A Level Edexcel Globalisation Enquiry Question 2

[3.4A] What is the global economic shift?

This is the relocating of the global economic centre of gravity to Asia from Europe and North America over the past 40 years, particularly from manufacturing jobs shifting to China and administration jobs to India.

- This has occurred as it is cheaper, and easier to manufacture products in these countries due to low labour costs, which in turn gives TNCs higher profit.

[3.4A] What are the benefits of the global shift?

Waged work:

- It has created waged work which provides a reliable and regular wage to people.

- Better income than rural areas.

- Long working hours, but farming requires longer.

Poverty reduction:

- 600 million Chinese people were lived out of poverty.

Education and training:

- TNCs invest in training and skills development to improve workforce productivity, these skills can be transferable.

- Economic growth used to finance investment in education.

- Higher household income used for children's schooling.

Investment in infrastructure:

- More roads, ports, airports and power infrastructure.

- China built 11,000 km of new motorways in 2015.

[3.4A] How has China been impacted by the movement of the global economic centre of gravity?

Pros:

- Wage rates rising - workers in Honda car factory earn 10$ a day.

- Infrastructure expansion, Three Gorges Hep Dam.

- 600 million Chinese people were lived out of poverty.

- Since 1990, 1 billion people have been lifted out of extreme poverty, primarily due to global shift.

- Education free and compulsory for 5-15 year olds.

Cons:

- Industrial activity has produced air and water pollution.

- 1 billion cars on Beijing's road and coal-burning power stations are the source of pollution.

- Workers face long hours at repetitive tasks.

[3.4A] What are the downsides to the global shift?

Loss of productive land:

- Construction of factories, infrastructure and housing occupies land previously used for agriculture.

- Land lost often with high fertility.

Unplanned settlements:

- Slums or shanty settlements promoted by new manufacturing job opportunities that prompts rural-urban migration, e.g Mumbai India.

Environmental and resource pressure:

- Industrial activity can produce serious air and water pollution. It can also increase deforestation.

- Pressure on natural resources, especially water, food, and fuel supplies, as the population in urban areas increases.

[3.4A] How has India been impacted by the movement of the global economic centre of gravity?

- Heavily reliant on the service industry - 3.4% share of the world exports of commercial services in 2016.

Pros:

- Large IT industry.

- Many TNCs outscore to India.

- Technology workers earn $10 per day.

Cons:

- Led to the formation of shanty settlements in Mumbai due to rapid urbanisation of around 60%.

- Inequality increased. India has more billionaires per capita than the UK, and more people in extreme poverty than the whole of Africa.

[3.4B] How have developing countries experienced major environmental problems as a result of globalisation?

Air and Water Pollution:

- Cities in China such as Beijing frequently exceed the World Health Organisation's safe limits.

- Beijing's 6 million cars and coal-burning power stations are the source of pollution.

- Around 50% of China's rivers and lakes and 60% of its groundwater is polluted - unsafe to drink untreated.

Land Degradation:

- Over 20% of China is subject to desertification and severe soil erosion, which can create major dust storms.

Loss of Biodiversity:

- The WWF reported that in the last 40 years almost half of China's land-based vertebrate species have been lost and biodiversity has suffered.

Over-exploitation of resources:

- Deforestation has occurred for timber.

[3.4B] How has the economic shift led to issues for social well-being? (Foxconn example)

Western consumers benefit from low-cost goods, but there are question marks about pay and working conditions in SEZs. Apple was subject to negative publicity in 2010 when working conditions in its supplier factories (owned by Foxconn) making iPhones and iPads, came under scrutiny.

- 18 reported suicides per year.

[3.4B] How do environmental problems result in problems for people?

- The air pollution levels in Northern China have been estimated to reduce life expectancy by 5 years.

- The exploitation of resources, and land degradation has resulted in farmers being forced to leave their land.

- The water pollution has been known for creating water diseases as it is unsafe to drink, such as cholera.

[3.4B] What effects did Coca-Cola have on Kerala, India?

- Coca Cola uses a large amount of water, which was argued to damage the local economy.

- They had to send water tanks around every morning to supply water.

- The factory used 500,000 litres of groundwater a day.

- The area was previously for farming.

- Agriculture such as vegetable crops have to be abandoned due to a lack of water.

- Thousands worked there before, but now 141 are employed.

- Coca Cola selling fertiliser with carcinogenic material in, such as Lead.

- 15 years later and the groundwater levels and quality have not recovered.

[3.5B] What is international migration?

This is where people move from one country to another, crossing an international boundary.

[3.5B] What are reasons for international migration?

- HQs and offices of TNCs are located in global hubs, so high-paid professionals are attracted to these places.

- Elite migrants (generally skilled or very wealthy people, with the ability to move to global hubs).

- People can also migrate to wealthy areas for low-wage migration, such as being employed by rich households, for a maid, cook etc.

* Global hubs is an urban area with lots of connections to other world cores. This includes transport communications, industrial and financial.

[3.5B] What is an example of international migration?

Russian:

- A significant number of Russian oligarchs have bought homes in the wealthiest boroughs of London.

- Many who own properties also have acquired controlling interests in major European companies.

Phillipines to Saudi Arabia:

- Foreign nationals make up 30% of the workforce in Saudi Arabia particularly for oil.

- These foreign nationals come largely from the Philippines, 1.5 million in fact, who send back around $21.3 billion in remittances to their home country.

- This increases interdependence.

- Some countries rely on low-wage foreign labour as they globalise their economies.

[3.5B] Why do some countries rely on low-wage foreign labour?

This is so they can globalise their economies, and to help build cities, such as infrastructure, and to deliver services the population of a country.

- They fill skill gaps and advance a country's development.

- Could result in illegal migrants.

[3.6A] What is the Western global culture based on?

From North America, and Europe. Based upon:

- Wealth creation, earning money to buy consumer goods.

- Private enterprise, where people own businesses rather than the government owning them.

- Success, which is measured by how wealthy you are.

- Fashion, technology, and trends, which are important in western culture.

[3.6A/B] What is cultural diffusion and cultural erosion?

Cultural Diffusion:

- Culture diffusion is the spread of one culture into another where neither culture is completely removed, but when both cultures are present at the same time.

Cultural Erosion:

- The loss or dilution of a specific culture due to cultural diffusion which results in a change in ideas and traditions.

[3.6A] How does cultural diffusion occur, particularly through the Westernisation?

TNCS:

- TNCs spread their brands and products around the world through media, fast food, e-commerce.

- Brands opened in many countries.

- Culture of the based on the home country believes.

Global Media Organisations:

- Disney, CNN and the BBC are examples who spread a western view of world events.

- Disney promotes consumerism.

Tourism:

- When visiting new countries, tourists are ultimately spreading their own culture, but coming into contact with new cultures.

Migration:

- Migrants move and spread their ideas permanently to other cultures.

[3.6A] How has westernisation impacted both the environment and people?

People:

- The spread of the western diet is unhealthy. This has increased obesity and diabetes in many emerging economies.

- Provided more employment opportunities, as the need for more farming to meet the diet is key.

- Asian culture used to be healthier with things like rice, less fat, and less sugar.

- Rise of diabetes and obesity in Asian cities.

Environment:

- The expansion of farming has caused a loss to the natural environment.

- Consumerist society is very wasteful in terms of resources, as a result of fast food packaging and fast-fashion where items are worn once or twice.

[3.6A] How has culture diffusion been positive for disadvantaged groups and what are examples?

- Globalisation has enabled mass migration of people from different cultures.

- The spread of culture has improved opportunities for traditionally disadvantaged and discriminated groups, such as women, the disabled and LGBT.

- World organisations promote anti-discrimination and equality.

Examples:

- Rio 2016 Summer Paralympics created opportunities for disabled individuals. In fact, 159 countries participated.

- Gay pride marches coverage may help erode homophobia.

[3.6B] How has cultural diffusion affected Papua New Guinea's tribes? (devaluing local and lagging ecosystems)

Korowai Tribe:

- Tribe of 300 people.

Built environment:

- Traditionally, residents live in wooden longhouse, but the built environment has changed when they were encouraged to move into villages with brick housing.

Language:

- Education takes place to learn the local language, but some have migrated, meaning they don't learn it.

Food:

- Sugary drinks, e.g. Coca-Cola, and alcohol is available in the villages.

Music:

- Traditional Korowai music uses drums, but the radio has introduced them to global music.

Clothing:

- Korowai traditionally only wear a cloth, however most people now wear shorts and t-shirts, including western football teams merchandise.

Natural Environment:

- Much of the land is used for employment, for logging companies or hunting of animals.

- Natural environment viewed as a resource for economic growth and higher income.

- Result is the over-exploitation of sago palms in the area around villages, deforestation for timber and exportation, and threatened species being overhunted to extinction.

Social Relations:

- Introduction of Christianity reduced the practice of their own practices.

- New elite system based on wealth, no longer a "clan leader".

[EXTRA] What are social costs for Karachi?

Developing cities such as Karachi has a population of 15 million compared to 400k in 1940s.

This has lead to social challenges such as:

- Housing shortages, leading to growth of slums and shanty towns, where 75% live in slums.

- Poverty is huge because wages are low and jobs are in short supply.

- Lack of taxes mean that the city government struggle to supply essential health and education services.

- Lack of water and sanitation means disease and illness is common, e.g Karachi's waste management is severely compromised.