3.4 Shift Of Global Economic Centre Flashcards
What does global shift mean
The relocation of different types of industry, particularly manufacturing, through offshoring, outsourcing and business start ups
What are social benefits of the global shift to China
- as wealth has increased education is now free and compulsory for 5-15 year olds
- literacy rates have risen from 20% in 1950 to 85%
- scored first in the world on the 2019 PISA testing (reading, maths, science etc)
What are economic benefits of the global shift to China
- poverty rate fallen from 85% to 10%
- urban incomes increasing by 10% per year
- better infrastructure eg railways to all cities and provinces and the bullet train
What are social costs of the global shift to China
- 1/3 breathe unhealthy air due to high pollution
- when labour costs increase TNCs will move out leaving people unemployed
- health and safety standards are low
What are economic costs of the global shift to China
- economic leakages
- loss of productive farmland due to leaching (40% suffers form degradation)
What are environmental costs of the global shift to China
- over exploitation of coal resources leads to pollution eg Linfen was once named the most toxic city in the world
- loss of biodiversity
- 70% of lakes are considered polluted
What is the Apple Factory in China
- the factory where many Apple products are made
- outsourced manufacturing to Foxconn
- surrounding area now known as Apple City
What are the negatives of the Apple Factory, China
- child labour for children as young as 14
- unregulated / non existent employment laws eg overtime see as voluntary but if its not done employees can be fired
- staff housing is overcrowded and poor quality eg 8 people share a dorm and 200 share a bathroom
- workers exposed to toxic chemicals leading to them being hospitalised
What are the positives of the Apple Factory, China
- high concentration of workers creates positive multiplier effect as demand for services increases
What are economic leakages
A withdrawal from the economy that lowers the national income tax
Eg to foreign investors or through remittances
What are social benefits of the global shift to India
- good schools and universities especially in Bangalore
- malnutrition in children has fallen below 30%
- literacy rates have increased from 34% in 1990 to over 70%
What are economic benefits of the global shift to India
- broadband is exceptionally high in Bangalore and other tech hubs
- call centre workers earn middle class wages
- increased purchasing power
- IT services and product output employs 1 million people
What are social costs of the global shift to India
- increased in unsafe / unplanned settlements (slums)
- average price of a 95m^2 house is 90x GDP per capita
- shifts are often long hours at night, affecting the workers’ lifestyles
What are economic costs of the global shift to India
- inequalities increasing hugely
- more people in extreme poverty than in all of Africa
- economic leakages
What are environmental costs of the global shift to India
- bangalores lakes decreased from 100 to 17
- high congestion
- 2nd most polluted country in the world
- rivers classified as clinically dead due to industry
What is deindustrialisation
The decline of manufacturing industries in a region due to the global shift
What are the consequences of deindustrialisation
- dereliction
- depopulation
- rising crime
- high unemployment
How did deindustrialisation cause dereliction in Teesside
- abandoned buildings are repaired due to the cost
- took seven years to demolish the factory in Redcar
How did deindustrialisation cause contamination in Teesside
- 1,400 acres of industrial zones need to be cleared of hazardous chemicals
- presence of carcinogens, arsenic and cadium
- chemicals can leach into rivers and destroy ecosystems
How did deindustrialisation cause depopulation in Teesside
- Redcar is described as a ghost town
- charity shop high street is struggling
How did deindustrialisation cause crime in Teesside
- people made unemployed may turn to crime to make some money
How did deindustrialisation cause unemployment in Teesside
- increased by 16% in one year
- twice the national average
- house prices are 1/3 the national average
- 2,200 job losses on the plant and a further 900 in the supply chain
- not easily transferable skills
