Different effects of economic change

Question 1

globalisation and how it has led to economic change

Answer 1

led to increasing flow of ideas, capital, goods and services and people,

Question 2

TNCs affecting economic change

Answer 2

global shift of manufacturing from N America, W Europe to E Asia and Latin America, labour-intensive factories in NICs (newly industrialising countries), containerisation brought down costs dramatically

Question 3

deindustrialisation effect on ACs (downward multiplier)

Answer 3

vicious circle of decay: declining job opportunities-> more unemployment-> services decline->economically active move away-> less tax base-> less investment confidence-> declining jobs-> back to beginning

Question 4

positives of economic change in ACs

Answer 4

global shift cheaper import lower life cost, growing LIDCs demand for exports from ACs, more industrial efficiency makes new tech and entrepreneurs and foreign investing, loss of manufacturing can improve environment quality

Question 5

negatives of economic change of ACs

Answer 5

job loss w/ deindustrialisation affects unskilled workers, gaps develop between different skill workers, branch plants vulnerable to closing in recessions causing huge job loss

Question 6

positives of economic change in LIDCs and EDCs

Answer 6

higher export-generated income promoting investment can create multiplier, new highly paid jobs, reduce negative trade balances, exposure to new tech improves skills and labour productivity, global shift jobs spread wealth and reduces development gap

Question 7

negatives of economic change in LIDCs and EDCs

Answer 7

unlikely to decrease inequality as jobs are in core urban areas, global shift my lead to sweatshops, overdependence on narrow economic base, destabilise food supply as ppl give up agriculture, environmental issues of industrialisation

Question 8

claims about how capitalist cycles work

Answer 8

series of recessions and booms in 50-year cycles. Booms when new tech is released and when its not new anymore a recession comes

Question 9

changes during a recession

Answer 9

spending power reduced, people make cutbacks, services and retail affected, job loss can ignite downward multiplier

Question 10

changes during a boom

Answer 10

more spending power and more spending help businesses and creates upwards multiplier. Very strong in core regions