Globalisation EQ3 Flashcards
What is the inequality gap
The gap in wealth between the richest and poorest in a nation
Trends in income across the world
Average income risen in all continents
Poorest parts of Africa seen very little and very slow growth
Increased wealth of Europe and USA has resulted in widening gap between richest and poorest
Absolute poverty fallen but still high
Trend in Asian income
Risen significantly since 1970s due to japan and South Korea modernisation
2010 Asian income stood at US$7000
Trend in African income
Growth in Sub Saharan countries remained stagnant
Huge disparities
Northern countries eg Algeria and Tunisia grown from oil wealth
What is the Gini coefficient
Measures inequality of wealth shared across a population
Scores between 0 to 100
0 = perfect equality
10. = perfect inequality - one person has all income
How has globalisation caused growing conflict and degradation?
Rise of far right parties in Europe
Worsening environmental degradation
Political conflict over waterways
What is localism
The reduction of globally sourced goods
Instead purchasing locally sourced, sustainable products to protect environment and vulnerable individuals
Advantages of localism
- local suppliers can generate more revenue
- jobs for locals
- deliveries much quicker and cost less
- fewer carbon emissions due to reduced food miles
Disadvantages of localism
- foreign suppliers lose out and jobs lost abroad
- overall higher cost due to higher wages and manufacturing costs
- low income families may not have money to be able to afford local produce
What do transition towns promote
- reducing consumption through reusing and recycling
- reducing waste, pollution and environmental damage
- meeting local needs through local production
What is fair trade
Aims to secure better pay for producers and growers
Includes coffee, cocoa and bananas
Provides consumer confidence that suppliers being paid fair price
As s, increasingly difficult to ensure profits deposited fairly
Examples of winners in globalisation
- Economies with low labour costs and infrastructure to export
- new middle class
- workers gaining jobs
- educated and skilled workers can earn higher wages
- multinationals benefit from tax avoidance and outsourcing
- workers who can migrate to higher income economies
Losers in globalisation
- manufacturing sector in high cost countries
- post industrial regions with decline in employment
- unemployment in former manual workers
- poorest 5% with stagnant incomes
- environment - costs of trade and growth
- land locked countries unable to develop exporting industries
- economic and social pressures from migration
What is diaspora
The dispersion of a group of people from their original homeland
What is post accession migration
The flow of economic migrants after a country has joined the EU
What is centripetal migration
The flow of people towards the centre of urban areas
What is the Lorenz curve
They measure inequality in graphical form and allow Gini coefficient to be calculated
Shows how far away reality is from perfect equality.
How does the UK control migration
5 tier point system designed to check the economic migrants possess resources that the UK economy needs
Tier 1 must either possess exceptional talent or be prepared to invest more than £2mil in the UK
What % of Japanese respondents were opposed to a more open immigration policy?
65% - despite imminent labour shortage due to aging population
