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globalisation EQ2 - Coggle Diagram

- - - - Economic reasons
        -If a country is excluded from trade blocs or is disadvantaged by trade rules, it will be switched off.
        -If a country has high levels of government debt and is not able to spend on infrastructure as a result, it will be switched off. High levels of debt may also stop other countries from investing there.
        
        Social reasons
        -If a country or region has a poorly-educated population, a TNC is unlikely to set up production there. This can result in the area being switched off.
        -If there isn't enough skilled labour, then TNCs may not invest in a nation.
        
        Political reasons
        -If a country is run by a dictator who chooses to exclude the country from the global economy, it will be switched off.
        
        eg North Korea
        -If a country has a corrupt government or a high presence of organised crime or terrorist groups, this will reduce FDI and could lead to it being switched off.
        
        Environmental reasons
        -If a country lacks energy resources to trade or use for manufacturing, it could be switched off.
        -But nations that export a lot of raw materials like oil, can suffer from Dutch Disease, where their exports become uncompetitive because their exchange rate has 'appreciated too much'.
    - - Sahel region
        -The Sahel region (a group of countries including Mali and Niger) in North Africa is a 'switched off' region because of physical and environmental reasons.
        -This region of the world is dry with severe water scarcity. There are regular droughts and famines. Because of this, conditions for agriculture are bad and the Sahel produces very few crops for export.
        The Sahel region includes landlocked countries that struggle to export goods without access to their own ports. This means they are switched off from global trade flows.
        
        North Korea
        -North Korea is perhaps the best example of a truly 'switched off' location. It is switched off because of political reasons.
        -North Korea is a communist dictatorship, run by one family who has total control over the population.
        
        The current leader is Kim Jong-un.
        -People in North Korea are not able to access the internet, move abroad or benefit from most cheap goods that could be imported from abroad.
- - - - Global shift of maufacturing to China
        -With a population of over 1.3 billion people, China has become the ‘workshop of the world’ as TNCs have moved their manufacturing here.
        -TNCs can keep their costs very low as wages are cheap in China.
        -This has increased China’s GDP because their exports have increased significantly. Between 1978-2012 China’s economy grew at an average rate of 9.4% per year.
        
        Global shift - possibilities for China
        -It is possible that China will become the largest economy in the world because of this growth.
        -This shift has caused urbanisation as workers move from agriculture to higher-paying jobs in cities.
        
        Global shift of services to India
        -With a large educated and English-speaking population, India has seen a growth in services because many TNCs outsource their call centres and other services here.
        
        E.g. In 2003, BT opened two call centres in India (one in Bangalore, one in Delhi). They employed 2,200 people. BT benefit from lower labour costs because wages are cheaper in India.
        -India has benefitted significantly from the global shift in services.
        -The outsourcing industry in India adds an estimated $150 billion to the economy.
    - - People in developing world
        -There has been a material shift in jobs to the developing world.
        -Rather than working in agriculture, people in countries like India, China and Bangladesh can add more value and earn higher wages than they would otherwise.
        
        Land use in developing world
        -In the developing world, the global shift has caused the loss of productive land.
        -It was predicted in 2014 that 40% of China’s farmland was degraded because of pollution and increased building.
        -This means that fertile land that could have been used for farming is instead used for manufacturing or the quality of the land has reduced because of pollution.
        
        Land use in developing world cont.
        -In the developing world, the global shift has caused the growth of unplanned settlements.
        -As more people move to cities to take the jobs in manufacturing, squatter settlements or slums grow. These unplanned settlements often have a low quality of life and cause problems for the government of that area.
        
        pollution in developing world
        -Resources are needed to power factories and manufacturing plants. These factories also produce pollution that damages the environment.
        -In the developing world, global shift has caused environmental and resource pressure.
        
        Pollution in China
        -In 2013, China experienced severe air pollution problems with residents of Beijing advised to stay indoors. The air pollution levels were over 20x higher than the World Health Organisation recommended maximum levels for a 24-hour period.
        -China also has serious water pollution problems. In 2015, 85% of the water in Shanghai's major rivers was undrinkable
    - - Mumbai slums
        -Dharavi is the largest slum area in Mumbai.
        -5,000 people are employed in the slum in recycling plastics.
        -People find their own informal employment in these areas.
        -In 2018, Mumbai was ranked the 4th most polluted megacity in the world.
        
        Karachi slums
        -Karachi is a megacity growing at an annual rate of 5%.
        -The UN estimate that 50% of the population live in slums or unplanned settlements.
        -Orangi Town is Asia’s largest slum and found in Karachi. It is believed to be home to around 2.4 million people.
  - - - air and water pollution
        -Some communities in the developing world have suffered from air and water pollution because of the global shift.
        -In Beijing in 2013, the air pollution levels at the time were more than 20 times higher than the World Health Organisation levels over a 24 hour period.
        -In 2018, Mumbai was ranked the 4th most polluted megacity in the world.
        
        Air and water pollution cont.
        -Air pollution can cause asthma and have other negative effects on people's health.
        -Some people predict that the pollution in Northern China is so bad that it cuts three years from the life expectancy.
        -China also has serious water pollution problems. In 2015, 85% of the water in Shanghai's major rivers was undrinkable.
        
        Unplanned settlements
        -Unplanned settlements (e.g. slums or favelas in Latin America) often have terrible health conditions.
        -There may be no running water, sanitation system and hygiene are often very poor.
        
        Working conditions
        -Sometimes the working conditions can be damaging to people’s health. In 2011, Chinese workers at Foxconn were made ill as they were exposed to chemicals used when making iPhones for Apple.
    - - land degradation
        -Some communities in the developing world have suffered land degradation because of the global shift.
        -It was predicted in 2014 that 40% of China’s farmland was degraded because of pollution and increased building.
        -This means that the quality of the land has reduced. Perhaps it was once fertile farming land that has now been so polluted that it is infertile.
        
        Resource exploitation
        -Some communities in the developing world have suffered from the over-exploitation of resources because of the global shift.
        -The over-exploitation of resources is unsustainable - it means that the resources are being used now but will not be around for future generations to use.
        -As China has experienced rapid economic growth, it has become a major consumer of oil, gas, coal, metal, timber - all of which have to be extracted from the earth - causing environmental damage.
        
        Loss of biodiversity
        -Some communities in the developing world have suffered from a loss of biodiversity because of the global shift.
        -As deforestation and pollution happen with the growth of manufacturing, the number of plant and animal species in the area drops.
        -Since 1990, Togo has lost 60% of its forested area, and Nigeria has lost 50%.
        -In 2015, the WWF found that China had lost 50% of its vertebrates since 1970.
    - - Infrastructure
        -In the developing world, the global shift has resulted in infrastructure investment.
        -By 2016, China had 22,000km of high-speed rail network - about 60% of the world’s total. This has helped China to export enormously. This infrastructure has been built in the manufacturing areas and this benefits the whole population.
        -In India, the international airport of Mumbai has become the main hub for the city. It has increased its capacity to handle up to 40 million passengers annually.
        
        Employment and wages
        -In the developing world, the global shift has resulted in waged work for the local population - they are being paid a set amount.
        -Whereas previously, many people worked as subsistence farmers or low-paid farmers, the global shift has bought an increase in work with a set wage.
        -The increase in waged work has seen 1 billion people come out of ‘absolute poverty’ (less than $1.25 a day) since 1990.
        -In the developing world, the global shift has caused poverty reduction.
        
        Education and training
        -This increase in waged work has reduced poverty because people are paid more.
        -In the developing world, the global shift has caused an increase in education and training for the local population.
        -The local population has gained new skills and education with the investment from TNCs
        -As Governments have more income to spend on education, the quality has improved. This is particularly true in many Asian countries.
  - - - Spiral of decline
        -The spiral of decline describes when unemployment leads to de-population (people start to move out of an area) because of a lack of jobs.
        
        Effects of the spiral of decline
        -This leaves buildings and houses derelict
        -With a lack of jobs, there can also be a rise in the crime rate and other social problems.
        -If people move away, other businesses may leave the area because they cannot stay in business or hire skilled workers.
        
        For example, many towns in Northern England saw significant rises in mental health issues linked to the closure of the mines in the 1970s and 80s, which employed the majority of the population.
        
        Detroit, USA
        -Detroit was the 4th largest city in the USA during its peak as a car producing city, with Ford and General Motors operating there.
        -With globalisation, car production moved to Japan where costs were cheaper.
        -As a result, the spiral of decline set in and in 2013, the city was declared bankrupt.
        -In 2017, Detroit was still losing 0.5% of its population each year.
        
        Europe
        -In March 2015, the youth unemployment rate in many European countries stood at more than 20%.
        -Some people blame this on globalisation and the movement of manufacturing jobs abroad.
        -The Euro Crisis and economic austerity after the 2008 global financial crisis probably played a role too though.
        
        Leicester, UK
        -Leicester is a city in the East Midlands that was once home to a large textile industry.
        -Following the global shift, the 1970s saw the spiral of decline happen in the town.
        -At the peak, over 30,000 people worked in Leicester’s textiles mills. But eventually, most of these factories moved abroad, including Marks & Spencer's mill.