Reflecting and consolidating

Chapter summary

• Globalisation is the integration of national economies and societies.
• The principle of comparative advantage is a major driver of globalisation.
• Globalisation has accelerated in recent years due to developments in technology and government deregulation.
• A supply chain is a system of organisations, people, resources and information involved in getting a product or service from suppliers to consumers.
• Supply chain management needs to address:
  • labour costs
  • exchange rates
  • tariffs
  • time.
• Decisions need to be made about outsourcing, supplier selection and location.
• Workers, employees, consumers and governments are all important in supply chain management.
• Transnational corporations play a significant role in the global supply chain.

Interactive activity

Key terms

Short-answer questions

1. Define globalisation.
2. List and explain two ways you participate in the global economy.
3. Explain the following concepts:
   1. sustainability
   2. multinational corporation
   3. transnational corporation
   4. supply chain.
4. Outline the role of consumers and producers in the supply chain.
5. Describe how large multinationals have to manage all stages of the production process.

Extended-response question

Write a letter to the editor of your state or local newspaper discussing the topic of whether Australians should buy only Australian made and owned products.

After you have completed the letter, design and produce a poster or pamphlet giving people information about Australian owned companies (the Dick Smith Foods website at www.cambridge.edu.au/hass9weblinks is a useful starting point).