Global Systems Flashcards
Unequal flows of people create benefits
immigrants can create economic growth, as they do jobs that a country’s citizens can’t do(skilled jobs like engineering)or don’t want to do(dangerous jobs like logging or mining)
Many migrants send money back-this is called remittance. Remittance payments can significantly increase the amount of capital flowing into less developed countries
Unequal flows of people create inequalities
Inequalities- Less developed countries suffer from ‘brain drain’- skilled people leave and take their knowledge with them.This reinforces existing inequalities between countries
Low-skilled migrants are often happier to work for less money than low-skilled locals
Injustice-Migrant workers are sometimes made to working dangerous conditionsfor little money. E.g. in Qatar, several thousand migrants have died building stadiums for the world cup
Unequal flows of money create benefits-FDI/TNCs
FDI allows foreign companies and countries to take advantage of cheap raw materials and low labour costs, while the host country can benefit from foreign capital and expertise. Foreign aid can be used to improve living standards or to rebuild local infrastructure after a disaster.
Unequal flows of money create inequalities-dependency
Foreign aid can create dependency, which gives governments little incentive to improve their own countries. FDI can force out local businesses, because foreign companies with superior capital and technology can make products more efficiently.
Unequal flows of money create inequalities-conflict
Foeign aid can find its way to armed groups and help to fund conflict.
Unequal flows of money create inequalities-pressure
Companies may pressure governments of less developed countries to pass laws that make it cheaper to invest there- e.g. by cutting environmental regulations or weakening laws on working conditions
Globalisation dominated by developed countries- Benefits
Neo-liberalism: a political approach that favours free-market capitalism, deregulation, and reduction in government spending.
Has led to free trade, which has led to more development within countries and less conflict between some countries.
Globalisation makes some countries more powerful than others
Unequal flows of people, money, ideas and technology have caused some countries to have more power than others
Developed or emerging countries with a lot of money and technology are able to drive global systems to their own advantage