Companies working globally
We are all conscious of what we buy, but do we really know the effects of buying these goods. There has always been the debate of whether we are doing harm to ourselves and others when buying expensive designer goods with the popular ‘logo’. Branded goods are goods, often known to us as the clothing we wear, which bear a company name or trademark and are often expensive and considered to have an extra mark of prestige.
There are various different goods like clothing, which are made globally which is a subject I will cover later, and they are worldwide recognised names on the clothes we buy for example; Adidas and Prada which are known all over the world and the process it goes through to finally reach the buyer is often a hassle to many. The question though is whether the logo really matters. Should we all be drawn into buying the branded goods and not bother to find out what it does to others? You may be thinking that harming others through buying expensive branded goods is not possible, but there is one way; Globalisation.
TNC’s also plays a large part in globalisation. A TNC is a transnational company. If
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The role of TNC’s in globalisation is key and I will talk more about that later. Now I am going to talk more about what exactly globalisation is. Globalisation is the way that companies like Nike, ideas, lifestyles and people are spreading around the world to a global level. It is where everything from trade to clothing companies are growing by an international level and are working globally and not situated in one country. Many examples of Companies working globally are: Nike, Adidas and other companies which may not necessarily be in the clothing business. These are usually referred to as TNC’s or transnational companies.
To simplify, globalisation is the way companies, ideas and people’s lifestyles and trade are moving round the world easily and rapidly. You may think at this point why this happens? Well to put it in perspective there are two main reasons. One reason is that have been leaps and bounds in he evolving of our technology understanding. The development of technology has enabled us to allow people, goods, money and even ideas and information to travel and spread around the world, very fast and very easily. Freedom of worldwide companies is another reason for globalisation.
Trade levels between different parts of the world, which can be through LEDC’s and MEDC’s are increasing rapidly. Another reason for this freedom can be put down to the governments as the laws on trading are not harsh are quite flexible investments can be made at an international level which is a large factor in globalisation as investments is a large part. Globalisation ion this way may help LEDC’s which means MEDC’s may invest in the poor countries and therefore the poorer countries are growing and the development gap is closing and that globalisation in this way is helpful.
Globalisation affects everyone and everything we do, from what we eat to what clothes we wear. Globalisation does not make us do any of these but it may influence us on what to eat, as we are more likely to buy KFC rather than the fried chicken place ‘down the road’. Globalisation can also be links to other countries as it means that TNC’s make goods and are sold worldwide which provides the link. To clarify the link is for example, if jeans were made in Africa and bought in the USA there is a link between the people who bought it and Africa.
This is globalisation. Nike has various factories all over the world and Nike goods can be made almost anywhere. Globalisation has been about us for around 500 years but there has been a dramatic speed up and increase in the growth of globalisation in our world, in the last 50 years. There are various reasons the process we call globalisation has rapidly progressed. The main reasons are transportation, telephone or communication, internet and television. All these are involved in the speed up of globalisation.
Transportation helps to transport various people and items, which means imports and exports, to various different paces, and transport through means of ship, cars and planes are quick and easy. This means many can come to other countries to earn a living in better conditions. This is all a part of globalisation and growth of how we live. Globalisation seems to be very handy and pushing us in the right direction, so why is it bad? Well it is bad in the way it affects factory workers and those in poor countries but I will go into more depth later. The other means like telephone and internet help to connect to others.
Now let’s look at TNC’s again. Nike is a large TNC. Millions of people around the world know Nike and buy the clothes because they see the logo, the Nike ‘tick’. But is buying the well known good with the logo always a good thing? Companies who are TNC’s like Nike who make branded goods are only worried about one thing their company and its profits no matter who it affects and how it affects them. TNC’s have so much power through knowledge of the public, and they are becoming bigger and larger and this will continue if globalisation continues as it has but if it does the poor will not benefit.
Most TNC’s are based in the richer countries or MEDC’s like the UK or USA. The growth of the TNC’s is shown in the 50,000 Nike shops in around 150 different countries. TNC’s are great influences as Nike is a brand more likely to be bought than Gola a less famous company. TNC’s are also making money from poor countries as they take advantage of their situation and can receive cheap labour and invest in a poor countries raw materials for the business. In this way the MEDC’s are getting richer and the TNC’s are profiting whereas the LEDC’s are not benefiting.
TNC’s benefit as they can hire people for as like as 50p a day for hard work, and employ people who may live in sweatshops, although this is recognised as a wrong thing it is benefiting the company. This is a reason for factories based in poor countries; for cheap labour and shops in rich countries to make the money. Workers are forced to work in factories because the result will be they will not earn any money if they don’t so poor factory workers are stuck with their jobs but factories in poor places does help in the way that it provides more jobs.
Large TNC’s make money by employing poor workers who live in bad conditions, like 20 hours of work a day and short breaks for low pay, these workers live in sweatshops. This earns these large companies money. All of these are reasons for and against globalisation. They include reasons that effect the environment, economy, social lives and to an extent political and ethical issues. All of these help to gather whether globalisation is right or wrong. And it also helps to decide if buying the logo is good or bad.
Globalisation influences everything we do from what we wear to what music we listen to but the question is, is globalisation right or wrong? There are many good points on globalisation and many that benefit the TNC’s. This is what helps the world we live in to evolve as well as helping others and keeping a link with others. I personally as ,a magazine writer I believe that globalisation is right and wrong, and let’s face it, it also effects you in the way that you may not be reading this magazine right now if it were not for globalisation.
Everything globalisation effects has something to do with you. It is wrong in the way that it affects the poor in a way that it helps the richer countries like Nike one of the largest TNC’s helps the USA as it has its headquarters there but does not help the UK so much. It benefits the MEDC’s in a way that the LEDC’s just end up losing again. Globalisation is not fixed and many things should be changed. TNC’s do not care about what the losses are as long as they profit. There should be stricter rules and the wealth should be shared.
TNC’s and globalisation should help to close the development gap but it is going the other way. We must use globalisation in a way so it benefits everyone. All in all I think that globalisation is essential and we need it to carry on with the development of the world. As for the logo, many buy it as TNC’s have a great influence. Everyone should be treated with respect, in MEDC’s and LEDC’s so we must change globalisation for the better. Now the logo is always an extra and the logo is a perfect example of how it influences people and for young kinds it is a part of growing up but it is up for you to decide.