Globalisation Flashcards
Describe what a pre-industrialised countries employment structure is like ę.g primary etc
The primary sector leads the economy and may employ more than two thirds of the working population
agriculture is by far the most important activity (The UK pre 1750)
Name a country that is in the pre-industrialised sector in the Clark Fisher model
Ethiopia
Describe what a industrial sectors employment structure looks like
The secondary (manufacturing ) sector peaks but still probably provides less than half of the jobs the primary sector declines the tertiary sector would increase in importance
UK 1750-1970
Describe what the post industrial sector looks like in terms of employment structure
The tertiary sector becomes the most important sector as a primary and secondary sectors continue to decline the good turn every sector begins to appear
UK 1970- now
Name a country that is in the industrialised sector in the Clark Fisher model
China
Why is the primary sector so important in a named LEDC
In Ethiopia more then 75% of the working population work in agriculture
most of these people are in subsistence farming they work in long hours and difficult physical conditions to provide barley enough food for survival for them and their family
How important is the secondary(manufacturing) and tertiary (services) sector in a named LEDC
In Ethiopian the second dairy sector is very small foreign investment in textiles and never is now creating employment and the people are poorly paid
The tertiary sector is small and provides about 10% of the working population
How important is the secondary sector to a named NIC and what are the working conditions like
In China the secondary sector is very important and produces huge amounts of manufactured goods that are sold around the world
factory jobs involve long hours in unsafe conditions, however these workers get more money than farmers
What is a ‘global - shift’
it’s the movement of manufacturing from developed countries to cheaper production in developing countries
Define ‘globalisation’
The process led by transnational companies (companies that operate in several countries) where the worlds countries are becoming part of one huge global economy
What is WTO and what is their role
World Trade Organization
They deal with global rules of trade between countries
Their function is to ensure that trade flows smoothly
and to promote free trade by persuading countries to reduce or remove trade barriers like taxes and tariffs
What is IMF and what is their role
International Monetary Fund
An international organisation of 188 countries that work to reduce poverty around the world by encouraging financial corporation between countries such as foreign investment, which creates new jobs
They give loans to developing countries for infrastructure
What is the World Bank and what is their role
It is a source of financial and technical assistance to developing countries it’s aim is to reduce poverty
What is a TNC
A Transnational corporation is a large company that operates in several countries
What are the negative impacts of globalisation on people in developing countries?
The primary sector and informal sector are still very important
and other countries come to LEDC’s for manufacturing as it is cheaper therefore workers -especially the children and women are paid very low wages and can barely survive
Exploitation of workers- in that they are put in dangerous conditions and long hours they have no trade union protection
What is the positive impact of globalisation on people in developing countries?
There are opportunities for workers to gain the skills needed in commercial agriculture and manufacturing and the service sector
What is the positive impact of globalisation on people in developed countries?
Improvement in working conditions as there is more attention to health and safety due to Parliament acts and trade unions that can protect workers rights
Workers have had to reschedule as jobs in agriculture mining and manufacturing have given way to jobs in tertiary sector and get a new sector this means these people are earning more money
Work has become more flexible as there are more part time, self employment and more teleworking
What is teleworking?
Work that involves telecommunications (emails) replacing work related travel (commuting)
What are the 2 improvements from stabilisation that both developed and developing countries experience
More women in the workforce
slow improvement to working conditions
What are Networks
Things that link countries together such as transport networks the telephone and Internet
What are flows
Things that move through networks such as :raw materials manufactured goods migrant workers money information and aid
Who are players?
The organisations that have a great influence on the workings of the global economy .
They include huge businesses known as transnational corporations and a wide range of global organisations eg WTO
What is one of the reasons for the growth in global trade
Technological developments in transport means transport has become faster, so it is possible to transport large quantities of cargo at one time also lower transport costs
FDI
What is FDI
Foreign Direct Investment - when businesses in one country invest capital into another country in order to become involved in that country is business life and markets
What are the motives of businesses that take part in FDI in developing countries?
To gain direct access to foreign markets
to exploit new sources of energy
and minerals
taking advantage of cheap labour
Investigate 1 FDI
China invested in Africa as they needed oil and mineral resources.
Critics argue that China is doing little to help African development and all it wants is there resources
Examine 1TNC in the secondary sector
Nike was founded in Oregon, America in 1964. It opened its first retail outlet in Santa Monica ,California in 1967
The company has more than 700 shops worldwide and has offices located in 45 countries outside of the USA
Most of Nike’s products are made in factories located in Asia :Cambodia China India Indonesia Malaysia Pakistan and the Philippines
It’s a keenly sought brand by shoppers worldwide
Its headquarters is in Oregon,US
Examine one TNC in the tertiary (services) sector
Tesco’s is a TNC that originated in the UK and its head offices are in the UK
The company started as a single grocery store in the east end of London in 1919 it only set up is first store 1929
It’s has stores in 14 countries across Asia and Europe it’s also has stores in Ireland, the USA Hungary Malaysia and Thailand
opened its first store in the USA in 2006
60% of the companies profits come from Asia
3rd largest retailer in the world
They have diversified into new markets such as toys clothing electrical goods and financial services
What is the Clark fisher model?
A model that shows how the employment structure of a country changes as it becomes more developed and the economy grows
