The Global Shift EQ2 Flashcards
What is the global shift ?
The movement of manufacturing and economic activity from Europe and the USA to Asian countries, leading to the economic re-emergence of the Asian region
When did the global shift begin?
1970s-1980s
Where is the global economic centre of gravity?
-The global economic centre of gravity refers to the point where the world’s economic activity is concentrated.
-Due to the global shift of manufacturing and outsourcing of services, it is moving towards Asia, reflecting the region’s growing economic influence.
What factors helped accelerate the global shift?
1)Individual Asian countries began to allow overseas companies access to their markets, with a new open door policy
- TNCs began to seek new areas for manufacturing (e.g. China) and for outsourcing services (e.g. call centres for software development in India).
- FDI began to flow into the merging or re-emerging Asian countries.
What is meant by the “Tiger economies” in Asia?
-countries in Asia that have experienced increasing economic growth e.g. Singapore, Hong Kong and South Korea
-e.g. South Korea’s wealth had sparred and as a consequence its spending on health and education has increased
-many locations within Asia have benefited this way due to the establishment of SEZs
What problems have come with the global shift?
-It has had an impact on people (e.g. dangerous working conditions, child labour, and unequal pay between men and women
-it had had an impact in the environment (e.g. pollution and lack of regard for the environment due to fewer environmental laws)
What are some social benefits of the “rise of Asia” (in terms of education)?
-The global shift has boosted investment in education and research in Asia, enabling more people to pursue advanced degrees (PhDs) and driving growth in quaternary industries e.g. biotech and medical sciences
»skilled workforce, higher pay/moe tax
What are some social costs of the “rise of Asia” ? (In terms of education)?
-literacy rates remain uneven, especially in rural areas like India and Bangladesh. For example, in rural India, the literacy rate is about 69.7%, compared to 87.7% in urban areas»_space;
less likely to access better-paying jobs or improve their living conditions + less disposable income
What are some environmental costs of the “rise of Asia” ?
- crop land has been ruined by mining or soil erosion from over exploitation due to a high demand for raw materials e.g. in china there is a high demand for iron ore and soy beans»_space;
Fertile land ruined, agriculture productivity decreases, leading to lower crop yields, increasing food prices and may force local communities into poverty (particularly in rural regions)
What are some economic benefits of the “rise of Asia”/ global shift? (In terms of infrastructure)
-more infrastructure development e.g more high rise developments in city centre “hot spots” like Singapore and Shanghai»_space;>
Attract businesses and investment, also creates office space and retail areas which can create more job opportunities which= better quality services
-millions of jobs in manufacturing in emerging economies like China where around 500 million people have escaped poverty (eating $1.25 a day) with many earning between $10-100 now)»»
reduced poverty levels, more disposable income, supporting growth of businesses, creating jobs and increasing tax revenue
What is an environmental/ economic cost of the “rise of Asia”?
-increase in infrastructure due to businesses development had led to a loss of recreational space and old unplanned neighbourhoods e.g. Dharavi slum in Mumbai is overcrowded and is home to people living £200 a month»_space;>
The lack of adequate space can lead to overcrowding, which in turn contributes to poor health and a reduced quality of life. Additionally, the loss of green space exacerbates issues like climate change
Why has manufacturing grown in China due to the global shift?
-SEZs offered tax breaks and fewer regulations, attracting foreign investment and boosting manufacturing.
-Cheap labour made China an attractive destination for cost-effective production.
-Developed transport and communication networks made it easier and cheaper to manufacture and export goods.
Why has there been a global shift of outsourcing service to India?
-India has a large, educated and English speaking workforce due to the legacy of the British rule which ended in 1846 giving them a competitive advantage when marketing call centre services to the English speaking world
-broadband capacity is high in cities like Bangalore due to investment by foreign TNCs that has allowed them to expand their broadband infrastructure making it a long established technology hub
What are some of the advantages on people that manufacturing in China has had?
-500 million people have escaped poverty ( earning $1.25 a day) with many earning between $10-100 now)
-education is now free and compulsory in China between the ages of 6 and 15 and 94% over the age of 15 are now literate compared to 20% in 1950
What are some of the disadvantages on people that manufacturing in China has had?
-there is a big rural divide with per capita spending on secondary education carrying widely from £2,200 in Beijing to just £300 in Guizhou»_space; disrepair in funding = unequal access to education – bran dran, less workers, economc decline
-in early years many worker were exploited in yongkang sweatshops where around 2,500 workers lost a limb or finger each year due to factory conditions
-pollution kills 4400 people everyday and respiratory issues»_space; pressure on healthcare, diverting resources from services
