CSMP18 - Globalisation & structural economic change

Question 1

How has globalisation caused a change in the structure of the UK’s employment?

Answer 1

• One of the main causes of globalisation and the change of structure on the UK’s employment is improved transport
• As well as this, wages and cost of land are very high in ACs compared to EDCs or LIDCs
• Due to these two factors, TNCs started moving parts of their companies abroad (outsourcing their labour to cheaper areas)
• This allows them to maximise profit with cheaper labour
• Whilst manual labour moves to LIDCs and EDCs research and development remains in parent AC countries, therefore services replace manufacturing as a major source of income
• This results in structural unemployment in ACs with those who worked in manual labour now unemployed
• The service sector continues to dominate with those in high powered jobs earning large sums of money