Globalisation EQ2 Flashcards
(36 cards)
Describe the movement of the global economic centre of gravity?
Transferred from Europe to America to increasingly China.
What is the “Silk Road”
The ancient trade route that brought valuable silk from China to Europe across the land and expensive spices, teas and textiles from India and South East Asia.
What is the “Global Shift”
The international relocation of different types of industrial activity from the West to Asia to increasingly Latin America and Africa.
Began in the 1970s and 1980s and has led to the economic re-emergence of the Asian region.
What has accelarated the Global Shift?
Technology
Globalization
Climate Change Awareness
Geopolitical Realignments
Cheaper labour costs abroad
Chinese FDI / Open Door Policy
Why and where is most manufacturing?
China
* Large Land Area
* Large Population
* Cheaper Labour
* SEZs / Open Door Policy
* Relaxed Climate / Worker Regulations
What are the negatives to outsourcing to Asia?
- Terrible Living Conditions.
- Terrible Working Conditions - RANA plaza.
- Min Wage isn’t enough to live.
- Exploitation - Long Hours in Unsafe Conditions.
- Airpocolypse - 4400 people die each year in China from pollution.
What are the positives of outsourcing to Asia?
- People gaining higher incomes from TNC jobs - ownership of fridges and smartphones massively risen.
- 680m people lifted out of poverty since 1981 in China.
- Literacy Rate Increased.
- TNCs often invest in infrastructure around the country.
- Multiplier effect.
- Indian Call Centre industry employs over 100,000 workers
Why and where are lots of services?
India
* Legacy of the British Empire
* Skilled, English Speaking Workers
* Lower Wages
* High Broadband Capacity / Good Infrastructure
* Somewhat Stable Democratic Government
* Large Middle Class Population (300 Million)
What is deindustrialisation
The loss of industry through changing market conditions or a lack of government support.
What are the social problems as a result of deindustrialisation?
- High unemployment
- High crime
- Lower life expectancy
- Illegal employment
- White flight
- Racial tensions (if employment is low people blame - stoked by politicians - racial minorites who are employed)
What is the “Rust Belt”
The American manufacturing industries relocated in the North of the country to cities like Detroit and Chicago.
Define Urbanisation
The increase in the proportion of people living in Urban Areas.
What factors have accelerated Rural to Urban migration?
Social Networking
Mobile Phones
Faster And Cheaper Transport
Media
Access to Infomation
FDI and TNCs providing more urban jobs
Define World Cities?
Hubs that are based on global influence not size.
They are nodes in the global economic system with disproportionate influence on the world stage. World Cities are the most globalised places on Earth.
What are rural push factors?
Lack of Services
Sparse Job Opportunities
Worse Housing Quality
Poor Transport Links
Define Megacities?
City with 10 million + people - based on size not influence.
Urban Pull Factors?
Good quality housing
Better job oppurtunities
Better services
Good Transport Links
What are the consequences of Rapid Urbanisation?
Enviromental
* Toxins released by increased population (cars etc)
Social
* 500 people sharing 1 toilet in Dharavi
* Poor Housing Quality
* Racial Tensions
Economic
* Tax avoidance
* Government spending more focussed on Urban Areas (increased neglection of Rural areas).
What are the different types of Migrants?
- Elite Migrants - Wealthy, High Skilled Individuals like Footballers, Russian Oligarchs etc.
- Low waged international Migrants - Drawn to global hubs both legally and illegaly working in low pay industries such as factories, cleaning etc.
What are “Source Nations”
Where Migrants Come From - Often poverty stricken or in conflict. They recieve remittances from migrants abroad in world cities.
What are “Host Nations”
Where Migrants migrate to in search of work. Some smaller Global Hubs have a migrant workforce of up to 50%. They provide many services and make a decent wage to send back to the Source Nation.
Diplomatic relations can be improved between source and host nations - I.E India and the UK.
What is the Golden Arches Theory?
Two Countries with McDonalds will maintain good relations beacuse their economies are interlinked - they wont go to war with eachother.
What are the costs and benefits of migration to the SOURCE country?
Costs
* Taxes / Income not injected into Source Economy
* Brain Drain
* Dependency on remittances
Benefits
* Gain remmittances
* Workers gain skills that could transfer back to source country.
What are the costs and benefits of migration to the HOST country?
Costs
* Overcrowding - Housing Stress
* Increased House Prices
* Less Job Oppurtunity
* Social Tension
* Over Reliance on Migration for certain industry (NHS)
Benefits
* Workforce increases
* Economic Growth / Multiplier
* Low Skill Jobs that are undesirable filled by Migrants.