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3.b Flashcards

1
Q

what is globalisation?

A

the growing integration and interdependence of people’s lives in a complex process with economic, social (cultural), political and environmental components

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2
Q

what is new international division of labour?

A

reorganisations of production at the global scale, as a result of deindustrialisation in advanced countries and the global spread of MNCs
this has produced an overall pattern of higher paid managerial jobs in ACs and lower piad labouring jobs in LIDCs

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3
Q

what is the global shift?

A

the locational movement of manufacturing production in particular from ACs to EDCs and LIDCs from the 1970s onwards

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3
Q

what are the most relevant flows and players involved in globalisation in terms of economic changes?

A

TNCs/supranational organisations
governments
remittances
containerisation of shipping
the internet

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4
Q

what is economic restructuring/structural economic change?

A

the change in proportions of people working in various economic sectors
e.g. the change in ACs from secondary to tertiary employment

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5
Q

why do countries change from the SECONDARY sector?

A

mechanisation leads to manufacturing
it is, however, cheaper to manufacture overseas and then import them (e.g from China to UK) as there is a lower minimum wage
leads to deindustrialisation of the country importing

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6
Q

why do countries change from the TERTIARY sector?

A

higher paid jobs mean people have more money to spend
education has increased = higher skilled workers

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7
Q

why do countries change into the QUATERNARY sector?

A

higher paid jobs mean people have more money to spend
education has increased = higher skilled workers
technological innovation and growth

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8
Q

how does the primary sector change a place?

A

industrialisation = people move away from rural areas and lower paid jobs
services decline and businesses don’t move in due to a lack of people
leads to rural decline

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9
Q

why do countries change from the PRIMARY sector?

A

as a country develops, farming/fishing/forestry/mining becomes more mechanised
therefore fewer people are required
also, with globalisation, it is cheaper/easier to import raw materials from overseas which can be manufactured/consumed in the more developed place
higher paid jobs emerged

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10
Q

how does the SECONDARY sector change a place?

A

as a country moves from EDC to AC, deindustrialisation occurs
seen in the UK in major cities
it leads to inequality, poverty, deprivation, reduction in life expectancy and rise in unemployment
the negative multiplier effect occurs as there is less money being invested in the place
the built environment becomes run down, opportunities disappear and often that leads to a lack of motivation/aspiration which affects education levels
these areas become poor and land becomes cheap, which does mean that in the future they are cheap places to develop new industry if it can be attracted in.

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11
Q

how does the TERTIARY/QUATERNARY sector change a place?

A

businesses move in
high paid jobs = more local spending = increased value of the area
e.g. Bath/Bristol Science Park

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12
Q

what does structural economic change mean?

A

a change in the economic opportunities in a place
this could be new industry setting up (e.g. growth of tertiary sector) or industries closing down (e.g. deindustrialisation)

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12
Q

how does structural economic change impact opportunities and challenges?

A

the key idea is that for many places, there has been traditionally one major industry and this has created jobs and developed the positive multiplier effect.
this could be secondary (e.g. a massive car factory like Nissan in Sunderland)
tertiary (e.g. a hospital/school e.g bath)
or quaternary (a science park like Cambridge)
places rely on large investment from major industries (usually TNCs) to build an economy. if an industry leaves, it can lead to negative multiplier effect
the most successful places are often ones that have a range of different industries, therefore losing one doesn’t mean that the economy of the entire place collapses.
- the key thing is to recognise that some structural change is positive and some is negative

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13
Q

what are the positive impacts of structural economic change in ACs?

A

cheaper imports of all labour-intensive products keeps cost of living down
greater efficiency releases labour for higher productivity sectors
growth in LIDCs may lead to a demand for exports from ACs
greater industrial efficency should lead to development of new technologies, promotion of entrepreneurship and attraction of FDI
loss of mining and manufacturing industry can lead to improved environmental quality.

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14
Q

POSITIVE MULTIPLIER EFFECT

A

establishment of large manufacturing plant
expansion of local job opportunities and population
inflow of businesses and capital to satisgy increased local demand - secondary and tertiary development
substantial rise in income per capita incomes
higher tax base increases local government spending power
improvement of physical and cultural infrastructure

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15
Q

what impacts on a place would occur if the large industry was to close down or relocate?

A

DEINDUSTRIALISATION
- loss of jobs
- businesses and services degrade/move away
- rural degredation

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16
Q

what are the negative impacts of structural economic change in ACs?

A

rising job exports leads to inevitable job losses
job losses are often of unskilled workers
big gaps develop between skilled and unskilled workers who may experience extreme redeployment differences
employment gains will only occur is industrialised countries can keep their wage demands down
job losses are invariably concentrated in certain areas and certain industries. this can lead to deindustrialisation and structural unemployment in certain regions
branch plants are particularly vulnerable in times of economic recession as they are the first to close, often with large numbers of job losses.

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17
Q

what are the negative impacts of structural economic change in EDCs and LIDCs?

A

unlikely to decrease inequality as jobs tend to be concentrated in core region of urban areas. may promote in-migration
disruptive social impacts e.g. role of TNCs potentially exploitative and may lead to sweatshops. also may move in on LIDCs too, leading to instability
can lead to overdependence on a narrow economic base
can destabilise food supplies as people give up agriculture
environmental issue associated with over-rapid industrialisation
health and safety issues because of tax legislation

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17
Q

what are the positive impacts of structural economic change in EDCs and LIDCs?

A

higher export-generated income promotes export-led growth. promotes investment and potentially leads to a +ME nationally
can trickle down to local areas with many new highly paid jobs
can reduce negative trade balances
can lead to exposure to new technology improvement of skills and labour productivity
employment growth in relatively labour-intensive manufacturing spreads wealth

17
Q

explain structural economic change

A

as countries develop they progress through primary, secondary and finally tertiary dominated industries (most advanced countries develop a quaternary sector)
within countries, certain regions will benefit from these changes and certain regions get left behind (i.e. rural areas as places industrialise, or big industrial cities as places move towards a service sector economy)
this change is STRUCTURAL ECONOMIC CHANGE, and it will create opportunities for some people in some places and cause inequalities to grow for other people in other places

17
Q

KEY POINT STRUCTURAL ECONOMIC CHANGE

A

a key point to remember is that Structural Economic Change is a spatially uneven process
i.e. it will affect different places in different ways, meaning that across a country it creates high levels of inequality (e.g. N/S divide in the UK)

18
Q

what is cyclical economic change?

A

just means the economy goes up and down (‘booms’ and ‘busts’)
all economies go through these changes (e.g. COVID and the 2008 banking collapse both created significant recessions, but in between periods of stable growth created booms)

18
Q

how does glasgow’s life expectancy differ?

A

glasgow has a life expectancy 14yrs lower than Westminster
demonstrating how the inequalities can be felt in people’s health and wellbeing

19
Q

what happened for young people in 2008?

A

young people experienced particularly high levles of job losses and unemployment
the recession was associated with a reversal in previously falling suicide rates in England, as well as increases in suicide attempts and depression, particularly in males
it is thought that in Europe and the USA, more than 10,000 extra suicides occurred during this period

19
Q

what does unemployment result in?

A

unemployment or pay freezes result in people feeling/being worse off
less disposable income results in lifestyle changes
going out less, spending less on luxuries = negative ME

20
Q

how was inflation manage?

A

in the public sector, a pay freeze (from 2011) and pay cap (from 2013) kept wage rises below inflation

21
Q

what happens in recessions?

A

during all recessions, there is a dip in life expectancy and and increase in mortality rates as the government cut spendin gin the NHS

22
Q

what happens to graduates following recessions?

A

graduates leaving university following recessions face uncertainty in getting a job - social and economic implications, graduate unemployment coupled with higher tuition fees can put people into debt
can also impact on ability to get on the housing ladder
inequalities between generations

23
Q

what do boom years result in?

A

boom years result in small businesses feeling more secure
this can result in more investment in entrepreneurs and more innovation

23
Q

what happens when the economy is strong?

A

when the economy is strong, people get taxed more and this can be spent on healthcare/schools/infrastructure projects (improving QoL)

24
Q

what is a recession?

A

A recession is a significant, widespread, and prolonged downturn in economic activity

24
Q

what has the cyclical economy been linked with?

A

the cycles of growth and stagnation have been linked with technological innovation w. new industries providing the basis for a boom
once the technology is no longer “new”, fewer opportunities for growth exist and boom is followed by recession

25
Q

how can the government influence inequalities through PLANNING?

A

housing
e.g. affordable housing in new developments
= council estates
= grouping low income families together

25
Q

how can the government influence inequalities through SUBSIDIES?

A

govt benefits
free childcare, child benefits, free school meals etc

26
Q

how can the government influence inequalities through LAW?

A

anti-discrimination laws
minimum wage (adults £10.50)
living wage

26
Q

how can the government influence inequalities through TAXATION?

A

if you’re living in a less affluence area, less money will go to the council and then less money will go towards development (inadvertently increasing inequality)
increased taxes on higher earning people and decreased on lower earning
= progressive taxation
£12,500 or below = 0%
£12,500 - £50,000 = 20%
above £50,000 = 40%

27
Q

how does government TAXATION work?

A

income tax is often used by govts to redistribute wealth from more prosperous to less prosperous groups, and so create a fairer society
most govts have progressive tax systems where the better off pay a larger proportion of their incomes in tax
essential items such as food may be exempt from tax
this benefits poorer groups

28
Q

how effective is government TAXATION in tackling social inequalities?

A

income inequality is lower than 2010-2011
now the richest 20% in society contribute 4x as much in tax than they recieve in public spending
since 2008, the avg annual disposable income of the poorest 1/5 of households has risen by £100

29
Q

how do government SUBSIDES work?

A

govts also try to reduce inequality by giving subsidies to poorer groups
children in poor families may get free school meals, clothing allowances and help w/ university fees
pensioners may get subsidies for fuel and transport
other subsidies may include free child care for single parents
low wage earners, unemployed workers and those w/ LT disability are entitled to benefits

29
Q

how effective are government SUBSIDES in tackling social inequalities?

A

recession of targeted efforts towards child poverty has led to an increase in 2011
there has been a major decrease in worklessness and therefore less people on benefits
poverty among pensioners halved over the period and their income today on avg exceeds the income of adults in work
as wages fall, house prices rise

30
Q

how does government PLANNING work?

A

govts, charities and housing agencies often give priority to upgrading housing and services in the poorest areas.
planning is often organised geographically and is targeted at the most deprived areas which vary in scale from neighbourhoods to entire regions

31
Q

how effective is government PLANNING in tackling social inequalities?

A

geographical inequality amongst the poorest children and their wealthier counterparts has increased as attainment in London schools has improved far faster than in the rest of the country
the geographical divide has widened w/ regional differences in the labour market greater today than the start of the period

32
Q

how does government LAW work?

A

legislation exists which outlaws discrimination on racial, ethnic, gender and age criteria and aims to give equal opportunities to all groups
the poorest groups of workers are protected by minimum wage legislation

32
Q

how effective is government LAW in tackling social inequalities?

A

since the global recession, wages have stagnated
extreme low pay has been largely eliminated but 1 in 5 people are stuck on low pay
> a consistently higher propertion than other comparable

33
Q

how does government EDUCATION work?

A

governments often provide funding for training and upgrading skills in order to raise levels and qualifications, improve employmen prospects and boost economic growth
education programmes designed to improve personal health (e.g. diet, obesity, smoking) are often targeted at the poorest in society

33
Q

how effective is government EDUCATION in tackling social inequalities?

A

creates social mobility
poor children are 4x as likely to become poor adults
extended 15hrs a week free childcare given to all 3-4 yr old to the most disadvantaged 2 yr olds
Pupil Premium worth £2.5bill in 2015
national scholarships for low income familys to afford uni
300,000 less children are in relative poverty
390,000 fewer are growing up in workless families
2/3s of disadvantaged children still dont get 5 good GCSEs

34
Q
A

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