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?
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