Globalisation: 2.1 - Grave Gravity

Question 1

Western consumers can help improve lives: providing a source of income

Answer 1

Companies setting up offshore operations provides locals a source of income e.g workers in Dhaka, Bangladesh made $40 (£31.20) a month working in a factor for Primark

BUT: average U.K. wage is £2922 per month

Question 2

Western consumers cannot help improve lives: Exploitation

Answer 2

Low income workers are easily exploited e.g workers in Dhaka earn $40 a month, but the cost of living is $60 a month

Many factories operate without environmental clearance certificate e.g Rana Plaza factory owned by Primark collapsed in 2013, killing 1,000 people

Question 3

Western consumers can help improve lives: affluence

Answer 3

As working class become more affluent, it becomes more viable for TNCs to invest because there’s a higher chance they’ll earn their money back (Dhaka now makes 35% of Bangladesh’s GDP)

More FDI means the government can invest more in transport, infrastructure, and education e.g Auto rickshaws replaced with compressed natural gas (CNG) auto rickshaws

Question 4

Western consumers cannot help improve lives: Leakage

Answer 4

Profits often leak back to TNCs, e.g Rio Tinto (British TNC) set up a mine in Papa New Guinea in 1964, majority of profit went to the TNC and not the public, contributing to conflicts in 1990

Question 5

Western consumers cannot help improve lives: not enough pay + sector shifts

Answer 5

Workers are likely too poor to benefit from the advantages that possible FDI may bring

People working in the primary sector (agriculture) lose productive land to make space for offshore factories, forcing them to find jobs in more urban areas