globalisation and global trade

by:Rocket PCB     2019-11-15
Global trade is the result of uneven distribution of materials and resources around the world.
No country has everything it needs, so countries need to trade with each other.
Countries that depend on each other in trade in goods and services are interdependent.
Sometimes, countries have joined forces to help increase the volume of trade.
The EU is an example of a trade bloc (Or trade group).
The global trade pattern is uneven, because most valuable trade occurs between countries with more developed economies (MEDCs)
Low import of MEDCs-
Commodity value in less developed countries (LEDCs)
There is very little trade between LEDCs, in part because they may trade similar products from newly industrialized countries (NICs)
Play a greater role in world trade. Many trades are carried out through multinational corporations (TNCs)
Having a headquarters in one country and operating multinational corporations or multinational corporations in many countries (MNCs)
It is a company operating in more than one country.
They often have factories in economically underdeveloped countries because the labor force is cheaper.
Offices and headquarters are often located in a more developed world.
Unilever, McDonald\'s and Apple are examples of multinationals.
There are advantages and disadvantages when multinational companies are located in a country.
The advantages of multinational companies in a country include: creating stable work income, more reliable than improving investment in education and skills in infrastructure, such as new roads --
Helping locals and TNChelp to develop natural resources to build a more developed economic base for the disadvantages of multinational companies located in a country, including: fewer workers are employed, taking into account the size of the investment, poor working conditions neglect local laws and harm the environment. Profits go to companies overseas rather than local reinvestment.
If labor costs increase, the company may move to other places where there is a surplus of human resources
Global chain products have a series of stages from design to purchase.
Each link in the chain can happen in one location or spread globally.
Big companies usually have very complex chains.
A company may also outsource some products to pay part of the product to another company.
For example, HP laptops are assembled and sold in Kunshan, China.
Manufacturing of printed circuit boards for each laptop (PCB)
Outsourcing to a company in Penang, Malaysia
This is the first level of outsourcing.
The PCB requires components such as memory chips or cooling fans.
These products can be purchased from other factories and companies in Malaysia.
This is called the second floor of outsourcing.
Because even the wires, screws and plastics used to make each component need to be purchased separately, there are additional outsourcing layers.
Interactive graphics outline a simple global chain.
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