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15 Cards in this Set
- Front
- Back
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Define globalisation |
The increasing interconnection in the world's economic (world trade), cultural (e.g. diffusion of western culture globally) and political (e.g. trade blocks and influence of the West on LDC's) systems. It involves the sharing of capital information, production, services, goods and people. |
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What has been the driving force behind the globalisation of information and how |
ICT has provided cheap, reliable and instantaneous communication between all parts of the world, allowing transfer of information and capital to occur much more easily. |
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How has manufacturing shifted from MDC's to LDC's and what is this process called |
1. TNC's invested FDI into LDC's. 2. TMC's decentralised their production facilities to LDC's in favour of lower costs
This is called global shift and has caused the manufacturing industry to move from a point where 95% of manufacturing was concentrated in MDC's in 1954 to the majority being located in LDC's in 2000. |
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How has global shift widened the development gap |
High technology is no longer associated with high productivity and high wages. This means that as manufacturing has shifted, technology has consequently transferred, increasing production without increasing wages, thus widening the development gap.
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Give an example of how TNC's continually re-locate following the trend of lower wages |
Barbie dolls led the way for TNC's to outsource manufacturing to Asia, with Mattel moving production to Japan (1959), Taiwan (1968), China (1987), and Malaysia/Indonesia today. |
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Why have services not followed the global shift which the manufacturing industry made |
Because provision of services has become increasingly detached from production of goods. This is because services need workers with a higher skill set than manufacturing. |
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Where are service industries concentrated |
London, New York and Tokyo are at the top of the services hierarchy.
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What change in service activities occurred in the 1990's |
They were off-shored from Europe and the US to India where costs are 10-20% of those in the UK |
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Why was India a favoured destination for the shift in services |
India is the largest English-speaking population after the USA, has a vast educated workforce and the costs are much lower; per agent the cost is 1/8th of that in the US. |
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Give 3 examples of companies which have offshored "back office jobs" to India |
HSBC, British Airways and Tesco |
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How many service jobs were offshored to india in 2008 and how much were they worth |
4 million, worth 57 billion dollars per year |
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Has India benefited from this |
Yes. - ICT services now employ 1.5 million people in India and it accounts for 7% of the country's GDP. - Bangalore has attracted FDI and has become India's ICT capital with business parks, innovation centres and direct flights to new York and Tokyo. |
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How has the flow of people been improved |
- Increased size of aircraft - Integrated air movement networks - growth of low cost airlines, Easyjet - high-speed rail networks - international tourism - movement of specialised workers - unskilled workers migrate illegally - movement of refugees |
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How has the flow of goods been improved |
- Integrated air movement networks - Growth of low cost air freight companies - Container and handling revolution - Computerised logistic systems - High speed rail networks
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What are the outcomes of globalisation |
1. Widening development gap (in Indonesia, GAP's manufacturers earn 72p a day whilst the CEO earns 5.5 million dollars annually). 2. Global shift and decentralisation of the West 3. Rise of the NIC's 4. Rise and monopolisation of TNC's 5. Increase in disparity within LDC's 6. Environmental degradation |
