How could these be related to each other?

How could these be related to each other?

Globalisation and Migration

To start, assess your existing knowledge by rating yourself 1-5

Lesson objectives: To be able to describe and explain influences on the global economy

Key termsGlobalisation InterdependenceTransnational corporations TradeAid Teleworking Outsourcing

There are several key factors which have influenced the process of globalisation

• Improvements in transportation - larger cargo ships, Economies of scale mean the cost per item can reduce when operating on a larger scale. Transport improvements also mean that goods and people can travel more quickly.

• Freedom of trade - organisations like the World Trade Organisation (WTO) promote free trade between countries, which help to remove barriers between countries.

• Improvements of communications - the internet and mobile technology has allowed greater communication between people in different countries.

• Labour availability and skills - countries such as India have lower labour costs (about a third of that of the UK) and also high skill levels. Labour intensive industries such as clothing can take advantage of cheaper labour costs and reduced legal restrictions in LEDCs.

Types of flows

Trade

Information

Aid Labour

Foreign investment

Global distribution of three income groupings, based on GNI per capita 2003

One feature of Globalisation is the dependence between countries. Look at the production chain involved in a pair of trousers and identify the links between income and the position of the country in the production chain.

Cotton grown in Egypt

Cloth woven in Thailand

Trousers made in Bangladesh

Trousers shipped to Rotterdam ( Netherlands)

Trousers distributed to retails outlets in UK

Synthetic fibre made in China

Buttons and zips made in India

The production chain of a pair of trousers.

Plot this production chain on a map

Other examples of the global economy

• Call centres located in India and the Philippines

• Outsourcing of food production to LICs

• Why do you think this has happened?

New farming – Africa Traditional farming in Kenya is SUBSISTANCE Farmers grow just enough for their families 70% of people in Kenya rely on farming The economy of Africa is now reliant on exporting tea, coffee and flowers

This is called AGRIBUSINESS

What could be the consequences of this shift?