Globalisation Flashcards
What does globalisation mean?
The great integration of the global economy
What is the effect of the accelerated globalisation that has taken place in the last 30 years?
Jobs + wealth in 1 country dependent on trade + investment from other countries
Countries specialise in certain types of economic activity
Jobs move from high cost to low cost countries
What is the dominant economic sector in the PRE-INDUSTRIAL STAGE of the Clark Fisher Model?
Primary
What is the dominant economic sector in the INDUSTRIAL STAGE of the Clark Fisher Model?
Secondary
What is the dominant economic sector in the POST-INDUSTRIAL STAGE of the Clark Fisher Model?
Tertiary
What jobs are included in the PRIMARY sector?
Farming, fishing, mining
Jobs which grow or extract raw materials
What jobs are included in the SECONDARY sector?
Manufacturing goods in factories and workshops
What jobs are included in the TERTIARY sector?
Services such as education, retail, banking, the health service and travel
What are the impacts of moving through the stages of the Clark Fisher Model?
An increase in pay + therefore income
Better working conditions
A change from informal to formal jobs
What are the working conditions of a SUBSISTENCE FARMER in ETHIOPIA?
Hard, labour intensive farm work
Vulnerable to the weather e.g. floods + drought
Workers lives depend on producing enough food
Children often have to work
What is the expected pay for a SUBSISTENCE FARMER in ETHIOPIA?
No pay. Might earn a small amount selling any surplus food produced.
What are the working conditions of a FACTORY WORKER in CHINA?
Long hours, repetitive work, lots of overtime
Unions banned so employees have few rights
Most factories only want younger workers (under 30)
What is the expected pay for a FACTORY WORKER in CHINA?
Low pay (£1000 - £3000 p/a)
What are the working conditions of a NURSE in the NHS ?
Good working conditions
Health and safety regulations
Paid holidays and pensions
Unsociable working hours + high stress environment
What is the expected pay for a NURSE in the NHS?
Medium pay (£20,000 - £40,000 p/a)
What are the working conditions of a PHARMACEUTICAL RESEARCHER in the USA?
Very good working conditions
High stress job with TNC demand to develop new products
What is the expected pay for a PHARMACEUTICAL RESEARCHER in the USA?
High pay (£25,000 - £100,000 p/a)
What is global shift?
The relocation of jobs from one country to another e.g.
manufacturing jobs from developed to developing countries
What is the World Trade Organisation?
The WTO promotes free trade by persuading countries to reduce or remove trade barriers, like taxes or quotas
What is the International Monetary Fund?
Gives loans to developing countries for infrastructure and encourages countries to allow foreign investment to create new jobs
What are Transnational Corporations?
TNCs aim to reduce costs + increase profits by moving factories to cheaper locations. This creates jobs in developing countries
What is the impact of globalisation on different groups of people?
Most countries have become richer, especially developing
300 million people in China lifted out of poverty
In Africa incomes have not improved much at all
What is Foreign Direct Investment?
When money from one country is invested in another, for example, to build a new factory
How can Foreign Direct Investment have a negative impact on the developed world?
A TNC investing in China may be doing this by removing investment (closing a factory) somewhere else like the UK
Where does Nike have its headquarters?
Oregon, USA
What products does Nike produce?
They produce and sell a vast range of sports clothing and equipment
How many offices and stores do they have worldwide?
They have offices in 45 countries and 700 stores worldwide
Where are their factories?
- The majority of their products are outsourced and manufactured in Asia, but they also own some factories where their goods are manufactured.
- The components for their goods are sourced from various different countries around the world.
Why has Tesco concentrated worldwide expansion in Europe and Asia?
Europe - market close to UK + consumer tastes similar
Asia - market is huge + incomes growing but few global competitors
What are the impacts of globalisation worldwide?
More gender equality for women
Improved working conditions
More skilled people due to more employment areas
Increased availability of goods + services
What are the impacts of globalisation in developed countries?
Improvements in wages
Good working condiitons
Increased profit
More flexibility in working location e.g. from home
Some job losses as call centres, factories relocate
What are the impacts of globalisation in developing countries?
Their products + services available to more people
Improved infrastructure + boost to economy
Wages remain low with continued exploitation of workers + child labour
Few people can afford developed world’s products + services
