Human geo September exam Flashcards
What is the global shift and how did it begin?
The global shift represents the movement of economic dominance to the east. Whilst services and admin joins have been outsourced mainly to areas such as India, manufacturing jobs have transitioned from the west to China.
The shift began in the 1950s with cheap mass-produced goods, e.g. toys and textiles, relocating to Japan and soon in the 1960s the Asian Tiger Economies (South Korea, Taiwan, Hong Kong and Singapore) quickly followed. In the 1980s and 90s most other Asian countries opened up to globalisation.
what is the time lag between the removal of trade barriers and large FDI flows
10-15 years
what are the 2 general causes of the global shift?
- Improvements in transport and communications- countries are becoming increasingly connected, allowed for an increased ease in the flow of people and commodities as it is more time-efficient and cost-effective, able to offshore to other locations
- The lowering of trade barriers and economic liberalisation- this has allowed for an increase in FDI as countries become more open to trade flows, trade blocs have allowed for greater connections with the east and free market liberalisation means that offshoring is an easy process
what are the causes of the global shift in India and China?
India
- India has close links to the UK and they speak English very well
- due to time zones, they can offer a 24hr service
- India had a comparative advantage as it is english speaking, a legacy of the British Empire
China
- cheap labour, quicker transport links, many government incentives (SEZs)
- no human rights in China, exploit people
what are the 3 benefits of the global shift in China?
Chinese infrastructure investments
reductions in poverty
better education and training
what are the 3 drawbacks of the global shift in China?
The loss of productive farmland
An increase in unplanned settlements
Pollution and health problems
explain the benefit to China of the global shift: Chinese infrastructure investments
- it has the world’s longest highway network
- Shanghai’s Maglev is the fastest commercial train (268mph) taking 8 minutes from the CBD to the airport
- China spends more on economic infrastructure annually than North America and Western Europe combined, with an infrastructure spending of $28tn predicted for 2040
- China built 11,000km of new motorways in 2015 alone
- China is expected to spend another $19bn on the Hong Kong Zhihai Macau brindle which is already 19 miles long, it follows and crosses the Pearl River estuary, with two artificial islands and submarine tunnels to allow travel underneath the busy shipping route
explain the benefit to china of the global shift: Reductions in poverty
- Between 1981 and 2010 the number of people living in poverty reduced by 680 million
- Extreme poverty has reduced from 84% in 1980 to 10% in 2016
- 300 million Chinese people are now considered to middle class
- Over the past 40 years, the number of people in China living below the international poverty line has dropped by more than 850 million
- China created employment opportunities for 2.59 million people in China and established more than 30,000 poverty alleviation workshops, helping 770,000 registered impoverished people get employed in areas close to their home
- China plans to eliminate absolute poverty by 2020
explain the benefit to china of the global shift: better education and training
- 94% of Chinese over 15 are literate compared to 20% in 1950
- In 2014 7.2 million Chinese graduated from university – 15 times higher than in 2000
- China has the largest education system in the world. Over the past few years, the number of international students who study abroad in China has significantly increased
- Investment in education accounts for about 4% of total GDP in China, in 2009 the gov made nine years of education mandatory
- TNCs invest in training and skills development to improve workforce productivity and some skills are transferable
- Economic growth generated from the global shift in manufacturing used to finance investment in education and training
explain the cost to china of the global shift: the loss of productive farmland
- Most farmland is lost due to pollution. 3 million hectares (the size of Belgium) has been polluted by heavy metal.
- the environmental protection ministry has estimated that 12 million tonnes of grains are polluted by heavy metals every year
- the loss of productive farmland is causing concern due to their predicted 300 to 400 million people coming to move into the city within the next 30 years. The predicted share of urban residences in China’s population from 47% to 75% would require the clearance of land for residences, roads and other infrastructure.
- only 7% of farmland is arable land. This is emphasized through the overuse of fertiliser, intensive grazing and the reliance on biomass for rural energy.
- the Chinese are consuming more and more meat, farmland used for cattle is a less productive way of using farmland. 70% of China’s corn is used to feed livestock rather than the population
explain the cost to china of the global shift: an increase in unplanned settlements
- Rapid industrialisation and then urbanisation has created a need for more housing resulting in an increase in informal homes
- Illegal homing comes from adding an extra storey to their house and renting it to migrant workers or if farmland is privately developed for housing without permission
- with the scheduled 300 to 400 million people due to move into the city in the next 30 years, it puts an intense strain on the availability of housing for the migrants. They may be unable to adapt to the higher-valued accommodation, leading to the increase in informal/illegal settlements
explain the cost to china of the global shift: pollution and health problems
- they consume 1.9 bullion tons of coal each year with 70% of Chinese households burning coal or biomass for cooking or heating
- 70% of China’s rivers and lakes are now polluted, 207 tributaries from the Yangtze are so polluted they cannot be used for irrigation let alone to drink.
- 100 cities suffer from extreme water shortages and 360 million people don’t have access to clean water. Tap water in some areas has 80 out of the 101 forbidden toxins under Chinese law
- The outdoor air pollution that China is exposed to has led to just under 300,000 deaths, 20 million cases of respiratory illness and therefore a health cost of around 3% of GDP annually
- the pollution occurring in china has had detrimental effects on child development, including reduced foetal and child growth and developmental impairment. A study found that unhealthy levels of pollution led to roughly 852,000 premature deaths in China in 2017
- A 2018 study from the Chinese university of Hong Kong estimates that the equivalent of $38 billion of revenue is lost yearly due to early deaths and lost food production as a result of air pollution.
explain the global shift to Bangalore, India
- 4 of the top tech companies have located in Bangalore, very high wages
- Bangalore has seen a rise in middle-class, higher consummation leading to environmental issues, they are demanding more services
- India opened up to globalisation in 1991 with Prime Minister Manmohan Singh’s economic liberalisation
- early investment in Indian Institutes of Technology produced a large pool of IT literate workers
- Broadband access exceptionally high in Bangalore and other tech-city hubs
what are some of the benefits of the global shift to India
- India’s call centre workers earn good middle-class wages by Indian standards
- nightclubs and 24 shopping malls in Bangalore testify to the relatively high purchasing power of a new Indian ‘techno-elite’ typically earning 3500 rupees (£40) a week
- Indian outsourcing companies have become extremely profitable. Founded in 1981, Infosys had revenues od US$9 billion in 2015. It is one of the top 20 global companies for innovation, according to Steve Forbes
- it has become a hub for entrepreneurs, low costs of labour, you can afford to invest in lots of new products, can afford to take more risks however this comes with the opportunity for big rewards, hope for Bangalore’s digital future.
- by 2040, India is expected to be the second-largest economy in the world, the economic growth they have encountered has been powered by the call centre services that Indian workers provide
what are some of the costs to the global shift to India
- some call centre workers complain they are exploited
- their work can be highly repetitive. Business is often conducted at night due to time zone differences between India and customer locations in the USA or UK- sometimes in 10 hour shifts, 6 days a week
- Despite overall growth, the gap between the rich and the poor has widened sharply. India has more billionaires than in the UK, yet it also has more people living in absolute poverty than all of Africa. In 2015, half a billion Indians lived in homes that lacked a toilet
what are the 3 contributors of globalisation
developments in transport
developments in ICT and mobile communication
national governments through supporting economic liberalisation
explain the contributor of globalisation: developments in transport
- over time transporting goods and people around the world has become cheaper, transport systems have evolved in order to contribute towards a ‘shrinking world’
- developments in transport and trade in the 19th century include railways, telegraph and steam ships.
- developments in transport and trade in the 20th century include jet aircraft and containerisation.
- containerisation is known as the ‘backbone’ of the global economy since the 1950s with around 200 million individual container movements taking place each year, lower costs of transport is beneficial for both businesses and consumers
- the arrival of the intercontinental jet in the 1960s has allowed people to be able to travel abroad more easily, lowered the cost of international air travel, encouraged tourism within the purchasing capabilities of the middle class
- these transport developments have reduced transport costs per unit output so products are affordable for customers in a distant market, setting up a new flow of goods/information
explain the contributor of globalisation: developments in ICT and mobile communication
- ICT development shave reduced communication costs and increased global communication flows, since the late 20th century
- Technology is used by different players in a vast array of ways that contribute to globalisation
- the developments in technology has led to a lowering in communication costs and contributed to time-space compression
- ICT supports the growth of complex spatial divisions of labour for firms and a more international economy
explain the developments in ICT of mobile phones, internet and social networks
Mobile phones
- reduced mobile phone costs expanded usage from an expensive business tool to an ubiquitous consumer product
- they extended information flows to locations beyond landline networks
- the ability to contact people around the world
Internet
- 40% of the world’s population have access to it
- broadband internet in the 1980s and 90s meant that large amounts of data could be moved quickly through cyberspace
- the internet is one of the main players in globalisation, through the internet the world has been able to be connected
Social networks
- Social media has led to the rapid spread of news, knowledge and opinions, contributed to the homogenisation of culture through the adoption of American culture
- they have allowed people to communicate instantly and without charge
- Skype has allowed cheap, direct, face-to face communication, allowing migrants to maintain stronger bonds with their distant family, it can also be used in TNCs that operate in many countries due to globalisation, able to hold meetings online easily with employees all over the world, very easy
explain the developments in ICT of electronic banking
Electronic banking
- this creates financial links with people around the world, the digital economy is worth $1.5 trillion
- in Kenya the equivalent of 1/3 of the country’s GDP is sent through the M-Pesa system annually. This is a mobile phone service that allows credit to be directly transferred between phone users.
- in-store barcode recording automatically orders a replacement from a distant supplier, reducing warehouse and waste transport costs
- E-banking allows migrants to transmit remittances of money back to their home countries, remittances are essential to many countries
- E-banking enables businesses to transfer money and investments instantly along with being able to analyse data on sales, employees and order from anywhere within their business
what are the 4 different ways of the contributor of globalisation of national governments through supporting economic liberalisation
free market liberalisation
trade blocs
privatisation
encouraging business start ups
explain free market liberalisation as a contributor to globalisation
- this involves promoting free markets and reduces government intervention in the economy, the competition that is created allows for innovation and lowest cost production
- lifting restrictions on the way banks and companies operate has led to increased competition in a once restricted market, thus benefitting the economy through the increase in FDI
- it involves removing price controls, breaking up monopolies and encouraging competition- including foreign competition which promotes globalisation
explain trade blocs as a contributor to globalisation
- leads to a market over a greater global scale, an increased amount of flows over a larger geographical area
- a trade bloc is a group of countries that agree to reduce trade barriers between them. They promote free trade between members, increasing economic globalisation.
- firms producing a country’s specialisation become TNCs as they sell outputs through the bloc, this contributes to globalisation as straight away their products are being sold on a global scale
- the formation of the European union has led to them forming their own parliament and integrates economies into one group, GLOBALISATION, interconnectedness and interdependence
- the biggest trade bloc is the EU
explain privatisation as a contributor to globalisation
- since the 1980s many governments have sold off industries they once owned
- the British government have liberalised their economy leading to a large increase in FDI, we have now become dependant on China for a lot of funding that occurs, they take part-shares into UK companies, these connections they have formed are due to globalisation, the more liberal a country the more likely they are to form connections with foreign countries, this will result in larger amounts of leakages abroad
- permitting foreign ownership allows an injection of foreign capital through FDI, introduces new technologies and promotes globalisation
- in the UK the steel, car, electricity, gas and water industries were all state-owned but are now privately owned
- through privatisation it allows for deep connections with people across the world, the flow of foreign ideas and opinions into our economy
explain the encouragement of business start ups as a contributor to globalisation
- encourages people to set up business by offering financial incentives
- if a country offers low business taxes, minimum regulation and well-enforced contract laws then it will encourage business start ups, formation of TNCs, foreign new companies will set up business there allowing for the flow of people and culture
- it creates innovation and competitions in new production techniques, erodes excess profit of monopolies, lowers prices and increases household PP
why was there a need for regeneration in liverpool?
- in 1980s they were badly affected by industrial decline with high levels of crime and vandalism and led to high levels of deprivation
- lack of retail and commercial industry, increasing competition from other areas
- when the docklands went out of their function and land became derelict as tech continued to improve and so Liverpool declined rapidly
- In the 1960’s Liverpool was the third most visiting shopping centre in the UK and by 2002 it had dropped to 17th