Globalisation youtube/watch?v=3oTLyPPrZE4&safe=active

1. Globalisationhttp://www.youtube.com/watch?v=3oTLyPPrZE4&safe=activeGlobalisationhttp://www.youtube.com/watch?v=3oTLyPPrZE4&safe=active Globalisation and the growth of the global economy have led to huge changes in the pattern of employment around the world. As countries develop, so the type of work available and the working conditions change. Trade and financial direct investment fuel the growth of the global economy, along with the activities of the key players, the Trans National corporations.

2. You need to know: • 3.1 How does the economy of the globalised world function in different places? • 3.2 What changes have taken place in the flow of goods and capital?

3. Key terms:

6. Tertiary services support and promote quaternary services Economies start to develop and incomes rise = demand for manufactured goods increase = secondary industry grows Incomes continue to rise, people start to consume more services = tertiary sector grows Key Idea 1: Why are there changing employment structure in countries at different stages of development. The Clarke Fisher Employment Structure Model Globally LEDC’s such as Nigeria and Kenya have high amounts of primary industries due to the fact that there is a lack of education and they are mainly subsidence farmers. MEDC's such as UK and USA tend to focus on Tertiary activities due to higher education rates and tertiary jobs are higher paid. Primary is low due to the fact that most MEDC’s have taken to importing food stuffs etc as it is cheaper. In the pre-industrial stage low-income countries are mainly employed in primary production, middle income countries are focused on secondary industries and finally high-income countries are dominated by the tertiary sector. This model tell us how employment changes over time and how the balance of employment changes as a country develops. However it does assume that there is a simple straight development path from LEDC’s to MEDC’s.

7. Named example 1 - Contrast working conditions in different countries - Ghana https://www.youtube.com/watch?v=5EHS_hFpR8E - Watch this to help you understand this.

8. What are working conditions like? Working conditions are tough particularly on the farms where the work is often hard manual labour because there has been a lack of mechanisation and there are often harsh physical conditions. People who work in the informal sector – Mostly women and children are likely to suffer abuse and exploitation. Named example 1 - Ghana Ghana is a pre industrial economy The percentages of each employment sector are: Primary 50% Secondary 16% Tertiary 33% What jobs do people do? Many people are still employed on small scale farms in agriculture ( subsistence farming). There is little commercial farming - mainly growing Cocoa a major export crop. The secondary sector is small and jobs are mainly filled by men. Many people are also still employed in Informal jobs - which means that they are not formally recognised and therefore employees do not pay any taxes What are Ghana’s biggest exports and why do they not earn much from these exports? Cocoa, Diamonds, timber and flowers are Ghana's main exports –but these are often raw materials and not the more expensive finished manufactured products. Which sector will be important to Ghana in the future and in particular which industry will provide many of the jobs? In the future there will be an increase in tertiary jobs specifically in the tourist sector.

9. Named example 2 – China Working Conditions Watch the clip below: http://www.youtube.com/watch?v=sgbxUDvncko&safe=active

10. What are working conditions like? Working conditions in factories are tough. Workers often work long hours in unsafe, unpleasant conditions. These workers are both men and women but they can earn a lot more than in the rural areas. Workers (often men) that work in the mines have a very hazardorous occupation. Named example 2 - China China is an Industrial country The percentages of each employment sector are: Primary 48% Secondary 25% Tertiary 18% What jobs do people do? Many people are still employed in China’s growing manufacturing Industries in large factories. China’s Primary sector is also still important and it is not just agriculture but also Mining particularly for coal. The rapid growth of town and cities is being accompanied by a rapidly growing service sector China’s biggest exports are: Coal Natural Gas Iron ore and tin Manufactured Goods like mobile phones. China can earn a lot of money from these products. China has been able to develop so quickly because it has an abundance of energy resources and a large working population. China’s labour force is an important factor because it is very hard working and many are quick to learn new skills as well as being ambitious to become part of a consumer society.

11. Named example 3 - UK Why have employment patterns changed? Over the last 50 years, the UK has deindustrialised. It has lost much of its traditional manufacturing like iron and steel, Ship building, car making and textiles. As a result of a global shift these industries have located elsewhere. The UK continues some manufacturing but it is mostly high tech, work in state of the art factories. There has also much automation – workers are replaced by machines. Online banking and ATM’s for example mean there are fewer banks. There are also new ways of working emerging – Like Teleworking, telecottaging and telecommuting. Today more than 2 million people are self employed and work from home – this is particularly thanks to the broadband network The UK is a post industrial country The percentages of each employment sector are: Primary 1% Secondary 18% Tertiary 81% The UK’s biggest exports are: Aircraft technology Finance and banking Electronics like Dyson. . Working Conditions in all employment sectors are good thanks to strict Health and Safety Regulations and the existence of Trade Unions. There is also a national Minimum wage (currently £6.31)

12. Key Idea 2: The role of global institutions

13. Key idea 3 – What is the affect of Globalisation on different groups of people

14. Key Idea 4: Globalisation is a wonderful thing or is it?

15. Key Idea 5: How & why have patterns of international trade and Foreign Investment changed over time? International trade is the movement of goods and services (e.g. workers / banking) across borders and therefore between countries. Foreign direct investment (FDI) is when a company invests capital (spends its money / uses its resources e.g. workers & expertise) in a different country by either building facilities (e.g. factories) or buying other companies. (e.g. Walmart in the USA now owns ASDA in the UK.) Goods & services are the products that are traded between between different countries e.g. cars, electronics, food or financial services like insurance e.g. Toyota cars manufactured in Japan are sold in the UK. Capital flows are the movement of capital between countries e.g. American companies (Nike) spend money building factories in China so they can get their products manufactured cheaply.

16. Why has international trade grown so rapidly?Lower and Faster Transport Costs. Containerisation - Most goods now arrive from Asia in containers which are easier to transport to ports, to load onto ships and then unload at the other end. Each container is bar-coded so machines rather than people can identify its contents and where it needs to go Shipping – ships transport over 90% of our goods and have become much larger yet only need small crews. They are also extremely fuel efficient reducing fuel consumption Aircraft – Transport by aircraft is more expensive than by ship so only 0.2% are transported by Air. However more high value goods like electronics, medical supplies and fruit and veg is transported by Air as it is much faster.

17. Global trade has also increased because of the growth of these (TNCs)!

18. Named Example 4: Nike a Secondary TNC and an example of a TNC who has merged with other companies. Nike started in 1964 when Phillip Knight began importing running shoes From Japan, where labour was cheap. Today is valued at over $10billion. Nike has its head Office in the USA and all design is carried out at the Oregon head Office but though decision making are kept in the USA most Asian outsourcing countries get the less profitable production activities. South Korea, Taiwan 1970’s : Nike was attracted by cheap labour so instead of owning its own factories it outsourced production to these countries. China 1980’s: Nike began production in China to take advantage of cheap labour Thailand and Indonesia late 1980’s: South Korean companies, with whom Nike had developed a long term relationships moved operations south t Thailand and Indonesia in search of cheap labour. Vietnam 2000: Now that China’s currency is worth more , it is cheaper to make many items in Vietnam. Nike bought Converse in 2001 due to Converse going bankrupt and Umbro in 2007 – This is know as a Merger.

19. It is important to bear in mind that one of the reasons Nike and other TNC’s are attracted to these South East Asian countries is because these countries already had reasonably good infrastructure. Also the labour force is often very hard working and many are quick to learn new skills. There are also no trade unions or few workers rights so it is easy for workers to become exploited Since 2000, many campaigners have encouraged Nike to improve working conditions for workers in ‘sweatshops’. Nike now publishes data about supplier inspections on its websites.

20. Named example 5: A state-led company and its investment Sinopec is a Chinese oil & gas company founded in 2000 In 2004 Sinopec invested heavily in offshore oil & gas exploration in Gabon (Africa) In 2005 Sinopec bought oil fields in Sudan and began exporting oil back to China In 2009 it was ranked the 7th largest company in the world In 2012 Sinopec invested $2.45 billion in 20 oil fields in Nigeria In 2013 they bought (invested) $3.1 billion in exploring oil & gas in Egypt

21. Named Examples 6: TNCs in Tertiary Sector Case study on BT (a TNC in the tertiary sector) • It operates in over 170 countries • BT is a British based company it is one of the worlds largest telecommunications companies in the world. It outsources : Call centres in India Software development in Bangalore and Delhi Company Accounting – Silicone Valley in Bangalore Outsourcing is when services are moved to a location where wages are lower BT is an example of Footloose company because it can locate anywhere as long as it has access to high quality communication links. Creates jobs for English Speaking graduates and in turn attracts other companies to locate there so the whole area benefits form the multiplier effect. However has lead to unemployment in the UK as call centres are located abroad.

22. Greater competition from countries such as China and India Reasons for De-industrialisation Reduced demand for traditional products due to new technologies Mechanisation has increased productivity and reduced the number of workers needed Named Study 7: Impact of Deindustrialisation on the UK. Deindustrialisation is the decline in manufacturing (secondary) industry and the growth in tertiary and quaternary industries.

23. Globalisation – past questions Suggest one reason why countries with a high percentage of people working in secondary sectors also have a high GDP per capita (2) Describe the relationship between GDP per capita and the percentage of people working in secondary sectors (2) Explain why international trade has grown so rapidly over the last 50 years (6) Explain how the growth of secondary sector employment in developing countries can bring both benefits and problems (4) Describe the negative impacts of globalisation on people in the developing world (4) Examine the positive and negative impacts of globalisation on different groups of people (6) Toyota opened a car factory in Derby in the UK in 1992. Suggest two benefits this may have brought to the local people (2) Toyota’s research and development sites are mostly in developed countries and why Toyota locates some factories in developing countries (4)

24. Globalisation Good Luck