Bricks 3 chapter 1

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AardrijkskundeMiddelbare schoolhavoLeerjaar 3

This lesson contains 31 slides, with interactive quiz, text slides and 1 video.

Items in this lesson

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Global brands

Slide 7 - Mind map

The process by which the world is becoming increasingly interconnected.

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Early globalisation
Age of discovery - the period in which overseas exploration started to grow in popularity amongst European countries.

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Radical change: the industrial revolution

Change in which manual labour was replaced by machines.

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Global culture?

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A shrinking world?

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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 (ICT)

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3. Free trade

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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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Labour costs

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Revenue - costs

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

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International division of labour
- LEDCs: these countries usually deliver most of the raw materials
NICs: Assemblage. These countries often cover most of the manufacturing process (the factory work). Potential sales market
- MEDCs: the headquarters of TNCs, where the R&D, marketing and sales of the products is controlled.

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