Development and Globalisation notes

Development and Globalisation
Development
Development is a term that can be used in many different contexts whether it is social, economical, political
etc. However generally development refers to an improvement in certain areas:

Economic
o An increase in the country's economy with a shift from secondary to tertiary industry which…

Standard of Living (measured in GDP per capita)

Development Continuum
Originally there were three groupings that made up the development continuum, they were:

FIRST WORLD (those developed countries that had a democratic government and a strong economy)
SECOND WORLD (communist countries)
THIRD WORLD (UN developed countries)

However as time has…

4. The emergence of trade blocs
5. The establishment of the IMF and the World Bank
6. Development of global marketing and the continuing rise of TNCs.

Flows
Capital
o ICT allows cheap, reliable and almost instantaneous communication
o Allows sharing information
o Allows transfer of capital
o Allows Marketing…

Help to reduce inflation

Positives for LEDC's and NIC's Negatives for LEDC's
Development of new industries Rapid urbanisation and rural-urban migration
Increased employment Westernised approach to economy
Helps to reduce development gap Increased environmental damage die to
Increased FDI and investment which can lead to polluting industries
improved services such…

Positives of India Constraints of India
Large English speaking population Other countries are beginning to compete
Costs 37% lower than China Negative reaction in MEDCs
Costs 17% lower than Malaysia Rising wage rates
Professional salaries ¼ of UK and USA High cost of training
Low telecommunication costs Negative impacts on…

Quality of Life
Most of the population cannot afford basic immunities
Resources of such countries are not evenly distributed.
Attempts to reduce poverty
High population growth rate means that numbers living in
extreme poverty are increasing.
Many of these countries depend on FDI

Debt
From the 1970's onwards some countries…

Global, Social and Economic Groupings
Made for a variety of reasons:

To further socio-economic development
To increase alliances and trade
To allow free movement
To prevent war

Types of groupings include:-

Free trade areas- tariffs and quotas are reduced on goods between members and restrictions are
put in place for…

If countries become indebted member states can
help bail out, Greece, Ireland.




Aspects of globalisation

TNCs
Transnational Corporations are companies that operate in over two countries ­ usually having their research
and headquarters in the country of origin and locating the manufacturing plants overseas. As an organisation
becomes more global,…

Many of these are assembly industries
Ford, General Motors, BMW, Sony
o Mass produced consumer goods
Cigarettes, drinks, breakfast cereals, cosmetics and toiletries
Coca-Cola, Kelloggs, Unilever, Heinz
Service operations
o Banking/insurance, advertising, freight transport, hotel chains, fast food outlets, retailers
o Barclays, AXA, McDonalds and Tesco

Growth of TNCs
Why…

o JIT developed o
Plans effecting the development of plants are made in
host country to boost profitability
o Little consiereation for local people
Dependancy on TNC
More westerniese approach to life



Development Issues within the world

Trade vs Aid
Trade is deemed as the more sustainable path out of…