GLOBALISATION OVERVIEW
1. Impacts on businesses
Globalisation has many affects, as businesses become international and become TNC’s they must
adapt to cultural changes and tastes, this process is called globalisation. This allows companies to
thrive in a range of markets and be adapted as a resort of globalisation. Furthermore, another
result of globalisation and the improved links worldwide, is global shift. Global shift is how the
industrial activity and manufacturing move around the world based upon which areas are most
developed. Such as since global communication and transport improved European manufacturers
were able to outsource to India and china due to their large unskilled workforce (combined with
the weak employment laws).
2. Impacts on developing nations
Global shift resulted in manufacturing being outsourced to India from Europe to save costs. This
lead to economic benefits for India such as wages being higher, allowing disposable incomes and
subsequently quality of live to increase meaning more entertainment venues would be able to
open if the economy develops, increasing profits. However, it also comes with various downsides
for india, such as the workers may be exploited through low layers and long shifts. Also, many of
these manufacturing jobs would be highly repetitive thus means that many would easily get
demotivated and the inequality if a nation increases due to those who own and run factories gain
more wealth.
3. Impacts on developed nations
Deindustrialisation is where an area suffers from the removal of industry. For example in
northern uk cities many factories and coal mines closed, this lead to many older unskilled workers
being unemployed and unable to find new jobs. Secondly, any Youngers that lived in an area and
lost their job due to industrialisation would move away, this leads to an area having a high
proportion of older who cannot work, causing services to deteriorate and gradually a place
becoming derelict and in some cases, contaminated and deprivation (crime rates also increase).
The uk has suffered de industrialisation which has left many northern areas derelict and socially
deprived with job losses and minimal spending into local economies. However, globalisation has
lead to more opportunities for uk companies to invest abroad and find lower production costs in
developing countries. Global connections have also increased politically and socially with uk
citizens being able to migrate.
DEINDUSTRIALISATION
• outsourcing
• Derelict
• Unemployment
• Deprivation
Deindustrialisation in the northern areas of the uk was due to the closure of steel factories and
mines, these industries employed thousands of labourers, this meant that once this was
outsourcing, many were left unemployed. Derelict buildings around lead to visual pollution and
environmental concerns. This high levels of unemployment to northern areas mean people must
, move away to find work, leaving local areas socially deprived. This is mainly caused by the shift
of steel and mining on a whole abroad, this meant that many people in northern areas loose jobs
and unemployment rapidly increasing with very few having transferable skills meaning they must
leave to find alternate empoloyment, this means areas quickly become derelict and socially
deprived.
4. Impacts of migrations for sourced countries
Migration can have benefits for a source country such as india. This is due to the migrants sending
remittances back to their families. This often resorts to families in india having a higher
disposable income to spend into the local economy and invest into staring small business to
develop their stable income, overall allowing india as a country to improve economically and
quality of life overall. However, the source country can have negative impacts such as it being a
‘brain-drain’ meaning the skilled employees move away leaving gaps in jobs required.
Furthermore, the migrants moving away from india are mainly youth looking for a better quality
y of life with more promotional opportunities meaning the older generations are left unable to
uphold the economy. Many remittances are sent home from those who have moved towards a
better quality of life, this allows family members in the source country to invest into small
businesses to sustain the local economy, this allows the country to develop
5. Impacts of migration for the host country
A host country can largely benefit from low wage migrants such as Indians moving to the uae.
This is due to them filling in promotional opportunities that allow middle class to uphold their
quality of life such as having childcare and cleaning services available. Subsequently, these
migrants contribute to the ecomony and improve the gdp as more people earn a disposable
income. The population is also younger meaning they will likely stay and have children allowing
a younger population to work. Howevwe, this increasing population will put pressure on services
such as housing meaning more residential areas will have to built, having a knock on negative
effect upon the environment.
Gain employees that can maintain the lifestyle of middle classes such as being a cleaner, also
construe to the economy as a whole with more people having a disposable income to spend into
businesses. Larger benefits come with elite migration, for example, russian oligarchs bring heavy
investments into a country as the own large properties and have large influences. Many services
gain pressure from the rapidly rising population, for example housing and education cannot house
enough of the Indian low level migrants moving into the uae.The environment also gains pressure
from more traffic and industrial output.
6. Benefits and costs of outsourcing to china
Many western TNC’s have begun outsourcing to developing nations such as china as a way of
cutting costs due to the weak employment laws, this has been accelerated by globalisation as
customers are now able to buy products globally Countries such as china no longer rely upon
sweatshops and move into secondary sector employment as investment develops local areas. This
outsourced work benefits china as technology improves and work becomes less strenupus and less
people are depending upon a good harvest for a stable income and food source. However, this
subsequently leads to many disadvantages for industrial regions of China, for example the workers
