ECONOMIC DEVELOPMENT - impacts of globalisation

Question 1

what is globalisation?

Answer 1

• Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange.

Question 2

why is globalisation happening?

Answer 2

• Minimum wage is lower or non existent
  
  • Population is bigger so that means larger workforce, more in the bracket of working age
  • Young population
  • Less developed countries have more resources to use, where as countries like the UK have exploited all of there resources
  • Less strict environmental laws
  • Land is cheaper to buy in china
• flight availability
• transport
• tech
• peace with company agreements

Question 3

what are TNC’s?

Answer 3

• transnational company

Company that operates in many areas around the world

Question 4

what is economic leakage?

Answer 4

• money made by the company goes back to the big corporations instead of the country

Question 5

why are industries choosing LEDC’s to build factories in?

Answer 5

• Relaxed environmental regulations
  ○ Cant afford to enforce, corruption, or worried about loosing the money they gain from big companies
  
  • Access to a new potential marketplace
  • Access to raw materials
  • Availability of cheap labour
  • Cheap land and building materials (relaxed building regs)

Question 6

what are the things that will reduce impacts in the garment industry?

Answer 6

• Using less water and energy
  
  • Fewer harmful chemicals
  • Treating waste

Question 7

what are the positive impacts of garment factories in Bangladesh?

Answer 7

• Textile accounts for 80% of Bangladesh’s exports

Question 8

what happened in the Rana plaza factory?

Answer 8

collapse killed 1,100 people due to unsafe conditions

Question 9

how many textile workers are there in Dhaka?

Answer 9

4 million

• cheap labour
• big population

Question 10

what are some environmental impacts of the garment factories?

Answer 10

• 1 tonne of cotton = 65000 kWh of electricity and 250 tonnes of water
• energy in the factories is from coal power stations = increased CO2 = increased climate change (air pollution)
• Harmful chemicals are used in production = 56 million tonnes of contaminated water

Question 11

what is happening to the people in Bangladesh?

Answer 11

• factories are getting priority over people so resources and water go to factories
• people only have contaminated water, makes them sick
• air pollution is getting into homes, people also getting sick from gases

Question 12

what are effects of polluted water and air?

Answer 12

• the river is biologically dead

- Burning of fossil fuels, harmful off-gassing from things such as paint, plastic production, etc

Question 13

what does competition from other developing countries do to Bangladesh?

Answer 13

• means that Bangladesh needs to keep environmental protection low to keep costs low

Question 14

what does low tax rates mean to Bangladesh?

Answer 14

• Low tax rates to attract TNC’s = little money for the government to control pollution
  Limited funds to control pollution