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Going Global
Globalisation is the concept of the world becoming increasingly interconnected and interdependent. World is culturally shrinking Disney is an example of this as its the 3rd biggest global brand and known all over the world In 2006 had an income of $32bill Employs 130 000 employers plus 40,000 suppliers in 50 different countries
Stage 1 high birth rate and death rate. People arent educated and have children early on. Children may not survive so have lots of them. No medicine available so high death rate. Stage 2 globalisation leads to decreased death arte as medicines become available. Stage 3 death rate constantly low and birth rates start to fall as women become more educated and children live for longer Stage 4 population increases as migrant population increases and death rate lower than birth rate.
The core
owns and consumes 80% of global goods and services earns the highest incomes makes most decisions about the global economy Provides most global investment.
The periphery
owns and consumes 20% of global goods and services, despite having 75% of global population 2.5 billion people live on under US$2 per day make few decisions about the global economy Provides little global investment.
New technologies
Development of jet aircraft, high speed trains and better road systems E-technology internet 1998, 2.3mill UK households had access to internet. This had risen to 14.3mill by 2006.
TNCs
Branch plants throughout the world Their ability to locate anywhere has been enhanced by other factors transport Companies often become transitioned to increase sales and drive costs
New markets
Countries such as India and China have new found wealth and their high demand has fuelled globalisation.
International agencies
GATT, IMF, UN, World Bank, WTO (world trade organisation) Established since 2nd world word Promoted free trade and economic interdependency.
Rostows model
Designed by the Americans to combat Communism The idea was that countries would see that reducing poverty was linked to increasing development Modernisation theory
OUTDATED IDEA:
First World comprises those countries, largely MEDCs, where a capitalist system prevails (e.g. Western Europe, North America and Australasia) Second World consists of socialist and communist countries where government economic control is paramount. This includes a mix of LEDCs and MEDCs, but only a small number of countries are Second World (e.g. China, North Korea etc.) Third World embraces those relatively poor and under-developed countries (LLEDCs and LEDCs) located mainly in Asia, Africa and South America
Political-economic alliances
G8- the group of eight- Canada, France, Germany, Italy, Japan, Russia, USA and UK OECD (Organisation for Economic Cooperation and Development). 30 countries share the principles of market economies, democracy and respect for human rights. The Commonwealth- 53 countries The EU- 27 members. Members can trade freely within the union and are protected to some degree by external trade barriers.
Trade blocs
APEC- Asia Pacific Economic Cooperation (including China, Australia, Japan, Russia and USA) OPEC- Organisation of Petroleum Exporting Countries- why are they extremely powerful? NAFTA- North Atlantic Free Trade Agreement- Canada, USA and Mexico free trade agreement
Transnational companies
To be close to separate markets To operate where labour is cheaper and less regulated To spread risk, e.g. crop failure or industrial action To receive grants from governments seeking inward investment To operate inside local trade barriers and tariffs Can shape culture and the pattern of global consumption Are economically important as they bring direct foreign investment They often subcontract work to other companies
Majority of the produce for the companies UK outlets come from the UK just as for example produce for Brazil outlets comes from Brazil. Where a country doesnt have the infrastructure in place to support a local sourcing then McDonalds have to source from further afield. Globally, McDonalds sells a hundred million items every day, and the restaurant chain wants to be sure that all its customers get what they ask for. The McDonalds supply chain is 100-percent outsourced: the company owns no factories and no distribution centers. McDonalds does own approximately 30 percent of the restaurants although the rest are franchised, with the franchisees operating within a certain framework
1913
Large families High birth rate High infant mortality rate High death rate Women didnt work Low life expectancy Less education/awareness
2013
Small families Low birth rate Low infant mortality rate Low death rate Women work, less children High life expectancy Educated/aware
Why is population changing? More people migrating increased number of people Foreign people giving birth to more children Women are working so have children later on in life People are more educated so go on to have good jobs Natural decrease high death rate/low birth rate Natural increase low death rate/high birth rate
Ageing Population
Ageing population is the increasing number of people aged 65 and over.
Regional difference
Old people migrate to quiet places Dont tend to live in city due to noise/population
Migration
Forced migration: The displacement of people where they have no choice other than to
relocate.
Immigration: The movement of people into a particular country to live permanently Emigration: The movement of people out of their current country of residence Asylum seeker: Someone who has entered a country illegally for a particular reason in the
hope of seeking help or protection.
Refugee: Someone who is unable to live within their own country for fear of being persecuted Push Factors: These are features that drive people out of a particular region or country Pull Factors: These are features that attract people to a particular region or country Net Migration: The difference between the level of immigration and the level of emigration.
Poland
A8 countries: Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, Slovenia
Immigration to the UK
1950 1979 Mass immigration took place during 1950s and 1960s Led to rise of racial violence and prejudice Areas such as Birmingham, Nottingham and London experienced rioting In 1945, Britains non-white residents numbered in the low thousands and by 1970 they numbered approximately 1.4millon.
1972 1979 Government had greatly restricted immigration by 1970s but not stopped altogether 83,000 immigrants from the common wealth settled in the UK between 1968 and 1975 largely through gaining work permits or obtaining permission to join relatives.
1980s Britains immigration policy has 2 aspects Strict controls on entry State said it would protect the rights of ethnic minorities As manufacturing declined work permits were harder to get unless you had specialised skills or professional trading. Largest immigrant groups were Americans, New Zealanders, South Africans making use of family ties
1987-2002 June 1987, 4 non-white politicians were elected Growth of asylum seeker applications contributed to a new growth of immigration to the UK 1998-2002, 45,000 people arrived from Africa. Some 125,000 people were allowed to settle in the UK.
2007 Britain experiencing greatest exodus of its own nationals in recent history while immigration level is at record levels. 207,000 British citizens one ever 3mins left the country while 510,000 foreigners arrived to stay for a year or more.
British made up more than half of the 400,000 moving abroad whilst only 14% of immigrants were UK nationals coming home. Since labour came in to power, in 1997, 1.8m British people have left but only 970,000 returned. More than 50% of the British emigrants moved to just 4 countries Australia, New Zealand, France and Spain. 8 in every 100 went to the USA
Pull Factors
S Many migrants feel that British society is more tolerant and its easier to get promoted on the basis of ability E Unemployment rate in the UK currently stands at 7% P The UK is one of only 3 countries that did not restrict the number of immigrants from A8 countries.
E Low salaries polish workers earn equivalent of 200 per month E Youth Unemployment in Poland has reached a high of 40% in some areas P Polish government is still not very democratic and many people feel that EU money is not getting to people who need it the most
In 2005, 10% of jobs in the polish construction industry could not be filled By 2007, this figure had risen to 35% due to shortage of workers caused by migration In some areas a quarter of all anaesthetics have emigrated. The ones who remain have to deal with more than one operation at the same time, putting patients lives at risk.
between 3.5 and 4 billion. This is equivalent of adding into the economy the consumer depend of Liverpool is just 2 years which is a major boost.
Push Factors
Long and stressful careers Pensions not stretching far enough in the UK Recently retired
Pull Factors
Smaller cheaper houses in Spain Living off pensions and the equity from their house Average temperatures on the costa de sol never drop below 10 degrees Laid back pace of Spanish life in comparison to their hectic lifestyles in the UK Pensions stretch further Facebook to keep in touch Long and happy retirement in the sunshine Spain is an EU country so entitled to health care Familiar with local culture as they haven holidaying to Spain for 30 years Easy jet have recently started flying daily to Malaga.
Problems for UK
Older people arent contributing to economy for example they look after their grandchildren encouraging parents to work Contribute indirectly (informal economy)
Pull factors:
Global investment goes to cities no the countryside Cities becoming global hubs Communication increase access to perceived urban opportunities Radios and in some case television allows knowledge Services are perceived as better health, education, entertainment, housing, jobs
Megacities
Megacities have over 8million people in them Million cities 1million World cities most political, financial influential cities London, New York, Tokyo
Advantages of Megacities
Potential for effective community development Education, services and infrastructure are often better in urban areas Basic literacy, family planning and self-help schemes can be more easily developed Allows for concentration of industry and finance
Disadvantages of Megacities
Many migrants remain unemployed Environmental problems waste, sewage, water shortage and pollution Rapid economic development leads to industrial pollution Services are often located in richer areas, leaving slum areas inadequately served Inward movement outstrips the pace of economic and social development Public administration is difficult
Why did it develop? The arrival of the railway in 1876 stimulated rapid growth, with half a million people arriving within 40 years. The discovery of oil, the opening of a ford car plant and numerous manufacturing industries meant continued growth. The aircraft industry took advantage of the good weather for civil and military test flights and production sites. The development of the film industry in Hollywood in the 1920s and 1930s was a further factor in Los Angeles growth. By7 the 1970s, Los Angeles was the fastest growing city in the USA, and by 2000 over 14 million people lived in the Metropolitan District, it has an average population density of 3000 per km2.
Social problems: Housing shortages caused by high rates of migration urban tension due to ethnic differences. In 1965 and 1992 there were serious race riots in the run-down inner city districts of Watts, South Central and Compton. Health and education many migrants are excluded because they cannot afford to pay for these services. Water piped in from 350km away causes disputes with neighbouring counties and states
Economic problems: Work a changing economy (deindustrialisation) has resulted in the loss of thousands of manufacturing jobs. Replacement jobs are often low paid.
Environmental problems: Transport there are 10 million vehicles on the road, only 30% of people use public transport. Waste 24 million people produce 50000 tonnes of waste every day. Massive energy use as we can see from the beautiful photo below.
Proposals for a sustainable city: (PLAN Progressive LA Network) Social Provide community benefits such as childcare and affordable housing. Require developers to build affordable housing in all new residential developments. Economic Require employers to pay their workers a decent wage. Ban new big box retail stores which undermine local retail and community activity, and steer future development to locations near existing and planned transit shops Environmental Promote clean fuel vehicles and green energy Improve public transport with clean buses and new rapid bus lines Promote smart growth land use where people can drive less and live nearer to where they work, shop and play
Why has it become a megacity? Geographically its central position in Asia means it has easy access to china and the west This has resulted in India becoming a global hub for the worlds TNC and is popular for outsourcing Home to Bollywood the centre of Indias film industry. the Bollywood industry had a revenue of US $2bn in 2011 and has been growing at an approx. rate of 10.1% a year Indian transnational companies such as Tata Steel are taking over their European and American rivals
Problems of a megacity: Dharavi has a population of more than 600,000 Not all of Mumbais residents are benefiting from growth and wealth 605 of population live in poverty The informal sector is increasing Housing in Dharavi covers land worth $10billion Good worth over $500mill produced here Has one of the lowest quality of life in the world, in 2006 it came 150th out of 216 world cities Many rural migrants who come to Mumbai to find work cannot afford decent housing World bank says 54% of Mumbais residents live in slums Water shortages and no electricity Pressures on land and housing Disease, high death rates and lethal environmental conditions Many of streets are no more than 1 or 2 metres wide
Sustainable megacity: Social Since 2004, there has been a massive clean-up of the citys housing Over 200,000 illegal slum dwellers have been moved 45,000 shanties across the city have been destroyed Dharavi due to its size and population has been given its own redevelopment project New 7storey apartments are being built to house the slum dwellers Slum dwellers will have a better quality of life Lack of space
Economic Hoping to create 200,000 new service sector jobs in healthcare, finance and entertainment 2000,000 new jobs in the new industrial zone based around the airport on computer assembly and the fashion industry 500,000 jobs created in construction industry By 2013, Mumbai should be a revitalised city with developed infrastructure and there should be no water or electricity shortages
Environmental The city is to become greener with creation of 325 new open spaces The construction of 300 public toilets will help deal with sanitation problems In a bid to earn carbon credits, Mumbai is adding 160 energy efficient trains to the citys overstretched rail network