Globalisation

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Definition

The process by which people their cultures money, goods and information can be transferred between countries with little or no barriers.

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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

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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

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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)

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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

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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

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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

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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

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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

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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)

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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.

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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

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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

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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

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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

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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

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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

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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

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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  

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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

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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

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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

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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

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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

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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

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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.

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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

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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

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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.

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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

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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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