Globalization

What is globalization

Increasing interdependance between countires through

Capital

Trade

Goods and services

Culture and ideas

Why is rate of globalization increasing

LICs becoming more involved in global markets and forums

Causes for accelerating globalization- economic

Volume and influence of TNCs has increased.

Many TNCs have incomes higher than GDPs of many countries.

Online purchasing between countries is increasing

Stocks are traded from across countries and invest in each other. (Foreign direct investment)

Causes for accelerating globalization - political

Trade blocs (eg EU) have become more influential and have reduced tariffs and other protectionist measures.

IGOs( intergovernmental organizations) eg world bank work to harmonize economies whilst promoting democratic ideology.

Political views and ideologies are expressed in worldwide media outlets.

Causes for accelerating globalization - migration

International migration has led to extensive family networks living across the globe-leading to the spread of culture and finance (through remittance)

International tourism has increased- more people can travel abroad for holidays due to lower transport costs.

Causes for the acceleration of globalization- cultural

Americanization and westernization of other (often developing)parts of the world. Increasing trends of Bollywood and Nollywood.

Causes of accelerating globalization- flow of commodities

Goods can easily be imported, increasing countries interdependence on one another eg fiji water

Volume of manufactured goods have increased rapidly due to low cost countries such as Bangladesh

Causes of accelerating globalization- technology

Internet has allowed the rapid spread of information

Social networking sites have become popular and allows for the spread of culture, ideology and opportunities for tourism and migration.

Enormous server farms exist eg microsoft's data centre in Washington which stores substantial amounts of data.

Describe economic globalization

TNCs trade products internationally and use international outsourcing and off shoring to lower costs.

Industries move to developing countries to save money on labor bringing economic growth there.

Sources of income from international companies

Global transactions of money eg buying something shipped from china.

Trading blocs bring countries together economically and promote growth by encouraging trade

Describe political globalization

Governments form connections to trade eg trading blocs

International organizations exist to harmonize national economies and political relations. Eg the UN

Deregulation policies allow markets to grow with an international reach

Western democracies have had a global influence on political ideas such as development of market economies in former communist states.

Describe cultural globalization

Exposure of media sources allow recognition of other cultures

Ability to travel internationally let people experience cultures

Individuals have a greater awareness to world events due to education and news sources

Westernization has increased eg Starbucks in Asia

Describe social globalization

International migration is creating multicultural societies where people share and adopt cultures

Global NGOs and charities are involved in the global improvement of education and health eg WHO

social networking has revolutionalised human connections- enables interactions all around the world and has access to international info

What has globalisation led to?

the lengthening of connections- people can now travel further afield and goods are brought in further away.

deepening of connections- connections are penetrating more in depth into most aspects of life.

faster speed of connections- people can now talk in real time from all over the world and travelling is much more efficient.

describe political interdependence

international political issues require countries working together in order to solve them.

countries rely on other countries to intervene if there is political unrest.

describe environmental interdependance

all nations are affected by other nations' greenhouse gas emissions, nuclear waste emissions etc. meaning all countries rely on each other to protect the environment.

describe social interdependence

countries rely on each other for leisure activities eg tv programmes produced in other countries.

migration has caused social interdependence as they are now diasporas ( groups of migrants of the same origin living in another country) all over the world that are dependant on the place they live in.

describe economic interdependence

countries are dependent on the flows of labour, products and services entering the country in order for the economy to grow.

labour provides a workforce

goods and services mean countries can develop and make more money.

describe the invention of steam power and how it increased globalisation

in the 1800s, britain was leading the world in the use of steam power. this allowed the british to move their goods and armies very quickly into key areas such as Asia and africa.

describe the invention of jet aircrafts and how it increased globalisation in 19th and 20th century

newer and more efficient aircraft have allowed goods to be transported quickly between countries.

increasing competition between affordable airlines (Jet 2, easyjet, ryanair) has led to more people being able to travel abroad.

describe containerisation and how it increased globalisation in 19th and 20th century

there are more than 200 million container movements every year which is very important for the global economy. all sorts of goods are transported across the world, lower transport costs is beneficial for both businesses and consumers.

describe telegraphs and how it increased globalisation in 19th and 20th century

The first telegraph cables were laid across the Atlantic in 1860s, which allowed for almost instantaneous communication and revolutionised how businesses operated.

describe telephones and how it increased globalisation in 21st century

mobile phone use is very common across the world with smartphones becoming even more popular which has allowed better global communication.

describe the invention of broadband and fibre optics in 21st century and how it increased globalisation

since 1990s large amounts of data can be transferred very quickly via cables laid out on the ocean floor. the introduction of fibre optic cables for domestic use has accelerated telephone, internet and television speeds for the home

describe the invention of GPS in 21st century and how it increased globalisation

Satellites have allowed companies and people to track goods across the world. GPS has become an essential feature of modern cars, and has lead to the success of Google Maps.

describe the invention of the internet in 21st century and how it increased globalisation

approximately 40% of the world's population has access to it. social media is extremely influential and, due to their large number of users has led to rapid spread of news, knowledge and culture.

definition of flow

when countries share things with one another- things are flowing from one country to another. Flows can be physical like people or products but they can also be ideas and concepts such as information, services or money.

what are the different types of flows

capital, labour, products , servives and information

describe capital flow

the movement of money for the purpose of investment, trade or business production

describe the labour flow

movement of people who move to work in another country

describe the services flow

Services are 'footloose' industries, meaning they can locate anywhere without constraints from resources or other obstacles. Services flow as they can be produced in a different country to where they are received (e.g. international call centres).

describe the information flow

Any type of information can flow from one place to another via the internet, SMS, phone calls etc. For example, international news.

what are switched off areas

Switched-off areas are usually excluded from global flows of trade, capital, labour and information and these countries are generally left behind whilst other countries prosper and benefit from globalisation.

describe environmental reasons for why countries are switched off to globalisation

- Landlocked countries cannot be independent in trade (they must rely on its neighbours to travel through before participating in trade)

- Poor fertility of land, mountainous or arid conditions, limited land space can all reduce a country's ability to produce a commodity for trade

- Some countries are vulnerable to Climate Change, and so the natural environment could change to unfavourable conditions (sea level rise, desertification, etc

describe political reasons for why countries are switched off to globalisation

- The political agenda and governance of a country may limit flows of people or culture (anti-migration policies, censorship, etc) - Terrorism or active conflict within a region can be hugely detrimental to their global connectivity. - Corruption within the government means money is lost rather than invested

describe economic reaosn for why countries are switched off to globalisation

- LICs, with little finance extra, cannot afford to invest in ports, infrastructure, incentives for TNCs nor education to improve the skills of its labour force. - Countries with unstable markets or weak currencies will deter investment and businesses.

why are global flows a threat in some countries

importing raw materials and commodities could hurt domestic suppliers

migrants from abroad could create tensions as they may not be wanted

foreign information could be seen as a threat.

what does IGO stand for

Intergovernmental Organization

Describe the IMF- International Monetary Fund

organisation based in washington that loans money to poorer developing nations.

a key condition to recipient countries is that the country opens up its markets and industries from government control. This in turn leads to privatisation.

TNCs now have the opportunity to enter those markets more easily which would generate financial activity and tax, but mainly for their host country (which tends to be an MEDC).

But IMF can be considered a hindrance; LICs fall into debt due to their industries privatised which leads to profits leaving their country and create potential environmental or workforce exploitation.

Countries which struggle to pay their debt will have to cut back on funding in key areas such as education and healthcare, which further damages the country's economy and welfare.

describe the world bank

loans money to developing nations with the aim of improving development, so enabling globalisation.

It is seen as controversial and many criticise to say that these organisations don't benefit developing countries but promote LICs to increase their debts and limit the government's power/sovereignty.

Describe the WTO - World Trade Organization

HQ is in Geneva, Switzerland which aims to liberalise trade by removing tariffs, subsidies and quotas. The WTO has been criticised as it has failed to prevent the EU and USA from implementing protectionist measures like subsidies so it has failed in creating equal trade opportunities.

what is free market liberalisation

the belief that government intervention in markets would hinder economic growth and development in the long term. As a result of market liberalisation, the banking and finance sectors were deregulated in the UK which led to London becoming one of world's major financial centres..

describe privatisation

Until the 1980s, important assets in the UK, such as railways and utilities, were owned and run by the government.

Thatcher privatised these state-owned industries; private companies bought and ran these services, which has continued to the present day. Privatisation allowed the government at the time to raise a lot of money. However, some critics believe that privatisation compromises the quality of services.

what is offshoring

TNCs set up production facilities in developing countries, which have large, cheap workforces (e.g. Bangladesh)

what is FDI

Foreign direct investment: investment by individual/TNC from one country into another.

describe encouraging business start ups

Around the world, incentives (grants, tax breaks, infrastructure constructed) are provided by governments in order to attract businesses. After Sunday trading began in the UK, many foreign businesses (e.g. Disney) were attracted to establish shops here to profit from this lucrative opportunity

describe foreign mergers

TNCs from different countries join to form one larger company.

describe foreign acquisitions

- A TNC acquires another company from abroad, often in a hostile way (may involve local job loss, lack of interest in the local environment, etc)

describe transfer pricing

TNCs sometimes channel their profits through subsidiaries in tax havens (e.g. Ireland)

Describe censorship

The government restricts the flow of information and knowledge through state-controlled media outlets and internet restrictions. Censorship can be used to limit a population's knowledge of foreign culture and ideas (such as democracy) which could undermine a dictatorship government.

describe limiting migration

- Most countries have some sort of border control and migration monitoring. With the rise of right-wing, extremist views, (as discussed later in the notes) more countries have adopted strict migration controls.

what is trade protectionism

Trade protectionism involves subsidies, tariffs and quotas which help a country to protect domestic industries

describe trade blocs and free trade

In order to trade more freely between nations, governments may sign agreements with each other in order to reduce restrictions of the flow of capital and goods. Free trade may also encourage the movement of people, culture and knowledge.

benefits of trading blocs

-Businesses have a larger potential market to sell to, and so larger potential revenue to make. ▪ As businesses cater for more demand by increasing their volume of production, many other businesses can benefit by providing raw materials, skilled workers or providing outsourcing opportunities. Hence increased business for one may in turn benefit many in a positive feedback loop. ▪ Trade of essential materials or services become more reliable within a trade bloc. There may be less economic risk and better pathways for essential imports (food, energy, etc).

disadvantages of trade blocs

The interests of countries within major trade blocs are focussed upon themselves. Outside trading countries become excluded and find it very difficult to join in trading. Foreign industries and suppliers can be directly damaged as a result of competition or lack of opportunities due to trade blocs forming. ▪ Trade Blocs still don't guarantee fair treatment within, for example the relationship between Mexico and USA has not strengthened through trade bloc NAFTA.

describe types of restriction on trading

- tariffs (a tax for importing and exporting goods); -non-tariff barriers (NTBs), such as quotas (a limit/fixed number of goods) or requirements; - and outright bans on products or country import/exports.

what are trade agreements

To lower the costs of trade, countries can enter trade agreements, which work to benefit all parties that are involved. In trade agreements, certain restrictions can be removed or lessened in return for another country doing the same. All trade agreements are overlooked by the World Trade Organisation (WTO) to ensure they are fair

describe nafta

An example of a trade agreement is the North American Free Trade Agreement (NAFTA). This agreement has lowered and removed tariffs on imports and exports between Canada, the USA, and Mexico. NAFTA has been criticised for its effectiveness

what is the KOF index

The KOF index measures globalisation of countries for political, economic and social indicators. It's measured on a scale from 1 to 100, where 100 is the most globalised nation

describe the political factors of the KOF index

Political (39% weighting on overall score) -Membership of international organisations and trade blocs like EU, WTO, IMF, NAFTA -Number of foreign embassies located in the country -Participation in international treaties

describe the economic factors of the KOF index

Economic (37% weighting on overall score) -Long distance flow of goods and services and capital -Flows of FD

describe the social factors of the KOF index

Social (24% weighting on overall score) -Personal contact through international phone calls and tourist numbers -Information flow through the number of internet users per 1000 people -Cultural proximity through things like the number of McDonalds

what is the AT kearney index

AT Kearney Index is a measure of globalised cities, by a London business. It considers political, communication, technology and political factors.

describe the economic, personal, technological and political factors

Economic integration -Imports and exports -FDI

▪Personal contact -Telephone traffic -Travel and tourism -Remittances

▪ Technological activity -Internet users -Internet hosts -Secure servers

▪ Political engagement -Membership of international organisation -Signatories to international treaties -Number of embassies

describe simple measures of measuring globalisation eg GNI, PPP, income per capita and GDP

GNI (Gross National Income) is the value of goods and services by a country; similar to GDP, but GNI also takes into account overseas earnings.

● PPP (Purchasing Power Parity) is the expenditure of a country's population and reflects the cost of living

. ● Income per capita is the mean average income per person (income of the country by population size). This average can easily hide inequality; the few high earners have a larger influence of GDP than a majority of low earners

. ● GDP (Gross Domestic Product) measures the total value of goods and services produced in a country. Using GDP as a simple economic measure may be inaccurate as GDP doesn't include any informal earnings or black market economies.

describe composite measures of globalisation eg HDI. GII, and economic sector balance

composite measures consider a range of factors, therefore are more reliable statistical measures of development

: ➔ Economic Sector Balance considers all four main economic sectors - Primary, Secondary, Tertiary, Quaternary - and describes the composition of a country's industry (often displayed as a bar chart). As a country develops, primary industries usually decline and their earning reduce whilst secondary and tertiary become more important (according to the Clarke-Fisher Model).

➔ Gender Inequality Index (GII) measures female participation and treatment within society and considers: ● Reproductive health - Maternal mortality ratio, adolescent birth rates ● Empowerment - Proportion of parliamentary seats held by women, ● Employment - Labour force participation rates of women

➔ Human Development Index (HDI) is a measure of social development and considers: ● Life expectancy ● Wealth (GDP per capita) ● Education (Literacy levels and average number of years in education)

what are TNCs and their role

Transnational companies operate across multiple countries (trans- = across, -national = nations). These companies usually work by having their headquarters, production, and sales all in different countries across the globe , meaning they are a crucial aspect of globalisation. These corporations can provide raw products, manufactured goods, services, or information - they exist in different industries (sectors). Overall, TNCs make products, produce jobs, invest in countries, and sometimes contribute to cultures. Some TNCs are very powerful, and can even have political influence, e.g. the pressuring of some countries to reduce taxes and create SEZs so that the TNC will invest there.

where are most TNC hqs

The Headquarters of TNCs are usually located in high income countries . HQ is responsible for the big decisions, such as investments, meetings with global organisations etc.

The majority of headquarters are heavily concentrated within the USA, Europe, Japan, as well as many in the emerging economy of China.

how do TNCs create links through FDI

TNCs create links with other countries by investing in them , which benefits the country as this creates jobs and contributes to the economy. TNCs can be investments into a factory, for example, but they may also take the form of mergers and acquisitions.

how do TNCs create links through integration

TNCs often expand their company by creating linkages between other companies. There are two types of integration: ● Horizontal integration: taking ownership of part of the supply chain, e.g. buying a plantation ● Vertical integration: taking ownership of another company , often one that is in a similar industry. The food industry is a prime example of vertical integration. A lot of large companies control the majority of smaller companies

what is outsourcing

TNCs that provide tertiary industry products (services) will often outsource tasks to other companies in order to save money and time. TNCs like Apple outsource their manufacturing process so that profits can be maximised

what is offshoring

Companies that make manufactured products will often have their factories in LICs due to lower labour costs, better taxes, weaker regulations for workers and weaker environmental regulations. This leads to much dispute about the ethical issues with TNCs exploiting poorer citizens in order to maximise their products.

what is glocalisation

The adaptation of goods or services by a TNC is to meet local needs or tastes, which would increase custom within a select region. There are many examples of glocalisation: - Grocery shops based in Bangladesh don't wrap their vegetables, because customers judge their purchases on the feel of the food (called a wet market) - McDonalds have created a menu without any beef or pork burgers in India, due to the large population of Hindus and Muslims - Car makers must change the orientation of the car to suit which side of the road a person will drive on.

what is the global shift

The global shift refers to how manufacturing and industrial activity has shifted from different parts of the world. Prior to the 1960s, manufacturing industries were located in the west in Europe and the US. However after the 1960s, industries relocated to the East in countries like China and India, due to their large, unskilled workforce.

describe outsourcing of services to India

Many Indian citizens can speak fluent English ("the language of business") and the Indian government have invested in infrastructure such as broadband capacity, which has attracted high tech companies.

benefits of outsourcing

Workers receive middle class wages which has meant that their disposable incomes have increased Other businesses have seen more customers and more spending, especially the likes of shopping malls and nightclubs - positive multiplier effect. People running the companies where services are outsourced to have seen increasing profits.

costs of outsourcing

Many workers believe that they are exploited, with long shifts and still lower pay than MEDC workers. Employees have become demotivated due to the repetitiveness nature of their work. The inequality between the richest and poorest is increasing as the poorest are not well educated and cannot benefit from outsourcing jobs.

describe outsourcing of manufacturing to china

In the 1990s, cities such as Shenzhen and Dongguan offered investors a large pool of cheap labour for manufacturing and other secondary employment. Since then, the volume of TNCs outsourcing to China has vastly increased. Sweatshops - that previously have accelerated China's globalised status - have now become less popular due to cheaper labour elsewhere and the bad reputation Chinese products have. Instead, sweatshops are moving to Bangladesh and Vietnam, whilst new technological outsourcing opportunities move into China, offering higher wages

benefits of outsourcing of manufacturing to china

New production methods and techniques brought by TNCs have now been adopted by local companies, so causing local economic development. Locals, especially in rural areas who would otherwise be dependent on subsidence farming, now earn a wage.

costs of outsourcing of manufacturing to china

Many employees have been exploited and their working conditions are dangerous - chemical contact, long hours, limited human rights, relaxed health & safety regulations. The environment has been degraded. Rivers and waterways become polluted with arsenic, lead and other dangerous chemicals. The air becomes polluted with particulates, that increase asthma suffers and pollution-related fatalities.

describe the impact of deindustrialisation in places such as detroit and glasgow

During the 1970s, many factory workers in Europe and America lost their jobs as TNCs relocated or outsourced their manufacturing to the East. This caused a variety of social and economic impacts, which can be seen in cities such as Detroit and Glasgow: ▪ Dereliction and Contamination - Many textile companies located in UK Northern cities closed and so the building they previously occupied became abandoned and derelict. Other areas suffered from abandoned chemical and industrial waste, which has infiltrated the soil and local waterways. ▪ As a direct consequence of companies moving away, rates of unemployment will increase. This can lead to depopulation, as residents migrate away to find alternative employment. Furthermore, deprivation of inner city areas especially will increase and crime rates may increase.

What is rural to urban migration

The migration of people within a country to seek better employment opportunities or a better perceived standard of living tends to be from rural areas to urban cities.

Examples of urban pull factors

Employment Opportunities

Large businesses and TNCs provide a wide range of jobs, with the opportunity to be promoted to better roles and so higher wages.

Services

There is a better access to services in urban cities, as the distance needed to travel is reduced and there is more likely to be specialised facilities in the city than in rural areas. This can include education, healthcare, government embassies and offices, etc.

Infrastructure

Transport links - roads, railways, bus routes, etc - are faster and more reliable in urban areas. There may be less congestion (if you are moving from a honeypot village,

congested due to tourists, to the suburbs). Also, there is better internet and broadband connection in urban areas, due to the ease of installation here rather than in the countryside. There are usually street lights which makes people feel safer to go out at night.

Rural push factors

Poverty

People may not able to earn enough (decreasing earning of farming, seasonal tourist employment) and there are very few job opportunities, therefore there can be high poverty and deprivation in rural regions.

• Conflict (e.g. Darfur, Sudan)

There may be a scarcity of resources which can cause conflict between different groups, as they fight for resources (such as water, land for agriculture or natural resources) and wealth.

Land Reform

In some regions, locals are unable to prove that they own the land they claim to own, thus TNCs (with government support) claim the land instead. This is very common with native, indigenous communities, who have little voice against powerful TNCs.

Agricultural Modernisation

An increase and advancement of agricultural machinery has meant that less people are required on farms, causing rising unemployment and so forcing economic migration

of the unemployed.

Climate and Natural Disasters

A rare circumstance, but the occurrence of droughts or crop failures can force migration in search of food or water. Alternatively, for regions regularly affected by earthquakes, storm surges, landslides, etc. families may feel pressured to move elsewhere to avoid economic loss or fatalities.

What is the global shift

The global shift is the movement of manufacturing and industry to countries that have been recently industrialising. It has involved the shift of activity from western regions (like the US or Europe) to Asia.

Benefits for china due to global shift

During the 1970s, globalisation made its way to China. Foreign Direct Investment was funnelled into China in the 1990s, for the manufacturing of things like textiles. Moving into the 21st century, more high-tech manufacturing was carried out, like cars, for example. As a result, wage rates brought people out of poverty, and today, wages are much higher, with higher-skilled work. Literacy rates have risen, as a result of increased education opportunities, which has boosted the economy. Infrastructures have also improved massively

Describe china's open door policy

In 1978, China adopted an Open Door Policy, which helped to accelerate globalisation, and bring in more Foreign Direct Investment. This policy, created by Deng Xiaoping, kickstarted the growth of China. China could even be on its way to becoming a global superpower.

Negatives of the global shift for china

Industrialisation in China has caused a huge pollution problem; smog (smoke and fog) can often be seen in Chinese cities, as a result of burning coal stations. Roughly 70% of China's rivers are also polluted, making the water unsafe for drinking and agriculture, as well as damaging ecosystems. Pollution also causes the acidification of soil, degrading the land and affecting agriculture. Deforestation, overgrazing, and resource exploitation are also characteristics of this global shift.

What is the spiral of decline

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 worker

Describe Detroit USA's spiral of decline and global shift

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.

what is rural to urban migration

The migration of people within a country to seek better employment opportunities or a better perceived standard of living tends to be from rural areas to urban cities.

urban pull factors

Employment Opportunities Large businesses and TNCs provide a wide range of jobs, with the opportunity to be promoted to better roles and so higher wages.

▪ Services There is a better access to services in urban cities, as the distance needed to travel is reduced and there is more likely to be specialised facilities in the city than in rural areas. This can include education, healthcare, government embassies and offices, etc.

▪ Infrastructure Transport links - roads, railways, bus routes, etc - are faster and more reliable in urban areas. There may be less congestion (if you are moving from a honeypot village, congested due to tourists, to the suburbs). Also, there is better internet and broadband connection in urban areas, due to the ease of installation here rather than in the countryside. There are usually street lights which makes people feel safer to go out at night.

rural push factors

Poverty People may not able to earn enough (decreasing earning of farming, seasonal tourist employment) and there are very few job opportunities, therefore there can be high poverty and deprivation in rural regions. ▪ Conflict (e.g. Darfur, Sudan) There may be a scarcity of resources which can cause conflict between different groups, as they fight for resources (such as water, land for agriculture or natural resources) and wealth

Climate and Natural Disasters A rare circumstance, but the occurrence of droughts or crop failures can force migration in search of food or water. Alternatively, for regions regularly affected by earthquakes, storm surges, landslides, etc. families may feel pressured to move elsewhere to avoid economic loss or fatalities.

challenges faced by growing cities

Strain on services like education and healthcare ▪ Overcrowding and the development of "slums" ▪ Rising crime rates ▪ Poor sanitation due to open sewers and defecating outdoors ▪ Lack of green space ▪ High levels of congestion, which causes air pollution

describe elite international migrants

Generally skilled or very wealthy people, with the ability to move to global hubs (e.g. London, Paris, New York). An example of elite migrants would be Russian Oligarchs, who pay Investors Visas and purchase properties in Mayfair, Kensington and Belgrave. (It is thought that Oligarchs purchasing elite property in London has caused UK house prices to escalate, which questions the 'trickle down' theory that they're money would eventually improve other UK citizens, through business and tax)

describe economic international migrants

Many cities like Riyadh, Dubai, London and New York attract workers who work for very little and are skilled in a particular profession (often construction). Economic migration can fill skills gaps and advance a country's development. However, unless carefully monitored, could lead to escalating urban populations and a rise in illegal migrants.

benefits to host country of rural to urban migration

Can help fill skills gaps. - Working migrants contribute to the economy through paying taxes and buying goods & services. - Increase in cultural and demographic diversity. - Young migrants can help to balance an ageing population, or increase a dwindling population over time. - Businesses have a larger pool of potential employees or customers

costs to host country of rural to urban migration

Rise of far right organisations, hate crime and racial tensions IF lack of understanding between migrants and original population. ▪ There could be strains on services (e.g. healthcare, education) due to an increasing population ▪ House price inflation due to higher demand

benefits to source country of rural to urban migration

Migrants send back remittances which can aid in development and reduce poverty without government intervention. ▪ Migrants become skilled and can come back to set up their own businesses, encouraging local economic growth and employment opportunities. ▪ Reduced service spending for the government as population declines

costs to source country

Brain drain due to skilled workers leaving - Migrants tend to be young, so elderly family are left behind and can become isolated - Decline in services due to low customer numbers, which can lead to the negative multiplier effect, in turn reducing other businesses and services - Agricultural land not taken care of, with potential dereliction