Globalisation

Globalisation

1. Globalisation means the greater integregation of the GLOBAL ECONOMY

   • Jobs and wealth in one country are increasingly dependent on trade and investment from other countries.
   • Countries specialise in in certain types of economic activity.
   • Secondary jobs in the UK have been lost due to outsourcing.
     • Outsourcing: Moving work places to other countries because of cheaper labour e.g. BT's call centres have been moved from the UKto India.

2. Changing the employment structure

   • Counties are at very different stages of economic development, DESPITE globalistaion.
     • CLARK-FISHER MODEL
       • Primary: Grow or extract raw materials e.g. farming, mining
         • Ethiopia
       • Secondary: Manufacturing goods in factories or workshops
         • China/India
       • Tertiary: Providing a service e.g. police fore, teacher.
         • United Kingdom/USA
       • Quarternary: IT and electronics such as google or technological equipment
         • UK/USA

3. Global institutions

   • WTO: World trade organisations. They promote free trade by persuading counties to reduce or remove trade barriers like taxes and quotas.
   • IMF: International Monetary Fund. Gives loans to developing counties for infrastructure and encourages countries to allow foreign investment to create new jobs.
   • TNCs: Transnational corporations. Aim to reduce costs and increase profits by moving factories to cheaper locations. This creates new jobs in devleoping countries

4. The impacts of globalisation on different people

   • Most countries have become richer, especially in the developed world. about 300 million people in China have been lifted out of poverty. however in places like Africa, incomes have not improved much at all.
   • 100000's of male USA factory workers lost their well payed jobs due to outsourcing to Mexico or Brazil.
     • Female factory workers in china are paid badly and do an average of 60 hours overtime a month.
     • Many people lose their jobs to people on the other side of the world getting paid below minimum wage and working in sweatshops.

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