Globalisation Revision Sheet: Syllabus Key Idea Globalisation is a significant feature of the world in the 21st Century. Globalisation has meant the development of manufacturing and services across the world. Content Case Studies Understanding of the concept of globalisation. Recognition of global interdependence. The influence of developments in ICT allowing the development of localised industrial regions with global connections. Reasons for the development of call centres abroad. Motorsport Valley (cluster of world famous companies associated with motor racing). India as a case study: ASDA, Tesco, BT have call centres here. Revised /Date The advantages and disadvantages of TNCs. A case study of one TNC. The relative importance of manufacturing to different countries is changing. The increasing global demand for energy through sustainable and non-sustainable developments. The rising industrial growth in some parts of the world and deindustrialisation in other parts. TNC case study: your choice e.g. Nike, McDonalds, Toyota. (Reasons for growth in manufacturing in China) The effects of government legislation, long working hours, health and safety regulations, prohibition of strikes and tax incentives and tax free zones. Deindustrialisation in MEDCs (UK, Japan), industrialisation in LEDCs (China). Development of China as the new economic giant. China. The impact of world population growth, increased wealth and technological advances on the global demand for energy. China. The social, economic and environmental impact of increased energy use. Sustainable development must ensure that the environment is protected and that there are sufficient resources for future generations. Ways of achieving sustainable development through the use of renewable energy. A case study of one type of renewable energy. Wind Energy in Cornwall. The importance of international directives on pollution control and carbon reducing initiatives. Kyoto Protocol. Ways of reducing the costs of globalisation from local (recycling/landfill) to global (carbon credits). Cornwall recycling. The global search to satisfy the increasing demand for food can have positive and negative repercussions. Environmental – larger carbon footprints due to the increasing number of ‘food miles’ travelled. Costs and benefits of importing food versus local energy intensive food production. Use of marginal land for production, leading to environmental degradation. Political – potential for hostilities between countries over the control of water for irrigation. Social – impact of development of a cash crop farming on a subsistence economy. Economic – increase in rural debt due to the increasing need for fertilisers, pesticides and insecticides. Creation of a cash income for farmers. Campaign to encourage the increased use of locally produced food. River Indus Waters Treaty. Celebrity chef Gordon Ramsay says British restaurants should be fined if they serve fruit and vegetables, which are not in season. Globalisation Key Words Key word Definition Globalisation Interdependence Call centres Transnational Corporation Multiplier effect Leakage De-industrialisation Assisted areas/enterprise Advanced factories Strikes Special Economic Zones (SEZs) The increasing links between different countries throughout the world and the greater interdependence that results from this. The relationship between 2 or more countries usually in terms of trade. Offices where groups of people answer telephone queries from customers. Employees use a computer that gives them information that helps them answer questions. TNC A corporation or enterprise that operates in more than one country. Where initial investment and jobs lead to a knock-on-effect, creating more jobs and providing money to generate services. Where profits made by the company are taken out of the country of origin and so do not benefit the host county. A process of decline in some types of industry over a long period of time. It results in fewer people being employed in this sector and falling production. Areas that qualify for government help. Enterprise zones are on a smaller scale than assisted areas. Where buildings for production are built in hope they will encourage businesses to buy or rent them. Periods of time when large numbers of employees refuse to work due to disagreements over pay or other grievances. Introduced in China between 1980 and 1994, areas where there were positive tax incentives to foreign companies for setting up there. Population growth Renewable energy Global warming International Directives Kyoto Protocol Biofuels Sustainable Development Food miles Carbon footprint Environmental degradation Cash crops Rural debt Domestic farming Carbon credit Overlap with ‘population’ topic. This is a reason why we have an increasing demand for energy. Population is expected to stablise at 10 billion in 2200. Renewable energy is generally defined as energy that comes from resources, which are continually replenished, on a human timescale such as sunlight, wind, rain, tides, waves and geothermal heat. A gradual increase in the overall temperature of the earth's atmosphere generally attributed to the greenhouse effect caused by increased levels of carbon dioxide, CFCs, and other pollutants. An international agreement. Cooperation is needed between countries worldwide if air quality and global warming issues are to be addressed. An international agreement to cut Co2 emissions to help reduce global warming. The use of living things such as crops like maize to make ethanol (an alcohol based fuel) or biogas from animal waste. It is the use of crops that has become important. Sustainable development refers to a mode of human development in which resource use aims to meet human needs while ensuring the sustainability of natural systems and the environment, so that these needs can be met not only in the present, but also for generations to come. The distance food items travel from where they are grown to where they are eaten. The amount of carbon generated by things people do, including creating a demand for out of season food. Undesirable changes to the natural environment through the removal of natural resources and disruption to natural ecosystems. Human activity is a major cause. Crops grown in order to sell to make a financial profit. Money borrowed and now owed by farmers to banks or other organisations. Farming in the UK. Eating locally produced food benefits the domestic farming industry. A permit which allows a country or organization to produce a certain amount of carbon emissions and which can be traded if the full allowance is not used. Globalisation Case Studies Motorsport Valley (cluster of world famous companies associated with motor racing). Context and link to syllabus The influence of developments in ICT allowing the development of localised industrial regions with global connections. India as a case Reasons for the development of study: ASDA, call centres abroad. Tesco, BT have call centres here. TNC case study: your choice e.g. Nike, McDonalds, Toyota. The advantages and disadvantages of TNCs. A case study of one TNC. Content Developments in ICT have allowed immediate access to people all over the world and fostered developments in small areas, knowing that communication across the world is possible. - Cluster of world famous companies associated with motor sport in an axis between Northampton and Oxford. = Motorsport Valley. - 40,000 jobs here. - 2200 design, research and development businesses and event organisation. - 80% of world market in high performance engineering. - £6 billion sales annually, 60% exports. Companies such as ASDA, Tesco and BT have all set up call centres in India. Why? -Operating costs are 10-60% lower than the UK. -Salaries are around £1200 per year instead of £12,000. -Workers more willing to work 9-hour shifts. -Developments in ICT have allowed fast clear communication. You should have your own detailed case study of a TNC. Example case study: Toyota. -Began in Japan in 1937, 70 years later it is the biggest producer of cars in the world. -Profits $11 billion in 2006. Began to develop overseas in the 1950s in Brazil. Headquarters in Tokyo, with 250,000 workers employed in 26 countries. December 1989 Toyota UK was established. Global location of Toyota: A case study of one TNC. Deindustrialisation The rising industrial growth in in MEDCs (UK, some parts of the world and deJapan), industrialisation in other parts. industrialisation in LEDCs (China). In many of the richest areas of the world manufacturing has declined. In Britain the number of people employed in manufacturing fell from 6 million in 1981 to 2.49 million in 2010. This is a result of de-industrialisation. Growth in some parts of the world, such as China has happened due to special economic zones (areas that favour investment by giving tax breaks or tax free zones), providing advanced factories, lack of regulations on working conditions, ban on strikes. China. Development of China as the new economic giant. ‘The new workshop of the world’. The new industrial giant. China makes 60% of the worlds bicycles, 70% of the world’s shoes. 2000-2006 cloth manufacture more than doubled, car production x6. Mobile phone ownership has increased x9 leading to more for China to produce. China overtook the USA for highest industrial output in 2012. WHY? – government legislation: Foreign investment encouraged from 1977. 1980-1994 Special economic zones set up (SEZs)- provided tax incentives for foreign companies. BIG reason for success. The home market: (The home market are the Chinese people). One child policy success increased wealth and consumer demand increased (people could afford more electrical luxuries). Olympics: 2008 Beijing, big showcase advert for the country. Attempt to convey China as a modern open and friendly country. Energy: China generates 2/3rds of its electricity in coal power stations. Also HEP (13%) Three Gorges Dam. Labour: Plenty of cheap labour in China. Wages 95% lower than in the USA. Wind Energy in Cornwall or UK. Or any other renewable energy case study. Ways of achieving sustainable development through the use of renewable energy. A case study of one type of renewable energy. Wind Power in the UK -Aims to be responsible for 1/3rd of energy production. -July 2011 number of wind farms 306. -Mostly onshore locations. -Future developments will be offshore. - Size of turbine 100-120m. Cornwall recycling. Ways of reducing the costs of globalisation from local (recycling/landfill) to global (Carbon credits). Carbon Credits River Indus Waters Treaty. Political impact of the global demand for more food – potential for hostilities between countries over the control of water for irrigation. Celebrity chef Gordon Ramsay. Campaign to encourage the increased use of locally produced food. Location requirements: Shallow waters off the coast of the UK are suitable. Exposed location, whether onshore or offshore, clear of obstructions. AGAINST: Noisy, avoided by birds, reduces local house prices. Eyesore. FOR: Free energy, renewable, no green house gases or pollutants, small plot of land needed, land around can still be used. No effect on sea life (offshore). Useful for areas off the national grid. Cornwall Council have to met targets set by the government for the amount of rubbish they put into landfill. Therefore they encourage recycling by providing bins and bags free of charge (council tax will go towards this), which are collected fortnightly. A carbon credit is a generic term for any tradable certificate or permit representing the right to emit one tonne of carbon dioxide or the mass of another greenhouse gas with a carbon dioxide equivalent (tCO2e) equivalent to one tonne of carbon dioxide. The River Indus flows through India and Pakistan. The flow of the river is seasonal, huge amount of water in the summer from flooding, much less in the winter. It took 13 years of negotiations before the Indus Waters Treaty was signed. There were concerns that India would build dams that would cut off Pakistan. Treaty signed in 1960 meant that Pakistan had the westward flowing rivers and India had the eastward flowing rivers. Resentment in Kashmir, India as people believe that farming and irrigation has been limited due to them being deprived of water. Celebrity Chef Gordon Ramsey promoted the use of seasonal and local vegetables and fruit in order to reduce and raise awareness of the worlds increasing food miles. The campaign did not yield much success as he was found to be using non-seasonal fruit and veg in his own restaurants. This shows people recognise the importance of reducing food miles but find it difficult in practice.