Global Winners And Losers Flashcards
Global economy has shifted to Asia
Different phases = history - different regions of the world have held economic dominance. E.g. much of the 19th century Europe controlled the global economy. After Second WW = USA rose 2 greater economic power
Since 1990s Asia has played a larger role = global economy. % of global GDP now generated from that region is increasing
Called GLOBAL SHIFT - majority of industrial activity has shifted from 1 part of the world to another
Shift seen through investment - 2020 East Asian + Pacific countries received 51% of ALL GLOBAL FDI
Some analysts say thus represents a shift in the global economic centre of gravity to Asia
Global shift has come about due to
Global shift in manufacturing
Outsourcing of services
Global shift = manufacturing
- 1950s low tech products e.g, toys + textiles started to be manufactured in the 1st Newly Industrialised Countries (NICs- Taiwan, Singapore, SK, Hong Kong)
- happened as TNCs were looking to cut production costs so they moved operations overseas to make use of cheaper labour
- further investment = 1980s NICs started to manufacture consumer electronics
E.g. computers + mobile phones
Outsourcing of services
- more businesses began 2 operate globally they required business services 2 support them
Needed 24 hours a day + without large increases = labour costs. Means = services became more widely distributed around the world to meet these needs - improvements in telephone + IT communication allowed workers in distant countries 2 communicate w/ customers
Global shift in manufacturing has created jobs + driven economic growth in China - pop + working conditions + migrants
- Chinas large pop offered an abundant supply of cheaper often well-educated labour 2 global manufacturing sector. Lowered production costs 4 businesses that previously used labour in Europe/USA
- Working conditions = Chinese factories were often v poor + dangerous. Due 2 their regular + attractive wages jobs in factories caused large-scale rural-to-urban migration. These migrants sought new jobs in manufacturing hubs = Shenzhen
How much has the number of ppl living in extreme poverty declined by in China?
no. of ppl living = extreme poverty = China has declined by 800 million between the early 1980s + 2022
Global shift in manufacturing has created jobs + driven economic growth in China - FDI
- more FDI flowed into China able 2 invest in greater industrial infrastructure (e.g. coal-fired power stations + railways) + higher-level training 4 workers
Made China an attractive manufacturing destination = for higher-order goods e.g. consumer electronics. Major brands set up factories in China to make use of these facilities + countries workforce (apple) - inc FDI = improvements in working conditions through some labour practices (asking ppl 2 work more than legal maximum number of hours) have been criticised by human rights campaigners
- global shift has created a growing middle class = China who have become an important global market 4 the goods now produced here
What has India become a hub for?
Outsourcing services
India outsourcing services
- Indian cities have attracted large companies e.g. Barclays wishing 2 outsource the labour needed 2 run their back-office operations/technical call centres
- India = large, youthful population + rapidly growing number of graduates. Many of these graduates have qualifications = IT + engineering making them especially attractive workforce 2 some companies
- India = second largest English speaking pop in the world + language skills enable communication w/ English-speaking countries
- call centre work can be desirable 2 Indians as often earn 3 times more than average income
What are 3 benefits global shift has created?
Infrastructure investment
Education, training, health care
Wages work + poverty reduction
Infrastructure investment
- global shift has led to greater investment = transport + energy infrastructure = Asian countries
- e.g.capacity = Shenzhen port has increased so it can now have more ships docked
- new power stations being built in China to meet energy demands (1100 active coal power stations)
China is also investing in renewable energy Dam Solar Park is 1 of the largest in the world
Education, training, healthcare
- increased national revenues through industrial growth have allowed increased investment in schools + health care
- more children able to complete schooling resulting = higher literacy rates + more people seeking + gaining graduate level qualifications
Wages work + poverty reduction
- Asia + particularly China = a rise in the wealth of its citizens
- greater numbers of opportunities in secure + relatively well paid wages work have allowed ppl 2 have greater levels of disposable income
- created a rise in the no of ppl = middle class + fewer ppl living in poverty
-remittance payments have spread this wealth beyond the immediate earner
What are some social + environmental problems developing countries have experienced?
Land degradation
Over-exploiting of resources
Urbanisation
Loss of biodiversity
Pollution
Land degradation
Growing pressure on land resources is causing land degradation.
Demand for industrial space has led to increased deforestation + loss of productive land
Agricultural land remains often farmed more intensively - can cause = soil erosion + desertification
