Global marketing; patterns of production, distribution and consumption.
Terms in this set (...)
The action or business of promoting and selling products or services, including market research and advertising.
A type of product manufactured by a particular company under a particular name e.g. Coca Cola or Apple
A collection of different companies or organisations that all report to one parent company e.g. Unilever
Economies of scale
The cost advantages that a business can exploit by expanding their scale of production. The effect is to reduce the average (unit) costs of production.
Example of a TNC with a common single product with reasonable uniform bottle design and common ingredients.
Example of a TNC that changes its products to fit the market it is in with the local culture (glocalisation) e.g. In India they make the Aloo Tikki Burger, a burger with a cutlet made of mashed potatoes, peas and flavoured with Indian spices
NEW International division of labour
Term to explain the spatial shift of manufacturing industries from advanced capitalist countries to developing countries
OLD international division of labour
Existed until around 1970, underdeveloped areas were incorporated into the world economy principally as suppliers of minerals and agricultural commodities to richer areas
Have largely highly skilled, decision making research and managerial occupations which earn more money
Have largely poorly paid assembly occupations and agricultural or mining work
Brazil, Russia, India, China & South Africa were recognised for the rapid growth in 2001
Mexico, Indonesia, Nigeria and Turkey were coined the next batch of growth economies in 2014
Newly industrialised country is a country in which development has been rapid over its recent history. It is a socio-economic term in that countries are classified by economic factors such as GDP, and rapid GDP growth rates, but also improving social factors such as life expectancy and education levels.
Asian Tiger Economies
4 Asian nations that developed rapidly in the 1960s and 70s including Hong Kong, Singapore, Taiwan and South Korea. All 4 countries managed to maintain HUGE economic growth rates of over 7% every year and had very rapid industrialisation.
Hong Kong and Singapore
Have become world-leading international financial centers
South Korea and Taiwan
Are world leaders in manufacturing information technology.
Of manufacturing production took place in Western Europe, North America and Japan in 1954
Foreign Direct Investment
Investment made mainly by TNCs based in one country, into the physical capital or assets of foreign enterprises.
Companies that operate in more than one country. They often have factories in countries that are not as economically developed because labour is cheaper and the costs of production lower. Offices and headquarters tend to be located in the richer nations.
Transfer of technology
The movement of ideas and machinery around the world facilitated by TNCs, allows productivity to rise in poorer nations
The movement of economic activity from MEDCs initially to lower wage NICs and more recently to LEDCs (especially in Asia and Latin America). Initially in the 1960s this was a movement of manufacturing activity, but since the 1990s, service activity has been involved.
A consequence of global shift, where jobs in manufacturing are lost in richer nations
The fall in manufacturing jobs in the UK between 1983 and 2013
Of all manufacturing jobs are now in the developing world
Factors affecting location of manufacturing
Skilled and educated labour force, technology, land for factories, government incentives, access to markets (with no trade barriers)
Good example of the shift in car production, located in Sunderland due to skilled labour force, government incentives and tariff free access to the European Market (for now)
The buying and use of products, occurs predominantly in the richer countries of the developed world
Why is the pattern changing in consumption?
Emerging NICs are starting to demand similar consumer products to those being exported from their countries as they become more affluent
The growth area in terms of product consumption, globally there is a shift from west to east in terms of product consumption