This topic explores the global shift of economic activity, specifically the movement of manufacturing to Asia and the outsourcing of services to India. It
Topic Synopsis
This topic explores the global shift of economic activity, specifically the movement of manufacturing to Asia and the outsourcing of services to India. It examines the resulting benefits, such as infrastructure investment and poverty reduction, alongside the costs, including growing inequalities, environmental pressure, and the social/environmental problems faced by deindustrialised regions in developed countries.
Key Concepts & Core Principles
- Flows of capital, goods, services, information, and people: These are the 'ingredients' of globalisation. For example, capital flows include foreign direct investment (FDI) by TNCs; information flows are driven by social media and news networks; and people flows involve migration for work or study.
- Time-space compression: The idea that technological advances (e.g., jet travel, fibre-optic cables) reduce the friction of distance, making the world feel smaller and enabling real-time communication across continents.
- Transnational corporations (TNCs): Large companies that operate in multiple countries, such as Apple, Toyota, or Shell. They drive globalisation by locating production where costs are low and selling products globally. You need to know their role in creating global supply chains and their influence on governments.
- Globalisation and inequality: Globalisation can widen the gap between rich and poor, both within and between countries. For instance, while China has lifted millions out of poverty, deindustrialisation in developed countries has led to job losses. The concept of 'winners and losers' is key.
- Cultural globalisation: The spread of ideas, values, and practices across the world, often dominated by Western (especially American) culture. Examples include the global popularity of fast food, Hollywood films, and social media platforms. This can lead to cultural hybridity or cultural erosion.
Exam Tips & Revision Strategies
- Ensure you can provide specific examples of regions affected by deindustrialisation in developed countries.
- Use the concept of 'global economic centre of gravity' to frame your answer.
- Be prepared to discuss the interaction between physical and human factors in creating these outcomes.
- Link the impacts of the global shift to the broader synoptic themes of inequality and interdependence.
- Ensure you can distinguish between political responses (e.g., censorship, trade protectionism) and social/community responses (e.g., localism, ethical consumption).
- Use specific examples for each type of tension and response to support your arguments.
- When discussing tensions, always consider the perspective of different players (e.g., long-term residents vs. recent migrants).
- Be prepared to evaluate the effectiveness of different management strategies, such as Fair Trade or local sourcing.
Common Misconceptions & Mistakes to Avoid
- Failing to distinguish between the impacts on developed versus developing economies.
- Over-generalizing the benefits of the global shift without acknowledging the associated inequalities.
- Neglecting the environmental dimension of the global shift in both source and destination regions.
- Confusing the global shift of manufacturing with the outsourcing of services.
- Failing to link the tensions specifically to the 'rapidity' of global change caused by globalisation.
- Confusing state-level political responses with local-level social responses.
Examiner Marking Points
- Explanation of the global shift of manufacturing to Asia (e.g., China) and service outsourcing (e.g., India).
- Identification of benefits: infrastructure investment, waged work, poverty reduction, education, and training.
- Identification of costs: growing inequalities, loss of productive land, unplanned settlements, and environmental/resource pressure.
- Analysis of environmental problems in developing countries (pollution, land degradation, biodiversity loss) and their impact on health.
- Analysis of social and environmental problems in deindustrialised regions of developed countries (dereliction, contamination, depopulation, crime, unemployment).
- Explanation of how open borders and deregulation create culturally mixed societies and migrant diasporas.
- Analysis of tensions arising from global change, such as the rise of extreme nationalism.
- Evaluation of state-level responses to control globalisation (e.g., censorship in China/North Korea, immigration policies in UK/Japan, trade protectionism).