Geography A2-Development and Globalisation.

Geography A2- Development and Globalisation.

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Geography A2- Development and Globalisation.

Globalisation:

Barbie- Taiwan.

  •  Barbie dolls first produced in 1959 in Japan.
  • 1960s moved main factories to Asia e.g.Taiwan to lower labour costs.
  • Rising incomes in Taiwan led them to open their first factory in China. 
  • Barbie still has two main factories in China and has factories in Malaysia and Indonesia-lower wage economies.
  • TNS- operations in Taiwan, USA, China and Europe.
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Geography A2- Development and Globalisation.

1st Generation NICS-Asian Tigers.

  • E.g, South Korea, Hong Kong, Taiwan and Singapore.
  • Rapidly industralised countries in the 1960s as a result of Japanese TNCs moving manufacturing operations of their business.
  • NIC- Newly Industralised country that have undergone rapid industralisation in the last 40 years. 
  • Targeted by TNCs as they have a cheap work force, low cost and avaliability of raw materials and land, reasonable standard of infrastructure, Reduced trade tarriffs such as importing is cheaper, less restrictions on the environment, labour and planning, expanding domestic markets and favourable government policies.
  • First manufacturing industries-low labour costs (cheap raw materials) and labour intensive.
  • Manufacturing grew leading to more TNCs and companies investing in developing industries e.g. improving technologies to make production more efficient and to produce higher value goods. e,g. Hong Kong started manufacturing electronic goods.
  • New TNCs move from Asian Tiger economy. Samsung orginated in Korea. 
  • TNCs manufacturing moved- enabling service sector to grow in the Asian Tigers and develop. 
  • Moving production to less developed countries e.g. Malaysia and Thailand.
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Geography A2- Development and Globalisation.

1st Generation NICs- Asian Tigers.

  • Advantages of growth;
  • Sucess of manufacturing which led to development and economic growth.
  • Wealth and improvements of standard of living standards of the population-more moeny in the area leads to better education opportunities and healthcare.
  • Increase in employment.
  • Asian Tigers can make higher value goods which are more profitable-Hong kong manufactures electronic goods- In 1973 GDI capita was $1800 and 35 years later GDI capita was $35,000. Increase of 31,000.
  • Workforce is now highly skilled and educated.
  • Samsung-large TNCs orginated in South Korea- now is a TNC uses cheaper labour in neighbouring countries.
  • Disadvantages of growth:
  • Poor working conditions.
  • South Korea- highest accident rate in the world.
  • Caused environmental damage- Hong Kong polluted and has awful air quality.
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Geography A2- Development and Globalisation.

South Korea- NIC case study:

  • Asian Tiger and Mature NIC.
  • Worlds 11 largest economy.
  • Developed in less than half a century.
  • Growth of South Korea:
  • Changed ecnomic structure quickly due to Japanese TNCs from an agricultural economy to an industrial economy.
  • Developed from AID-USA and Japan (bilateral aid), loans and grants (multi-lateral aid) and TNCs.
  • Industries:
  • Concentrated on labour intensive consumer goods e.g. textiles and footwear to intensive industries-electronics and manufacturing changed in the 1980s to high technologies because of their new skilled labour and energy/resources.
  • Technology-World leader in technology and advanced goods e.g. electronic ship building, machinery and petrochemicals. Samsung and Lucky Goldstar dominate the market.
  • Changed the society as 1980s -life expectancy increased to 70 years, government spending on health risen by 6% of total budget in 2003 in comparison to 2% in 1987 and 82% of South Korea's population is classed as urban. 
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Geography A2- Development and Globalisation.

2nd Generation NICs.

  • TNCs moved on from Asian Tigers as they increased in wealth and more expensive to manufacture as wages increased and cost of operations increased.
  • Japanese TNCs searched for more cheap labour and production overseas-led to emergence of second phase NICs- Malaysia and Thailand.
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Geography A2- Development and Globalisation.

Third Phase NICs- China.

  • Part of the BRICS.
  • Stimulation of economic growth:
  • In 1978 moved away from centrally planned economy to a market orientated system.
  • Diverse range of natural resources e.g. coal, oil and natural gas.
  • Encouraged exports via reducing tariffs, greater invest,ent in education-more attractive to TNCs.
  • Joined World Trade Organisationnin 2001- opened up China's markets to foreign investors allowing chinese businesses to export more fastly/ effciiently. China's trade booming -exports of $266 billion in 2001 increased to $969 billion in 2006.
  • Large supply of cheap labour.
  • Economic sector grown - manufacturing sector from encouragement of Foreign Direct Investment (FDI) causing SEZs to be set up. Special economic zones where companies recieve tax breaks if they invested in manufacturing  e.g. by building factories.
  • Three gorges Dam.
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Geography A2- Development and Globalisation.

3rd Generation NICs- China.

  • Advantages of Growth:
  • Responsible for 20% of global economic growth since 2000.
  • Growth of China fastest experienced by any country as a result of large working force driving economic growth.
  • Real per capita growth of 8% a year.
  • Disadvantages of Growth:
  • Massive increase in income gap- development located in bigger cities and along China's coast.
  • Dramatic increase in rural-urban migration- agriculture affected.
  • Strain and pressure on resources and infrastructure as China continues to sustain its growth.
  • Demand led to prices rising for oil, coal and steel, 10% a year.
  • Electricity shortages in industrailised areas. 
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Geography A2- Development and Globalisation.

Globalisation of services-3rd Generation NICs- India.

  • Rapid growth in 1990s and expansion of service/ teritiary sector.
  • Economic reforms in order to reduce trade barriers and to encourage foreign direct investment (FDI).
  • Reasons and locational advantages:
  • Large english speaking workforce-second largest human speaking resource in the world and Large numbers of qualified professionals. Less laws/restrictions-cheap labour force reduces the overheads and longer working hours.
  • +Positives impacts:
  • Services accounted for 56% of GDP in 2011, Large market size-increasing purchasing power and Increased wealth and employment and living standards.
  • Negative Impacts:
  • Economic growth uneven in benefitting only skilled and wealthy causes regional disparities in wealth- Rich/ affluent southern areas of India-poorer north investment moves, decline in agriculture and rural areas of the north-deprivation as skilled workers move. 
  • Locals believed the industrailisation didn't fit into their culture e.g. dam.
  • Large proportion of growth as a result of FDI- by TNCs profits leave country and given to businesses that have HQs and RD in other countries.
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Geography A2- Development and Globalisation.

3rd Generation NICS- China and India.

  • Sustainability:
  • India -service sector growth.
  • China-Manufacturing growth.
  • India stable demographic environment.
  • Adaptability to new technologies e.g. call centres- not reliant on natural resources that could run out instead dependent on education and skills of the population whereas China relies on the natural resources and materials for its economic growth.
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Geography A2- Development and Globalisation.

BRICS-Contribution to Global economy.

  • Developing or newly industralised countries. 
  • Account for a quarter of the worlds land area and 40% of the worlds population.
  • Brazil-Iron-Raw  materials.
  • Russia-oil and gas Raw materials.
  • India dominant global supplier of services.
  • China-biggest supplier of manufactured goods.
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Geography A2- Development and Globalisation.

Established Economies.

  • UK, USA and Japan- fuelled growth of NICs via TNCs increasing their economy as profits leave Host Country and returned to country of Orgin, Most of profit created in India's teritary sector is received by the UK.
  • Economies boosted as emerging economies become more materialistic-higher demand for services-allowing established economies to increase profits.
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Geography A2- Development and Globalisation.

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Geography A2- Development and Globalisation.

21st Century NICs- Brazil and the Gulf.

  • Gulf-Global hub- Persian Gulf near established areas of Europe and Eastern North America. 
  • Gulf regions politically unstable, calshes on culture, Region suffering from water stress and relies on desalinisation, Eco systems distrubted- irreversible damage- to reefs and inland tourism in the desert.
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Geography A2- Development and Globalisation.

Characteristics and issues with LDCs- Bangladesh.

  • South Asia.
  • US $400.
  • Factors affecting development:
  • Floods/cyclones destroy crops for a season-huge reliance on crops-inability to pay back debts- deforestation in Himialyas and snow melt- spring and summer months-global warming.
  • Large population growth.
  • Low Quality of life (QOL) due to widespread poverty- bank loans used to commercialise their farms. Worlds most densley populated country.
  • 70% of land is less than 1 metre above sea level-low lying country.
  • Development objectives:
  • pro-poor growth-growth aimed at poorest sections of the population. Reducing cost of food, large capital spending on food, agricultural development, rural infrastructure. 
  • Improvements:
  • Health being improved by national health programme-looks at provision of affordable rural primary healthcare and greater emphasis on education for girls, agricultural development-provision of loan facilities and dry season rice varities-increasing food security for the poor.
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Geography A2- Development and Globalisation.

Social and Economic groupings-EU.

  • Aim-To ensure peace and imrpove economic development by making countries more closely intergrated-greater understanding and unity. 
  • Goods, services,moeny and people can move freely between member states without barriers.
  • Positive Impacts:
  • Trade increased.
  • Euro made trade easier-no need to exchange money.
  • Supports some industries-common agricultural policy (CAP), includes subsides for european farmers adding imports/tariffs on agricultural products from outside the EU .
  • Free to movement -to work in EU countries.
  • Increased security for all members from external threats.
  • Negative Impacts:
  • Joining is expensive-have to meet certain criterias e.g. high standards of environmental protection involves a lot of investment.
  • Reduces independence-have to agree to EU laws/rules.
  • Share resources with other member states.Countries may trade with only eu-cheaper.
  • Increased immigration within the EU, lack of skilled workers in Eastern Europe as moved to Western Europe to seek better wages e.g. Poland. 
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Geography A2- Development and Globalisation.

TNCs- Coke.

  • Number 1 manufacturer of soft drinks in the world and sells over 400 different products in over 315 countries.Economic activity in countries e.g: India, Columbia, Mexico etc where there is cheap labour and less restrictions on working hours and environmental damage.
  • Positives:Country of Origin- $2.6 million in higher education scholoarships to 3,250 students in US. Pays $1.7 billion in taxes worldwide-government uses this to revenue public services. Host Country-Trained 1,500 young farmers in basic skills e.g. Maths and Literacy.Multiplier effect when one TNC moves, more follows,Pays $3 billion in salaries worldwide each year, increased water harvesting schemes in India and set up Inspire-educational centre build in Antartica-to show awareness of climate change.
  • Negatives: 
  • Country of Origin-Targets advertising at children via teaching materials, sports equipment and school vending machines, one of the ingredients is caffeine-doesn't impact the taste of Coke-used to hook potential customers.Diet Coke main artifical sweetner is carciogenic-health concern for consumers.
  • Host Country-Columbia-500 workers forced to give up union rights in return for money, children working on sugar plantations-no education and injuries. India-Kerla-bottling plants-draining local water acquifers- no water for farmers.Painted adverts on Himalayas. 
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Geography A2- Development and Globalisation.

AID VS TRADE:

Successful Aid- Ethiopia.

  • Economic sector-agriculture-80% of population.
  • 78% struggle with income below US $2 a day.
  • EU gave $2.5 billion in aid to Ethiopia between 1976-1994.Organised women headed households into savings and credit groups. Savings and Credit Groups designed to access poor households with a loan. 1995-1002 poor households organised in savings and credit groups.
  • Mothers have access to ante-and post natal health care services.
  • Non-formal education centres established-creating job opportunities.
  • Post World War 2-soviet union invested $70 million worth of food aid- war slowed food supply-faced severe famine.
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Geography A2- Development and Globalisation.

TRADE VS AID:

Aid- Example- Africa.

  • Last 60 years-least $1 trillion of development related aid given to Africa.Real per capita income lower than in 1970s, more than 50% of population live on less than $1 a day.
  • Aid to Africa had made poor poorer and growth slower as has : increased risk of civil conflict and unrest (60% of Sub-Saharan Africa's population is under the age of 24 with few economic prospects. 
  • African countries still pay close to $20 bilion in debt repayments each year-aid is not free. In order to keep system, debt is repaid at the expense of African education and healthcare.
  • In 2002, African Union-Organisation of African nations, estimated corruption was costing continent $150 billion a year.                                                                                                                                         
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Geography A2- Development and Globalisation.

TRADE VS AID:

Bangladesh- Successful AID examples.

  • World's largest exporter of jute, and largest supplier of shirts and T-shirts.
  • Uk exports to Bangladesh up to November were £61 million- increase of 20% in 2003.
  • Main exports to Bangladesh are power generation equipment (10%) and generic industrial machinery enabling success in construction.
  • Uk imports from Bangladesh reached £600 million by 2004- Increase of 13% from 2003 in same time frame.
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Geography A2- Development and Globalisation.

TRADE VS AID:

Trade example- Zambia. 

  • Collapse of the international copper price-country reliant on production  and export of this single commodity. In 2002-Copper accounted for 68% of total exports.
  • Social and education indicators declined. IMF, Malnutrition and poverty are high.
  • Globalisation-industries in unfair competition-undermining of local production and growth.Dumping  manily for goodsfrom South African and the developed world which are subsided (cost of producing production low) Zambia's markets can't compete. 
  • Zambian government offers tax exemptions to local industries in order for them to compete favourably with foreign dumping giants. 
  • Not able to compete from high production costs- high fuel, electricity and transport costs.
  • Privatisation of mining sector- money is very concentrated into a minority of population, leading to a wealth gap in society.
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Geography A2- Development and Globalisation.

Economic Vs Environmental Sustainability- Sweden.

  • MEDC.
  • Aim: To replace all fossil fuels with renewables before climate change destroys economies.
  • Badly affected oil prices rises in 1970s, recieves all electricity from nuclear and hydroelectric power-reliant on fossil fuels for transport.
  • Energy consumption- 30% of energy from oil, down from 77% in 1970`s. 2003, 26% of all energy consumed came from renewable sources.
  • 2006, paper and pulp industries-use bark to produce energy. Burn chips and raw dust to generate power.
  • Planning to develop cars and lorries which burn ethanol and other biofuels-Swedish government and car makers working together e.g. Volvo. 
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Geography A2- Development and Globalisation.

Economic Vs Environmental Sustainability:

Mumbai-LEDC.

  • City growth rapidly- one of the most polluted cities in the world.
  • WHO-breathing Mumbai's air =smoking two and half packs of cigarettes per day.
  • Major sources-road traffic (60% of air pollution) and industry-domestic sources make a smaller contribution.
  • Impacts:
  • Nitrogen dioxide and Carbon Monoxide pollution worsened- last part of 20th century.
  • Particulate matter increased.
  • Atmospheric sulphur dioixde and lead reduced.
  • 97% of Mumbai's population live in high pollution zones.
  • 20 million work days lost due to 24,000 cases of chronic bronchitis, 900,000 cases of asthma and Water pollution-diseases.
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Geography A2- Development and Globalisation.

Sustainable and Eco-tourism:

Myth or Reality- Bedruthan Steps Hotel, spa and venue.

  • MEDC.
  • Opened in 1959, north coast of Cornwall.
  • Aim: To reduce carbon footprint and waste sent to landfill by 10%.
  • Strategies implemented:
  • to reduce carbon footprint-toilets-low dual flush, energy saving devices and fitted resturants-heat recapturing system to recycle the heat.
  • to reduce landfill waste-Recycling-glass, plastics, cans and paper/cardboard and seven on site compost bins. Produce from local suppliers-ensures arrives in recyclable and returnable packaging and reuse, reduce and recycle policy. .
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Geography A2- Development and Globalisation.

Sustainable and Eco-Tourism:-Myth or Reality:Grenada, West Indies.

  • LEDC.
  • Strategies:
  • Installed 80kw windmill-zero Carbon and remainder of energy will be sold to local electricity company.
  • Air conditioners to minise energy consumption with heat recovery units that converts heat loss into hot water.
  • Implemented carbon offset programmes-all flights/ local transport activities by guests will be offset by carbon credits. Plants trees in Ethipoia  which has extra social (firewood) and ecological benefits(prevents erosion). For a typical transatlantic flight 50 trees are planted.
  • Built surface well including underground channels in order to collect rainwater from the hills.
  • Hurricane Ivan- Resort set up Recovery Grenada council-to distribute food, water, medicines. Started a revilisation programme for crops in 2008 for farmers-assists farmersto clear land, provides seeds and other materials. 
  • Strategies fit into UN sustainable tourism-as it manages tourism and the environment, eencourages conservation, waste minisation via windmills and carbon netural holidays.
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