Unit 1 - Globalisation

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  • Created by: Tomdell
  • Created on: 05-05-17 13:44

Reasons for accelerating globalisation

TNCs (Trans National Corporations)

  • Bring investment into countries (foreign direct investment FDI)
  • Spread new technologies
  • Promote cultures (America)

Improved Comunications & Transportation

  • Transportation and containerisation have allowed countries to gain access to more goods 
  • Internet access has allowed instant communication between countries

New Markets

  • As RIC's and NIC's develop they will become new markets
  • The growth of these New markets present opportunities to accelerate

International Organisations

  • World Bank - Offers money to poor nations to aid in development
  • International Monetary Fund - Regulates global finances and offers loans to struggling nations
  • World Trade Organisations - Regulates trade between countries and reduces barriers between countries to encourage gloabal trade
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Country Groupings

LDC (Least Developed Country) - Low income, Weak economy, Low education, High debt levels, Economy based on agriculture

LEDC (Less Economicly Developed Country) - Improving economics, Primary education, Less debt, Economy moving to secondary sector

NIC (Newly Industrialised Country) - Fast growing economy in manufacturing and exportation, Agricultural sector has shrunk, Good educational investment, Moving to tertiary and quternary (Mid 90's)

RIC (Recently Industrialised Country) - Same as NIC but 90's onwards 

FCC (Former Communist Country) - Middle income, Stagnant population

MEDC (More Economicaly Developed Country) - Developed tertiary and quaternary sectors, Manufacturing decline except with high tech products, TNCs located in these countries

OPEC (Organisation of Petroleum Exporting Countries) - 13 members, must export more oil than import

OECD (Organisation for Economic Cooperation and Development) - 30 of the richest countries, Discuss political, Socioeconomic and environmental problems

BRICs (Brazil, Russia, India, China) - 4 of the 10 largest economies on earth, an increasingly powerful group in worlds affairs   

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Physical and Human resources create global winners

Physical (UAE)

  • Vast amounts of Oil
  • Coastal links and an International airport in Abu Dhabi

Human (India)

  • 1.1 Billion people (Young Population)
  • Provides cheap labour
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Consequences of Globalisation

Economic

  • OCED countries have experianced deindustrialisation as manufactruing jobs move to RICs and NICs. Due to this OECDs have invested in their tertiary and quaternary sectors, this attracts many TNCs
  • The loss of labour jobs in OECDs can lead to a cycle of deprivation 
  • NICs and RICs have experianced increased investment from TNCs as they set up factories. This investment leads to a multiplier effect where education and life expectancy increase
  • NICs and RICs may become dependent on TNC jobs, if the TNCs move for cheaper labour it would criple the countries economy

Social 

  • More educated citizens will leave to find better paid jobs, creating a brain drain
  • TNCs can pay workers less money in NICs and RICs, they are also less obligated to treat them fairley be this poor working conditions or no health and safety
  • TNC investment can be the catalyst for development 

Environmental 

  • Food transportation from RIC's (Where most food is produced) creates CO2
  • Deforestation for palm oil or soya farms
  • Most UK recycling is shipped to China or India 
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Solutions to globalisation

Government

  • Carbon Credits
  • Agreements/Pledges
  • Reduce deforestation
  • Increase Afforestation
  • Encourage local trade
  • Environmental tax

Business

  • Label products with air miles
  • Promote local produce
  • Use recycled materials in disposable products such as carrier bags
  • Stop sweatshop products being sold in stores
  • Fund programmes to improve quality of life in RICs and NICs

Individual

  • Buy fair trade products
  • Buy local produce
  • Recycle products
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