Globalisation Flashcards
What are the primary, secondary, tertiary, and quaternary industries?
Give examples of each.
Primary - The extraction of raw materials form the land or sea, e.g. farming, fishing, quarrying and mining.
Secondary - manufacturing, where raw materials are converted into a finished product, e.g. house building, car making, steel and food processing.
Tertiary - services, there is a wide range of services associated with manufacturing an people, e.g. distribution and retailing and education and nursing.
Quaternary - Provide information and expert help, often associated with create or knowledge-based industries, especially IT, biosciences, media, etc.
What are the three stages in the Clark fisher model and describe and explain changes in each industry during each stage.
1) Countries in the pre-industrial stage are low-income and are dominated by the primary sector.
2) Countries in the industrial stage are dominated by the secondary industry, as the economy develops and incomes rise, the demand for agricultural and manufactured goods increases.
3) Countries in the post-industrial stage are high-income countries dominated by the tertiary and quaternary sectors. The tertiary industry rises as incomes rise and people use more services. The quaternary sector develops as services become more specialised, e.g. legal, IT or medical. Many countries in this stage have lost their manufacturing to countries like Vietnam where wages are lower.
What is the major employment sector in Vietnam and what are the working conditions like?
Give two advantages and two disadvantages.
The major employment sector in Vietnam still remains agriculture however the secondary sector is growing rapidly, manufacturing mainly in textiles.
1) The work is good for the people as they earn much higher and regular wages than they would in agriculture.
2) They are also able to learn new skills.
1) However many Vietnamese workers work very long hours, in sweatshops, for very low wages.
2) Many young people are migrating from rural areas which is putting a strain on the older generations who are forced to work the land.
What is the major employment sector in Malawi and what are the working conditions like?
The major employment sector in Malawi is agriculture, most people are subsistence farmers who work very long hours for very little income and low production. Many farmers in Malawi are stuck in the cycle of poverty because until they are able to by equipment and fertilisers they can’t increase their production or income and they can’t but the equipment unless the income increases.
What is the IMF and how has the work of the IMF led to the creation of a more globalised economy?
The international monetary fund is a US-based institution that raises funds from the world’s wealthier countries, to help countries which become economically unstable.
1) The IMF has made the global economy more stable but has also increased cash flows between countries.
2) The IMF has also helped to create links between countries and possibly diplomatic relationships.
3) By helping poorer countries and giving them more money to spend there will be increased trade.
What is the WTO and what do they do?
How is this led to a more globalised economy?
What problems does this cause? (2)
The World Trade Organisation (WTO) aims to get countries to agree that goods traded between them will be free of tariffs.
1) Lower or no tariffs means the goods are cheaper, so people will buy more and there is increased trade between countries.
1) Because it is a case of whoever is cheapest wins, some countries find their own producers lose out to cheaper overseas competition.
2) Small farmers in the developing world, such as banana growers in Kenya can also lose out to big plantations such as the US-owned plantations in Latin America.
How has the role of TNC’s led to a more globalised economy?
1) TNC’s operate in more than one country so they have increased trade routes and links between countries.
2) TNC’s invest in the areas in which they operate, American and European TNC’s in the nineties invested in transport Infrastructure and factories in China, this is known as foreign direct investment.
3) TNC’s were the catalyst for the rapid growth in international trade.
4) TNC’s have led to the increased spread of technology and made technology more accessible to the developing world which means it is better able to trade with the developed world.
5) International media companies have also led to the spread of culture.
What is globalisation?
Globalisation is defined as the ways in which countries become better connected to each other.
How do countries become better connected to each other? (5)
Countries become better connected to each other through:
1) Greater economic inter-dependence between countries, national borders have become less important.
2) An increasing volume and variety of trade in goods and services.
3) Easier international money flows to in vest in other countries.
4) Increased spread of technology
5) Culture, global media companies spread news, TV programmes, film and music.
What has happened in industry in Leeds between 1964 and 2011?
Why did the changes occur?
In 1964 employment was spilt between the sexes - men in mining, railways and engineering and women in clothing factories, health and administrative jobs. However due to globalisation, the UK’s clothing industry could not compete with cheaper clothes form overseas. Cheaper imports of steel and coal led to a decrease in demand for British steel and coal. As a result many factories closed in the 80s due to a process called deindustrialisation.
How did the change in employment structure in Leeds between 1964 and 2011 affect both men and women? (4)
1) Well-qualified men and women benefited from the growth in financial and public services.
2) The decline in manufacturing reduced the jobs available for skilled men and women.
3) Fewer jobs available to young people often meant that only low-paid jobs were available.
4) Older men and women with unwanted skills struggled to find new, well-paid jobs.
TNC Case study in the Secondary Industry.
How does it operate its business?
Why has Nike been investigated?
What has Nike done about this?
Nike operates in over 140 countries in the world and 46 of these also manufacture goods for Nike.
1) Nike outsourced its manufacturing to China in search of cheaper labour and lower land costs. Now that China’s currency is worth more it is cheaper to manufacture in Vietnam so production has increased there.
2) The Nike headquarters where product design occurs remains in Oregon, America.
Many clothing and shoe factories in Asia have been investigated, revealing shocking working conditions and low-wages.
Nike itself has begun to inspect the factories and companies which they outsource their production to.
TNC Case study in the Tertiary Industry.
How does it operate its business? (3)
BT is one of the larges telecommunication companies in the world, it operates in over 170 countries.
1) BT is a foot-loose company which means it is very easy for them to move their business from one location to another, usually where wages are lowest.
2) BT outsourced its call centres to India, most employees are graduates earning £3,000 per year, just 20% of what they would have to pay workers in the UK.
3) BT also outsourced its research and development jobs to Bangalore from the developed world such as the UK due to a large amount of investment in IT services and education in Bangalore.
What have been the three main impacts of globalisation on men, women and children in Bangladesh?
1) Young unskilled women in the cities are working in manufacturing, however for very low wages and in very poor working conditions.
2) Due Bangladesh’s labour laws any child above the age of 14 can work in factory, however this is difficult to monitor.
3) There are also more opportunities for men, with increasing numbers working in transport, distribution and retailing.
How has international trade changed and why?
How has the pattern of international trade changed?
International trade has exploded in volume as TNC’s invest in developing countries to manufacture goods. These are then shipped to markets in Europe and North America, between 1970 and 2010, the value of all exports grew 48 times.
Before 1980 the world’s trade was either between the developed and developing world or between just the developed world. Now there is trade between the growing economies of developing countries such as China and India.
