Globalisation

Question 0

Call centres in Bangalore, India.

Answer 0

REASONS FOR OPENING UP CALL CENTRES IN INDIA:
1. Education system is very good, This provides many skilled workers.
2. A large majority of India speak fluent English.
3. Operating costs and salaries are lower compared to the UK.
4. There is a good work ethic meaning workers work long hours during the night for the global time change.
5. Development in ICT allowing clear fast communication.
BENEFITS:
1. Skilled employment created for local people.
2. High rate of pay.
3. Investment encourages new support industries and businesses that are creating more employment and wealth.
4. Local infrastructure improved.
COSTS:
1. Long working hours on low pay.
2. Encourages rural-urban migration which leads to growth of shantytowns and traffic congestion.
3. Atmospheric pollution from vehicles and problems of waste.
4. Rapid population growth increases demand on the water and energy supplies.
5. TNCs may relocated to new countries if there is an opportunity to make greater profits.
6. The profits are taken out of the country and therefore do not benefit host country- leakage.

Question 1

The motor racing industry, midlands, England.

Answer 1

FACTORS THAT HAVE LED TO THE CLUSTER OF MOTORSPORT COMPANIES:

1. Pool of available skilled workers.
2. Close to international airports.
3. Quality of living environment.
4. Close to the U.K.’s major racing tracks.
5. Good Internet connection for rapid communication.

Question 2

China the workshop of the world.

Answer 2

REASONS:
1. Increasing affluence domestic market for consumer goods.
2. Main industrial centres are on the east coast and have excellent transport links.
3. TNCs are attracted to China because of huge pool of cheap labour.
4. TNCs are encouraged to move to China because the government provides political and economic stability.
5. Few regulations regarding workers rights and health and safety.
6. Government began to allow overseas investment into China.
IMPACTS ON THE REST OF THE WORLD:
1. Can lead to deindustrialisation, which can lead to unemployment.
2. As companies relocate to China it causes deindustrialisation and unemployment in the countries that they come from.
IMPACTS ON CHINA:
1. Chinese cities have to put up with air pollution.
2. Most factories rely on coal for 80% of their energy.
3. Toxic clouds above the city is created.
4. Health costs are increasing.