Shift of Global Economic Centre (Edexcel A Level Geography)
Revision Note
Written by: Louise Stone
Reviewed by: Bridgette Barrett
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
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Worked Example
Explain one reason why many people in the developed world support the global shift of industry [4 marks]
Answer:
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Environmental Impacts
Environmental Impacts
This global shift has caused environmental problems for many communities in 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]
Examiner Tips and Tricks
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
Examiner Tips and Tricks
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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