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39 Cards in this Set
- Front
- Back
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Describe jobs found in the primary, secondary, tertiary and quarternary sectors: |
primary - jobs involving collecting raw materials from the land or sea e.g. fishing, mining and farming secondary - jobs involving making or manufacturing things in factories e.g. textile work, steel industry tertiary - jobs that provide a service e.g. bus driver, school teacher quarternary - jobs in the high tech service industry e.g. IT, research and development |
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Describe the Clark Fisher Model: |
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Describe the characteristics of a pre-industrial stage country: |
most people are employed in primary industries (working with natural resources such as farming, fishing and mining) |
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Describe the characteristics of an industrial stage country: |
- new factories and industries develop providing many jobs e.g. textiles, steel and engineering goods - chemical and vehicle industries also develop - secondary industries (manufacturing, construction) dominate the economy and employment - tertiary sector (services such as electricity and water) also begin to grow |
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Describe the characteristics of a post - industrial stage country: |
- tertiary sector provides services to the increasing population who live in towns and cities e.g. transport, education and health |
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What happens after the post-industrial stage? |
- employment in the quarternary sector begins to grow in importance - quaternary sector is based on research and development and IT, discovering new products and services |
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Define a LIC, give an example of one and describe its distribution of employment sectors: |
- Low Income Country, least developed e.g. Ghana or Ethiopia - Ethiopia: - primary - dominates as 75% of its population work in agriculture; most work as subsistence farmers with little commercial agriculture; long hours and hard physical work - secondary - very small - mainly male employees who work in textile and leather factories - tertiary - small with 15% of pop (men and women) working in the service industries e.g. tourism - other - mainly work in the informal sector which is liable to exploitation and abuse |
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Define a MIC, give an example of one and describe its distribution of employment sectors: |
- Middle Income Country, more developed, where manufacturing industries are developed e.g. China China: - primary - large - in China is largest sector but less dominant than in LICs; includes mining (mostly coal, worked by men) and farming (often done by women) - secondary - medium - in China this sector generates the most money; both sexes work long hours in difficult conditions (often unsafe) but wages are better than in farming - tertiary - large - as people earn more money they spend it on services and leisure; long working hours but good wages and working conditions are better than in factories |
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Define a HIC, give an example of one and describe its distribution of employment sectors: |
- High Income Country, higher developed e.g. USA - UK: - primary - tiny with very little fishing or mining; mechanisation so fewer workers in farming - secondary - small - high-tech and highly automated manufacturing remain after relocation of traditional industries - tertiary - dominates - big variety of employment; new ways of working e.g. working from home, and self-employment are high; a quaternary sector is growing - other - working conditions and pay are good in all sectors |
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Describe working conditions, pay and the advantages and disadvantages of a farmer in Malawi: |
- subsistence, though sometimes has surplus to sell on market - last year harvested maize, tobacco and brown nuts with maize and tobacco harvested the most - in Malawi the main form of employment is farming in pri sector, mainly tobacco - adv: self-employed - makes own rules and gets 100% profit, doesn't need to spend money on food - disadv: extremely poor with no guaranteed income and relies heavily on good weather and crop yield; receives no steady income and has no chance of promotion |
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Describe working conditions, pay and the advantages and disadvantages of a banker in Canary Wharf: |
- works CW, east london - wakes up 3.30am for 4.30am shift until around 12am - 45 min drive to work by paid for taxi - works for HSBC trading in currencies with singapore and hong kong which are 7 hours ahead - 2 hrs sleep, taxi waits outside and takes back to work - average earnings of £100,000 - worldwide business starts at 2am - stays so can work with new york - 5 hours behind - gets commission - summer - air conditioned, winter - heated - gets sufficient lunch and tea breaks |
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Define Globalisation and why it has increased: |
- the ways in which countries become increasingly connected to each other - increased because communication and transport links have improved and expanded and in poorer countries companies utilise cheap labour and establish business there - the IMF and WTO have also worked together to increase trade and have sped up globalisation |
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Define TNC: |
- Transnational Corporations - big businesses promoting more business - large companies which operate in many different countries |
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Define WTO: |
- World Trade Organisation - established 1995 - aims to encourage trade between countries and to reduce import duties and other barriers to trade - deals with the global rules of trade between countries - its main function is to ensure that trade flows as smoothly, predictably and freely as possible |
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Define IMF: |
- International Monetary Fund - established 1945 - aims to provide the financial stability for trade to flow freely between countries - organisation of 188 countries, working to reduce poverty around the world by encouraging financial cooperation between countries and by promoting trade and high employment |
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Define The World Bank: |
- an important source of financial and technical assistance to developing countries; its main aim is to reduce poverty |
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Define The UN: |
- The United Nations - the guardian of international peace and security and the protector of human rights |
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Give more information about the IMF: |
- is a US based organisation that raises funds from the world's wealthier countries, to help countries which become economically unstable - the IMF aims to maintain stability and has 4 main jobs |
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What are the IMF's 4 main jobs? |
- to stop existing crises from developing and spreading e.g. providing Greece with financial help - to spot potential future crises; the IMF's research team report on every country's economy - to check investment and how banks operate; the IMF monitors banks to try to prevent a banking crisis from happening - to reduce global poverty by helping the world's poorest countries; the IMF claims that if these countries have more money to spend, everyone will gain through increased rate |
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How and why did the IMF help Greece? |
- the IMF bailed them out, paying them money to spend on pensions and healthcare - international banks lent money to the Greek government and want to be repaid - if Greece went bankrupt it could lead to other EU problems, such as Spain which also has large debts - if the euro collapsed the UK would suffer as 70% of trade is with the EU |
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What does the WTO aim to do? |
- aims to get countries to agree that goods traded between them will be free of duties (known as tariffs) |
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Describe the impacts of globalisation worldwide: |
- increase in number of women working (but for less pay than men) - improvement in working conditions (i.e health and safety, working hours, pay) - increased skills/training as people move from 'traditional' into 'new' employment areas - more goods and services available to everyone |
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Describe the impacts of globalisation in the developed world: |
- wages have improved - high prices can be charged for products and services - almost everyone benefits from 'global' goods and services - mostly good working conditions - more flexibility and choice in where and when people work - some job losses as companies move to the developing world (e.g. call centres, factories) |
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Describe the impacts of globalisation on the developing world: |
- can sell produce and provide services to a greater number of places - pay high prices for the developed world's services and products - gets lower prices for its products than developed world - wages generally low plus there is continuing exploitation of workers and use of child labour - a few who own land/resources have benefited hugely - few people can afford the goods and services a global economy provides - informal sector continues |
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Describe what has happened to international trade over the last 50 years: |
- grown hugely (in 2010 it was 48 times larger than it had been in 1970) - companies have expanded and invested in countries all over the world (TNCs) - banking, insurance and finance companies have also globalised, offering services all over the world |
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Define FDI: |
- Foreign Direct Investment - is investment which flows from one country to another (often by TNCs) - may involve buying a business or a factory in the country, or expanding an existing business in that country - is done to take advantage of cheaper labour or resources and increase profit - some countries offer incentives such as reduced taxes to encourage firms to invest in them |
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Describe a case study involving FDI: |
- in the 1990s TNCs invested in factories, transport and infrastructure for China - this type of investment is called FDI - as 90% of chinese wages are lower than US and UK wages TNCs were able to manufacture goods cheaply - by 2007 China became the 2nd largest trader - the prices of goods have also lowered because fuel efficiency has reduced fuel consumption - these changes are in shipping, containerisation and aircraft technology - state-led investment has also lead to China's economic growth development - this is when governments put money into the system instead of other countries |
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How have transport and communication increased international trade? |
- container ships and air transport have made it easier to transport more goods quickly and cheaply - IT, e.g. email, text, fax and phone made possible by satellites and undersea fibre optic cables has made communication between countries easier |
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How have the IMF, TNCs and Trade agreements increased international trade? |
- IMF has made it easier for state-led investment in different countries - agreements between countries e.g. EU, have made trade between countries easier - growth of TNCs has increased trade between countries |
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Describe how TNCs have changed over the last 20 years, where their headquarters usually are and the general reasons for going global: |
- TNCs have grown in number and importance and cover a wide number of industries - HQs are usually in a 'global' city such as London or New York with production and selling operations all over the world - reasons for going global vary but all reasons amount to increasing profits and reducing costs |
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What are the 6 reasons TNCs operate globally? |
- to take advantage of incentives - to spread business risk - to sell inside trade barriers - to reduce costs of buildings/land - to reduce labour costs - to be close to markets |
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What are the advantages of TNCs in developing countries? |
- local people are able to earn higher and more regular wages - TNCs bring new skills e.g. assembly operations and engineering; language acquisition and interpersonal skills - TNCs bring investment, for example in new factories or call centres -TNCs pay taxes which boost the local economy |
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What are the disadvantages of TNCs in developing countries? |
- pay may be low for workers - training may only be in low level skills - there may be long shifts - there may be poor working conditions - some factories may cause air and water pollution |
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How do TNCs operate in the tertiary sector? |
- have HQs in the UK but employs hundreds of people worldwide - has customer services in India; the staff and building costs are very expensive - many retail outlets e.g. in USA and Brazil (and other parts of the world and south america) and will outsource many products from all over the world |
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How are tertiary sector TNCs different to secondary sector TNCs? |
- Tertiary are often administration companies, especially customer service and call centres, which are relocated to where staff and building costs are cheaper - made possible by modern communications (e.g. internet) - tertiary TNCs are often retail outlets (chains) located across the world (secondary sector TNCs have some retail outlets too but are more likely to sell their products to other retailers - tertiary TNCs have working conditions that are generally better in their overseas offices and shops than in the secondary sector's 'sweatshops' |
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Describe Apple as a TNC: |
- worth $415 bn, has 408 retail stores in 14 countries and employs approx. 71000 people - world's 2nd largest IT company just by income alone - have some factories in China where they employ workers from the poorer more rural areas; these workers work 12 hour long shifts, 6 days a week and some become depressed and commit suicide due to stress - based in USA, data centre is in North Carolina - came under criticism for using coal by Greenpeace in 2011 but by 2013 used 100% solar power |
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Describe Nike as a TNC: |
- in 2012 it was worth $10 billion and sales were $25 billion - operates and sells in more than 140 countries - employs 44000 people - in 60s, factories based in Japan, in 70s, S.Korea and Taiwan and in late 80s the S.Korean companies moved south to Thailand and Indonesia - in the 2000s was based in Vietnam - head office is in Oregon, USA |
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Describe BT as a TNC: |
- is tertiary TNC and is a PLC - public limited company - in 2013, revenue was £18.017 bn and profit was £2.091 bn - in 1990s Bt globalised - english speaking foreign nationals took over service - software development skills in India meant they could develop products - locations with administrative skills managed services like company accounting - company provides highly specified services based on technology and research and development including jobs in ICT and TV production |
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Describe Tesco as a TNC: |
- provides jobs for over 3 million people in manufacturing and employment - is the UK's largest retailer with more than 800 stores - had sales of more than £10n in 2005-6 - made £2.25 bn profit in 2013 - in 2001 had a turnover of £20 bn and in 2005 £35 bn - invested £1bn in improving services and staff etc |
