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Non-governmental organisations (NGOs) operate on a range of scales to monitor and support institutions
Decisions made at local levels affect global institutions
Eg. In 2016 a regional government blocked a trade deal between the EU and Canada
Decisions made at global institutions affect the institutions further down
Eg. the 2015 Paris Climate Change Agreement required changes at local levels
Institutions operate at a range of scales
Local = local councils and county courts
Regional = Welsh Assembly
National = British Government
International = EU
Global = UN
Inequalities and Injustices
Injustices - at times the UN has been ineffective
In 1995, the UN peace keepers failed to protect 8000 people in Srebrenica when they were massacred by the Bosnian Serbs
Inequalities - developed countries hold most of the power over decisions taken at the UN, most of the global issues tackled by the UN affect African countries but no African country has a permanent seat at the UN security council
Growth and Stability
Stability - UN peace keeping missions help end wars with peaceful elections after civil wars for example
Growth - The UN Millennium Development Goals have reduced the number of people living in poverty and increased the number of children in school
In 2015, the UN set targets for 2030 to promote continued sustainable development
Eg. the General Assembly act as a parliament of nations
Eg. the UN security council responsible for global peace
Aims
To bring countries together to settle disputes
Use cooperation to solve international issues
Develop friendly relations between nations
Maintain global peace and security
Eg. Between 2011 and 2016, Russia and China vetoed several resolutions to intervene in the Syrian Civil War
EG. to receive loans LEDCs have to implement free trade policies and cut government spending
Some think the global institutions act for political reasons
It can be difficult to make countries and TNCs comply with the rules
Some countries have not brought economic sanctions to China as it is so important to the global economy
Countries sign up to international laws ans institutions voluntarily so not all countries are bound to such rules
The world bank gives loans to LEDCs to increase their economic growth
The World health Organisation (WHO) combats epidemics which increases social stability and the UNESCO ensures the benefits of scientific advances are shared
The WTO increases global trade through it's common rules as it makes trade predictable, increasing stability
The laws and norms that international institutions enforce mean that countries abide by common rules
Trade rules mean that countries can't take advantage of each other, so all countries can develop
Institutions are political or legal organisations that pass and enforce laws these include the UN, WTO and international criminal court
Norms are accepted standards of behaviour
Eg. the right to freedom of speech may be restricted by some countries and as a result face internation condemnation
International laws like human rights, labour standards and trade regulations
Eg. National governments can't tackle climate change alone
Developed countries thought economies work better without state intervention like trade barriers and tariffs - neo-libralism
National Govs took responsibility for the welfare of their citizens, controlling imports through trade barriers to protect their industries
Injustice - migrant workers are made to work in dangerous conditions
Conflict - low skilled migrants are happier to work for less than low skilled locals, by employing the migrants they depress wages which creates conflict between locals and migrants
Inequalities - Brain drain - scientists to Silicon Valley - those skilled leave the LEDCs for better work lives in MEDCs increasing the development gap
Global financial systems for example
WTO - reduce trade barriers, developed have kept trade barriers reducing imports from LEDCs. Boosting MEDCs economies at the expense of the LEDCs economies
Loans are conditional - LEDCs must make changes like cutting regulations to receive the loan
IMF - based in the USA, led by developed countries, LEDCs have less influence
Those most affected are the LEDCs like Bangladesh who are suffering from rising sea levels and aren't able to influence bigger countries to reduce emissions
Big contributors to climate change are usually rich and developed countries, they are usually resistant to making changes to limit climate change because it may harm their economy
Concerns about global warming have led to the formation of the IPCC (Intergovernmental Panel on Climate Change)
Every country is interdependent on each other to look after the environment and example is the Chernobyl explosion in Ukraine releasing radiation
Connections between people in different countries - migrants
Countries depend on one another to solve global issues like global warming
International financial systems
Established after WW2
Support the world's economic order by regulating the flow of international capital
Global financial systems
International monetary funds
loans money to countries with economic problems
Advises governments
Imposes cuts on education and welfare government spending
regulates the financial flows
World bank
must pay back
all members must pay in but only those who need it can take money out
Loans money for investment and development
Now, they fund more bottom up projects
locals are consulted and supported in making decisions to develop in order to address one or more of their specific needs
Historically, they funded top down projects
descision to undertake project is made by central authority
Aims to reduce poverty and supports less developed countries
Global trade systems
International trade and access to markets is overseen by the WTO (World trade organisation)
over 160 members, over 3/4 are NEEs or LEDCs
Successor of the GATT
aim and role
Negotiate legal ground rules for international commerce
Sorts out trade problems between member governments
Supervise and liberalise trade by reducing barriers
Began in 1995
Flows are unequal
Problems
Injustice - Companies may pressure governments to make it cheaper to invest
Conflict - foreign aid can go to armed groups. FDI creates conflict between foreign companies and local people
Inequalities - foreign aid creates dependency, FDIs usually force out local businesses
Money from MEDCs to LEDCs in investments but LEDCs rarely have the money to do the same
Benefits
FDI allows other countries to take advantage of cheap materials and labour, host country benefits from foreign capital. Foreign aid improves infrastructure and living standards
What it means?
The flows include remittance, foreign aid and FDI
Countries rely on one another for resources eg.Oil produced and consumed in different countries
Sustainable development requires global cooperation
NGOs like the WWF call for the areas to be protected with any development being sustainable
Institutions are acknowledging that countries rights to develop must be balanced by the need to protect the commons
Plants problems due to pressure
Increased CO2 causes acidification of the oceans which effects the marine organisms
The sea absorbs more CO2 when it is colder
Atmospheric pollution is causing climate change
Overfishing in the seas
New technologies make it easier to get to the global commons as they were fairly inaccessible before but makes them more vulnerable
Industrialization and development are increasing the demand for resources
large amount of polluting gases are being pumped into our atmosphere
Many resources are and can be extracted from the comons
Many feel they can exploit the global commons without dealing with consequences as the costs of exploitation are shared
Tragedy of the commons
Environmental NGOs protect the commons from exploitation as they offer habitats and are valuable for scientific research
There are 4 global commons
Space
Atmosphere
The high seas
Seas further than 200 miles away from land
They are governed by different pieces of international law
Walmart has impacts on its Host countries
Uses large areas of land for factories and stores
Invests in environmentally friendly technologies and sustainable development
Walmart donates 100s of millions to improve healthcare and the environment in its operating countries
In 2015 it donated over $2 million to west Africa after the Natural Disasters
Poor working conditions
Working for Walmart can offer a more reliable wage
Skilled jobs in LEDCs
Eg. Stores in China are run by locals
Most profits are sent back to the USA rather than invested in the host country
Local companies suffer in competing with Walmart
Forces its suppliers to accept low prices
Local suppliers to Walmart may be able to expand their businesses by exporting goods
Local companies and farmers supply goods
Creates jobs in construction, manufacturing and retail services
Walmart has impacts in the USA
Environmental
Stores are often large and out of town
Produce a huge amount of polluting gases - but it has opened green stores which run on renewable energy
Social
Poor working conditions - long and irregular hours
Many jobs at Walmart are poorly paid with few benefits
Open 24 hours a day
Walmart provides a large choice of goods - super centre
Economic
Loss of local business
Decline in the manufacturing industry
Buys products from outside the US causing a loss in manufacturing jobs inside the US
One of the cheapest US supermarkets
Employment - each new store creates jobs
Its is starting to expand into NEEs like India
Walmart divides its labour across different countries
Manufacturing is carried out in in China and India where production costs are cheap
Headquarters - Arkansas
Walmart began in 1962 in the USA
More stores opened across the USA and then recently across the globe by the acquisition of other companies some of these companies still trade under their own names
The UK store is called ASDA
Is a chain of discount department stores and is one of the largest TNCs in the world - the largest retail TNC
The aim of TNCs is to create a brand that is globally recognised
94% of the global population recognise coca-colas logo
TNCs gain knowledge of local markets and adjust their strategies even incorporating local cultures
TNCs benefit from having lots of money to spend on advertising and large marketing departments
TNCs make it easier for local companies to trade as part of the global supply chain
When a TNC invests it creates a multiplier effect
By opening a factory it creates jobs for the local area so people have more money to spend helping local businesses and governments
Intra-firm trading - 1 division of a TNC trades with another part of the TNC
Makes up 30-50% of international trade
Counted in trade figures
TNCs invest in countries with weak labour and environmental regulations allowing them to cut costs
TNCs Tertiary industry invests in well educated populations
TNCs Secondary industries invest in countries with low labour costs and cheap land and tax breaks. Or in places where there is a large market for their product
TNCs Primary industries invest in countries with natural resources they can extract
Example - in 2016 Shell acquired BP to access oil in Brazil and Australia
TNCs create the global supply chain giving them economies of scale - most value
TNCs expand operations to gain more control over their markets
Horizontal intergration
When companies merge with over companies at the same stage of production
Example - In 2006, Disney took PIXAR, both making family orientated animations
Vertical integration
A company takes over other parts of the supply chain
Example - shell now owns its supply chain from extraction to selling at petrol stations
They do this by expanding their operations
FDI - involves merger and acquisitions and using subcontractors
Example - if HSBC bought a bank in Indonesia it's FDI
Using Subcontractors - TNCs use foreign companies to manufacture products without owning them
Acquisitions - one company buys another company
Example - Ford bought Volvo in 1999
Mergers - 2 companies agree to become one big company
Example - BP and Amoco merged in 1998
Connect countries due to their spatial organisation - global supply chain - different parts of the TNC operate in different countries
Factories in LEDCs due to cheap natural resources and labour - low production costs or they have factories near their markets to cut import and export costs
Location of regional R&D closer to markets they are selling to so they can make specific adaptations to products
Research and development (R&D) is located in cities or towns where there;s a supply of highly skilled people - same country as headquarters
TNCs headquarters in MEDC's big cities due to good communication and transport
One of the main driving forces of globalisation
TNCs bring FDI into LEDCs, spread technology and promote cultures
The creation of jobs, provision of technology and investment mean they have political influence
Operate in many industries
Tertiary - Providing services
Eg. Aviva
Secondary - Making material goods
Eg. Toyota
Primary - extraction of natural resources
Eg. Shell
Important to the global economy
80% of global trade was linked to TNCs in 2013
More ethical than traditional trade
Fair trade pays additional money to the communal fund to help local communities develop helping the LEDCs invest in industry
Coffee campaign has grown enormously
Global sales increased from 15 000 tonnes to 80 000 tonnes a year
no. of organisations grew from 175 in 2002 to 329 in 2011
In 1992, the Fair trade foundation was set up
Works with farmers to maintain environmental standards and to prohibit forced labour and child labour
Aims to set a minimum fairtrade price which covers all the farmer's costs - prevents poverty
Works with producer organisations
TNCs pick and choose where they buy their coffee
So countries lower wages, regulations and environmental protection to attract TNCs - race to the bottom
Eg. much of the coffee in Brazil is farmed intensively, leading to a loss of wildlife habitats and Biodiversity
Usually countries selling at the lowest price
Most coffee producers are small-scale and rely on selling their products, so have no power over prices
TNCs have alot of control over the coffee market as 4 companies control 40% of coffee exports
Coffee farmers are in LEDCs and TNCs are from MEDCs so the profits also go to the developed countries rather than invested in the LEDC
Only 7-10% of the price goes to coffee farmers as they only sell the coffee bean which is low value
TNCs buy the bean and roast them which increases their value and they receive the profits when selling them
The price of coffee fluctuates depending on supply and demand
Price fluctuations will effect farmers
Example - the amount of coffee exported from Veitnam has increased steadily since 1987. By 1999, Veitnam exported over 450 million kg of coffee a year. Causing coffee prices to fall from $1.19 per kg to $0.68 per kg in a year. This caused south american American Coffee producers to go out of business
Low prices are good for consumers and high prices are good for producers
If the supply increases and the demand doesn't the price will drop
If the price drops more coffee is bought and the price rises again
If the demand increases and the supply doesn't the price will increase
If the price increases people will produce more because they want more money causing the price to fall
demand = How much consumers are buying
Supply = how much is produced
USA is the largest importer of coffee
Imported 20% of the world's coffee in 2015
Brazil is the largest coffee producer see above for info
Coffee is produced in mainly LEDCs and consumed in MEDCs
Coffee plants grow in nurseries, then move to farms after 6-12 months for harvesting - coffee is mainly grown in small holdings
Issues with coffee production
Farmers use fertilisers and pesticides, these are imported so usually very expensive
Certain weather makes the outbreak of disease or pests more likely
Dry weather = more pest infestations
Wet weather = more bacteria
Pests and insects like the Black Twig Borer
Susceptible to a range of diseases
There are 2 types of coffee bean the arabica and robusta
Whilst both are grown the arabica makes 70% of the worlds coffee production
Coffee production is dominated by countries in south America and Africa
For example the biggest coffee producer is Brazil
produces 2.5 million tonnes a year
It has around 300,000 coffee farms
Brazil exported 20% of the world's coffee in 2015
Trade creates more inter dependency between countries
eg. the financial crisis in 2008 increased rates of unemployment in many countries
If one thing goes wrong in one country many other countries are affected
Trade and high levels of access to markets means a wider range of goods are available to MEDCs - increasing the standard of living
Trade benefits MEDCs more than LEDCs
Example is that many LEDCs export primary products which are developed by MEDCs and exported at a higher price meaning they profit, so wages in that country are higher
Differential access to markets has economic and social consequences
Social impacts
more dangerous working in less developed countries as sweatshops and dangerous factories who also employ children have moved from MEDCs
countries with less market access result in less money for education or healthcare so quality of life is lower and the population can mainly access low paid, low-skilled jobs
people in countries with good access usually have better paid jobs and therefore more disposable income increasing their standards of living
Economic impacts
Countries with high market access can grow their economies quickly making their citizens wealthy and giving them the money to invest and grow their economies further
Hard for countries with poor market access to establish new industries
So they resort to selling low value primary goods that fluctuate in price leading to a low GNI so they have less money to invest in industry resulting in slow economic growth
Negative impact? - allowing cheap imports into the country and argue that regional trade bloc would be more effective allowing the collective negotiation of prices
Profits made from SDTs all LEDCs to diversify the range of industries they have
let LEDCs bypass some MEDCs tariffs
Example is the EU's 2001 Everything but Arms agreement allowing the least developed countries to bypass tariffs on goods that aren't weapons
The WTO forms special and differential treatment agreements (SDTs)
Access is increased by being a member of a trade bloc
LEDCs rely on loans that require them to remove their trade barriers increasing access to their markets
MEDCs have more money to invest so they can avoid high tariffs imposed by LEDCs
Access is effected by wealth. MEDCs usually have higher tariffs on imported goods from LEDCs which makes it harder for LEDCs to access the market
Access to markets - how easy it is for the countries or companies to trade with one another usually determined by the import or export barriers
Less developed countries
Export crude oil and minerals to NEEs and import manufactured goods
Export food, tobacco and crude oil to MEDCs and import machinery and medicine
Most trade with MEDCs and NEEs
Developed countries
Export machinery and medicine to LEDCs and import Food, tobacco and oil
Export cars and chemicals to NEEs and import Machinery and clothes
most trade takes place between developed countries
Special Economic Zones increase the volume of trade with emerging economies and less developed countries
SEZs - areas that have different trade and investment rules to the rest of a country - increasing trade while keeping barriers in the rest of the country
Some trading blocs are based around specific industries
Example is OPEC for the export of petrol at standardized prices
many trade blocs are regional - they make trading easier between neighboring countries
Example - in 2016, German exports to other EU countries were 708 billion euros, compared to 501 billion to countries outside the EU
Refer to globalization for a list of examples of trading blocs
What are they?
Remove trade barriers between members and keep barriers non-members
Associations between different governments that promote and manage trade
Agreements between governments about trade
Investment
Ethical investment - when a person, company or group only invest in areas that are considered socially responsible
Grown since 1990s
Companies that have caused environmental or humanitarian harm are generally avoided by ethical investors
Patterns of investment have changed
NEEs now invest heavily in less developed countries
China invests heavily in countries in Africa
Since 1980s, developed countries have been invesing in NEEs and developing countries
In the past 10 years china has been one of the biggest receivers of FDI
Historically, developed countries invested in other developed countries
The volume of FDI has risen from $400 billion to $1500 Billion
investors may be attracted to the size or stability of the market. The possibility of extracting resources for themselves or the ability to access financial services like luxembourg who have big financial sectors
FDI - a person, company or group spending money in a foreign country to generate profit
Trade
Rise in fairtrade - supporting people in LEDCs who make products and export them to MEDCs
Since the 1970s, nearly 1000 producer groups have been set up with their produce being sold in supermarkets in developed countries
More countries have lowered their trade barriers partly to do with the new trade blocs
Less developed countries are growing slowly but are starting to trade
However the poorest 49 countries which make up 10% of the global population only account for 0.4% of world trade
Developed countries still remain the biggest global trades but some NEEs are catching up
China is now the largest exporter of goods
The volume of global trade has increased from the 1980s - its value increased by nearly 8x
International trade is the import and export of goods and services between countries
There must be fair competition
One company or country shouldn't get an unfair advantage over rivals
Must act predictably in their trading
Must promote free trade
Countries can't give another countries special access to their market without doing the same for all other countries
However, they can give special access to countries within their trade bloc
Member of OPEC
oil and gas account for more than 80% of the national income
Gas reserves of over 2800 billion cubic meters
Oil reserves of around 36 billion barrels
Nigeria should have done well from globalization
The global demand has fuelled Nigeria's economy
The high income has resulted in Nigeria's currency being over valued - imported consumer goods cheap
results in domestically manufactured goods being too expensive to export
This is known as Dutch Disease and is common in EMEs
Industrialization is a consequence of this, driving more people into oil, making Nigeria less internationally competitive in manufactured goods and increases its reliance on foreign imports
The TNCs have had no regard for the indigenous people or the environment
Oil spills are common in the Niger DElta
As Nigeria doesn't have the technology or skills to exploit the oil the major oil companies are encouraged to develop the reserves
It has cause a mass rural - urban migration resulting in rural poverty and over crowding in cities like lagos
But the focus on oil has resulted in a decline of traditional industries or manufacture and farming
Single worker makes 300 a day
1/2 billion umbrellas made a year in over 1200 factories
Located in Shaoxing
It maintains its position because
Songxia Umbrella Industrial Park
Government support
Cheap production costs
Good access to domestic and international markets
Specialization
70% of umbrellas are made in china
World customs organisation (WCO) or EU security standards
Issues such as; - supply chain security - crime - anti-terrorism - food and bio-security
Example is that Pakistan has dry ports located inland where customs documents are completed locally before shipping goods to sea ports
Example is that the UK government have the UKTI (UK trade and Investment) to advise and support the trade of goods overseas
Objective is to increase exports
National governments have trade departments to accommodate
Managements and information systems
new processes of high volume production allow economies of scale (cost reductions). To benefit from these cost advantages, companies invested in:
Corporations in different industries and economic sectors organise this differently for a competitive edge
The new systems for remote management and increase cost efficiency have led to;
Rapid growth of logistics and distribution solutions industry
Global Corporations focus on a few key strategies
Spatial separation between high-order business activities - research,marketing - located at HQs in stategic positions. Low-order activities - production - based in low production cost locations or in proximity to markets for the finished goods
For greater efficiency some companies use the Just in time technique, costs are cut by reducing the quantity of goods in stock
parts are also supplied just in time to produce goods
It involves producing and delivering goods just in time to get sold
An example is that the fashion industry is reliant on fast transport from suppliers to have the short lead times necessary to be present in disparate markets
Investments organised with the global value chains, where the different stages of production process are located across different countries
global capable management
Global marketing and distribution networks allow sales to keep pace with increase production
large production and assembly plants with technology like robotics in the automotive industry
improved transport and communication systems has lead to a production revolution changing how companies manufacture and distribute products
financial transactions between traders are quick and secure
Deregulation allowed arrangements for the removal or relaxing financial movement barriers
Historically, trade was hindered by problems in exchanging finance for goods
faster and in more quantities because:
high speed rail networks
containerisation
low cost airline and air freight
increased size of aircraft
Agreements
Multilateral agreement - An agreement negotiated between more than 2 countries or trade blocs at the same time
Bilateral agreements - An agreement on trade that is negotiated between 2 countries or 2 trade blocs
Trade deals are assessed by looking at how successful they are in reducing barriers like tariffs
In 2011the rich OECD group studied 55 regional trade agreements to discover if barriers to agricultural produce were lowered
in these deals NEEs the proportion had increased from 28% to 92% which demonstrates that regional trade agreements can lower barriers
deals between the rich and emerging economies had lifted the traded duty-free goods from 68% to 87% over 10 years
Possible Disadvantages:
economic sectors can be damaged by having to share resources
pressure to adopt central legislation
loss of financial control to a central authority like a bank
loss of sovereignty
There are a number of advantages to trade blocs:
can lead to more economic, social and political intergration
Regionally:
spreads democracy and human rights
raises standards in education and healthcare
supports particular sectors of a national economy
Possibility of developing a common currency
groups to negotiate trade advantages with other groups
allow people seeking work to move between countries easily
freedom of movement of trade
bigger representation on global affairs
compete on a global level with others
Globally:
Develops economies and standards of living
Increase in global trade
Global peace
Not all trade agreements are regionally based like OPEC which focuses on the trade of oil globally, the most traded commodity
There are various forms of trade groups:
economic or monetary unions like the EU
Example is the UK is part of the EU economically and politically but not monetarily as we aren't part of the eurozone
common markets
A group formed by countries in geographical proximity where trade barriers are eliminated
customs unions
Refers to trade blocs which allows free trade within themselves, but impose a common external tariff
free trade areas
Where the trade barriers between the states are eliminated but external members are still taxed
Since 1950, trade agreements are formed by countries joining together to form trade blocs
NAFTA - North American free trade agreement
Disadvantages
Food surplus from the USA and Canada result in low prices affecting the agricultural economy in Mexico
US firms move to Mexico resulting in job loss
Canadian companies have closed due to competition
Improve co-operation
increase investment opportunities
Mexico receives foreign investment
Promote economic competition
Aims to eliminate all trade barriers
Trade between member countries tripled between 1993 and 2007
OPEC - Organisation of petroleum exporting countries
APEC - Asia-pacific economic co-operation
UEMOA - West African economic and monetary union
EU - European union
AFTA - Asian free trade association
EFTA - European free trade association
Information
the more flow the more interconnected the world is as everyone can learn about everyone and thing without leaving their own countries
been made accessible due to technological advances like email and internet
the flow of financial data and new
Services
Services are split
Low level
situated in LEDCs because of cheap labour
eg. Customer Services
High level
situated in MEDCs cities
eg. Financial
In the 1970s and 80s deregulation occurred (the removal of rules to increase competition) which opened national financial markets due to easier international business
Improvements in ICT allow services to become global industries as they depend on good communication and information transfer
These are the economic activities not involved in material goods - like banking
Products
The flow of products has resulted in international trade
Overtime, Manufactures have relocated over seas to LEDCs and export their products due to cheap labour and less regulations
Historically, manufactures have developed in MEDCs and the products produced were sold where they were made
labour
The increasing flows of people interconnect countries and especially cultures
Some low-skilled workers move to MEDCs due to unemployment in LEDCs
Some high-skilled workers mover to MEDCs for better work wages and working conditions
recently there has been more international migration due to;
Conflict
Better work opportunities
Movement of people in the workforce from one country to another
Capital
Increased flows means more interconnection as countries economies rely on flows of investment between countries
Improvements in ICT encourage the international flow of currencies as money can be transferred instantly
Cryptocurrency
Bitcoin
Time scale
Overtime, capital has been invested in foreign countries
FDI = Foreign Direct Investment
Historically, capital was invested into its own countries
Capital is money that is invested
Patterns of production, distribution and consumption
Distribution and consumption
Patterns are changing, as NICs develop their more affluent populations demand for similar consumer products. There are predictions for the patterns;
Western Financial companies have opportunity ti benefit form the the expansion of trade in the Asia-Pacific region
Fastest growing trade route between India and China
consumption still mainly remains in HICs, so products manufactured in NICs are exported
Example is that Dyson is a UK-based manufacturer but it moved its bulk assembly and manufacturing factories to Malaysia but still sells the bulk of it's products in the UK and Europe
Production
Transfers of technology made by TNCs enable the developing countries to increase their productivity without raising wages
Decentralisation has occurred due to FDI by TNCs in developing countries. Lower land and labour costs encouraged TNCs to relocate the production side of their business - Global Shift
Factors affecting the location of companies;
Access to large markets without tariffs or trade barriers through trade agreements
Government incentives like tax breaks
The building opportunity with new tech
Availability of a skilled and educated workforce
A consequence of Global shift has been deindustralisation of richer countries and a loss of jobs in the manufacturing sector
Example is the UK, where employment in this sector fell by 50% between 1983 and 2013. More than 50% of all manufacturing jobs are located in developing countries
Historically, manufacturing was concentrated in western economies and America - products consumed in countries of origin
It involves treating the world as a single market with one strategy for advertisement
Despite this advertisement is still regionally adapted for different cultures
It also creates brand awareness
Economies of scale, which means its cheaper to have 1 global marketing campaign than 1 for every individual country
Global due to the ability to export and import
This is the process of promoting and selling products or services
