The basic ideaAs a country increases
its wealth or develops;
the number of people
employed in each
employment sector
changes.
Primary
Tertiary
Train Driver
Secondary
Quaternary
Pre-industrial Stage
–the LEDC’s have high
amounts of primary
industries due to the
fact that there is a
lack of education and
they are mainly
subsistence farmers.
There are very few
jobs in the tertiary
and manufacturing
sectors, due to lack of
money to set up these
factories or build
them. Low income
countries
Industrial Stage –
As time passes,
manufacturing
increases, New
factories spring up in
many locations.
So the secondary
sector grows in
importance.
The tertiary sector
also grows (but not as
fast)
The primary sector
continues to decline in
this period as the
country industrialises.
Middle income
countries.
Post-industrial
Stage - In this
stage the
tertiary sector
become most
important.
Secondary
sector tends to
die away.
As more people
start to live in
towns, there is a
growing demand
for various
services - from
health and
education to
transport and
finance.
Quaternary jobs
begin to form
too as the
country becomes
wealthier. High
income
countries.
(newly industrialised country)
Employment that
involves the worker
providing a
SERVICE.
Hotel Maid
Doctor
This model is based on what
happened in developed
countries like Britain. It may
not work in the same way for
developing countries which
may miss some part of the
model.
For example, some developing
countries might encourage
tourism (tertiary) in their
country and miss the
Industrial Stage, such as the
Gambia in Africa.
Employment that involves
making (manufacturing)
raw materials into
Factory Worker
something else. E.g.
making cotton into a shirt.
Carpenter
Employment (job)
involving taking
(extracting) natural
resources from the Farmer
earth (land or sea)
Builder
Fisherman
Miner
Software Designer
Employment that
involves using
high technology
and innovation.
Geneticist
Global warming
Graphic Designer
Petrol prices
and food
from the
‘global village’
ECONOMIC
ENVIRONMENTAL
TECHNOLOGICAL
ASPECTS OF
GLOBALISATION
DEMOGRAPHIC
New flows of
people
“the growing economic interdependence of countries
worldwide through increasing volume and variety of
cross border transactions in goods and services, freer
international capital (money) flows and more rapid and
widespread diffusion (spread) of technology”
The latest gadgets
POLITICAL
CULTURAL
Music, art and
fashion
‘War on terror’
World Wide
More women working but less pay than men
Improvement in working conditions
Increased skills and more goods/services available
Developed World
Wages improved
High prices charged for products/services
Mostly good working conditions
flexibility when and where you work
Developing World
Can sell produce and provide services to a greater number of places
Pay higher prices for developed world’s services and products
Lower prices for their products than developed world
Lower wages and exploitation of workers
 Often customer services
 Relocated to where staff and
building costs are cheaper
 Made possible by modern
communication e.g. internet
 Local people earn higher
and regular wages
 TNC;s bring new skills
 TNC’s bring investment
 TNC’s pay taxes which
boost the local economy
What is a TNC?
 Transnational Corporations (TNC)
 Large companies that operate in
different countries
 Different industries e.g. electronics
 Headquarters usually in a ‘global
city’ in an MEDC (HIC – high income
country) E.g. London, New York
 Sell products in MEDC’s for a high
profit (Tertiary sector)
 Manufacture or make products in
LEDC’s for cheap labour and
materials (secondary sector)
 Retail outlets located across
the world
 Working conditions are
generally better than secondary
sector ‘sweatshops’
FDI (foreign direct investment)
This is the investment (money) that flows from one country to
another (often from TNC’s).
May involve buying a business/factory in a country or expanding
an existing business in that country.
Done to take advantage of cheaper labour or resources to
increase profit!
State-led Investment
A countries government keeps tight control
over its banks. They use money from
household savings and overseas trade to
fund state owned companies (controlled by
the government). Example China!!!
Lower transport costs
1. Shipping – ships take 90% of goods
across the world and have become
larger. Fuel efficiency has reduced
fuel consumption, therefore large
ships are as cheap as small ones to
run.
2. Containerization – most goods come
from Asia in containers = easier to
store and transport. Most containers
have bar codes so it is easier to
identify what good it is e.g. cars
3. Aircraft – More expensive than
shipping, therefore only 0.2% of
goods are transported by aircraft.
Goods on aircraft are more valuable
than by ships e.g. medical equipment,
fruit and vegetables.
TNC (transnational corporations) growth
and mergers
Each TNC started small and then grew
through:
1. Growth in sales of popular products e.g.
Apple.
2. Merger with other companies, by
consolidating or creating a
conglomerate.
Organisation of 188 countries who work to promote financial cooperation
between countries to reduce poverty. This is normally in through the
promotion of trade and high employment
Newly Industrialising country (NIC)
-
Bangladesh
Rapid economic growth
Government allow TNC’s to take
advantage of low wages
Controversial = wages, working
conditions, labour laws and more
opportunities for men in better
jobs
Known as the ‘Guardian of international peace, security and human rights’.
It promotes the development of poorer nations through work with the IMF
and World Bank
Deals in the rules of trade between countries ensuring trade flows freely
It is an important source of financial and technical assistance to
developing countries, its main aim is to reduce poverty
A global company which operates in more than one country. Headquarters
are often in MEDC’s with factories in LEDC’s where workers are cheaper
Deindustrialisation
- Industry closed
- Fewer apprenticeships available for
young people, therefore only low paid
work
- Older people with unwanted skilled
struggle to find new jobs
- Few jobs in manufacturing –
unemployed skilled workers
- Industry could not complete with
cheaper labour costs from LIC’s
1. BT telecommunications
2. Nike
Can you summarise the key topic areas we have
learnt about for this unit: Going Global?
Without looking?