Bricks 3 chapter 1

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AardrijkskundeMiddelbare schoolhavoLeerjaar 3

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Globalisation
The process by which the world is becoming increasingly interconnected.

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History of globalization (NOTE!)
Old Empires
Darks Ages / Medieval Period
Renaissance / Enlightenment
Industrial Revolution

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Global culture?

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absolute and relative distance

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Time-space convergence

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Three factors for globalisation:
1 transportation technology:
all tools and machines that are used in the movement of people and goods

containerisation: standardised transport



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2 Information and communication technology

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3 free trade

trade barriers

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International division of labour

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Transnational corporations
  • A transnational corporation (TNC) or multinational is a company with branches in more than one country.
  • TNCs increase globalisation by linking together countries through the sales of goods on the one hand and through the production of goods on the other. 
  • This network of economic activities that covers all the steps to produce finished goods is called the supply chain.

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Supply chain
The production of goods can be split up in different steps:
- R&D (research and development)
- Manufacturing
- Distribution and sales

TNC's often choose to do some parts of the manufacturing process in other parts of the world e.g. Asia

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Stages of the supply chain
The supply chains of most goods will go through three different stages: 
  • Raw materials.
  • Intermediate goods.
  • Final goods: these are goods that are directly used by consumers. Most final goods have been manufactured, which means they have been processed in a way. Examples are: sneakers, jeans, T-shirts, smartphones, notebooks, cars and so on.

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Offshoring = The relocation of parts of the supply chain from one country to another.

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