Globalisation EQ2

Topic 4: The global shift eastwards – winners and losers

Key ideas

• The global shift is the movement of manufacturing (and of some services) from developed countries in Europe and North America to Asia since the 1970s. As a result, the world's economic centre of gravity has moved east.
  • Manufacturing shift to China: China became the "workshop of the world" and the world's largest manufacturing nation.
  • Outsourcing of services to India: IT, business process outsourcing and call centres, especially in Bengaluru and Hyderabad.
• Benefits for Asia:
  • Infrastructure investment.
  • Waged work.
  • Poverty reduction: the World Bank estimates that nearly 800 million people in China moved out of extreme poverty after 1978.
  • Education and training.
  • A growing middle class.
• Costs for Asia:
  • Growing inequality (rural–urban; coastal–interior).
  • Loss of productive farmland.
  • Unplanned settlements (slums).
  • Environmental and resource pressure.
• Environmental problems in developing and emerging countries, which harm health and wellbeing:
  • Air pollution: smog in northern Chinese cities, Delhi.
  • Water pollution: industrial discharge into rivers such as the Pearl River.
  • Land degradation.
  • Over-exploitation of resources.
  • Biodiversity loss.
• Unsafe working conditions in global supply chains. The Rana Plaza collapse in Dhaka, Bangladesh (24 April 2013) killed 1,134 garment workers and injured about 2,500. It exposed unsafe conditions in the supply chains of Western fashion brands, and led to the Bangladesh Accord on Fire and Building Safety.
• Losers in developed countries (deindustrialisation):
  • Dereliction.
  • Contaminated (brownfield) land.
  • Depopulation.
  • Crime.
  • High unemployment.

Case study: Detroit, USA (deindustrialisation)

• Detroit was the "Motor City", home of Ford, GM and Chrysler.
• Car-industry decline came from competition, automation and the relocation of production.
• Population fell from about 1.85 million (1950) to about 639,000 (2020 census).
• Tens of thousands of abandoned buildings were left behind.
• The city filed for the largest municipal bankruptcy in US history in July 2013 (about $18 billion of debt).

Case study: UK deindustrialisation (e.g. Teesside)

• The SSI Redcar steelworks closed in 2015, with the loss of about 2,000 direct jobs.
• This followed decades of decline in coal, steel, shipbuilding and textiles in northern England, South Wales and Scotland.

Glossary

Term	Definition
Global shift	The relocation of manufacturing (and some services) from developed to emerging/developing economies.
Deindustrialisation	The long-term decline of manufacturing employment and output in a region.
Economic restructuring	Changes in the structure of an economy, e.g. from manufacturing to services.
Brownfield site	Previously developed land, often derelict or contaminated.
Emerging economy	A country rapidly industrialising and growing (e.g. China, India, Brazil).

Self-test

Q1: Give two benefits and two costs of the global shift for China. A: Benefits: hundreds of millions of people lifted out of extreme poverty (World Bank: nearly 800 million), plus infrastructure investment and waged jobs. Costs: severe air and water pollution, and growing rural–urban inequality (also loss of farmland).

Q2: What was Rana Plaza and why does it matter? A: A garment-factory building in Dhaka that collapsed in April 2013, killing 1,134 workers. It showed the human cost of cheap global supply chains and led to the Bangladesh Accord on building safety.

Q3: Give three problems faced by deindustrialised regions. A: High unemployment, dereliction and contaminated land, and depopulation (also crime and poor health).

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Topic 5: Impacts of migration and urbanisation

Key ideas

• Rural–urban migration and natural increase drive the growth of megacities (over 10 million people).
  • Push factors: rural poverty, mechanisation, drought, lack of services.
  • Pull factors: jobs, higher wages, education, healthcare, "bright lights".
• Rapid urban growth creates social and environmental challenges:
  • Slums and informal housing.
  • Pressure on water and sanitation.
  • Congestion and air pollution.
  • Informal employment.
• International migration has increased to global hub cities and regions, deepening interdependence.
  • High-wage economic migration, e.g. to Singapore and London: skilled professionals in finance and technology, alongside lower-paid service workers.
  • Low-wage economic migration, e.g. to the UAE and Saudi Arabia:
    • Construction and domestic workers from South Asia and the Philippines.
    • The kafala sponsorship system ties workers to employers and has been criticised for exploitation.
• Costs and benefits of migration for host and source areas:

	Host (destination)	Source (origin)
Economic +	Fills labour shortages; taxes; entrepreneurship	Remittances: India receives over US$100 billion a year, the most of any country
Economic −	Pressure on services and housing; possible wage competition in low-skill sectors	Brain drain (loss of skilled workers)
Social +	Cultural diversity	Returning migrants bring skills and ideas
Social −	Possible tensions; segregation	Families split; ageing rural populations
Political	Rise of anti-immigration parties	Loss of voice; dependency on remittances
Environmental	Urban pressure, e.g. housing on greenfield land	Abandoned farmland; or, positively, less pressure on land

Case study: Mumbai (megacity growth)

• The metropolitan population is roughly 20 million (UN estimates).
• Growth comes from migration from Maharashtra, Uttar Pradesh and Bihar.
• Dharavi is one of Asia's largest informal settlements. Estimates of its population range widely, from around 600,000 to 1 million.
  • It has a thriving informal economy: recycling, leather and pottery.
  • It faces sanitation and overcrowding problems and a contested redevelopment plan.

Case study: London (global hub city)

• About 40% of residents were born outside the UK (2021 Census).
• Migrants work in finance, health, construction and hospitality.
• The resulting diversity is an economic asset, but there is pressure on housing.

Case study: the UAE (low-wage labour migration)

• About 88% of the population was foreign-born in the late 2010s.
• Most migrants come from India, Pakistan, Bangladesh and the Philippines.
• Remittances flow home, but there are concerns about workers' rights.

Glossary

Term	Definition
Megacity	A city with over 10 million inhabitants.
Push/pull factors	Reasons that drive people away from origin / attract them to a destination.
Remittances	Money sent home by migrants.
Brain drain	The emigration of skilled and educated people.
Global hub	A city or region highly connected to global flows of capital, people and information.
Kafala system	A sponsorship system in Gulf states tying migrant workers' visas to their employer.

Self-test

Q1: Contrast migration to London with migration to the UAE. A: London attracts both high-wage skilled migrants (finance, tech) and service workers into a diverse global city. The UAE relies on large-scale, mostly low-wage, temporary migrants (construction, domestic) under the kafala system. There, about 88% of residents were foreign-born.

Q2: Give one economic benefit and one cost of migration for source countries. A: Benefit: remittances (e.g. India receives over US$100 billion a year). Cost: brain drain of skilled workers (e.g. doctors and nurses).

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Topic 6: The emergence of a global culture

Key ideas

• Cultural diffusion is the spread of ideas, values and products. Globalisation spreads a "westernised" global culture, sometimes called "Americanisation" or "McDonaldisation". It travels through:
  • TNCs and brands (e.g. Coca-Cola, Apple, Nike);
  • global media corporations (e.g. Disney, Netflix, Google/YouTube);
  • tourism;
  • migration.
• Impact on people and the environment: changing diets in Asia.
  • Rising consumption of meat, dairy, processed food, sugar and fast food (KFC opened in China in 1987 and is now China's largest fast-food chain).
  • This has led to rising obesity and diabetes.
  • It has also increased the environmental footprint: land for feed, water use and emissions.
• Opportunities for disadvantaged groups:
  • The Paralympic movement began with the Stoke Mandeville Games (1948); the first Paralympics were held in Rome in 1960.
  • London 2012 was a breakthrough in global media coverage and attitudes towards disability.
  • Global media and social media also spread awareness of rights, e.g. gender equality and LGBTQ+ rights.
• Cultural erosion means the loss of language, traditional food, music, clothes and social relations.
  • Sometimes it is the result of deliberate action, e.g. loss of indigenous lifestyles in Papua New Guinea:
    • PNG has over 800 languages, many endangered.
    • Logging, mining (e.g. the Ok Tedi mine, which caused river pollution) and palm-oil plantations have displaced communities.
    • Missionary activity and the cash economy have changed traditional ways of life.
    • The result has been ecosystem degradation and the devaluing of local knowledge.
• Opposition to globalisation:
  • Anti-globalisation groups, e.g. the 1999 Seattle WTO protests and the Occupy movement (2011).
  • Environmental movements, e.g. Greenpeace, Extinction Rebellion.
  • Governments: protectionism, cultural protection (e.g. France's quotas for French-language music on radio), China's control of foreign media.

Glossary

Term	Definition
Cultural diffusion	The spread of cultural traits from one society to another.
Global culture	A shared set of values, products and lifestyles spread worldwide (often Western-based).
Cultural erosion	The loss of distinctive local culture (language, customs, food).
Cultural imperialism	The domination of one culture over others, especially through media and brands.
Hybridisation	The blending of global and local cultures into something new.

Self-test

Q1: Give two ways TNCs spread a global culture. A: Through global brands and advertising (e.g. McDonald's, Coca-Cola) and through global media and streaming platforms (e.g. Disney, Netflix, YouTube), which spread Western values and consumption patterns.

Q2: How has globalisation contributed to cultural erosion in Papua New Guinea? A: Mining (e.g. Ok Tedi), logging and plantations have displaced communities and damaged ecosystems. The cash economy, missionary influence and global media have eroded traditional ways of life and endangered many of its 800+ languages.

Q3: Name one way globalisation has created opportunities for disadvantaged groups. A: The global Paralympic movement (e.g. the media profile of London 2012) has raised the profile of and opportunities for disabled athletes, and has changed attitudes.

Assessment checkpoint: end-of-EQ2 essay (12 marks), e.g. "Assess the extent to which the global shift has created more winners than losers."

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