A LevelGeographyEdexcelRevision Notes4. Globalisation4.2 Impacts of Globalisation4.2.1 Shift of Global Economic Centre

Shift of Global Economic Centre (Edexcel A Level Geography)

Revision Note

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Louise Stone

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Geography

Benefits & Costs of Global Shift

The Global Shift

  • The term ‘global shift’ refers to the relocation of different types of industry, especially manufacturing
    • Since the 1960s, many industries have relocated from Europe and North America to Asia, South America and more recently, Africa
  • This global shift is a result of a combination of off-shoring, outsourcing and new business start-ups in emerging economies such as China and India
  • This global shift has also led to unethical practices being ‘exported’ e.g., poor working conditions, child labour and low wages

 The Costs & Benefits of the Global Shift for Asia

Benefits

Costs

Poverty reduction

Globally over 1 billion people have escaped poverty, with over 500 million in China alone

A ‘new global middle class’ has emerged to describe the increasing number of working people in urban areas

Unplanned settlements

The growing trend of high-rise developments in cities leads to a loss of recreational space

Rapid urbanisation often leads to an increase in unplanned settlements e.g., Dharavi in Mumbai is home to around 1 million people

Waged work

Many people are now earning between US$10 and US$100 per day working in the manufacturing or services sectors

Loss of productive land

Land has been exploited and overused which leads to soil erosion and soil infertility

Infrastructure investment

Economic growth leads to investment in infrastructure

Development of motorways, high-speed railways and airports

 

Environmental and resource pressure

Loss of forested land due to urbanisation, logging and farming

Reduced demand of natural resources such as soybeans and iron ore can negatively impact economic growth

 

Education & training

Education has improved across Asia

Millions of graduate degrees are presented by over 2500 universities in China, India and South Korea alone

Asian countries play a vital role in the quaternary sector

 

 

Worked example

Explain one reason why many people in the developed world support the global shift of industry

[4 marks]

  • You will need to provide one reason why people support the global shift for 1 mark and your explanation can gain up to 3 marks

Answer:

  • The price of goods to customers in the developed world is becoming cheaper [1] due to lower costs overseas [1] as the cost of living in the developing world tends to be lower [1] for example, the average price of a smartphone is cheaper now than in previous years [1]
  • Factories move abroad so there is less air/water pollution [1] therefore reducing the impacts on health [1] which means there will be reduced costs for health treatments [1] as a result governments have more money to spend on other priorities [1]
  • Businesses outsource to Asia to save money [1] as wage costs are lower [1] so profits will increase [1] and the business can then invest in infrastructure or new designs [1]

Environmental Impacts

Environmental Impacts

  • This global shift has caused environmental problems for many communities in developing countries

environmental-problems

Environmental Problems for Developing Countries

  • TNCs look for low-cost locations for their factories and a lack of environmental and health and safety regulations is an attractive feature
  • An example of the environmental impacts of this global shift is in Indonesia:
    • 100,000 hectares of rainforest is lost each year to make way for palm oil plantations and mining
    • The large scale burning of forest has led to smoke pollution and more mammal species are more at risk here than in any other country
  • These environmental problems also impact on people’s health and wellbeing, for example:
    • In China, workers were poisoned by chemicals that are used to treat the glass for iPhones
    • In the Ivory Coast, tens of thousands of people were taken ill after toxic waste was dumped by a ship which was alleged to produce hydrogen sulphide

Worked example

Explain two ways the global shift of industry has affected the health of people living in developing countries.

[4 marks]

  • You can gain up to 2 marks for explaining two impacts of an environmental problem linked to the global shift of industry
  • You will need to explain how these impacts affect the health of people for the remaining 2 marks
  • Your answer must link to the health of people

 Answer:

  • Waste from factories can cause contamination of rivers (potentially drinking water) [1] which can affect the immune system and as a result make people more susceptible to illness [1]
  • The use of coal to generate electricity causes air pollution in cities [1] which can lead to breathing problems [1]
  • TNCs pay tax to the host country [1] so governments can invest more money in hospitals/medical care [1]
  • Factory workers earn more money/ have a more reliable income through regular employment [1] so they can afford medicine/medical care for themselves and their families [1]

Exam Tip

Remember that when an exam question asks for impacts, they can be positive as well as negative. A good answer would use an example from both

Deindustrialisation

Problems of Deindustrialisation

  • Global shift creates problems for developed countries too
  • Deindustrialisation in inner city areas has led to social and environmental problems
    • Dereliction resulting from the closure and abandonment of factories, shutting down of services and neglected housing
    • Depopulation as large numbers of people migrate from the deteriorating urban areas
    • Rising crime in deprived urban areas
    • High unemployment as a result of factories closing, losing manufacturing jobs 

deintustrialisation-1

Inner city decline

Exam Tip

The best answers to these types of questions will include impacts on both developed and developing countries demonstrating your knowledge and understanding of how both will be affected by the global shift.

It is also a good idea to have clear examples of this and to know the factual details well as this will be the difference between a level 2 answer and a level 3 answer. 

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    Louise Stone

    Author: Louise Stone

    Louise graduated with a degree in Geography with Natural Hazards before doing her PGCE and Masters degree with the University of Birmingham. Teaching is her passion and has taught across different specifications at GCSE and A-Level. Louise has also been an examiner for two exam boards for 9 years now to gain a deeper insight into the different exams and expectations of students. Louise enjoys creating content to help students fulfil their potential in Geography.