Issues associated with interdependence (Unequal flows of power) Flashcards
What are three positive effects of flows of people?
- Positive Multiplier Effect
- Increased multiculturalism
- Foreign students pay far more for university education.
What are 3 negative effects of flows of people?
- Unstable economy caused by high migration levels (brain drain)
- Migration can cause ageing populations which results in a lack of workers to aid the elderly
- Overpopulation leads to resource exploitation.
How do flows of people increase inequalities?
LICs suffer a ‘brain drain’ - skilled people leave and take their knowledge with them.
How do flows of people increase conflict?
Low skilled migrants are often happier to work for less money than low skilled locals, by employing migrants companies may depress wages for the local population.
How do flows of people increase injustices?
Migrant workers are sometimes made to work in dangerous conditions for low wages (FIFA World Cup 2022)
What are some benefits of flows of people for a Host country?
- Enriched by cultural diversity
- Job vacancies and skills gaps can be filled
- The pension gap can be filled by the contributions of new young workers who pay taxes.
What are some problems of flows of people for the Host country?
- Can put pressure on public services
- Unemployment may rise if there are unrestricted numbers of incomers
- There may be integration difficulties and friction with local people
What are some problems of flows of people for Origin countries?
- Services to an ageing population cant be maintained if there is a lack of young people locally
- Migrants may be exploited in host country
- Loss of highly trained people, especially health workers
What are some benefits of flows of people for Origin countries?
- Developing countries benefit from remittances (often higher than foreign aid)
- Returning migrants bring savings, skills and international contacts.
What is microfinance?
Small loans payed back in very small amounts (supported by the World Bank) often taken out by people in developing countries.
How can microfinance be beneficial to emerging economies?
‘Village Phone’ microfinance is common in developing countries as it allows the purchase of a smart phone to improve mobile connectivity for small rural villages.
Why is mobile phone cost important when considering interdependence?
Access to technology, such as computers and smartphones in LIC’s is limited or unaffordable since wages are low compared to the selling price of goods.
Why is technology transfer important when considering interdependence?
The growth of new technology, passed from HICs to LICs can promote growth and opportunities but can also cause redundancies to occur.
What is global shift?
The movement of manufacturing activities to developing countries.
What is outsourcing?
The transference of a business activity to a third party organisation.
