Impacts of globalisation

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  • Created by: Hannah
  • Created on: 01-05-14 12:18
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  • Global challenges for the future
    • 2 speed world
      • Poverty:
        • In 1981 43% of pop lived in poverty, by 2010 it had more than halved. Still leaves around 1b people
        • China is successfully alleviating poverty- Liberalisation of China's economy in 1979- triggered rapid industrialisation and sustainable economic growth- 500m Chinese were removed from poverty between 1981-2004
        • G has increased sum of total wealth, since rapid G since 1980, incidence of extreme poverty has fallen in major regions of developing world
      • Inequality and poverty gap
        • The wealthiest 1/5th of planet takes 4/5ths of global income. Share of poorest 40% has increased by only 1% since 1990
        • China: Chinese urban dwellers have an annual disposable income per capita that is x3 greater than rural dwellers
        • London: salaries of bankers etc in London have increased in the last 30 years (creating elite) whereas residents in neighbouring Tower Hamlets and Hackney have seen little improvement
      • FDI
        • Offshoring lowers costs and gives TNC's direct access to foreign markets. Countries benefit from FDI- gaining jobs, exports, technological and commercial  expertise
        • FDI has by-passed the worlds LDC's. Although the 48 LDC's accounted for 12% of worlds population, their share of global FDI was only 2% in 2010 -most concentrated in enclaves that produce oil and mineral ores
      • International trade
        • Has expanded threefold since 1990.
        • Dominated by wealthy countries in Europe and North America + emerging economies in Asia e.g. China and  India
        • Africa has barely 3% of world trade in merchandise and 2% in services
    • Moral and social consequences of G
      • Exploitation of workers
        • Working conds. that wouldn't be tolerated in the western world e.g. sweatshops flourish in developing world because people are desperate for work and employment legislation is weak and often not enforced
        • Fila, South Korean TNC. It does not manufacture as it is labour intensive, it is offshored and subcontracted to countries with low wage economies in Asia and Latin America + Eastern Europe
      • Local culture
        • Uniformity of culture
          • Diffusion of western culture, Americanisation promotes consumerism, exploiting peoples material desires. Weakens local culture and causes people to adopt western tastes and lifestyles
          • McDonaldisation- McDonald's and other fast-food  restaurants sell standardised predictable products quickly and cheaply. McDonald's has over 30,000 stores worldwide.
            • Threatens traditional foods and diets- decreasing local culture
        • Cultural diversity
          • TNC's modify products to sell in local markets, or source commodities or parts locally is glocalisation
          • McDonald's in India sells products e.g. McAloo Tikki burgers
      • Human Health
        • TNC's and life saving drugs
          • Diseases e.g. Malaria, TB, HIV/AIDS cause a high number of deaths. Malaria, an endemic in 109 countries killed 863,000 people in 2009
          • Pharmaceutical TNC's based in MEDC's control their manufacture and sales - prioirty is profit and recouping investment in research and develpoment
            • Many life saving drugs patented by pharmaceutical companies cannot be manufactured under license in LEDC's
            • Because profit margins for selling drugs in LEDC's are small, there is limited incentive for pharmaceutical TNC's to develop new drugs for this market
        • Food systems
          • Worldwide approx. 1.3b people smoke in MEDC's.
            • Health  risks of smoking are known so sales have decreased
              • Tobacco companies have responded by targeting LEDC's. More than 80% of smokers are in LEDC's
          • Fast food chains have successfully promoted foods high in sugar and saturated fats in LEDC's.
            • Increase in obesity and diet-related illnesses
          • Nestle have promoted powdered milks for infants to replace breast-feeding . Breast-feeding has physical benefits for infants and mothers
            • In the Philippines food companies spend US$100 million a year on advertising breast milk substitutes
              • Increases risk of malnutrition in infants and increases pressure on the budgets of families who are already poor
    • Reducing environmental and social costs of G
      • Local actions
        • Waste management :landfill
          • Disposal of solid waste generated by towns and cities presents major environmental problems
            • London generates 4.4 million tonnes of municipal household waste a year
          • Landfill is an environmentally unsatisfactory method of waste disposal because:
            • leakage of toxic chemicals into environment
            • emissions of GHG's such as methane and carbon dioxide
            • loss of countryside and amenity as well as brownfield sites - could be used for other purposes in crowded urban areas
        • Recycling
          • UK is rapidly running out of landfill space  and needs to find alternatives that comply with EU directives
          • Local authorities now require households to sort their recyclable domestic refuse
            • Proportion of domestic waste recycled in England increased from 11% to 40% between 2001 and 2011
          • New technologies e.g. anaerobic digestion of organic waste
          • Recycling has reduced carbon dioxide emissions in the UK by 18 million tonnes per year
      • National actions
        • Give subsidies to promote cleaner technologies e.g. renewable, carbon free energy e.g. wind
        • Impose carbon taxes on activities that consume large amounts of fossil fuel e.g. air transport
        • Give financial incentives to households to invest in energy conservation and alternative energy e.g. solar panels
      • International strategies
        • Kyoto protocol 1997
          • Most rich countries agreed to legally binding reductions in their CO2 emissions (based on 1990 levels) by 2012
          • Exempted developing countries (including major polluters e.g. China and India)
          • A number of rich countries e.g. USA refused to ratify the treaty due to the damage it would experience to its economy
        • UN climate conference at Durban 2011
          • Was reached on a global Green Climate Fund. Financed by rich countries, will transfer US$100 billion to developing countries by 2020 to help them cut out GHG emissions and adapt to climate change
        • Cap and trade
          • Businesses are allocated and annual quota for their CO2 emissions - if they emit less than their quota they get carbon credits. Countries that emit over must buy credits or pay a financial penalty

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