Unequal Flows Flashcards
How does globalisation promote unequal flows of people?
Enables workers to move more freely around the world, such as workers from LICs to HICs who provide remittances to their home country.
How do remittances act as an unequal flow of money?
Jobs are commonly created to promote consumer spending within an economy, or to provide tax revenue. Remittances take away this tax revenue from the government but also provide an income for countries who otherwise may not have as good pay/ labour protection laws.
How do global loans act as an unequal flow of money?
Loans to tackle social problems are especially difficult to re pay as opposed to economic projects. These are especially promenant in LICs as they handle low standards of living, poor healthcare and high crime rates. Many social and economic projects come hand in hand though.
How does FDI act as an unequal flow of money?
Investment from HICs or TNCs has raised average incomes and reduced global poverty. However, this is not usually the investors main goal, they are most commonly concerned with increasing their profit margins, or increasng brand recognition.
