3.B- global and structural economic change Flashcards
1
Q
what is globalisation?
A
the growing integration and interdependence of people’s lives in a complex process with economic, social (cultural), political and environmental components
2
Q
what are the most relevant flows and players involved in globalisation in terms of economic changes?
A
- TNCs/supranational organisations
- governments
- remittances
- containerisation of shipping
- the internet
3
Q
what is the global shift?
A
the locational movement of manufacturing production in particular from ACs to EDCs and LIDCs from the 1970s onwards
4
Q
what is new international division of labour?
A
- reorganisations of production at the global scale, as a result of deindustrialisation in advanced countries and the global spread of TNCs
- this has produced an overall pattern of higher paid managerial jobs in ACs and lower paid labouring jobs in LIDCs
5
Q
what is economic restructuring/structural economic change?
A
- the change in proportions of people working in various economic sectors
- e.g. the change in ACs from secondary to tertiary employment
6
Q
why do countries change from the PRIMARY sector?
A
- as a country develops, farming/fishing/forestry/mining becomes more mechanised
- therefore fewer people are required
- also, with globalisation, it is cheaper/easier to import raw materials from overseas which can be manufactured/consumed in the more developed place
- higher paid jobs emerged
7
Q
why do countries change from the SECONDARY sector?
A
- mechanisation leads to manufacturing
- it is, however, cheaper to manufacture overseas and then import them (e.g from China to UK) as there is a lower minimum wage
- leads to deindustrialisation of the country importing
8
Q
why do countries change from the TERTIARY sector?
A
- higher paid jobs mean people have more money to spend
- education has increased = higher skilled workers
9
Q
why do countries change into the QUATERNARY sector?
A
- higher paid jobs mean people have more money to spend
- education has increased = higher skilled workers
- technological innovation and growth
10
Q
how does the primary sector change a place?
A
- industrialisation = people move away from rural areas and lower paid jobs
- services decline and businesses don’t move in due to a lack of people
- leads to rural decline
11
Q
how does the SECONDARY sector change a place?
A
- as a country moves from EDC to AC, deindustrialisation occurs
- seen in the UK in major cities
- it leads to inequality, poverty, deprivation, reduction in life expectancy and rise in unemployment
- the negative multiplier effect occurs as there is less money being invested in the place
- the built environment becomes run down, opportunities disappear and often that leads to a lack of motivation/aspiration which affects education levels
- these areas become poor and land becomes cheap, which does mean that in the future they are cheap places to develop new industry if it can be attracted in.
12
Q
how does the TERTIARY/QUATERNARY sector change a place?
A
- businesses move in
- high paid jobs = more local spending = increased value of the area
- e.g. Bath/Bristol Science Park
13
Q
what does structural economic change mean?
A
- a change in the economic opportunities in a place
- this could be new industry setting up (e.g. growth of tertiary sector) or industries closing down (e.g. deindustrialisation)
13
Q
what does structural economic change mean?
A
- a change in the economic opportunities in a place
- this could be new industry setting up (e.g. growth of tertiary sector) or industries closing down (e.g. deindustrialisation)
14
Q
how does structural economic change impact opportunities and challenges?
A
- the key idea is that for many places, there has been traditionally one major industry and this has created jobs and developed the positive multiplier effect.
- this could be secondary (e.g. a massive car factory like Nissan in Sunderland)
- tertiary (e.g. a hospital/school e.g bath)
- or quaternary (a science park like Cambridge)
- places rely on large investment from major industries (usually TNCs) to build an economy. if an industry leaves, it can lead to negative multiplier effect
- the most successful places are often ones that have a range of different industries, therefore losing one doesn’t mean that the economy of the entire place collapses.
- the key thing is to recognise that some structural change is positive and some is negative
15
Q
POSITIVE MULTIPLIER EFFECT
A
- establishment of large manufacturing plant
- expansion of local job opportunities and population
- inflow of businesses to satisfy increased local demand - secondary and tertiary development
- substantial rise in income per capita
- higher tax base increases local government spending power
- improvement of physical and cultural infrastructure
16
Q
what impacts on a place would occur if the large industry was to close down or relocate?
A
DEINDUSTRIALISATION
- loss of jobs
- businesses and services degrade/move away
- rural degredation
17
Q
what are the positive impacts of structural economic change in ACs?
A
- cheaper imports of all labour-intensive products keeps cost of living down
- greater efficiency releases labour for higher productivity sectors
- growth in LIDCs may lead to a demand for exports from ACs
- greater industrial efficency should lead to development of new technologies, promotion of entrepreneurship and attraction of FDI
- loss of mining and manufacturing industry can lead to improved environmental quality.
18
Q
what are the negative impacts of structural economic change in ACs?
A
- rising job exports leads to inevitable job losses
- job losses are often of unskilled workers
- big gaps develop between skilled and unskilled workers who may experience extreme redeployment differences
- employment gains will only occur is industrialised countries can keep their wage demands down
- job losses are invariably concentrated in certain areas and certain industries. this can lead to deindustrialisation and structural unemployment in certain regions
- branch plants are particularly vulnerable in times of economic recession as they are the first to close, often with large numbers of job losses.
19
Q
what are the positive impacts of structural economic change in EDCs and LIDCs?
A
- higher export-generated income promotes export-led growth. promotes investment and potentially leads to a +ME nationally
- can trickle down to local areas with many new highly paid jobs
- can reduce negative trade balances
- can lead to exposure to new technology improvement of skills and labour productivity
- employment growth in relatively labour-intensive manufacturing spreads wealth
20
Q
what are the negative impacts of structural economic change in EDCs and LIDCs?
A
- unlikely to decrease inequality as jobs tend to be concentrated in core region of urban areas. may promote in-migration
- disruptive social impacts e.g. role of TNCs potentially exploitative and may lead to sweatshops. also may move in on LIDCs too, leading to instability
- can lead to overdependence on a narrow economic base
- can destabilise food supplies as people give up agriculture
- environmental issue associated with over-rapid industrialisation
- health and safety issues because of tax legislation
21
Q
KEY POINT STRUCTURAL ECONOMIC CHANGE
A
- a key point to remember is that Structural Economic Change is a spatially uneven process
- i.e. it will affect different places in different ways, meaning that across a country it creates high levels of inequality (e.g. N/S divide in the UK)
22
Q
explain structural economic change
A
- as countries develop they progress through primary, secondary and finally tertiary dominated industries (most advanced countries develop a quaternary sector)
- within countries, certain regions will benefit from these changes and certain regions get left behind (i.e. rural areas as places industrialise, or big industrial cities as places move towards a service sector economy)
- this change is STRUCTURAL ECONOMIC CHANGE, and it will create opportunities for some people in some places and cause inequalities to grow for other people in other places
23
Q
what happened in 1900?
A
- in 1900, cities such as Manchester and Glasgow thrived under manufacturing industries and there were opportunites increased in terms of education, health and life expectancy, jobs and leisure activities improving QoL.
48
Q
what does the graph show?
A
- SPATIAL VARIATION
- mostly, money is going to developing the deindustrialised areas
- london is odd one out
> londong is getting more spending and has the biggest population - areas spending the most in tax aren’t necessarily getting the most spent back. disparity
- targeted spatial variation
