3.b structural economic change impact inequality

Question 1

What is the global shift ?

Answer 1

The locational movement of manufacturing production in particular from ACs to EDCs and LIDCs from the 1970s onwards.

Question 2

impact of structural and economic change on people and places?

Answer 2

• Lead to mine and factory closures and job losses in ACs → during deindustrialisation
• Unemployment / health issues in concentrated in city neighbourhoods
• Physical environment of these regions were often derelict and abandoned

Question 3

Why do the ACs relocate?

Answer 3

• Cheap labour: lower minimum wage than in Acs. As the company pays less to its workers, the cost of manufacturing is reduced and the profit that the company makes increases.
• Long working hours: the rules about the hours of work are very relaxed. This means that employees will have longer hours and the company will produce more in a day.
• Laxer health and safety regulations: there are fewer health and safety regulations and they are often not enforced.
• Prohibition of strikes: some EDC/LIDCs do not allow employees to strike over pay and poor working conditions. This means that money isn’t lost as the workers are always present.
• Tax incentives and tax free zones: Some EDC/LIDCs offer a tax reduction to TNCs who move their

Question 4

Causes/ reasons for social change

Answer 4

• Outsourcing
• Growth of TNCs
• Cheaper production costs in EDCs and LIDCs
• Skilled english speaking workfroce leading to change in services
• Deindustrialisation and structural employment in certain regions

Question 5

Positive effects on ACs

Answer 5

• Cheaper imports of all labour intensive products keep cost of living down
• Growth in LIDC may cause for demand in exports from ACs
• Promotion of labour market flexibility greater worker mobility could be greater for the country
• Loss industries → improved environmental quality

Question 6

negative impacts on Acs

Answer 6

• Loss of industries in ACs leads to job losses and reduce incomes for workers
• Job losses are often of unskilled workers
• Big gap develops between skilled and unskilled
• Job losses concentrated in urban area causing structural unemployment

Question 7

Positive effects on EDCs

Answer 7

• Positive multiplier effect on national economy due to higher exports
• Tricked on to local areas with many newly high paid jobs
• Employment growth in relatively labour intensive manufacturing spreads wealth, and does redress global injustice

Question 8

EDCs negative aspects

Answer 8

• Unlikely to decrease inequality as new jobs tend to be concentrated in core regions of urban areas.
• Overdependence on a narrow economic base
• Disruptive social impacts of TNCs
• Can lead to overdependence on a narrow economic base

Question 9

What is a boom?

Answer 9

A period of rapid economic expansion resulting in higher GDP, lower unemployment and rising asset prices.

Question 10

What is a recession?

Answer 10

A period of general economic decline is typically accompanied by a drop in the stock market, an increase in unemployment, and a decline in the housing market.

Question 11

What id Kondaratieff claim?

Answer 11

concluded that 50 year cycles have characterised the capitalist world since 1750
These cycles of growth and fragmentation have been linked to technological / new industries providing the basis for a boom

Question 12

How id technological innovation distributed

Answer 12

Though this technological innovation is not equally distributed centres which have this inhabitants benefit from above average economic growth and a strong multiplier effect is experienced