19 terms

Issues with global interdependence

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International labour markets
Globalisation allows people to move more freely around the world, and the beast talent tends to migrate to wealthier nations, exaggerating inequality
Inequality
Means extreme differences between poverty and wealth, as well as in peoples' wellbeing and access to things like jobs, housing and education. Inequalities may occur in: housing provision. access to services.
Globalisation reduces inequality
In some places as they industrialise their economies grow and with it so does the standard of living of their citizens e.g. China over the past 40 years
Globalisation can increase inequality
As some wealthier developed nations can afford to profit more from and adjust more quickly to, any changes or shocks to the global economy
Brain Drain
The emigration of highly trained or qualified people from a particular country. Also know as human capital flight
Labour Drain
The loss of any people to migration to another country or region regardless of their skill or qualification level
Positives of labour movement
Reduced unemployment, remittances sent back to donor country, fills skill shortages, reduces inequality between workers, ideas and people might go back to the country of origin
Negatives of labour movement
Loss of skilled workers, risk of disease pandemics, unemployment in more developed countries, wage suppression in richer nations, poor countries lose most qualified people
Outsourcing
A cost saving strategy used by companies who arrange for goods or services to be produced or provided by other companies usually at a location where costs are lower. E.g. call centres in India
De-multiplier effect (Negative multiplier)
Happens if deindustrialisation happens as workers may lose their jobs. This will cause an initial fall in national income. However, with higher unemployment, the unemployed workers will also spend less leading to lower demand elsewhere in the economy.
Structural unemployment
Is caused by a mismatch of skills between the unemployed and available jobs. Structural unemployed is caused by changes in the economy, such as deindustrialisation, which leaves some unemployed workers unable to find work in new industries with different skill requirements.
Deindustrialisation
The process of social and economic change which is due to the reduction in industrial capacity or the activities of a country's manufacturing and heavy industry.
Gini Index
Used to indicate levels of inequality of income distribution within a country.
Sub Saharan Africa
An area where the Gini Index has increased
Large Gini Index
Close to 1 would mean massive inequality
Small Gini Index
Close to 0 would mean income is divided equally throughout a population
Trickledown economics
Theory that says benefits for the wealthy trickle down to everyone else. These benefits are usually tax cuts on businesses, high-income earners, capital gains, and dividends. Trickle-down economics assumes investors, savers, and company owners are the real drivers of growth.
Geopolitics
The study of the effects of geography on politics and international relations.
Geopolitical issues with globalisation
Should decrease conflict as globalisation means shared wealth and common interests, but inequalities, regional conflict and the use of trade as a weapon (e.g.sanctions) are counter arguments.
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