EQ2 Impacts Of Globalisation Flashcards
Winners and losers;
Where does global shift stem from?
A combination of off-shoring, outsourcing of services and manufacturing - and new business start ups in emerging economies
When did the global shift of manufacturing expand?
In the 1980’s to China
When did the global shift of services occur?
1990’s to India
Costs of growth by GS :
How many suicides by iphone factory workers in 2010 in a Foxconn factory ?
18 attempted suicides and 14 deaths
Exploitation of vulnerable groups: working class family students looking for a career in accountancy was tricked into working at Wistron while being paid less for the same hours , what was this dubbed?
The fox trap
Give one quote by Foxconn CEO Terry Guo
‘A leader must be a dictator for the common good’ - daily output is more important than workers’ mental health
Loss of biodiversity in China:
How much of 700 terrestrial vertebrate species were lost in China?
in 2015 WWF found that China’s vertebrate species pop. declined by a half since 1970
Impacts of apple iPhone on biodiversity:
Tin mining in Bangladesh island created what effects?
Destroying mangrove forests, coral reefs (mechanical dredging of the sand and sediment spewed back into sea killing fragile coral reef and sea grass eaten by turtles) driving away fish and impact local communities through ruining local economy (fisherman’s livelihoods).
Pollution and health problems in China as result of GS: why was the air pollution in China’s cities dubbed as an area with an ‘airpocalypse’ in 2013?
- multiple times in 2013 pollution levels were 20x higher than levels deemed safe by the WHO
- The life expectancy was proved to have been reduced by 5 yrs for those living within cities- (cancer and strokes) - caused by mass production of coal and products by factories - releasing toxic gases that has Beijing placing frequent pollution alerts
- In beijing- air purifiers are now a necessary appliance like the washing machine
How was mega city chonqings tap water affected by China’s rapid growth as result of GS?
Mega city Chongings tap water contained 80/101 forbidden toxins under Chinese law
how many people in China do not have access to safe drinking water?
200 million
Since 1995 how many water quality related emergencies have occurred?
11,000
Over exploitation of natural resources=resource pressure due to demand from GS growth
What resources are these?
Oil, coal and key metals like iron ore
Where has China looked to in solution to its growing demand?
So China’s is unable to have sources of water that feeds the need to produce enough soy to feed its huge hog population efficiently enough in accordance to growing demand as a result of its rapidly growing population -therefore countries like Ecuador where China has invested in their oil refineries , has gained access to huge acres of Amazon rainforest to cultivate soy crops to export back to China
Where does China stand in 2019 in its source for soy?
Us-China trade war= tension of China’s food security as result of lack in production of soy - Brazil’s amazon rainforest remains a reliable and accessible source of soy for china- now China is Brazil’s biggest export - mostl soy and beef for growing population and demand from china
- buys 70-80% of Brazil’s soy
When did India first start it’s open door policy?
1991
How much of India’s national income does the service sector account for?
50% of its GDP but 2/3rds of pop. Is dependent directly on agriculture for livelihood
Why does India have a geographical advantage in being an attractive country to outsource operations to?
Only 10hrs ahead from America and and 8 hours and a half from UK therefore problem solving or processing of jobs can be sent by the Indian evening time and completed in India by US or UK morning time
why do US and UK businesses outsource so much work to India ?
- Indian citizens- majority= fluent english speakers as a legacy after british rule = advantage when marketing call centre services to western countries.
why do US and Uk businesses outsource so much work to banglaore especially ?
broadband in Bangalore is unusually high as it is a long established technology hub thx to early investments in the 1980’s by foreign TNC’s like Texas instruments (tech company)
Give one example of a key company that helped shift ‘back office ‘ jobs to India?
General electric- TNC - decided to shift thousands of back office jobs to India = ripple effect where numerous leading companies in insurance, banking, travel, electricity generation and telecoms transferring their operations to India.
give one benefit that a TNC or company would gain if they outsourced services to India?
outsourcing can lead to a minimum profit of 20% on processing costs, as Indian call centre workers- £5000
and British call centre workers get £17000 per yr
why does india have the ‘time is money’ advantage?
India - 10hrs 30 mins ahead from America- problem solving/ processing of jobs can be done in the evening from the US and completed in India
give one benefit of outsourcing of services to india for India as a whole
call centre workers earn a good middle class incomes by indian standards
How has India benefitted from the gs of services ?
Since the start of the 21st century, annual average GDP growth has been 6% to 7%- largest contribution out of all 3 sectors (agriculture, industry, services) allowing it to become the worlds 6 th largest econ. and the country with the 3rd most PPP (purchasing power parity)
what companies have call centres in India?
Asda, virgin Media and BT (BT used to have 2200 employees from 2003-2009)
Disadvantages of gs of services to India?
- despite overall growth, gap between rich and poor has widened sharply- India has more billionaires than the UK but has more ppl living in absolute poverty than all of Africa..
- subject to threats similar to AC’s - threat of relocation of company and thus jobs- eg. July 2009 BT announced transfer of at least 2000 jobs from Indian call centres back to Britain.
why are there environmental challenges for communities in developing countries?
Weak environmental governance is an attractive location factor for TNC’s seeking low cost locations for their manufacturing and refining operations
Give an examples of weak environmental governance?
- 2014 - predicted that 40% of China’s farmland was lost due to pollution from increased building- possible fertile farmland that couldve been used for the agricultural industry had been lost.
- decline in terrestrial vertebrate species by 50%
- Mega city Chongings tap water contained 80/101 forbidden toxins under Chinese law
Give 1 e.g of weak environ. governance in Indonesia?
it has been alleged by the BBC through. BBC documentary, that they had traced back the tin in iphones to being mined illegally by it’s suppliers in Indonesia, particularly Bangka island and Belitung Island which produced 90% of Indonesia’s tin, now faces depleting fresh water supplies, disturbed coral ecosystems and impacts tourism and fishing- hence the people’s livelihoods.
The govt. remains slow to act and corruption remains widespread.
Outline the 4 challenges that American cities in a spiral of decline face
High unemployment
crime
depopulation
dereliction
What is dyson
british tech company that designs and manufactures heaters, blade-less fans, hand dryers and vacuum cleaners
when did Dyson move to Malaysia?
2002
why did Dyson move it’s production wing to Malaysia?
- production costs are 30% lower in Malaysia
- cheaper land costs
- cheaper labour: £9/hr UK. £3hr Malaysia
- assembly parts made in South Asia are now cheaper to gain access to.
What were the effects in Malmesbury, Wiltshire (where the company originated from) ?
- 800 semi-skilled UK workers made redundant
- however 1200 head office and research employees have remained in place in Wiltshire
What were the lessons learnt from Dyson’s sudden move to malaysia and what is it’s future in the UK now?
- Unions have increased pressure on ministers to intervene to slow the loss of manufacturing jobs and prevent them bring exported
- Dyson - still selling in the UK but recently the Dyson HQ was moved to singapore in aims to become a ‘global technology company’
What is lee’s model of migration?
Created in 1966 it argues that the decision to migrate is based on a balance of positive and negative push and pull factors.
List the intervening obstacles that lees model of migration states
Language barriers cultural differences cost of travel host country governments Immigration policies
MEGA CITIES; Mumbai- what was a catalyst for its historical success in economy?
18th century during the American Civil War the city became the worlds chief cotton trading market and the economic boom continued
- named Mumbai later on in 19th century
What is Mumbai known as now
india’s largest financial capital - being home to the Mumbai stock exchange = Important Indian economic hub
List some of Mumbai specialist technical industries
Medical research, shipbuilding , renewable energy and aero- space fueled by skilled Human Resources
How does Mumbai start as an important economic hub of India?
- Contributes to 10% of all factory employment and 40% of India’s foreign trade
- Mumbai is a base for many TNC’s for example the state bank of India Tata group.
Explain the impact of global shift in terms of population
The population of Mumbai has risen significantly from 8,000,000 in 1971 to 21,000,000 now.
Explain why Mumbai’s Dharavi is the biggest slum in India ?
There are 1 million people crammed into one square mile in Dharavi and 60% of the members population lives in the slums of Dharavi
What. Is the hyper urbanization of Mumbai driven by?
Rural to urban migration;
Fast population growth in rule areas resulted in depressed wages and therefore under employment and scarcity of goods
This contrasted with the higher productivity and cities which lead to higher wages and improving quality of life in urban areas and so increasing the speed of urban population growth
Give an example of the population growth of Mumbai ****
From 1971 to 1981 the population grew by 38%
In contrast between 2001 and 2011 the population grew by 5%
Give three examples of pull factors that attract economic/ voluntary migrants to Mumbai?
Clusters of businesses involved in industries that include aerospace medical research and electronica equipment attracts tech. -and skills so migrants are attracted
Therefore public services and education are easier to fund in densely populated areas and so cities will have better health and education outcomes which increase productivity and incomes
Outline the statistics and facts of conditions in the slums of Dharavi
Marginal lands that are made up of mangrove swamps further complicates conditions of the slums where the poorest people live illegally=
- households do not have toilets and so there are toilets in the streets and open sewers so doctors are overwhelmed with disease cases
Outline facts and statistics on the positives of the Dharavi slum
- Social; Sense of community is present with local mosques catering to religious needs informal shopping areas pottery areas and a community center giving a village feel.
- economy; 85% of people have a job in Islam and work locally in informal economies some even managing to become millionaires
Outline environmental impacts of recycling in dharavi Mumbai
It is claimed that the Dharavi’s recycling zone could be the way forward to a sustainable future- 80% plastic is recycled
On the other hand those who recycle the plastic waste a humans ( danger- toxic waste and metals) they are paid around £1/day for their work
Explain the conflict between the states ambitions of development in Dharavi and the people living in the slums of Dharavi
A $2 billion development project brightens the recycling district and part of dharavi because the land upon which the dhaRavi is built is next to Mumbai is financial district and so local shops and markets and the community spirit is threatened In other words it is a top down approach that benefits the wealthy in Mumbai rather than the people in the slums
What are the challenges that coronavirus. Has brought to the slums in Mumbai?
More than a half of Mumbai slum dwellers had COVID-19 during the coronavirus crisis
- economy; there are questions about whether they’ll be enough water in a slam so that people can wash their hands?
- will there be enough jobs left for the workers to go back to their factories ?
Explain the contrasting levels of development in Mumbai that is created a two speed world
People are economically stratified into those that can afford better housing and those that cannot
- On one hand financial services off the high incomes and rewards the owners and employees
- on the other hand fast rate suburbanization driven by real migration cause widespread poverty and unemployment for public health and Pacific and educational standards for a large section of the population
- most successful residents live in wealthy gated communities
International migration; london is attractive to elite migrants because?
London is a global property hotspot as well as an economic hub an example would be the russian oligarchs in London
explain how elite russian oligarch’s are significant in showing the interdependence between regions ?
- After the soviet union collapse successful russian business men became billionaires and to protect their money from tax, they invested in properties like London’s Billionaires row, huge capital flights now come from Russia and the UK amongst many other cities is the safest haven to conceal their money
How did Russian oligarch’s use the Gordon brown’s Tier 1 investment scheme?
Between 2008 and 2015, about 3,000 high net-worth individuals, about a quarter of them Russians, took advantage of the Tier 1 Investment Scheme established by Gordon Brown.
In 2016 what percentage of new build homes were bought by foreign buyers?
nearly 18% of sales were by foreign buyers
Give advantages of elite migrants coming to UK?
- Russian oligarch’s contribute to further enhancing the Financial clout that London is seen to have by the world=more elite migrants= contribution of skills= boosts economic activity = job creation
- multiplier effect of the influx of elite migrants.
- strengthening of political ties between russia and UK through economic interdependence.
- a hundred billion pounds of Russian money have come through London and been reinvested in property, commodities, and financial instruments
low-wage migration comes with benefits and costs; giev statistics on why low wage immigrants chose the UAE?
UAE - being one of The UAE’s economy is the largest consumer market in the Middle East and is one of the largest Arab economies, second to Saudi Arabia. Its natural resources made it one of the world’s richest high (high-average income) countries. The economy is supported by the oil and gas reserves that are among the largest worldwide.
define global shift
Global shift is the movement of manufacturing and the outsourcing of services from the West to the East
proof of effect of weak environmental and social infrastructure governance in mumbai?
2018 Mumbai ranked as the 4th most polluted mega city in the world.
DEINDUSTRIALISATION ;
Effect of global shift on social strand in Detroit ?
population decline by 50% since 1950’s
poverty rates at nearly 40% by 2014
DEINDUSTRIALISATION
effect of global shift on economy in detroit?
When the Big Three (Gerneal
Motors, Ford, Chrysler) started moving car production out of greater Detroit,
the city had few other industries to rely on.
