Globalisation Flashcards
Interdependence
The relationship between two or more countries, usually in terms of trade.
Countries are mutually reliant and dependant on each other.
Globalisation
The increasing links between countries and the greater interdependence that results from this
Factors that have made globalisation possible
- Relaxation of laws-allowing foreign investment in countries
- Increased amount and speed of international transport
3 development of telephones, fax, email and the internet.
The influences of developments in ICT
- falling cost of transport has made it economic to move manufacturing to cheaper areas
- falling cost of telecommunications, in particular satellite technology, has made it easier and quicker to send info globally
- submarine cables have been important for the high speed transmission of data
Call centres in India why
- Indian call centres 40% cheaper to run than British ones
- Over 4000 IT companies based in Bangalore
- Indians speak good English
- 2 mil ppl a year graduate from Indian Unis and technical colleges
Why people want to work in call centres
Earns more than teachers. £90/week
High rates of unemployment
1/4 of indias population lives in absolute poverty
TNCS
Transnational corporations : a corporation that operates in more than one country
Advantages of TNCS
Provides jobs in factories making the supplies/in services where products are sold. Additional income that people have created multiplier effect. Development of skills. Infrastructure improved as better access and communication are needed between and within countries.
Disadvantages of TNCS
Leakage. low wages and key jobs go to outsiders. Branch plants are susceptible to closure if there are worldwide economical problems. Government has no say in deciding on the future of TNCS. Working conditions can be poor. Safety can be compromised- workers health can be jeopardised
Multiplier effect
Where initial investment and jobs lead to a knock on effect, creating further jobs and providing money to generate services
Leakage
Where profits made by the company are taken out of the country to the country of origin so do not benefit the host country.
Nike TNC case study : why in Asia
Located factories in Asia because : labour is cheap, raw materials are grown near or in those countries, countries are close together reducing transport costs, countries are in trade bloc- no import and export costs
Nike TNC advantages
Advantage: subcontracts to over 800 factories in 50 countries, employing over 600,000 workers. Multiplier effect allows new business to exist which can benefit economy. Creates a skilled and experienced workforce which can encourage further investment in the country by other companies.
Nike disadvantages
Long working hours, child labour, taking advantage of poor health and safety regulations. Manufacturing in urban areas of Indonesia contributed to rural urban migration-overpopulation in cities and growth in shanty towns. They often relocate to poorer regions which has domino effect on small local companies reliant on Nike employees to buy their goods / raw Materials
Nike in Japan and China
China - Guangzhou factory - Nike has been allowed tax benefits + to pay low wages. Nike has been able to source, produce and sell many products within China as they have a wealth of resources. Population becoming wealthier and keen of buy western goods.
Japan- key to increasing profit for a TNC is to make product cheaply as possible. Transportation costs low.
De industrialisation
A process of decline in certain types of manufacturing industry, which continues over a long period of time->Fewer people employed in this sector and falling production.
Reasons for locating factories in NICs - government legislation
Cheap labour in NICs. They have very low minimum wages- lowest is £1.25 per hour set by government which reduces the cost of manufacturing goods as the workers are paid less. USA minimum wage is £5.61 per hour. They also have longer working hours compared to the EU, so they get more done in one day.
Reasons for locating factories in NICs - health and safety regulations
In some poorercountries, regulations don’t exist/ not enforced, which lowers cost of manufacturing goods as less money is spent on increasing safety of factories.
Reasons for locating factories in NICs- prohibition of strikes
NICs dont allow strikes so money isn’t lost as employees dont quit work.
Reasons for locating factories in NICs- tax incentives + tax free zones
Some NICs have tax free zones so TNCS dont have to pay taxes if they transfer manufacturing operations to their country. This increases profits of TNCS as they pay lower tax.
China - new economic giant - reasons for growth
Home market : per capita income in urban households have increased. £200 in 1993->600 in 2001.
Government legislation: changed China’s policy in 1977 and sought to end isolation and stimulate industry. Setting up SEZs paved the way for foreign investment
Low labour costs. Large youthful population.
How does energy demand increase - three gorges dam
As a country develops economically and produces more products for the world market its energy demands increase.
China - three gorges dam to help meet demands for power. Provides 3% of power to chongqing, shanghai,yichang. Over 2km long , 60 stories tall. 17 years to build.
Reasons for decline in demand for energy in Europe and Japan
Highly skilled work force,disregard to dirty industries, globalisation has improved trade links.
Causes for increased demand for energy
Global population is increasing which means there is a greater demand for food and fuel
As people become richer they will consume more.
The most rapid population growth is is occurring in developing countries.
Increased wealth means increased access to labour saving technology
Impacts of increased energy consumption - social
Availability of electricity will increase opportunities for education. Time-consuming laborious jobs will be replaced by machines Increased transport will enable people to move to jobs, and food to be moved to people.
Poor air-quality. Breathing problems - lung related diseases like bronchitis
Impact of increased energy consumption- economic
Countries with large supplies of energy will become richer and more powerful.
Countries with fewer resources will have to pay more for their energy supplies- cost of petrol increasing g
Impacts of increased energy consumption- environmental
On air- Burning fossil feels release CO2 which is a greenhouse gas- contributes to climate change - acid rain. And poor quality leads to ill health. Land- Spoil heaps have built up , on water -transportation of oil has led to major pollution incidents .
Sustainable development
Allows economic growth to occur which can continue over a long period of time and will not harm the environment. It benefits people alive today but does not compromise future generations
Renewable enrgy
Energy which is produced from sources which do not deplete with use
Solar panels, wind farms, biomass
Offshore Wind farm case study
The London array wind farm- 20km off the Kent coast in outer Thames estuary. Built because part of a massive renewable energy project. High wind speeds in Thames estuary. High power demands in SE England.
175 turbines generate 630 MgW of power for over 490,000 homes.
London Array wind farm: environmental benefit
Environmental benefit: displaces more than 925,000 tonnes of CO2 per year. 10,000 trees and shrubs planted at cleve hill.
London array wind farm: economic benefit
Economic: 90 permanent jobs for operating and maintaining the wind farm.
London array wind farm social benefits
Social : annual £2000 pounds made to 3 schools in the area
Kyoto protocol - international directive
Global agreement that set targets for reducing greenhouse gas emissions. Aimed for a global reduction to 5% below 1990 level. 175 countries signed up including Japan, U.K, EU, china
Most industrialised countries like UK cut emissions to 3% below 1990 levels by 2001. Other countries actuallyrose by 8%.
Local initiatives to reduce pollution
Think globally act locally. Turn off lights, use less water, use public transport, recycle, use reusable bags.
Local authorities can Provide recycle facilities.
London array wind farm problems
Problems: bad visual impact, noise pollution, disturbs coastal processes
Social Impact of food production
Social : overuse of fertilisers can cause illnesses. Food shortages as a result of using land for biofuels and cash crops. E.g. Kenyan beans.
Economic impacts of food production
Economic : farming jobs provide money for workers that means they can send their children to school. Money can be invested in infrastructure like roads and airports that benefit everyone. Tax money can be spent on health nd care and education.
Environmental impacts of food production
Environmental: food miles lead to more CO2 emissions which leads to climate change. Desertification by using marginal land for food production. Pollution of water and land. Deforestation.
Environmental impact acts of food production:carbon emissions
Pineapples from Costa Rica travel 5424 miles and produce 1953 kg of carbon dioxide during air travel
Political impacts of food production
Political : as demand for food increases, it puts pressure on water resources. Particularly in areas of water scarcity, demand for water can lead to conflict e.g. River Nile. Can encourage better working practices and rights for workers. Good economy : stability.
Encouraging locally produced food:Totnes Food-Link project
Seeks to strengthen links between local producers with in a 30 mile radius of the town. By encouraging people to shift just 10% of their weekly food spend to independent food shops we could bring £2 million to boost the local economy.
Environmental impacts of food production: Desertification
Marginal land- Unusable land that has little or no potential for profit. Poor soil often in edge of deserts. Negative effects : as the meagre crops are harvested no goodness is returned to the soil and it becomes exhausted. Lack of vegetation cover makes the area prone to soil erosion where it’s easily washed/ blown away. As nutrients are removed, yields are reduced.
Political impact of increased food production: Who owns the River Nile
Egypt : relies on Nile for 95% of water supply. Only 80mm of rainfall a year.
Uganda: 75% of diseases caused by unclean water. 8.4 million lack access to safe water.
Sudan: 4.8 mil in hunger. 32% doesn’t have access to clean water.
Ethiopia: supplies 85% of the river. Will grow to 150 million people by 2050. 40.5% of GDP relies on agriculture.
Advantages of locally produced food
Less transportation - less carbon emissions, lower transport costs, less food miles, supports local farmers and helps country’s economy.
Disadvantages of locally produced food
Could hinder Unemployment and development in other countries. Lack of diversification. Can only get seasonal food
Causes of increasing food production
Rapidly growing population means more mouths to feed. People become richer, demand more meat and wider range of food. Demand for biofuels. Globalisation means people can get seasonal food all year round
