Issues with globalisation Flashcards
advantage of unequal flows of people for core nations
host countries get more highly skilled workers
cheap labour for seasonal work- boosts economy via outsourcing
cultural mixing- less ignorance of cultures
disadvantages of unequal flows of people for periphery nations
migrants are often highly skilled so their country of origin loses out
skills/labour/population loss within trade bloc periphery (eg Poland to the UK)
disadvantages of unequal flows of people for host countries
host countries may lose out economically as migrants send money back to origin country (remittances)
also more of strain on services eg transport+healthcare
what is outsourcing
the movement of labour to developing nations to make use of cheap labour costs and less strict working conditions
issues with outsourcing in HICs
loss of jobs (especially in manufacturing)
de-industrialisation
structural unemployment (workforce lack needed skills as some people only have 1 key skills)
outsourcing leads to… in HICs
the de-multiplier effect
what is the de-multiplier effect
once people have lost their jobs they can’t spend so services in an area are lost and the area falls into decline
what is the best way to measure inequality
human development index (HDI)
what does HDI take into account
GDP per capita, life expectancy and adult literacy rate
what index is used to indicate internal inequality
gini index
what does 0 and 1 mean in the gini index
1 means the entire national income goes to one person. 0 means that income is evenly divided
how do global systems try and reduce inequality in trade
offer tariff reductions to encourage people to go there
what percentage of money doesn’t physically exist
97%
which countries put more money into the EU than they get out
Germany, UK and the Netherlands
which countries get more from the EU than they give
Greece, Poland and Spain
