Case Study: Apple

Walled Garden

 

A closed platform, walled garden or closed ecosystem is a software system where the carrier or service provider has control over applications, content, and media, and restricts convenient access to non-approved applications or content. This is in contrast to an open platform, where consumers have unrestricted access to applications, content, and much more.

 

For example in telecommunications, the services and applications accessible on a cell phone on any given wireless network used to be tightly controlled by the mobile operators. The mobile operators limited the applications and developers that were available on users' home portals and home pages. For example, a service provider might have restricted user access to users with no pre-paid money left on their account. This has long been a central issue constraining the telecommunications sector, as developers face huge hurdles in making their applications available to end-users.

 

Apple iOS and other devices, are restricted to running pre-approved applications from a digital distribution service.

 

 

 

Globalisation - Employer and Employee

Relationship between Employers and Employees

 

There has to be a balance between the aspirations, rights and interests of the worker and those of the company where the employer works. Trade unions exist to protect workers' rights.

Laws on he rights of worker in the UK ensure safety at work, conditions of employment and the right of a worker to join a TU or other association.

Equal opportunities and rights to protect workers from discrimination are part of the legal framework within which businesses work.

 

New ethical issues have arisen. Some have to do with mass migration and the question of 'British workers for British jobs'. This expression refers to 2 different ideas:

• The way in which production of industrial goods and also certain work in the service sector has moved to parts of the developing world.
• The migration of cheap labour to work in Britain.

The consequences of the global economy, it is argued affect jobs in the UK.

 

Various solutions have been put forward to address these issues. These include limited numbers of migrant workers, restricting what jobs they do and even restricting them to certain parts of the country.

All of these solutions raise the ethical issue of the treatment of immigrants.

 

What responsibility does a society have for its migrant labour?

Does a government have a primary moral responsibility to its ingenous population?

Christian traditions place hospitality to strangers as morally important.

Utilitarian ethics might consider the importance of the greatest good for the greatest number for the maximal number. This may mean that, in a recession, jobs would be limited to EU citizens, except where there is a skills shortage.

 

However, this raises the issue of which maximal number is being referred to. Is it the population of the UK or the EU or the whole world? This is one problem with applying utilitarianism to this issue.

A virtue ethicist might argue that the concept of British jobs for British workers leads the moral agent to seeing foreigners as different. This would not inspire those character traits that will develop the good (moral) life.

 

Modern human rights theories have been vitally important in the development of relations between business and workers. Traditional moral approaches such as Kant or utilitarianism have been criticised for not ensuring good treatment for workers.

 

Whistle Blowing

 

This is where an employee has the perception that either illegal or immoral activities are being pursued by the company for whom he or she works.

Whistle blowing is where the worker reports these perceived activities to the authorities or the media.

It could be argued that whistle blowing is a necessary feature of modern business practice in a democratic society.

Businesses hate it, yet without the whistle blower both the consumer and the judical system would be largely ignorant of corrupt or dangerous practices.

The ethics behind whistle blowing centre on the principle of openness. There is a growing awareness that all organisations and businesses have to be more open in what they do.

The concept of accountability is crucial. MPs, for example, have to be accountable for their expenses and justify how they are spending taxpayers' money. The whistle blower, it is argued, creates openness that leads to accountability.

Moral critics of whistle blowing argue that company-sensitive information is often revealed, which benefits rival firms.

The morality behind the non-disclosure of sensitive information is simple - a company has a moral right to anything that it has developed, researched and paid for. This is an idea developed by John Locke in the late 17th century. It is the principle of property rights.

 

Most ethical theories would accept the morality of whistle blowing but for very different reasons

Utilitarianism looks at the maximisation of welfare that comes from revealing information. This has a benefit to society as a whole.

Virtue ethics would examine the character traits found in whistle blowers. What type of people are they? Do they have a strong sense of justice?

Kantian ethics will examine the universalisability principle and also sense of duty. Whistle blowing is a difficult issue to analyse in this way. You have a duty to yourself but also to others. Whistle blowing is morally good if you are reporting information that involves corruption or breaking the law.

 

Business Ethics - Globalisation

Kant-

Immanuel Kant (1724–1804) argued that moral requirements are based on a standard of rationality he dubbed the “Categorical Imperative” (CI). Kant agreed with many of his predecessors that an analysis of practical reason will reveal only the requirement that rational agents must conform to instrumental principles. Yet he argued that conformity to the CI (a non-instrumental principle) and hence to moral requirements themselves, can nevertheless be shown to be essential to rational agency. This argument was based on his striking doctrine that a rational will must be regarded as autonomous, or free in the sense of being the author of the law that binds it.

Kantian Ethics-

Kant, unlike Mill, believed that certain types of actions (including murder, theft, and lying) were absolutely prohibited, even in cases where the action would bring about more happiness than the alternative. For Kantians, there are two questions that we must ask ourselves whenever we decide to act: (i) Can I rationally will that everyone act as I propose to act? If the answer is no, then we must not perform the action. (ii) Does my action respect the goals of human beings rather than merely using them for my own purposes? Again, if the answer is no, then we must not perform the action. (Kant believed that these questions were equivalent). Kant’s theory is an example of a deontological moral theory–according to these theories, the rightness or wrongness of actions does not depend on their consequences but on whether they fulfill our duty. Kant believed that there was a supreme principle of morality, and he referred to it as The Categorical Imperative. The CI determines what our moral duties are.

 

Utilitarianism-

Though there are many varieties of the view discussed, utilitarianism is generally held to be the view that the morally right action is the action that produces the most good. There are many ways to spell out this general claim. One thing to note is that the theory is a form of consequentialism: the right action is understood entirely in terms of consequences produced. What distinguishes utilitarianism from egoism has to do with the scope of the relevant consequences. On the utilitarian view one ought to maximize the overall good — that is, consider the good of others as well as one's own good.
The Classical Utilitarians, Jeremy Bentham and John Stuart Mill, identified the good with pleasure, so, like Epicurus, were hedonists about value. They also held that we ought to maximize the good, that is, bring about ‘the greatest amount of good for the greatest number’.

Virtue Ethics-

Virtue ethics is person rather than action based: it looks at the virtue or moral character of the person carrying out an action, rather than at ethical duties and rules, or the consequences of particular actions. Virtue ethics not only deals with the rightness or wrongness of individual actions, it provides guidance as to the sort of characteristics and behaviours a good person will seek to achieve.
In that way, virtue ethics is concerned with the whole of a person's life, rather than particular episodes or actions.

Duty Based Ethics-

Deontological (duty-based) ethics are concerned with what people do, not with the consequences of their actions.

• Do the right thing.
• Do it because it's the right thing to do.
• Don't do wrong things.
• Avoid them because they are wrong.

Under this form of ethics you can't justify an action by showing that it produced good consequences, which is why it's sometimes called 'non-Consequentialist'.
The word 'deontological' comes from the Greek word deon, which means 'duty'.
Duty-based ethics are usually what people are talking about when they refer to 'the principle of the thing'.
Duty-based ethics teaches that some acts are right or wrong because of the sorts of things they are, and people have a duty to act accordingly, regardless of the good or bad consequences that may be produced.

Media and Globalisation

Debates about New Media

Curran and Seaton (2003): 2 Perspectives on new media and globalisation:

Neophiles:

• Optimistic about the spread of new media
• New technology offers consumers more choice and opportunity.
• Effectively spreads democracy.

Cultural Pessimists:

• Suggests that new media is not really new at all.
• Argues that interactivity is an illusion because of ownership issues.
• New media content has led to a decrease in popular culture.

Neophiliac Perspective (postmodernist)

New Media is beneficial because:

Increased consumer choice: there are hundreds of news and entertainment channels to choose from as well as platforms to access them.
An e-commerce revolution: Consumers have more power to compare products and services so can make better informed decisions. E-commerce has revolutionised how we shop and undermined high street stores.
Revitalising Democracy: new media offers people the education and information to play an active role in democratic societies making politicians more accountable. The internet allows unreported stories to leak out. The internet provides people with wider or alternative viewpoints unlikely to be found through conventional information streams such as BBC news and newspapers (old media). The internet also gives a voice to those who would otherwise go unheard.

Cultural Pessimist Perspective

 

• Not so new media
• Domination by media conglomerates
• Commercialisation
• Reinforcing Elite Power
• Decline in the quality of popular culture
• Lack of regulation

 

 



How is 'Robocop' Using the Internet?

 

 

 

 

 

 

 

 

 

 

Film Distribution

2000's and 2010's

 

Lost In Translation (2003)

Box Office

Budget:

$4,000,000 (estimated)

Opening Weekend:

$113,419 (Netherlands) (20 February 2004)

Gross:

£9,865,162 (UK)(26 March 2004)

Reviews

7.8/10

 

"Breathtaking and beautiful - improves on second viewing"

"Lingers for days- sucks you in."

"A great film, but the rating was lost in translation"

"Filmed in Tokyo, with Bill Murray and Scarlett Johansson, one of the better movies I've seen in a while."

 

Avatar (2009)

 

Box Office

Budget:

$237,000,000 (estimated)

Opening Weekend:

£8,509,050 (UK) (18 December 2009)

Gross:

$760,505,847 (USA)(12 November 2010)

 

 

Reviews

 

8/10

 

"Best movie experience of the last 30 years..."

"Technically outstanding. Originality: oh well...."

"After a decade, Cameron sets the avatar of our new generation"

"Fascinating concept .Must be seen cannot be described"

"How could anyone who's seen more than 4 movies in their life find this creative?"

 

 

How Has Film Distribution Changed?

 

• Towards the end of 2005, the UK distribution and exhibition sectors were starting to move towards digital distribution and exhibition.
•  For exhibitors, digital projection, especially when married to the increasing use digital formats in production, can now replicate - if not surpass - the image quality of conventional 35mm cinema presentation. And, of course, digital sound systems have been used in cinemas for some time.
• Digital distribution and exhibition on a large scale has started to appear in certain parts of the world, notably China and Brazil, where conventional logistics cannot, for one reason or another, efficiently bring together supply and demand. In the UK, digital technology has been embraced by the non-theatrical sector, in film societies and schools, where the use of DVD and mid-range digital projection has replaced 16mm.

http://www.screenonline.org.uk/film/distribution/distribution7.html

 

• Over the past decade, much of the value created by music, films, and newspapers has benefited other companies – pirates and respected technology firms alike. The Pirate Bay website made money by illegally offering major-label albums, even as music sales declined to less than half of what they were 10 years ago. YouTube used clips from shows such as NBC's Saturday Night Live to build a business that Google bought for $1.65bn. And the Huffington Post became one of the most popular news sites online largely by rewriting newspaper articles. This isn't the inevitable result of technology. Traditionally, the companies that invested in music and film also controlled their distribution – EMI, for example, owned recording studios, pressing plants, and the infrastructure that delivered CDs to stores. Piracy was always a nuisance, but never a serious threat. The same was true of other media businesses: the easiest place to get a newspaper story was from a newspaper.
• The internet changed all this, not because it enables the fast transmission of digital data but because the regulations that enable technology companies to evade responsibility for their business models have created a broken market. Scores of sites now offer music, while hundreds of others summarise news. Part of the problem is rampant piracy – unauthorised distribution that doesn't benefit creators or the companies that invest in them. It also puts pressure on media companies to accept online distribution deals that don't cover their costs.

http://www.theguardian.com/media/2011/aug/14/robert-levine-digital-free-ride

 

• Hollywood majors are embracing digital to a greater degree than ever before, moving towards an on-demand world to allow streaming, day and date released with a DVD release across a host of devices from PC, tablets and smart TVs, to game consoles.
• Unfortunately for studios, the revenue from VoD has not yet offset the resulting drop in DVD sale revenue, which has been their top earner for over a decade.
• Blu-ray continues to expand its share of new hit sales, jumping from an estimated 27% of total new-release shipments in 2010 to a projected 40% by the end of this year (IHS Screen Digest) but neither Blu-ray nor online retail is growing at a fast enough pace to offset DVD losses.
• The number of illegally downloaded films in the UK has risen 30% in five years, according to internet consultancy Envisional. It reports that the top five box office movies were illegally downloaded in the UK 1.4 million times in 2010 and that the top five TV shows like US imports Glee and House were pirated 1.24 million times - up 33% from 2006.

  http://www.csimagazine.com/csi/The-future-of-online-movie-distribution.php

 

• We all know that the Internet is hastening the decline of “old” media formats that require capital to produce and attention to consume. And movies are no exception, with exceptions for so called tent pole films or blockbusters that are increasingly dependent on international theatrical revenue. Nevertheless, more films than ever are being made.
• As with most things, technology has been a catalyst for change. In the same way it’s possible to start a technology company with cheap and easily available resources like Amazon cloud, it is possible to shoot a film for far less on digital cameras and edit it on your laptop than with traditional equipment. On the distribution side an expensive theatrical release is no longer required, although that is what most film makers still yearn for.
• Digital distribution through companies like Amazon and iTunes is ubiquitous, and a host of Do It Yourself distribution hubs like VHX and Vimeo that offer better margins for filmmakers are springing up. Social media marketing is emerging as an alternative to TV commercials and newspaper ads. One thing is for sure, the business of film is changing, and everyone is not happy.

http://pando.com/2014/02/10/as-more-movies-are-made-is-this-good-for-the-art-and-business-of-film/

 From reading these articles, I have come to find out that film distribution has changed dramatically over the past two decades. As technology has advanced, so has our way of film distribution. Some of the latest ways to distribute films are IMAX cinemas, blu-ray players, iTunes, Netflix and so on. But this also brings the illegal side of film distribution such as online streaming from websites like Pirate Bay. Overall, I personally feel that film distribution has developed and has advanced for the better.

 

The Role of Global Institutions

How is the world more interconnected?

 

The world is more interconnected by the internet, improvements in travel and communication, transport.

 

What has created a 'global village'?

 

The communication and and how much they have strengthened over the years and also search engines such as google.

 

What has happened to transport to help globalisation?

 

It has developed and improved to make travel easier, cheaper and more efficient for companies to transport and trade goods.

 

How does it help countries?

 

It makes LEDCs more educated in newer technologies and helps the people gain skills and work experience.

 

Who benefits most from TNC's?

 

MEDCs

Web 2.0

Web 2.0 is

the second stage of development of the Internet, characterized especially by the change from static web pages to dynamic or user-generated content and the growth of social networking.

 

Examples of Web 2.0:

 

 The first example I have of Web 2.0 is Youtube. Youtube is a social networking site which allows people to upload videos and share, like, subscribe and comment on their own or other people's videos from all over the world. This is Web 2.0 as it allows people to interact with one another and allows people to have the creativity of making their own account and adjust their settings to how they like. When you have a Youtube account these options come up on the left hand side of what you can do, it means that people are completely independent and responsible to personalise and customize their own account to what they want to see, when they want to see and what they have already watched.

Gauntlett's ideas about Web 2.0:

This video discusses and shows David Gauntlett's ideas of Web 2.0. He believes that Web 2.0 is about the making and connecting of people all around the world, and that we create the internet. The idea he has of Web 2.0 is that as technology has developed instead of the websites being created for us we are creating the websites for ourselves and everyone else around the world.

Timeline - Key Events in the History of the Internet

1969

ARPA (Advanced Research Projects Agency) goes online in December, connecting four major U.S. universities. Designed for research, education, and government organizations, it provides a communications network linking the country in the event that a military attack destroys conventional communications systems.

1972

Electronic mail is introduced by Ray Tomlinson, a Cambridge, Mass., computer scientist. He uses the @ to distinguish between the sender's name and network name in the email address.

1973

Transmission Control Protocol/Internet Protocol (TCP/IP) is designed and in 1983 it becomes the standard for communicating between computers over the Internet. One of these protocols, FTP (File Transfer Protocol), allows users to log onto a remote computer, list the files on that computer, and download files from that computer.

1984

Domain Name System (DNS) is established, with network addresses identified by extensions such as .com, .org, and .edu.

Writer William Gibson coins the term “cyberspace.”

1985

Quantum Computer Services, which later changes its name to America Online, debuts. It offers email, electronic bulletin boards, news, and other information.

1988

A virus called the Internet Worm temporarily shuts down about 10% of the world's Internet servers.

1989

The World (world.std.com) debuts as the first provider of dial-up Internet access for consumers.

Tim Berners-Lee of CERN (European Laboratory for Particle Physics) develops a new technique for distributing information on the Internet. He calls it the World Wide Web. The Web is based on hypertext, which permits the user to connect from one document to another at different sites on the Internet via hyperlinks (specially programmed words, phrases, buttons, or graphics). Unlike other Internet protocols, such as FTP and email, the Web is accessible through a graphical user interface.

1991

Gopher, which provides point-and-click navigation, is created at the University of Minnesota and named after the school mascot. Gopher becomes the most popular interface for several years.

Another indexing system, WAIS (Wide Area Information Server), is developed by Brewster Kahle of Thinking Machines Corp.

1994

The White House launches its website, www.whitehouse.gov.

Initial commerce sites are established and mass marketing campaigns are launched via email, introducing the term “spamming” to the Internet vocabulary.

Marc Andreessen and Jim Clark start Netscape Communications. They introduce the Navigator browser.

1995

CompuServe, America Online, and Prodigy start providing dial-up Internet access.

Sun Microsystems releases the Internet programming language called Java.

The Vatican launches its own website, www.vatican.va.

1997

On July 8, 1997, Internet traffic records are broken as the NASA website broadcasts images taken by Pathfinder on Mars. The broadcast generates 46 million hits in one day.

The term “weblog” is coined. It’s later shortened to “blog.”

1998

Google opens its first office, in California.

1999

College student Shawn Fanning invents Napster, a computer application that allows users to swap music over the Internet.
The number of Internet users worldwide reaches 150 million by the beginning of 1999. More than 50% are from the United States.
“E-commerce” becomes the new buzzword as Internet shopping rapidly spreads.

MySpace.com is launched.

Glossary - History of the Internet

Sir Tim Berners- Lee (b.1955) -

Sir Tim Berners-Lee is a world known British computer scientist who contributed to invent the World Wide Web. Berners-Lee made the first successful communication between a Hypertext Transfer Protocol (HTTP) client and server via the internet.

ARPANET - 

The Advanced Research Projects Agency Network (ARPANET) was one of the world's first operational packet switching networks, the first network to implement TCP/IP, and the progenitor of what was to become the global Internet.  

CERN- 

The European Organization for Nuclear Research, known as CERN is a European research organization whose purpose is to operate the world's largest particle physics laboratory.

Broadband-

A high-capacity transmission technique using a wide range of frequencies, which enables a large number of messages to be communicated simultaneously. Was founded in the 1980's but became popular and well known in the 1990's.

Dial-Up-

Dial up networking technology provides PCs and other network devices access to a LAN or WAN via standard telephone lines. Dial up Internet service providers offer subscription plans for home computer users.When the popularity of the Internet exploded in the 1990s, dial up was the most common form of Internet access due mainly to its low cost to setup. 

Hypertext (HTML)- 

a software system allowing extensive cross-referencing between related sections of text and associated graphic material. 

"hypertext link".

"HyperText is a way to link and access information of various kinds as a web of nodes in which the user can browse at will. Potentially, HyperText provides a single user-interface to many large classes of stored information such as reports, notes, data-bases, computer documentation and on-line systems help. We propose the implementation of a simple scheme to incorporate several different servers of machine-stored information already available at CERN, including an analysis of the requirements for information access needs by experiments... A program which provides access to the hypertext world we call a browser. ― T. Berners-Lee, R. Cailliau, 12 November 1990, CERN^"

^Folksonomy-

 

a user-generated system of classifying and organizing online content into different categories by the use of metadata such as electronic tags.

 

^RSS-

 

RSS (Rich Site Summary) to publish frequently updated information: blog entries, news headlines, audio, video. An RSS document (called "feed", "web feed", or "channel") includes full or summarized text, and metadata, like publishing date and author's name.

RSS feeds enable publishers to syndicate data automatically. A standard XML file format ensures compatibility with many different machines/programs. RSS feeds also benefit users who want to receive timely updates from favourite websites or to aggregate data from many sites.

 

^XML-

 

xtensible Markup Language (XML) is a markup language that defines a set of rules for encoding documents in a format that is both human-readable and machine-readable.

 

^Convergence-

 

the process or state of converging.

"the convergence of lines in the distance"

 

^Audience-

 

An audience is a group of people who participate in a show or encounter a work of art, literature (in which they are called "readers"), theatre, music (in which they are called "listeners"), video games (in which they are called "players"), or academics in any medium. Audience members participate in different ways in different kinds of art; some events invite overt audience participation and others allowing only modest clapping and criticism and reception.

 

^Institutions

 

an organization founded for a religious, educational, professional, or social purpose.

an established law or practice. 

Globalisation Advantages and Disadvantages

Advantages

• Globalisation helps people in poorer countries get jobs and gain new skills
• It can bring wealth to local economies when companies have to buy products and resources
• It is a way of sharing ideas and experiencing new cultures and lifestyles
• Globalisation increases awareness of key issues throughout the world

 

 

Disadvantages

• There is no guarantee

Globalisation Revision

Essay Feedback

Essay

The Pros and Cons of 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 production of goods and services by…. The biggest companies are no longer national firms but multinational corporations with subsidiaries in many countries. There are both advantages and disadvantages from Globalisation which vary on different people’s opinions. However, what’s most important is the impact Globalisation has had on the world and whether all in all it’s for the better or worse[LMS1] .

There are reasons for globalisation in the first place. Such as, Improvements in transportation: Larger cargo ships and more types of transport. Freedom of trade: World Trade Organisation (WTO) removes barriers between countries. Improvements in communications: Technology such as the internet and mobile phones. Labour Availability and skills: e.g. India has lower labour costs and high skill levels[LMS2] .

One argument that can be said with Globalisation is that it makes the rich richer and the poor poorer. The way this works is the fact that companies and businesses need to get as much profit as they can so their company is running smoothly and all the members of the company are kept in a job. An easy way to make sure of this is putting the factories into developing countries as the cost of labour is a lot cheaper[LMS3] . This then results in…

Also, another disadvantage of Globalisation is the unfair working conditions that apply in poorer countries. They don’t have health and safety rules and regulations which puts the workers, most of which are small children, at risk. Child labour is also an issue most people have with globalisation, taking advantage of their poor state and desperation for money to new levels of risk[LMS4] .

There are some talks of Globalisation influencing political decisions, as the worldwide market gets increasingly more powerful and popular, its power is starting to affect political decisions which are affecting the whole world, and this may not be a good thing[LMS5] .

Lastly, due to the inhumane conditions of the factories and working places for the prisoners and child workers who are mostly the only people employed at these places, it leaves the employees desperate for money as their wages aren’t enough. This leaves them with no decision but to resort to prostitution and trafficking, we know this is true as percentages of shown that it is becoming increasingly common[LMS6] .

However, globalisation would not have become as easily accessible or worldwide if there weren’t some advantages to it as well. For example, Globalisation creates jobs for people in countries all around the world not just in developing countries such as India or China. This makes all countries economically stronger and helps keep unemployment levels low. It also makes companies more competitive which lowers prices for consumers. E.g. Different supermarkets having deals or offers if you order online, the first online order you make at Waitrose you get a free bottle of wine[LMS7] .

Secondly, the worldwide market means that not only can people send goods to different countries but we can receive them internationally as well just from a click of the button. Also, ordering internationally means that you pay for shipping which helps increase the profit of the companies themselves[LMS8] .

Although in some people’s opinion Globalisation affecting politics is bad, on the other hand there are people that think that there is a world power that is being created, instead of compartmentalized power sectors. Politics are merging decisions that are being made are beneficial for people all over the world[LMS9] .

Lastly, socially we have become more open and tolerant towards each other and people who live in the other parts of the world are no longer considered ‘alien’. I think that this is the most beneficial advantage to Globalisation as it has decreased racism massively as we’ve learnt that we’re all equal workers at the end of the day, and developing countries have some benefits which we, as first world countries, can learn from[LMS10] .

Overall, the impact of Globalisation has been extreme. The whole world is now involved in online market or international employment even some of the most remote corners of the world. I think that this is the most beneficial thing that’s ever happened to business.

---

 [LMS1]A strong introduction that is well-worded and includes some key terminology.

 [LMS2]Instead of listing these point, use them to expand your argument.

 [LMS3]Add an example and develop your point.

 [LMS4]You could link this to the recent Primark scandals. Then, you could link to the future of such companies / globalisation.

 [LMS5]How and why?

 [LMS6]What position does it put the company in? Do you believe they care about the crisis in which they create? Does the consumer care?

 [LMS7]Link to the economical dependency that this creates.

 [LMS8]How has this developed and which companies are primarily involved with this? How has it impacted society?

 [LMS9]How does this add to your argument and what does it say about the future of globalisation?

 [LMS10]How has this happened? Consider the history of globalisation? Do you believe it has also created friction between nations?

What is Globalisation?

MEDC: More Economically Developed Country

LEDC: Less Economically Developed Country

TNC: Transnational Corporation

 

Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchage. Globalisation has increased production of goods and services. The biggest companies are no longer national firms but multinational corporations wit subsidiaries in many countries. 

 

Globalisation has resorted in:

• Increased international trade
• A company operating in more than one country
• Greater depedence on the global economy
• Freer movement of capital, goods and services
• Recognition of companies such as McDonalds and Starbucks in LEDCs.
• It also has helped create more wealth in developing countries.
 

Reasons for Globalisation:

• Improvements in transportation: Larger cargo ships and more types of transport.
• Freedom of trade: World Trade Organisation (WTO) removes barriers between countries.
• Improvements in communications: Technology such as the internet and mobile phones.
• Labour Availability and skills: e.g- India have lower labour costs and high skill levels.



Transnational Corporations:

Globalisation has resulted in many businesses setting up or buying operations in other countries. When a foreign company invests in a country, perhaps by building a factory or a shop, this is called inward investment. Companies that operate in several countries are called multinational corporations (MNCs) or transnational corporations (TNCs). The US fast-food chain McDonald's is a large MNC- it has nearly 30,000 restaurants in 119 countries.