Impacts On Different Flows On The World Flashcards
Flow of people benefits
Immigrants bring economic growth
They may do jobs that citizens may be opposed to eg. Mining/poorly paid jobs
Migrants send remittances back to families
Inequalities with flows of people
“Brain drain” -> LICs suffer as skilled people move away taking the knowledge with them
Conflict with flow of people
Low skilled migrant workers are prepared to work for less money
Employing them means companies may depress wages for the local population causing conflict between locals and migrants
Flows of people injustices
Migrant workers are sometimes made to work in dangerous conditions
Benefits of flow of money
FDI allows foreign companies and countries to take advantage of cheap raw materials and low labour costs whilst the host country can benefit from foreign capital
Foreign aid can be used to improve living Standards or improve conditions following disasters
Inequalities with flows of money
Foreign aid can result in dependency
Gives governments little incentives to improve their own countries
FDI forces out local businesses due to opening of TNCS
Conflicts caused by flows of money
Foreign aid can find its way into the hands of armed groups resulting in conflict
Injustices with flows of money
Companies may pressurise governments of LICs to pass laws that make investment cheaper eg. Cutting environmental regulations and weakening laws on working conditions
Benefits of flows of ideas
HICs introduced ideas of deregulation to NEEs and LICs, reducing state ownership to benefit NEEs
Free trade has increased globally from deregulation allowing global markets to thrive
Companies with successful strategies can educate LICs
Inequalities with flows of ideas
Neo-liberalism (political approach involving less government control) started in HICs and spread globally
Tends to concentrate wealth in hands of a few eg. Large TNCs based in HICs
Conflict with flows of ideas
Private companies and free trade are threatened by government decisions meaning HICs justify their intervention
Injustices with flow of ideas
Governments and TNCs argue that free trade and privatisation are the best way to help a country develop and that this justifies poor working conditions and environmental degradation
Flow of technology
Economies of LICs can develop through technology investments through opening up factories and increasing employment
Strengthens trade deals between HICs and LICs allowing HICs to benefit from exports
Concentration of technology innovation benefits countries over the world eg. Silicon Valley California
Inequalities with flows of technology
HICs can afford the latest technology whereas LICs cannot
Countries with the latest technology can make products more cheaply and have more information
2016 97% Netherlands citizens had internet access whereas 20% did in Myanmar
Conflict with flow of technology
Repressive governments in LICs have used weapons technology sold to them by HICs to stop protest from their own people
Employees receive little compared to what technology products are made for
In HICs due to deindustrialisation many are left jobless
