EQ2 Impacts Of Globalisation Flashcards
Winners and losers;
Where does global shift stem from?
A combination of off-shoring, outsourcing of services and manufacturing - and new business start ups in emerging economies
When did the global shift of manufacturing expand?
In the 1980’s to China
When did the global shift of services occur?
1990’s to India
Costs of growth by GS :
How many suicides by iphone factory workers in 2010 in a Foxconn factory ?
18 attempted suicides and 14 deaths
Exploitation of vulnerable groups: working class family students looking for a career in accountancy was tricked into working at Wistron while being paid less for the same hours , what was this dubbed?
The fox trap
Give one quote by Foxconn CEO Terry Guo
‘A leader must be a dictator for the common good’ - daily output is more important than workers’ mental health
Loss of biodiversity in China:
How much of 700 terrestrial vertebrate species were lost in China?
in 2015 WWF found that China’s vertebrate species pop. declined by a half since 1970
Impacts of apple iPhone on biodiversity:
Tin mining in Bangladesh island created what effects?
Destroying mangrove forests, coral reefs (mechanical dredging of the sand and sediment spewed back into sea killing fragile coral reef and sea grass eaten by turtles) driving away fish and impact local communities through ruining local economy (fisherman’s livelihoods).
Pollution and health problems in China as result of GS: why was the air pollution in China’s cities dubbed as an area with an ‘airpocalypse’ in 2013?
- multiple times in 2013 pollution levels were 20x higher than levels deemed safe by the WHO
- The life expectancy was proved to have been reduced by 5 yrs for those living within cities- (cancer and strokes) - caused by mass production of coal and products by factories - releasing toxic gases that has Beijing placing frequent pollution alerts
- In beijing- air purifiers are now a necessary appliance like the washing machine
How was mega city chonqings tap water affected by China’s rapid growth as result of GS?
Mega city Chongings tap water contained 80/101 forbidden toxins under Chinese law
how many people in China do not have access to safe drinking water?
200 million
Since 1995 how many water quality related emergencies have occurred?
11,000
Over exploitation of natural resources=resource pressure due to demand from GS growth
What resources are these?
Oil, coal and key metals like iron ore
Where has China looked to in solution to its growing demand?
So China’s is unable to have sources of water that feeds the need to produce enough soy to feed its huge hog population efficiently enough in accordance to growing demand as a result of its rapidly growing population -therefore countries like Ecuador where China has invested in their oil refineries , has gained access to huge acres of Amazon rainforest to cultivate soy crops to export back to China
Where does China stand in 2019 in its source for soy?
Us-China trade war= tension of China’s food security as result of lack in production of soy - Brazil’s amazon rainforest remains a reliable and accessible source of soy for china- now China is Brazil’s biggest export - mostl soy and beef for growing population and demand from china
- buys 70-80% of Brazil’s soy
When did India first start it’s open door policy?
1991
How much of India’s national income does the service sector account for?
50% of its GDP but 2/3rds of pop. Is dependent directly on agriculture for livelihood
Why does India have a geographical advantage in being an attractive country to outsource operations to?
Only 10hrs ahead from America and and 8 hours and a half from UK therefore problem solving or processing of jobs can be sent by the Indian evening time and completed in India by US or UK morning time
why do US and UK businesses outsource so much work to India ?
- Indian citizens- majority= fluent english speakers as a legacy after british rule = advantage when marketing call centre services to western countries.
why do US and Uk businesses outsource so much work to banglaore especially ?
broadband in Bangalore is unusually high as it is a long established technology hub thx to early investments in the 1980’s by foreign TNC’s like Texas instruments (tech company)
Give one example of a key company that helped shift ‘back office ‘ jobs to India?
General electric- TNC - decided to shift thousands of back office jobs to India = ripple effect where numerous leading companies in insurance, banking, travel, electricity generation and telecoms transferring their operations to India.
give one benefit that a TNC or company would gain if they outsourced services to India?
outsourcing can lead to a minimum profit of 20% on processing costs, as Indian call centre workers- £5000
and British call centre workers get £17000 per yr
why does india have the ‘time is money’ advantage?
India - 10hrs 30 mins ahead from America- problem solving/ processing of jobs can be done in the evening from the US and completed in India
give one benefit of outsourcing of services to india for India as a whole
call centre workers earn a good middle class incomes by indian standards
How has India benefitted from the gs of services ?
Since the start of the 21st century, annual average GDP growth has been 6% to 7%- largest contribution out of all 3 sectors (agriculture, industry, services) allowing it to become the worlds 6 th largest econ. and the country with the 3rd most PPP (purchasing power parity)
