Globalisation EQ2 - Impacts of globalisation Flashcards
What is the ‘global shift’?
The global shift is the relocating of the global economic centre of gravity to Asia from Europe and North America, over the last 30 years
Why has there been a global shift?
It has been driven by improvements in transport and communications, plus the lowering of trade barriers and economic liberalisation, opening up to FDI. Labour-intensive manufacturing was attracted to Asia by the large amounts of workers willing to work for low wage rates
What are the the major economic, social and environmental changes associated with globalisation in Asia?
- poverty reduction and waged work
- education and training
- environment and resource pressure
- infrastructure, the built environment and unplanned settlements
Why have US and UK businesses outsourced so much work to India?
Many Indians are fluent English speakers, giving them a comparative advantage for call centre services
Broadband capacity is unusually high in the city of Bangladore, it is a long established technology hub
What are the costs of global outsourcing of services to India?
- some business process workers report they are exploited
- work can be high repetitive
- huge gap between rich and poor (80 million living in extreme poverty)
What are the benefits of global outsourcing of services to India?
- Indian call centre workers earn good middle class wages by Indian standards
- Indian outsourcing companies have become extremely profitable
What are the costs of global outsourcing of manufacturing to China?
- in early years, many workers exploited in sweatshops
- environment continues to suffer greatly, air pollution reduces Chinese life expectancy by 5 years
What are the benefits of global outsourcing of manufacturing to China?
- people enjoying large income gains, can afford smartphones and car ownerships grown to 1 in 5
- trasnfer of technology, meaning local compaines have adopted tech and management techniques brought to China by TNCs
What are the benefits of the global shift?
- infrastructure investment
- waged work
- poverty reduction
- education and training
What are the costs of the global shift?
- loss of productive land
- unplanned settlements
- environmental and resource pressure
What are the major environmental problems facing communities in developing countries as a result of global shift?
- air and water pollution
- land degradation
- over exploitation of resources
- loss of biodiversity
What are some examples of environmental challenges for communities in developing countries as a result of global shift?
Ivory Coast - tens of thousands of Ivorians suffered ill health after toxic waste alleged to produce hydrogen sulphide dumped by ship in employ of Dutch TNC Trafigura in 2006
Indonesia - deforestation of 13 million hectares of rainforest due to demand for palm oil plantations, biodiversity suffers as a result
What is deindustrialisation?
The decline of regionally important manufacturing industries
What are the challenges of deindustrialisation as a result of global shift?
- high unemployment
- rising crime rates
- depopulation
- dereliction
- contamination
What is an internal migrant?
Someone who moves from place to place inside the borders of a country - most commonly from rural to urban areas.
What is urbanisation?
The increase in the proportion of people living in urban areas
What is an economic migrant?
A migrant whose primary motivation is to seek employment
What is a refugee?
People who are forced to flee their homes due to persecution
What is natural increase?
The difference between a society’s crude birth rate and crude death rate