suggestions of how this may effect countries

In order to make as much money as possible all of these companies have gone global and become TNCs (transnational corporations)

To maximise profits Nike needs to 1.Maximise revenue 2.Minimise costs. How can globalisation help them do this?

e.g. in 2004 Nike had a revenue of $12.3 billion and costs of $10.7 billion ( ) = $1.6 billion profit!!

Where is Nike based?

Why does Nike work in these countries? Illiteracy (female) How good is the education system? Can women get a well paid job? How strong are women's rights? GDP per capita (average money per person). How high is the wage going to be? Do people have enough to have a good life? Life expectancy How good is the health of workers? Is there good access to food and healthcare? Safe water How modern is the water system? How strong are the water pollution laws? Look through your cards. If you were in charge of Nike which 3 countries would you 1. want to try to open up shops in? Why? 2. Want to open up factories in? Why? EXT – how does going global help TNCs make more money

Why go global?

The power of being a TNC 3.What will Nike do if… a.… the country that Nike make their products in decides to increase their minimum wage. b.… the country that Nike makes their products in decides to set up a minimum working age or a maximum number of hours people can work. c.… the country that Nike makes goods in decides to improve their water systems. This means companies cant dump their waste in rivers. EXT – What is the link between a, b and c?

Is Globalisation... Look at where you put your post it earlier. Do you still agree? Write your name on a post-it note, your answer to the question and explain WHY? Stick your post-it note on the opinion line…