3.b. Structural Economic Change Creating Opportunities And Challanges Flashcards
How structural economic change influences people and places
Unemployment causing ill health and poverty (South Wales)
The physical environment becomes derelict and polluted (Detroit)
Bangalore in South Central India
Centre of aerospace engineering and IT development
Quaternary growth
1 500 000 people employed in IT in Bangalore
Silicon valley
Stanford university (16,900 students)
Nearly half of all venture capital in the USA is spent in Silicon Valley
However, production line workers are paid below minimum wage and work in dangerous conditions and are often migrant women from Asia and South America
Birmingham research park
Shift from metal manufacturing to quaternary
Joint venture between university of Birmingham and Birmingham city council
Inward migration due to knowledge economy
Uni has 8,000 staff 27,000 pupils
Positives of global shift for ACs
Cheap imports, Lower cost of living, buoyant retail sector
High productivity
Flexibility in the labour market creates worker mobility in areas with labour scarcities, good for local economies
Industrial efficiency leads to investment in the quaternary sector an entrepreneurship attracting FDI
Decreased mining and manufacturing improves air quality
Negative of global shift for ACs
Job losses due to outsourcing
Greater unemployment in unskilled workers increases social inequality
Wage demands may rise in ACs decreasing efficiency
Positives of global shift for emerging/developing countries
Export-genrated-income, promotes productive investment, economic growth , positive multiplier
Reduce global unequal trade balances
New technology, skills and labour productivity (knowledge economy and productivity)
Negatives of global shifts for emerging/developing countries
Jobs concentrated in urban cores so rural peripherals experience inequality
Explorative work conditions
Overdependence on narrow economic base
Decrease in agriculture destabilises food supplies
Environmental issues
Health and safety issues due to limited legislation
Describe an economic boom
Expansion in peak phases of a business cycle
Describe an economic recession
Sufficient decline in economic activity spread across the economy
Define knowledge economy
System of consumption and production based on intellectual capacity
Define venture capital
Financial investment in entrepreneur business or quaternary sector with substantial risk
Quality of life
Subjective term referring to the degree of well being
Standard of living
Level of wealth, comfort material goods and necessities available to a certain socioeconomic class or geographic area
Comparative advantage
Ability of an individual to carry out a particular economic activity more efficiently than other activities
