ECONOMIC DEVELOPMENT - impacts of globalisation Flashcards
what is globalisation?
- Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange.
why is globalisation happening?
- Minimum wage is lower or non existent
- Population is bigger so that means larger workforce, more in the bracket of working age
- Young population
- Less developed countries have more resources to use, where as countries like the UK have exploited all of there resources
- Less strict environmental laws
- Land is cheaper to buy in china
- flight availability
- transport
- tech
- peace with company agreements
what are TNC’s?
- transnational company
Company that operates in many areas around the world
what is economic leakage?
- money made by the company goes back to the big corporations instead of the country
why are industries choosing LEDC’s to build factories in?
- Relaxed environmental regulations
○ Cant afford to enforce, corruption, or worried about loosing the money they gain from big companies- Access to a new potential marketplace
- Access to raw materials
- Availability of cheap labour
- Cheap land and building materials (relaxed building regs)
what are the things that will reduce impacts in the garment industry?
- Using less water and energy
- Fewer harmful chemicals
- Treating waste
what are the positive impacts of garment factories in Bangladesh?
- Textile accounts for 80% of Bangladesh’s exports
what happened in the Rana plaza factory?
collapse killed 1,100 people due to unsafe conditions
how many textile workers are there in Dhaka?
4 million
- cheap labour
- big population
what are some environmental impacts of the garment factories?
- 1 tonne of cotton = 65000 kWh of electricity and 250 tonnes of water
- energy in the factories is from coal power stations = increased CO2 = increased climate change (air pollution)
- Harmful chemicals are used in production = 56 million tonnes of contaminated water
what is happening to the people in Bangladesh?
- factories are getting priority over people so resources and water go to factories
- people only have contaminated water, makes them sick
- air pollution is getting into homes, people also getting sick from gases
what are effects of polluted water and air?
- the river is biologically dead
- Burning of fossil fuels, harmful off-gassing from things such as paint, plastic production, etc
what does competition from other developing countries do to Bangladesh?
- means that Bangladesh needs to keep environmental protection low to keep costs low
what does low tax rates mean to Bangladesh?
- Low tax rates to attract TNC’s = little money for the government to control pollution
Limited funds to control pollution
