Globalisation-EQ2 Flashcards
What is the Global Economic Shift described as?
The relocation of industries from OECD countries to NICs, predominantly from North America to Latin America and South and South East Asia.
From the mid 20th century, what has there been a significant global economic shift?
In the centre of gravity from the ‘west’ to Asia. (Economic Core)
Global Economic Shift-1950s/60s
Growth of Asian Tigers (textiles/toys)
Global Economic Shift-1970s/80s
Rise of Japan (electronics etc)
Global Economic Shift-1980s onwards
Rise of China (manufacturing) and India (outsourcing of services)
What reinforced this shift?
The 2008 global financial crisis
Why did this reinforce the shift?
As trade balances between the emerging economies increased while the developed countries experienced relative decline.
When has the steady rise of economic power in the USA been evident from?
The end of the 19th century and since 2nd WW it has been the dominant global economy.
Global Economic Shift to Asia-Late 20th Century
Saw China and India increase their share of global GDP.
What is the IMF predicting about China following current trends?
China will regain the largest share of global GDP.
How can these current trends be explained?
By shifts of manufacturing from east, southeast and south Asia and outsourcing of services from developed to emerging economies.
What does a greater share of economic activity bring with it?
An increasing share of global influence
What is ‘Global Shift’?
The changing location of production.
China is an emerging economy with a huge supply of cheap labour. What has the arrival of it as a global economic power been due to?
To the shifting pattern of global trade and production, in particular its ability to lower the prices of labour intensive manufacturing and increasing the prices of goods.
Does the global shift is services show the same or different pattern to those of goods?
Different
What is the first social impact from the Global Economic Shift?
Unplanned settlements with poor governance-informal housing as a result of rapid urbanisation. Development of slums.
What is the second social impact from the Global Economic Shift?
Increased transport and infrastructure investment resulting in FDI by TNCs and increased economic wealth.
What is the third social impact from the Global Economic Shift?
Reduction in absolute poverty in many LEDCs, especially Asia due to increased employment and economic development.
What is the fourth social impact from the Global Economic Shift?
Urbanisation in Asia and LEDCs-rural urban migration looking for higher paid/more productive work in cities (manufacturing/TNCs).
What is the first economic impact from the Global Economic Shift?
Economic growth and the multiplier effect leading to cumulative causation.
What is the second economic impact from the Global Economic Shift?
Increased employment and incomes leading to a reduction in absolute poverty in many LEDCs.
What is the third economic impact from the Global Economic Shift?
Deindustrialisation, unemployment and a spiral of decline in regions in MEDCs
What is the fourth economic impact from the Global Economic Shift?
Can cause urban-rural inequality.
What is the first environmental impact from the Global Economic Shift?
Loss and mass destruction of habitats in LEDCs and Asia due to urbanisation and industrialisation-loss of biodiversity.
What is the second environmental impact from the Global Economic Shift?
Urbanisation and Industrialisation have led to pollution, waste, reduced air quality, traffic congestion and water contamination.
What is the third environmental impact from the Global Economic Shift?
Overpopulation of resources and resource pressure in LEDCs and Asia at an unstable rate.
What is the fourth environmental impact from the Global Economic Shift?
Loss of productive farmland.
What has globalisation encouraged for western countries?
To move towards Asia for cheap manufacturing and outsourcing.
Who does this benefit?
Asian countries, who have seen improvements in infrastructure, wages, reduction in poverty, education and training.
Why has it also made costs for the Asian countries who it has benefited?
This has also made some costs such as the loss of productive land as urban settlements grow, growth of shanty towns and environmental and resource pressure.
What is a globalisation winner?
Usually has an abundance of resources e.g. physical oil resources or a cheap and skilled labour market.
What is a globalisation loser?
Often countries which are landlocked so has poor access to coastlines, where trading occurs.
What has rapid industrialisation and urbanisation from the global economic shift caused?
Pollution, overexploitation of resources and the dumping of waste.
-Impacts human wellbeing and health
How many people are estimated by the UN to be living in urban slums?
1 billion
What do megacities generate?
A ‘poison cocktail’ of pollutants arising from traffic conjunction and increased energy consumption.
For developed nations, what does globalisation cause?
Deindustrialisation
What does deindustrialisation cause?
Dereliction, contamination, depopulation, crime and high unemployment rates.
What is deindustrialisation?
The mass closure of industries in regions traditionally associated with secondary industrial production.
What do developed nations gain from the global shift?
The reduced cost of manufacturing, redeployment of capital and labour to new industries etc.
What are some of the social and environmental problems associated with deindustrialisation?
-Industrial estates may be left derelict unless they can be repurposed.
-Workers with skills and expectations associated with secondary industries may struggle to find employment in tertiary and high technology industries.
From these problems, what do deindustrialised regions face?
-Above average unemployment
-Depopulation
-Dereliction
What is the rapid growth of megacities driven by?
Rural urban migration.