Mind Map Globalization

Extended Triad :

: New poles of globalization

: Main poles of globalization

Legend :

the supply chain of a computer

Saudi Arabia repartition exports in their GDP

- petroleum exports contribute to 39.93% of their GDP - it helped the country emerge

emerging thanks to hydrocarbon exports

Geographical Proximity with a powerful state: Some countries get economical avantages thanks to their proximity to an a more powerful states such Mexico which is next to the USA.

Importance of sub-contracting the delocalization of a production helps diffuse activity in different countries, and then they can be more into globalization

As you can see on the picture at the right, there is hotels where tourists passed their hollidays.

Tourism is a good tool to develop economy: As we can see, in Maldives, the tourism and travel industry contribute to 32.5% of the GDP It is almost a third of the GDP. Thanks to this, the country can live better

Growth of Inudstrialization: There is some New Industrialized Coutries (NIC) as South Africa, Brazil, Phillipines, Tailand, Turkey,... For example: In 2018, The Phillipan's GDP growth of 6,2 % over a year.

Emerging countries

TransNationalCorporationToday, we are going to talk about the TransNational Corporation, also known as TNC. TNCs are companies that control businesses in several countries. There are around 80,000 TNCs in the world today. To establish themselves abroad, TNCs make Forreign direct investment or FDI. This enables them to divide up the stages of their production and locate them according to their needs and the advantages of each country. There is an international division of labor: developed countries such as France and the United States produce and trade high-value-added technological products, which are complicated to produce and therefore expensive. Emerging countries, on the other hand, produce less complex manufactured goods. Less advanced countries are not very present in this international division of labor; they essentially supply raw materials.The American company Apple is a perfect example of the TNC concept.The product is designed in the United States, more specifically in California's Silicon Valley. Engineers work and think about the product, innovating by creating new functions, for example. Then the raw materials have to be extracted, depending on the resources available in each country, so this is not possible everywhere. So Apple has set up subsidiaries in several countries, including the DRC and Zambia, as well as Australia and South America, to extract lithium, cobalt and other necessary raw materials. These raw materials are then shipped to subsidiaries producing the main components, such as screens, batteries, processors, etc.The manufacture of these components already requires fairly complex industries, which is why most of the factories are in developed countries in Europe, the USA and China. Then it's time to assemble the various components. This is a very important stage, because it's where the iPhone really takes shape. It is carried out in China by private companies such as Foxcom. Finally, all that remains is to distribute the Iphones to everyone. Apple has 528 Apple Stores in 26 countries. The production of an iPhone is therefore carried out on a global scale and covers thousands of kilometers, crossing several countries. So it's clear that the value chain, i.e. the various stages of production, are spread across many countries, and that Apple is a TNC.

Accesibility and attractivity :

Even if globalization is creating complementarity between global cities due in particular to the fact that the economies of the countries are specialized, which creates interconnections and interdependance. But in the end it creates more competitivity than complementarity. For example, the creation of free trade zone (special economic zone not subject to customs duty) like in Dubai creates a competition to try to recruit new foreign investors and start-ups. The center og high technology (ex : Silicon Valley) which are inclding universities, reasearch center and social media are trying to attract people and news big firms. Finally the GDP per capita is pushing differents economies to competition (ex : the highest GDP per capita in the world is the Zurich Metropolitan Area in Switzerland).