Globalisation

• globalisation is when countries are becoming increasingly interconnected

PRE-INDUSTRIAL: primary sector (extraction of raw materials such as farming or mining) mainly in Ethiopia, Nepal and Malawi

INDUSTRIAL: secondary sector (manufacturing goods in factories such as food processing or power stations) mainly in China, Mexico and Vietnam

POST- INDUSTRIAL: tertiary sector (services such as education or banking) mainly in the UK, Japan and France

QUATERNARY: provide information and expert help in knowledge based industries. People such as web designers or research scientists

• gross national income is the average amount of money earned by a country in one year, devised by all the people who live there

WORKERS IN VIETNAM:

• many people are coming into Vietnam
• manufacturing jobs avalible
• urban wages are high
• fewer farmers
• lots of traffic in the monsoon season
• shortage of young people meaning older family members are left to work
• long hours

WORKERS IN MALAWI:

• have their own land
• uses tools to help
• only produces enough to feed their families
• income is likely to increase

WORKERS IN THE UK:

• UNISON are trying to help people
• working conditions are not good
• suffering from stress

• TNC: Transnational Corporation
• IMF: International Monetary Fund
• WTO: World Trade Organisation

• one country owns the factories in one or more other countries and sells the products globally
• always looking for the highest profit margin
• factories are often in LEDC's to make the most of low wages
• head quarters are in MEDC's

• 188 member counties
• raises funds from the worlds wealthier countries
• help counties that have become economically unstable
• stops existing crisis' from developing and spreading
• check investments and how banks work
• help reduce global poverty by helping the worlds poorest counties
• in 2012 they helped Greece

• aims to get countries to agree that goods trades between them will be free of duties
• however cutting tariffs doesn't not always benefit all

POSITIVE:

• lots of people are now employed
• they earn much more than they would on a farm
• many workers can now afford to send their children to school
• increases awareness of events far away in other parts of the world like tsunamis
• may help people more aware of global issues like deforestation

NEGATIVE:

• long hours
• dorms are shared by 20+ workers which means illnesses can spread easily
• little health and safety
• operates mostly in the interests of the richest countries
• no guarantees that the wealth from inward investments will benefit the local community
• threat to the worlds cultural diversity

• TRADE: dealing goods in exchange for other goods
• IMPORTS: goods coming into a country
• EXPORTS: good going out of a country
• CAPITAL FLOWS: the movement of money
• FOREIGN DIRECT INVESTMENT: TNC's spent money in LEDC's and NIC's to help the TNC's to set up a factory in LIC's
• INTERDEPENDENCE: countries rely on eachother as they are unable to meet their own needs
• BRICS countries are becoming significant investors in Africa, including manufacturing and services
• BRICS countries have joined the top ranks in investing countries

• cheap labour
• they're cheaper to run
• TNC's get more profit
• places like the Indian call centres