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Geography - Globalisation
Terms in this set (32)
When human activities take place on a world wide scale. Flows of people, ideas, money and goods making complex global web that links people and places from all over the world.
Idea that the world is getting smaller due to flights, technology and the internet, because it's more accessible.
When countries are linked together economically, socially, culturally and politically so that they are dependant on each other.
Causes of Globalisation
Improvement in technology and telecommunications - computers, internet, email, mobile phones. Improvements in transport - people now holiday all over the world and businesses ship products globally. Growth of MNCs, HSBC, Nike, driving force of globalisation. Greater political cooperation, World Trade Organisation. Development of trading blocs.
Companies located throughout the world. Headquarters in MEDCs and factories in LEDCs.
Factors attracting MNCs to a country
Cheaper raw materials, cheaper wages, relaxed environmental laws, good transport links, access to the market where goods are sold, low land cost, working conditions not controlled. Friendly Government policies.
Example of MNC
McDonalds 30,000 restaurants in 119 countries.
Positive impacts of globalisation
New jobs and skills for local people. Bring foreign currency and wealth to local economies when they buy local resources, products and services, multiplier effect. Mixing of people/cultures enables sharing of ideas creating social mix. People can experience new foods and products, can take holidays in distance places. Migration can fill labour and skill shortages. Help people be more aware of events all over world, UK could help Haiti quickly. Help people be more aware of global issues deforestation/global warming, help sustainable development.
Negative Impacts Globalisation
In interest of richest countries, developing countries just provide cheap labour. Profits only sent back to MEDC. MNCs could drive local companies out of business. MNCs might close down factories in MEDC, making people redundant. MEDCs could operate in way not allowed at medc country, polluting the environment. Drowns out local traditions, languages, religions, currency. Migration can cause social tensions. Decline of traditional industries in MEDC deindustrialisation.
Case Study - Health workers
Between 2000 and 2005 nearly 15,000 newly trained nurses from LEDCs joined the NHS.
Case Study - Health workers Advantages
Staff earn far more than in home country, money can be sent home. Staff benefit from training in latest techniques/treatments, knowledge can be taken home when staff return. NHS would have shortage of nurses if no recruits from abroad. Waiting times reduced, patients get faster treatments.
Case Study - Health workers Disadvantages
Brain Drain. Hospitals in LEDCs, especially Africa, short of staff. Money spent in LEDCs on university training is lost when graduates migrate abroad.
a group of countries that work together to remove barriers and improve trade between member countries.
Exporting more than you import
Importing more than you export.
What is the EU?
A group of countries whose Governments work together to make trade easier and improve living standards. 500 million citizens. Each country pays to be member, and money is used to improve living standards. EU gets rid of controls that stop people moving around freely inside the EU.
Positives of being in the EU
Single currency available. Able to move freely. Cheap labour for some MEDCs. No trade barriers. Stronger alliances between countries.
Negatives of being in the EU
Supporting less affluent nations. Countries flooded with cheap labour. Loss of identity for each countries. Some people may not like migrants taking jobs away from local people.
Case Study - Polish Migration to UK
People who come from EU can live/work in other EU country. Half a million from Poland came to UK when they joined in 2004. High unemployment, low wages and housing shortages in Poland so people left. UK has more work, higher wages and big demand for trades people such as plumbers/electricians. The UK allowed unlimited migration, so easy to move.
Case Study - Polish Migration to UK impacts on Poland
Population fell by 0.3 %. Birth rate fell, young people of child producing age were moving. Will be fewer children in schools in the future. Money was sent home by workers, £3 billion.
Case Study - Polish Migration to UK impacts on UK
Population increased slightly. Migrants filled jobs and UK economy was boosted. Lots of money sent out of the country. New shops selling Polish products opened. Catholic school attendances increased. Tension, as Polish were taking jobs for lower pay.
Newly Industrialised countries. Such as China/India. Their economies have benefitted from new technologies and globalisation.
Advantages of MNCs in China
brings jobs to Chinese people, Government can tax them and use money to develop. Often use materials/equipment made by Chinese companies. Brings new skills/technologies.
Disadvantages of MNCs in China
Low wages. Children used as workers in poor conditions. Pollute environment. Chinese loses culture.
Case Study - Growth of manufacturing in China
in 30 years China has gone from mainly agricultural economy, to a strong manufacturing economy. China manufactured 75 million TVs in 2004, and 4000 in 1978. Third largest economy in world. Wide range of products, clothes, computers, toys. Many MNCs, such as Nike and Disney have locations in China.
Case Study - China (Nike)
American MNC that sells sportswear. Research, design and marketing take place in the US, but manufacturing in worldwide countries such as China. Nike doesn't own factories but sub-contracts the work to factory owners. In 2007 profit of $1.5 billion.
Case Study - China (Why did Nike go to China?)
Cheap labour, no minimum wage. Long working hours, Chinese laws states should work 40 hours a week, however law is not enforced some endure 80 hours overtime. Relaxed health/safety rules. Illegal for workers to strike. Tax incentives.
What do MEDCs import/export?
Export valuable manufactured goods such as electronics, generators and cars. Import cheaper primary products such as sugar, tobacco, flowers, tea/coffee.
taxes imposed on imports.
limits on amount of good exported
grants of money given by Governments to maintain price of specific product
Case Study - Kenya
High proportion of its people work in primary sector. Tourism has become main money earner in recent years. Import $11,000 million in 2008 and exported $5,000 million, massive trade deficit. Most exports agricultural goods, most imports fuel.