Impacts of globalisation - winners + losers Flashcards
Some countries remain switched off due to..
- Political corruption/ideology (North Korea)
- location (Gambia - poor development and physically isolated doesnt attract FDI + only 35% of Gambia’s 1.8 mil pop access to electricity)
- Poor infrastructure, unskilled workforce, crime, weak market, debt, unstable currencies
Globalisation has encouraged western companies to…
Gravitate towards Asia for cheap manufacturing (outsourcing.)
India - winner
Globalisation caused:
- improvements in infrastructure, wages. poverty reduction, education + training.
India - loser
- loss of productive land for urban settlements, encouraged unplanned settlements e.g. Dharvai, Mumbai.
- Outsourcing (call centres) = workers exploited - long hours + have to work nights + gap between wealthy and poor is widening.
- environmental/resource pressure:
- E.g. The ganges - toxic
industrial waste dumped.
China - loser
In 1990s, cities e.g. Shenzhen offered investors a large pool of cheap labour for manufacturing - sweatshops
- TNCs outsourcing to China has vastly increased
Many exploited + working conditions are dangerous -
chemical contact, long hours, limited human
rights, relaxed health & safety regulations - 1300 children poisoned by a manganese factory in Wenping township, Hunan province - opened without approval of environmental protection bureau.
- The environment degraded - Rivers and waterways become polluted with arsenic, lead and other dangerous chemicals + air becomes polluted with
particulates = increase of asthma suffers
and pollution-related fatalities - 460 million in north east china stay inside due to smog.
- 75% of major lakes classified as highly polluted due to industrial waste dumping.
China - winner
- Global shift of manufacturing = reduced extreme poverty in China from 60% in 1990 to 16% in 2005.
- New production methods and techniques brought by TNCs have now been adopted by local companies = causing local economic development - e.g. chinese producing own smartphone - Xiaomi.
- Locals, especially in rural areas who would otherwise be dependent on subsidence farming, now earn a wage.
- more people able to have luxuries - 1/100 families have a car now its 1/5 have a car since 2005.
Developed countries - losers
- Globalisation caused deindustrialisation - due to manufacturing moving to developing countries - caused social + environmental problems e.g. dereliction, contamination (industrial waste) depopulation, crime, high unemployment.
E.g. Northern England suffered when mining/textile industries closed + US - Ford, GM + Chrysler employed 1.5 mil now only 250,000.
Saudi arabia - winner
- abundance of physical oil resources produce petrodollar wealth from trade.
Bangladesh - loser
- Collapse of the Rana Plaza factory 2013 (1134 people killed) impacted many garment TNCs - whole industry faced intense scrutiny over TNCs exploiting workers and providing unsafe working conditions.
How China attracts TNC’s
- China’s open door policy
- SEZ’s (which reduce taxes) set up in the East to attract FDI + TNC’s.
Togo - loser
- 60% of forested land lost to urbanisation, logging, cash cropping.