Economic change and impact on places Flashcards
What has globalisation led to?
- Increasing flows of ideas, capital, goods, services, and people
What drives globalisation?
- Economic changes across all scales (global to local)
Who are the two key players in the global economy?
- TNCs, nation states and technology
What is global shift? + examples
- Global shift is the movement of manufacturing production, typically from ACs to EDCs/LIDCs from the 1970s onwards
- 50 years ago, most manufacturing was done in Western Europe and North America with countries such as Zambia and Brazil exporting raw materials like coffee. From 1980s the creation of the New International Division of Labour (NIDL) = reorganisation of production at a global scale because of deindustrialisation of ACs. TNCs created factories in EDCs in East Asia and Latin America as containerisation and bulk handling reduced the costs.
What happened to the economic structure of ACs because of global shift?
- Loss of employment in primary sectors (producing food, fuel and raw materials) and secondary sectors (manufacturing industries eg. processing raw materials) transforming into tertiary sectors (providing services eg. healthcare) and quaternary sectors (economic activity providing services to other economic activities eg. advertising) in a post-industrial society.
What is deindustrialisation?
The decline in the importance of manufacturing in the economy of an area eg. Steel in Sheffield
Which places were most affected by deindustrialisation + what happened to them + why?
- Those who relied on a narrow range of traditional economic activities eg. mining, steel making and textiles
- The physical environment was poor - derelict buildings with polluted waterways eg. Swansea in South Wales
- Skills from traditional heavy industries not easily transferred to growing service sector
What is the multiplier effect?
The process by which a new or expanding economic activity in an area creates additional employment as its employees have money and to spend on goods and services. As the wealth of an area increases it stimulates more economic activity.
If a place has a comparative advantage, what does this mean?
Countries or regions benefit from specialising in an economic activity in which they are relatively more efficient or skilled
What is normally required if a place is to have a comparative advantage?
- Highly qualified workers
- Cutting edge research
- Technology
Give three examples of places with a comparative advantage:
- Cambridge – medicine
- Bangalore, South central India – aerospace engineering
- Sellafield, West Cumbia – nuclear power
Define a ‘boom’
Increase in profit which results in new technology as result of existing technology. Associated with the multiplier effect and happens roughly every 50 years
Define a ‘recession’
‘Decrease in GDP for two quarters of the year’ - decrease in profit/loss using old technology that does not cause a wave of innovation – ‘stagnation’
What is a core region?
An area where economic activity is concentrated and living standards are relatively high due to above average economic growth
What macroeconomic indicators show a recession?
Decrease in: GDP Investment spending Household income Business profits Inflation
Increase in:
Unemployment
Bankruptcies
What are the causes of booms and recessions?
Capitalism —> linked to technology
Technology —> linked to capitalism
Cycles —> growth and decline (Kondratieff)
Core regions —> Benefit from economic growth
Peripheral regions —> Don’t benefit as much
SILICON VALLEY Where? What? Companies? Uni links? Venture capital?
- Southern part of San Francisco Bay, California
- An area of technological innovation, enterprise, and high standards of living
- Apple, Google, Tesla
- Stanford supplies research and high-quality graduates
- Half of all venture capital in US spent here: Investment in small enterprises involving relatively high levels of risk but with the potential for significant gains
What are the different scales of government?
Transnational government – EU
National government – UK
Local bodies – parish council
Name the methods used by the UK government to tackle social and economic inequalities (SPELTHPR):
Subsidies Planning Education Law Taxation Health care Pensions Rural services
Describe taxation:
Income tax redistributes wealth from more prosperous to less prosperous groups, if you earn between 12k-50k you pay 20%
VAT – 20% on non-essential items
Describe subsidies:
Subsidies to poor groups
Children - free school meals. Clothing allowances, help with uni fees, free prescriptions
Pensioners – fuel and transport, TV license
Describe planning:
Governments prioritise upgrading housing and services in poorest areas
Describe law:
Legislation stops discrimination on racial, ethnic, gender and age criteria which aims to give equal opportunity to all groups
Minimum wage laws protect poorest workers
Describe education:
Funding for training to upgrade skill levels and qualifications to improve employment prospects and boost economic growth
Free school
Drug awareness
Obesity and diet awareness
Describe pensions:
Must be 67 to claim
Spending on pensions in UK has doubled in past 12 years
You pay NI which is you pre-paying for pension
Large gap between rich and poor
Describe healthcare:
NHS is ‘free at the point of delivery’
Access to health care varies – affluent suburban areas are well served
Somali and South Asian communities are afraid about vaccinations so need to be considered
Describe rural services:
Support rural areas through key settlement scheme – rural settlement where services are concentrated to meet thresholds that will ensure their economic viability
Includes doctors, schools, shops
Give background info about Jembatan Besi, Jakarta:
- The wealthiest 10% control 30% of household income.
- The poorest 10% control 3.4% of household income.
- 1/4 people in Jakarta live in slums.
- Jembatan Besi is located 4km NW of city centre.
- Has a population of 4,000 people
- Surrounded by Ciluwing River
Describe economy in JB:
- Avg. income is US$4 per day
- Large garment industry
- Poorly paid unskilled jobs
Describe health in JB:
- Limited sanitation
- Few toilets which flow into open rivers in streets
- No clean running water; pumps contaminated
- Cholera an typhoid epidemics common
- Malaria is common
- Young and elderly prone to dehydration
Describe pollution in JB:
- Water pollution leads to typhoid and cholera
* Air pollution is v. high due to kerosene for cooking and exhaust emissions
Describe housing in JB:
- Homes consist of relatively well built ground floor
- Extra stories added to combat issues with space
- Materials are scavenged
- Houses have no direct sunlight so artificial
- Fires are high rick due to kerosene and bad wiring
Describe education in JB:
- Schools are poorly equipped
- Families often can’t send children to school as they need them to work
- Women particularly employed din garment industry
Future of JB?
- Some slums cleared for improvement however this creates worse issue than before as those people have to relocate to other slums = even more overpopulated
- Strong sense of community will continue
Give background info about Northwood Irvine, California:
- Northern part of city of Irvine in Orange County, California
- It’s a classic ‘edge city’, built in 1960’s
- City is developed around a series of ‘villages’
- Northwood is at the southern end of LA conurbation
- 22,000 people live here
Describe crime rate in NI:
- 70% lower than the national average
* Safer than 96% of Californian cities
Describe economy in NI:
- Median income is $86,500 compared to national avg. of $52,000
- Uni of California is city single biggest employer
- Well established tech companies eg. Blizzard Entertainment
- TNC’s have US HQ’s eg. Toshiba
Describe health care in NI:
Excellent even by AC standards
Describe pollution in NI:
Air pollution = low as on edge of LA conurbation so avoids smog
Describe housing in NI:
- Single homes in large lots
- 8,200 households
- 91% of households have their own home
- 2/3 of people have lived here 10 years or more
- Avg. household size is 2.8
Describe education in NI:
- Best-achieving schools in America
- Nearly 70% of over 25s have degrees
- 20% have masters or doctorates
Future of NI:
• Will continue to feature among USAs highest ranked cities
Even in recessions it will maintain its high-paid employment reputation
