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Coca-Cola in India

Coca-Cola in India. Know and understand how globalisation both helps and hinders development with reference to one case study from an LEDC or NIC. Where can I get a Coke?. The company sells over 400 brands in over 312 countries or territories.

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Coca-Cola in India

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  1. Coca-Cola in India Know and understand how globalisation both helps and hinders development with reference to one case study from an LEDC or NIC.

  2. Where can I get a Coke? The company sells over 400 brands in over 312 countries or territories. 90 billion servings of Coke’s products are consumed each day

  3. A multinational Company A multinational company is one that operates in more than one country across the world. http://www.flickr.com/photos/lynns/110140674/

  4. characteristics... Apart from operating in more than one country, multinationals also have a number of other characteristics… Headquarters mostly in MEDC countries. Well-known brands Atlanta, Georgia, USA Huge Profits Large employers $24 billion dollars 71,000 people worldwide http://www.flickr.com/photo_zoom.gne?id=286819826&size=o

  5. Why global?

  6. The term globalisation is contested, a general definition is… Anincrease in the flow of goods, services, people, capital across national borders in order to create a more integrated and interdependent world economy. Basically the World is shrinking. http://en.wikipedia.org/wiki/Globalization

  7. FACTORS

  8. Advances in transport Improved transport means that people and goods can be moved around the world more quickly. Distance between places hasn’t changed, but the time needed to cover those distances has. http://www.flickr.com/photos/danoots/165294639/

  9. Communication and technology Improvement in technology, such as the internet, has meant that capital (money) can be transferred instantly between locations. People can also use telephones and the internet to communicate more easily in ‘real time’. http://www.flickr.com/photos/ldandersen/301812211/

  10. Development of mass media Improvements in technology have also lead to the development of a mass media, television, radio and internet, far off places now seem much closer… we can even see them in real time. http://www.flickr.com/photos/skooal/322346446/

  11. These factors have lead to increased interdependence between places… they also seem much closer than they did. http://www.flickr.com/photos/anjan58/1281306048/

  12. Why a global location?

  13. http://www.flickr.com/photos/blipfish/124908486/

  14. Bottled in 200 countries across the world. http://www.flickr.com/photos/jamesonroper/400400410/

  15. Manufacturing your product in the country you sell it has a number of advantages. http://www.flickr.com/photos/33924575@N00/677513608/

  16. Labour Costs Labour costs may be lower in some countries, especially LEDC countries. Low labour costs = higher profits. http://www.flickr.com/photos/thomasvr/2178131895/

  17. Manufacturing your product in the country it is sold reduces transport costs. Less transport = higher profits. Transport Costs http://www.flickr.com/photos/jungkumseok/2175023880/

  18. Legalisation Legalisation on working conditions, workers’ rights, health and safety, and the environment may be less strict in some countries. Relaxed legalisation = lower overheads= more profit. http://www.flickr.com/photos/22385378@N02/2171255668/

  19. Some countries may try to encourage multinationals to invest in their country by offering lower tax rates and financial incentives. More favourable taxation = lower overheads= more profits. Business conditions http://www.flickr.com/photos/dukeofism/2137719782/

  20. Increased tax revenues can be spent on the local community. And so on… Employees pay taxes Generates income for local businesses Employees have greater income. And so on… Coca-Cola employs people. Generates income for local suppliers Coca-Cola locates in an area Process of the positive multiplier effect. http://www.flickr.com/photos/ikayama/784139355/

  21. Market It widens your market. More consumers= more profit. http://www.flickr.com/photos/perverted_introvert/2197021334/

  22. The status of your brand is raised. More status = more consumers = more profit Brand Status http://www.flickr.com/photos/gunnarfreyr/2196432220/

  23. Producing your product in a country and adapting to the local market makes it seem more ‘local’. More local = more consumers = more profit. Local feel http://www.flickr.com/photos/liemtran/2184656873/

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