PDF Document 3

Subject: HUMANITIES
Topic: Industrialisation to Globalisation

Grade: VII
Cambridge 2021
1920
Cambridge 2021 Industrialisation toGlobalisation
Industrialisation to Globalisation 1 25
1 of
Globalisation
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Industrialisation to Globalisation 2 of 25
Transnational
corporations (TNC’S)
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STARTER
Look at the photo –

what is it trying to
tell you?
What can you tell

me about this
jeans?
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Why go global?
• Thousands of companies have set up their branches around the world to
make things, sell things, or both.
• So why do companies go global? Because of this little equation.
cost
Revenue
- = profit
This is what is spent on

This is all the money making and selling them This is what company wants
company takes in from (the costs materials, in the end.
selling things wages, ads etc)
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Revenue Why go global?
The more the revenue the
better …….
cost
so that’s why we try to sell profit
all over the world.
The lower the costs
………………and advertise the better…… So that our directors
everywhere…
So we get things are paid more…
And if we are very clever made at poorer
countries where And stakeholders
with our ads … are happy too.
wages are low…
People like you feel You’ve
got to have our stuff..
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Transnational corporations (TNC’S)
Remember these?
These are all TNC’s

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Transnational corporations (TNC’S)
A transnational corporation is an enterprise that is
involved with the international production of goods or
services, foreign investments, or income and asset
management in more than one country.
Please note* A transnational corporation can also be referred to as a multinational

enterprise (MNE), a transnational enterprise (TNE), a multinational corporation (MNC),
an international corporation. There are subtle but real differences between these terms.
Multinational companies operate in more than one country and have a centralized
management system. Transnational companies have many companies around the world but
do not have a centralized management system.
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What are the characteristics of a TNC?
•TNC’s are companies that operate in more than
one country.
•They usually have their Headquarters in MEDC’s.
•They have factories and suppliers in LEDC’s.
•In 1990 there were about 30,000 transnational
companies. Today there are more than 60,000
with the number still growing.
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Some examples……
Watch video
https://youtu.be/Ourx95ng5uk
Based on the commercial, answer the

questions:
•Can you name the product? Cola- Cola
•Can you guess the country? Philippines
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Some examples……
The Coca-Cola Company is the world's largest
beverage company. Its operational reach
encompasses + 200 countries. It has more than
1.9 billion serving a day.
Did You Know?

There are now just two countries in the world where Coca-Cola cannot be bought or sold - at
least, not officially. They are Cuba and North Korea, which are both under long-term US trade
embargoes (Cuba since 1962 and North Korea since 1950). – BBC NEWS sept 11, 2012.
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1920
Some examples……
The Iphones are assembled in China
Camera lens by Foxconn, an electronics
Taiwan company that is the one of the
(Largan Precision; Genius biggest employer of China.
Electronic Optical)
Iphone require trace elements of
Displays rare minerals found in China, for
Japan, South Korea example, indium oxide, that makes
your screen work as touch screen.
Microprocessors (internal)
South Korea (Samsung)
Task: Consider how mobile
phone allows you interact in
Metal Casings globalisation.
Taiwan Identify five applications on
(Catcher Technology; Hon Hai) your phone that connect to
Assembler globalisation.
China
(Foxconn)
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Negative
aspects of TNCs
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Rosa’s day
She lives in
Manila,
capital of the
Philippines
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Rosa’s day Worksheet 12
Rosa can hardly keep her eyes open. But she must, must, must concentrate. Otherwise she’ll pierce her fingers. Or
sew crookedly. If she does that, the supervisor will yell at her again.
She’s tired because she worked overtime last night. Until 2 am. She did’nt want to, but if refuse they sack you on the
spot. Everyone is forced to do overtime now for the big Christmas orders.
She dragged herself again this morning, at 7 am. To sew non-stop, all day long, the side seams for sport jogger.
Snatch a pair from the trolley beside you, slap them on a machine, race down each leg as fast as you can, throw
back on the trolley, grab another pair. On and on and on. By 8 her shoulders were aching. By 9 the heat was already
stifling. And still an hour to go till the toilet break, when he can escape from the clatter of 500 machines for 10
minutes.
She thinks sadly about her family and village, like she does every morning. She left home just after her 16th birthday,
5 months ago. She was so excited about the job. They’d promise she’d earn enough to send some home. But the
little amount she gets for a 12- hour day is hardly enough to live on, when they take out rent and lunch.
Overtime again tonight. At 2 am she will leave the sewing section and drag herself pasts the guards, down the path
by the barbed wires fence, to the room she shares with five others. Three bunk beds. No chairs. No wardrobe. She’ll
hang her clothes on the nails in the wall and climb into her bunk, too tired to talk to anyone.
Another working day tomorrow. It’s usually six days a week, but in this busy period it’s often seven. She's heard the
clothes sell for high prices in Europe – more than she will earn for a hundred hours of sewing. She often wonders
about the people who buy them. If they could see her, and her factory, what would they think?
She wishes she could give up and go home. But she can’t. She must earn, and there’s no work in the village.
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Worksheet 12
Based on worksheet, answer the following question:

1. Rosa usually works a 6-day
week, 12 hours a day. How
many hours a week is this?
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Worksheet 12
2. What do you think are the 3

worst things about Rosa’s
working conditions?
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1920
Worksheet 12
3. What do you think would
happen if:
a. The workers went on strike?
b. The government passed a law
that factories must pay higher
wages in that country.
c. Customers refused to buy from
the places where working
conditions are not good.
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1920
Just one of many………
Over half the clothing are sewn in LEDs by girls like Rosa. Many are
from rural areas, with little education, few other ways to earn a living.
Not all the clothes factories are bad. But there are many like Rosa’s,
where young women work in poor conditions, for very low pay. If the
factory has no orders they get no pay. They can be sacked without
warning.
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Global actions, local effects
•You saw how globalisation

affect people like Rosa, lets
see the other side of the
coin…
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Worksheet 12
Meet Annie
She lives in UK
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1920
Annie’s job takes flight
• This is Annie at her machine. Or rather, it was Annie at her
machine. But now the machine has gone. Annie’s job has taken
flight. Annie is unemployed.
• The factory where Annie worked belonged to Dewhirst, the Uk
clothing manufacturer. It has just closed two of its factories – with
a loss of 1000 jobs. These factories made blouses, jackets, trousers
and shirts, mainly for Marks and Spencer.
• In fact 90% of what Dewhirst makes is for M& S. And that’s the
problem. Over the last few years, M & S has lost customers, and
suffered a big fall in profits. So Dewhirst’s profits have slumped
too.
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Annie’s job takes flight
•Now, Dewhirst says it must cut costs to survive. It will still
produce for M & S – but overseas. It is moving production to
countries like Morocco, Indonesia and Malaysia, where costs
are lower.
Not Annie’s fault
•A spokesman for Dewhirst said: ‘These closures are no
reflections on UK employees. Their work has always been
first class’. High praise, But it probably won’t make Annie
feel any better.
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Worksheet 12
Based on Annie’s story, answer the

following question:
• What is the impact of TNCs in more
developed countries?
• Is there a solution to this problem?
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Task
•Based on Rosa’s and Annie’s case study,
can you name any three advantages
and three disadvantages of TNCs.
Cambridge 2021

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Subject: HUMANITIES

Topic: Industrialisation to Globalisation

Look at the photo –

What can you tell

This is what is spent on

These are all TNC’s

Please note* A transnational corporation can also be referred to as a multinational

Based on the commercial, answer the

Did You Know?

Based on worksheet, answer the following question:

Based on worksheet, answer the following question:

2. What do you think are the 3

•You saw how globalisation

Based on Annie’s story, answer the

• Is there a solution to this problem?

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