1.3 International division of labour

Globalisation
1.3 International division of labour
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Globalisation
1.3 International division of labour

Slide 1 - Diapositive

At the end of this lesson you are able to:
  • Describe the different stages of a supply chain of a transnational corporation;

  • Explain what sort of country usually is responsible for each part of the supply chain.

Slide 2 - Diapositive

Slide 3 - Vidéo

Flashback 1.2

Explain which three main developments made globalisation possible

Write a short story about it.
Use the words on the right

-Time-space convergence
-Intermodel transportation
-Containerisation
-ICT
-Trade barriers
-Mainport
-Hinterland

Slide 4 - Diapositive

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.

Slide 5 - Diapositive

Stages of the supply chain
The supply chains of most goods will go through three different stages: 
  1. Raw materials: these are unprocessed or minimally processed goods. Raw materials are gathered through agriculture, mining, forestry or fishing. Examples are: crude oil, raw cotton, wood and ores like iron ore, gold ore or coltan.


Slide 6 - Diapositive

Stages of the supply chain
The supply chains of most goods will go through three different stages: 
  1. Raw materials
  2. Intermediate goods: these are processed goods that are used as input in the production of other goods. Intermediate goods are not directly sold to consumers, but to other manufacturers instead. Examples are: the plastics that are used in a toy, the steel that is used in a bicycle and the wood that is used to make furniture.

Slide 7 - Diapositive

Stages of the supply chain
The supply chains of most goods will go through three different stages: 
  1. Raw materials.
  2. Intermediate goods.
  3. 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.

Slide 8 - Diapositive

After extraction, the raw material natural rubber is first processed into intermediate rubber sheets, which can be converted to final goods like car tyres.

Slide 9 - Diapositive

Slide 10 - Diapositive

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

Slide 11 - Diapositive

Slide 12 - Vidéo

Who does what?
International division of labour generally looks like:

  • LEDCs deliver most of the raw materials that are necessary in a supply chain. Relatively simple processing of raw materials is often done here.
  • NICs often cover most of the manufacturing process (the factory work). They collect different intermediate goods and assemble them.  These countries are potential sales markets for the TNCs.
  • MEDCs: the headquarters of TNCs are typically found in MEDCs, where the marketing and sales of the products is controlled. There are also huge sales markets.

Slide 13 - Diapositive

Assemblage refers to the process of combining separate parts (often different intermediate goods) into one product.

Slide 14 - Diapositive

Essence
The developments in technology and ICT have enabled companies to act globally. Many corporations are now transnational corporations (TNCs) and have supply chains that cover many different countries. TNCs locate the different parts of their supply chains in the countries with the lowest costs. This has led to an international division of labour in which MEDCs focus on design, sales and marketing, while the process of manufacturing and assembling takes place in NICs and LEDCs focus on providing raw materials and simple manufacturing activities.

Slide 15 - Diapositive

LEDC's
NIC's
MEDC's
Production
Design and marketing
Assembly and Distribution

Slide 16 - Question de remorquage

Do you need any extra help or explanation?
Please write down the terms you don't understand yet.

Slide 17 - Question ouverte

To do:
Chapter 1.3 exercises 1 to 5

Interested? Check the book. Look for signs of globalisation in it!

Slide 18 - Diapositive

At the end of the lesson you will
-be able to place the terms of paragraph 1.3 in a mindmap
-Check all your answers of paragraph 1.1 to 1.3.

Slide 19 - Diapositive

Homework was 1.3: 1 to 5
Questions?
now do exercise 6 to 9. 

Done? start assignment.
                                            >>>>>>>>>

Slide 20 - Diapositive

Assignment
Clip all the terms of paragraph 1.3 from the sheet

Try to connect them. You may use the arrows to do this.

Try to use them all.

Slide 21 - Diapositive