Why do companies go global

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Why do companies go global?
CW
27th September 2006

• Lesson Aims
• To understand the concept of TNCs
• To consider how globalisation affects the quality
  of life of different groups of people.
  (Citizenship)

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Recap
14 countries helped make this pair of jeans
If the jeans cost 24- 60p went to the cotton
farmer 1 went to the factory worker 2 went to
the factory manager 8.40 went to the Brand
owner 12 went to the retailer
But there was an inequality- MEDCs (rich
countries) designed and sold the jeans LEDCs
(poor countries) grew the cotton and provided the
raw materials
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Key terms
Globalisation

• is the process of the world becoming more
  interconnected because of better transport
  links, communications and trade

e.g. being able to fly to the other side of the
world in hours, or being able to phone or email
someone wherever they are in the world
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Key terms
Interdependent

• is when countries trade with and rely on each
  other. No country has everything they need to
  survive- so they have to trade.

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Nike- a TNC
Key term-
Transnational Corporation

• A Transnational Corporation is a company that
  has its Headquarters in one country (usually a
  rich country- MEDC), but has offices and bases
  all around the world

So what are your 3 TNCs from your Homework?
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How has technology helped the globalisation
process?
Complete the sheet by matching up the pictures
with their explanations
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So why do companies go global?
Revenue
Cost
Profit

-
What does this mean?
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Complete the top part of the worksheet
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Now complete the other part-How Nike increases
its profits
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Globalisation and Jobs How globalisation affects
the quality of life of different groups of people

• You are going to look at how TNCs affect people
  all over the world
• Rosa works in a factory in an LEDC
• Read the case study to see what her life is like

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Homework

• Produce a newspaper front cover telling the
  general public what TNCs like Nike are actually
  like
• You dont have to use Nike but you have lots of
  info on them already
• Use words like Globalisation, Exploit, MEDC
  LEDC if you can
• You can use computers if you want to

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3 things Ive learnt today

• 1.
• 2.
• 3.