Gloablisation Flashcards
What has happened to call centre jobs between the 1980’s and now
Was one of the fastest-growing sources of employment in the UK in the 80’s, 90’s.
UK firms located call centres in regions of high unemployment in the UK with low wages
But now, call centres/back office activities have been moved to less developed countries - Indian Subcontinent/Central and Eastern Europe
What is the biggest change that has allowed the change in call centre employment in recent years
The death of Distance
Rapid development of communication has meant service activities can be anywhere in the world and have no affect on the company
What has happened in terms of global labour/capital mobility due to globalisation
A huge movement of poor people into rich countries
Then filling relatively low-paid jobs that their own citizens don’t want to do
MNC’s also recruit skilled labour from other countries and talented individuals being encouraged to migrate to fill skill shortages
What impact has globalization had on national governments
Reduced the power of national governments to control multinational firms operating in their country
They cannot undertake economic policies as easily such as tariffs/import controls
Imports/exports constrain the ability to implement an independent monetary policy
What has been the role of the WTO in promoting competition
The World Trade Orgainsation aims to remove trade barriers and liberalise world trade
If countries get rid of protectionism, Adam Smith’s ‘Invisible hand’ of the market will promote international trade, benefiting all countries
