Issues associated with interdependce
- Created by: steloah1
- Created on: 27-04-22 08:48
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- Issues associated with interdependence
- Positives
- Labour flows
- opportunity to seek work elsewhere
- Reduces geographical inequality between workers due to more oppurtunities (A8 countries)
- Addresses important skill and labour shortages (nurses from the far east in the UK
- Some workers return to their home countries with new ideas and skills
- Outsourcing
- The OECD has found that TNC's pay 40% higher than wages paid by local firms
- Labour flows
- Negatives
- Outsourcing
- Leads to unemployment for those in higher income countries
- Less contribution to the local economy so service workers lose their jobs
- De-multiplier effect
- Structural unemployment
- When a skill set of local workers is no longer compatible
- Need for governement investment to retrain workers for employment in the local economy
- When a skill set of local workers is no longer compatible
- Less contribution to the local economy so service workers lose their jobs
- Deindustrialisation
- Movement of factories = closure of local suppliers
- Areas go into decline
- London Docklands
- Leads to unemployment for those in higher income countries
- Conflict
- Trade used as a weapon
- 2006 UN trade sanctions to Iran for refusal to suspend its uranium enrichment nuclear programme
- This hindered Iran's ability to integrate into the global economy
- 2006 UN trade sanctions to Iran for refusal to suspend its uranium enrichment nuclear programme
- Water conflict in the River Chad
- 90% of water lost due to global temperature rise and overusage
- Increased communication can increase the spread of conflict
- The 'Arab Spring" sparked in Tunisia in 2010 but quickly spread across North Africa and the Middle East
- Trade used as a weapon
- The Gini index shows that inequality has worsened (0= equal, 1= entire income is for one person)
- Subsaharan Africa has increased by 9% from 1993 to 2008
- China has increased by 34% from 1993 to 2008
- Investment
- Those with money to start with benefit from growth whilst those with no money stay rooted in poverty
- Labour movement
- Brain drain - skilled workers attracted away by higher wages
- Loss of skilled workers = training gap
- Greater movement of people can lead to a greater risk of global pandemics
- Brain drain - skilled workers attracted away by higher wages
- Outsourcing
- Positives
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