Global Shift Flashcards
What is the global shift?
Europe and USA has been in economic decline, while the far East and India have grown since 1990:
-The main locations for manufacturing industry shifting to areas with resources and cheap labour.
-Outsourcing of service jobs to English speaking emerging economies.
-Services centralising in world cities.
What are the benefits of the global shift?
-Infrastructure investment - money from exports enables governments to improve transport and communications (eg, Shanghai, China).
-Waged work - factories and offices, offer formal jobs with better pay, attracting people and providing a workforce (eg, Bangalore, India).
-Poverty reduction - the number of people earning less than the UN minimum target, which is $1.90 a day has halved since 1990 (eg, Ethiopia).
-Education and training - money from selling goods/services enables governments of emerging economies to invest in schools and higher education, providing a population with skills to secure the global shift.
What are the costs of the global shift?
-Loss of productive farmland - urban areas have grown rapidly outwards onto farmland due to rural-urban migration; this reduces the amount of food that can be produced (eg, Nairobi, Kenya).
-Shanty towns - much of the outward growth of cities is unplanned informal housing built by poor people who squatted on the land and built there own shelters, there’s no formal electricity/water supply/sewage system (eg, Dharavi, Mumbai, India).
-Degradation of natural environment - controls on pollutants from industries, power stations and cities are often limited, leading to pollution and contamination. Deforestation is common (eg, Jakarta, Indonesia).
-Pressure on resources - concentration of people in urban areas increases demand for living space, clean water, fuel and food (eg, São Paulo, Brazil).
What is the role of TNCs in spreading culture?
-Americanisation of cultures through TV, film, fast food, clothing, e-commerce and e-social.
-Brands are introduced into many countries, perhaps with some cultural modification to product.
-Culture based on TNC home country beliefs; if American/European this is likely to involve Christian morals/traditions.
-TNCs employ people in many different countries, introducing a work ethos and methods of the home country.
-Global uniformity of product/service creates similar consumer demand in different types of country.
