Globalisation EQ2 Flashcards
What is the the global shift?
The movement of the global economic centre of gravity to Asia from Europe and North America, via the global shift in manufacturing to China outsourcing to India.
What drove the global shift?
Improvements in Transport and communication. As well as lowering trade barriers and economic liberalisation, opening up areas to FDI.
What is an example of outsourcing?
India:
- by 2040 expected to be second largest economy in the world creating many costs and benefits
costs:
- worker exploitation (ten hour shifts in call centres)
- massive amounts of inequality (more billionaires then the UK but more people living in absolute poverty then Africa)
Benefits:
- call centre workers earn middle classss wages
- outpouring companies very profitable
What is an example of outsourcing?
China:
- extreme every fell from 60% to 16%
- gained a reputation of ‘workshop of the world’ bringing in FDI
- Increased in wages after protests 30-65% increase
- Boom in ‘high tech’ industry
Benefits of the global shift
- Waged work
- Poverty reduction
- Education and training
- infrastructure investment
How is waged work a benefit of the global shift?
factory work provides reliable, regular wages higher than subsidence farming. Also raises education levels and shifts to more higher-technology products.
How has the global shift lead to poverty reduction?
incomes raise due to factory work, or rise in income for supplying the factories. (600 million Chinese were lifted out of poverty between 1992 and 2015)
How has the global swift resulted in education and training?
- TNCs invest in training and skills development to improve workforce productivity, carrying transferable skills
- Economic growth generated by global shift used to finance investment into education and training (state education)
- Households of a higher income can obey for children school
How has the global shift lead to investments in infrastructure?
- Allows initial investment into basic infrastructure (ports power and water supply) as higher taxes and economic growth attracting further FDI.
- TNCs investment into local infrastructure to increases economic productivity
China build 11,000 km of new motorways in 2015.
Disadvantages of global shifts in developing nations?
- loss of productive land
- un-planned settlements
- environmental and resource pressure
How has the global shift lead to the loss of productive land?
- Constructions of factories, infrastructure snow housing for workers are built on previously greenfield land.
- Aid and water pollution form industrial, activities can render more agricultural land unstable.
How has the global shift resulted in unplanned settlements?
New manufacturing jobs create more economic opportunities promoting rural to urban migration. This rapid urban population growth outpaces formal housing construction leading to unplanned settlement such as slums or shanty towns.
How has the global shift lead to environmental or resource pressure?
- Industrial activity can produce serious air and water pollution.
- Increased demand on natural resources (water) as factories have increased demand.
- higher population wealth (consumer societies)
Commodity extraction creates environmental pressure elsewhere Togo loss 60% of their forest since 1990.
Environmental problems created by the global shift
- air and water pollution
- land degradation
- over-exploitation of resources
- loss of biodiversity
Effect of global shift on China’s environment
Since 1980 China has u define rapid industrialisation resulting in:
- severe air pollution (Beijing is above the world health organisations safe limit)
- close to 50% of the world coal in burnt in China.
- defrstation and desertification has forced many farmers off their land and into cities
- air pollution in China has reduce life spectacular by 5 years.
What problems has the global shift created in the developed world?
- increasing rates on unemployment due to deindustrialisation creating a spiral of decline.
- rise in crime levels
- depopulation (brain drain/gain) * Detroit’s population fell from 1.5 million in 1960 to 0.7 million in 2012 due to the closure of its car factories.
- dereliction (abandoned factories and falling house prices)
What is rural to urban migration?
Rural-urban migration means people moving from the countryside to cities.
60 % of urban growth in developing countries is caused by rural-urban migration.
What is a megacity ?
A megacity is a city with a population of over 10 million.