Globalisation
- Created by: ambercadman
- Created on: 11-10-16 09:18
Definition
The process by which people their cultures money, goods and information can be transferred between countries with little or no barriers.
Transport 1914-2016
1914
Ships and road
From coastal areas take a shorter time
Central areas take longer as roads have to be used
More distinct patterns
5-40 days
2016
Flight and road
Very varied lots of anomalies
1 1/2 - 2 1/2 days
Travel time has decreased from 20/21st century
Key factors
Growth of TNC's- Generated trade between countries increases technology
Improved communication- allows sewerage business locations to keep in contact which makes the world more connected
New Markets- Promotes trade to new countries, allows for economies to grow. China is now a main exporter for the rest of the world
Development of international agencies- Makes trade easier and more accessible and cheaper. Improves links between LEDC's and MEDC's
TNC's and globalisation key definitions
Economies of scale- products produced on larger scale with less input cost = saving
Race to the bottom - companies compete with each other to reduce cost by paying lowest wages or giving workers the worst conditions
Just in time - ordering components exactly when needed therefore reducing storing costs ( looses out on bulk buying discounts)
Time space compression - reduced time between any two points on the globe (transport)
Political and economic decision making
Different scales
Global - international and inter governmental organisations
(WB, IMF, WTO, OECD, G8, G20)
Regional - trade blocs
( EU, OPEC, NAFTA, MERCOSUR and ASEAN)
National - individual governments
Decision examples
Tanzania water privatisation
Less then 100,000 have water out of 3.5 million
WB and IMF used debt relief as a way to force them to improve water as long as a foreign company did it
Foreign countries look for maximised profit
Water prices started to rise and contract got scrapped by government
Fishing in Pakistan
Pakistan joined the WTO
Forced them to open up their fishing exclusion zones to other countries and TNC's
Big ships take most fish and local fishing communities left in poverty
Effect of decision making on globalisation
The level of development of a country influences the role they have decisions
E.g level of GDP and amount payed into the organisation allows you to have different amounts of votes
MEDC countries are in more groups then LEDC's = more say in decisions
China - open door policy
1978-introduced policy (allowed international businesses to set up in China)
Joined WTO
investment from countries and BRIC nations
50% FDI from foreign countries
Non sustainable growth
290 billion in 35 years
Trade blocs
EU- European citizenship, promoted economic and social progress, assert EU role on the world
Significant impact on GDP, won noble prize of peace for no wars between members, Rich countries help develop poorer members
MERCOSUR- Argentina and Brazil benefit more then other members, favourited trade links, tension due to conflicts in the past, little progress in 20 years
OPEC- control and unify oil products, stabilise oil markets and make supplies reliable
Advantages and disadvantages of trade blocs
Advantages
Decrease in taxes and cost of trade
Peace between countries
Increase in FDI
Disadvantages
Trade inequalities (MEDC's tend to get more) EU shown to improve this
Hard to make negotiations (MERCOSUR)
Key terms for trade
Economies of scale- bigger production so lower average cost = greater profit
Comparative advantage- producing what each country is best at and trading between them benefiting anyone in the agreement
Trade liberalisation- removal of trade barriers such as subsides, tariffs and quotas
Lifted all tariffs= EU, NAFTA, OCEAN AND MEERCOSUR
NAFTA did not remove quotas
Globalisation effected some more then others
Indicators
McDonalds- how rich a country is, where TNC,s locate
% access to Internet- interconnected using technology
Embassies- political interconnection, easier communications and negotiations
UN troops- political stability
IGO's- flow of people and goods
FDI- manufacture of primary goods
Can be used to rank the countries in order
Switched on and off
Factors
Infrastructure
Physical factors can not change
(Political, environmental, social and economic)
Trade links
Role in decision making
Connections- how places and people are linked together by trade, transport, information and political control
Disconnections- some countries become less influential and less involved in decision making
Disconnected - Africa
Physical
Land locked - hard to trade, takes longer not cheap
Arid climate- little rain so hard to grow crops
Near equator, in two tropical zones
Dessert
Limited flights to and from Africa and Uk
Little infrastructure so roads not available
Limited optical fibres so little technological communication
Diamonds should result in wealth however conscription and civil war = little success
Conscription= resulted in a whole generation that are uneducated =lack of human resources
Zimbabwe- lowest economy of the world, shunned
China helping africa
Zambia is the 8th largest producer of copper however it's landlocked so can't export easily and relies on political relations
China built a railway from Zambia to coast to allow for easy trade
Value of copper decreased due to fibre optics
FDI has increased making the country more switched on
North Korea disconnected
Communist- no trading to outside world
Technology- only 28 websites allowed which are state run, disconnected from outside
Nuclear weapons- causes unrest and tension between countries
South Korea much more developed and switched on
Guangdong province China- switched on
Pacif rim- good acces to trade links, easy access to US
1/2 of China special economic zones located here which allows for industry to locate here easily
Indices investors in with cheap labour and big man power
Benefits for China
investment in airports = 82 airports + longest highway
reduction in poverty = 680 million no longer in poverty, extreme poverty rate 84%-10%, 1980-2016
Urban income increase = risen 10% per year since 2005, however this has caused a big divide
Better education + training = 94% is now literate compared to 20% in 1950
Costs for China
decrease in farmland = 3 million hectares polluted with metals
increase in unplanned settlements = slums, new levels to housing and farmland
increase in pollution + helath problems = 70% of rivers and lakes, 100 cities suffer water shortages, 4400 killed by airpollution each day
over explotation of resources = deforestation fo rainforest, can keep up with demand e.g oil, steel
decrease in biodiersity = degredation of land, habitats lost
Costs to enviroments = India
Bangalore = highest density of traffic
air pollution = 50% of children suffer from respitory problems
Agricultural industry is being taken over by the manufacturing industry
Increase in slums = creating a dirty enviroment, no sewage systems and disease
E-waste = due to an increase in the tech industry, more damage to enviroment
Due t outsourcing of services and cheap labour in the area
Costs on the people = india
70% are farmers = low internation commodity means less is brought from them
leaving education = youth leave to work, loss in social life and decreases the skills of population
increasing gap = difference between poor and rich is growing
increase in rural urban migration making it very crowded
Deindustrialiation
Definition = The decline of relative importance of (manufacturing) industry
Areas in MEDC's who have built whole communities arounf a certain type of industry e.g steel. When the industry moves it has a large impact as they are relient.
Social impacts of deindustrialisation - Consett
Lack of jobs = 4300 unemployed
at one point 100% were unemployed
taxes increased
and the rail links decreased as it was no longer a significant area
Economic impacts of deindustrialisation - Consett
70 million lost out of local economy due to unemployment
cost 1 bilion to dismantle machinary in the factory
9.6 million to bring bac the works
political and enviromental impacts of deindustrial
Political - Labour gained redcar and consett in 2015
Enviromental
+ fewer factories
+ restored the beautiful countryside
+ less air pollution
- regulations have to be followed to protect the enviroment
Other impacts - leicester
Derelict buildings = 100% down to 12% of M&S's clothes made here env,soc
Contamination = industrial waste left behind env
Cheaper housing = pockets of deprevation due to land quality soc
migration of the poor = poor moved in soc
Ethnic segregation = foreigners moved there originally looking for work eco,soc
Original population were relient on one type of industry so no jobs were available after
Rural urban migration
Definition = Movement of people from rural (country) to urban (city)
This is not the same as industrialisation! as that is a result of rural urban migration
economic migrant = a person who moves for employment
push factors = aspects of rural living which are undesirable and cause people to leave
pull factors = positive attractions of an urban area which encourages people to go there
Megacities and flow of people
Megacity = population of 10 million +
can be caused by a natural increase e.g birth rate is higher then death rate or rural urban migration
Lee's Push Pull Theory
origin = Not all bad just aspects
destination = not all good e.g not as many jobs as they think there are
obsiticals = physical, transport, wealth and borders
Karachi Pakistan- social
Push = 665 robberies a year, poor education, military bulldozing, lack of transport, not reliable industry (agriculture)
Pull = commodities available so no need to leave, electricity and water, 4th highest literacy rank
Challenges = population increased by 161% due to indian migrants
cultural change e.g muslim population went up by 54%
political conficlict resulted in not enough water or roads
squatter settlements formed and people doig things themselves e.g laying pipes
Karachi Pakistan - enviromental
Push = droughts, deforestation, dry river beds, 500 million affected by water problems, vulnerable to health risks via water pollution
Pull = temperate climate, not many natural disasters
Chanllenges = pollution caused widespread enviromental and health problems: waste, air, degradation
relies on river which is fed by glacier = global warming
deforestation due to lack of energy
Karachi Pakistan - Economic
Push = agricultural industry decreasing, wage from farming low, international products cant reach the countryside, lack of industry in rual areas
Pull = increasing umeployment in the country, 4500 indutrial units means more jobs, 7.2 million turnover per year in stock exchange
Challenges = 75 % in informal sector, employment has decreased, self employment has increased, formal sector has started to contract work out to the informal sector, increased cargo handling in port 2.8million tonnes 1951 - 29 million tonnes 2001
growth of megacities, cost outweigh the benfits?
yes = not enough jobs available so hasnt benefited them e.g 75 % i informal sector
squatter settlements form within cities as they have no where to go
widespread health problems
No = Formal sector cotracts work out so they still benfit
increase in cargo handling shows an increase in global connections through trade
Hub cities and elite migration
Hub city = cities with a major influence, based on fianance, law, politacal strength, inovation and ICT
Areas connected through production and consumption experience flows of migrants , hubcities have grown through greater connections.
Elite migrants = Minority population with some combination of high levels of wealth, social status, political influence and cultural influence
Global flow of people
Migration into europe has been increasing since the 1990
large amount of migration with Africa
Latin america -> US and Spain
Between the core and periphery
2005-2010 6.5 million left africa
South Africas brain drain
Highly skilled leave after they are qualified, do not return soon
Pull factors: Better pay, conditions and quality of life
source = migrants leave host = where migrants go to
Source +highly skilled may return, money sent back - educated decreasing, dependent population
Host +richer, diverse, skilled workers, cheap labour -overcrowded, illegal immigrants, housing
Remittances
Definition : The transfer of money by a foreign worker to an indivual in their home country or town
There is a positive correlation between the amount of migrants and amount of remittances
Causes = poor economic stability, unemployment, poor standard of living
impact on the host = - have to pay to keep workers + increase in skill set
impacts on source = benfits their economy
interdependance between regions
People move from kerala to gulf states for jobs in the oil industry, the firms rely on the migrants for work, while families rely on remittances from these migrants.
Oil barrons move from gulf states to London because of: better living, education, expansion of companies
London are relient on these oil barrons for the investment in property, we rely on workers from india for work.
Different flows other then people
Money = split in industry
Technology = spread of elite migrants, buisness and TNC's
Skills = relient on each other for education and work as some countries have low skill sets
Low wage migration India - UAE
Costs for india
Social = skilled leave, illetrate, small young population Economic = money not fed directly into the economy, GDP rate decreasing and inflation increasing Enviromental = less agriculture due to soil quality, no sewage systems Political = little control on immigration, tax ivasion, corruption
Cost for UAE
Social = Less jobs available, visas unreliable and increase in unemployment Economic = reliant on migrabts, when migration decreases so does the succes of oil fields Enviromental = more land being built on, need for oil is constantly increasing Politcal = creates tension between countries who are fighting for oil
Low wage migration India to UAE
Benefits for India
Social = increase in skills, better housing and education, smaller pop density Economic = development in home country due to remittances Enviromental = less houses built on greenfield sites political = forced them to develop, knowledge increased of global development
Benefits for UAE
Social = increase in population, workforce and amenities Economic = cheap labour, helps support oil boom Enviromental = more oil has been obtained Political = policies put in place to manage the flow of people, political alliances form.
Elitie migrants Russia to London
Costs for Russia
Social = less people living there, crime increased Economic = less employment so less added to their economy, GDP growth rate decreased Enviromental = deforestation, poaching of animals Political = can causes tension as they dont want to losse vital assets, putins popularity decreases
Costs for London
Social = increase in population, less housing available, density increases Economic = increase in healthcare and education needed, housing prices go up Enviromental = greenfield sites decrease, greenhouse gases increases Political = policies made to control migration, more visas given out
Elite migration Russia to London
Benefits to Russia
Social = better education for migrants in london, more jobs available in Russia Economic = set up new buisnesses, education cost has decreased Enviromental = ruduction in pollution, less greenfield sites destroyed Political = toughen up on immigration such as applying to leave
Benefits to London
Social = greater mix of ethnicities, more investiture, skill level increased economic = 75% of immigration funds are produced from Russians, 82% of property deals in london are run by foreigners, 20billion into our economy in 10 years Enviromental = innovation to new eco friendly approach to greenhouse gases Political = seen as safe protective country due to strong government, only allowing skiled workers in
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