Global Networks

How do TNCs affect global wealth? –TNCs still bring FDI and often pay workers more than the national average. This money is then spent in the local economy –Often TNCs use local resources from local supplies which generates work and profits in the local economy –They may have a social impact in the sense of paying men more than women, and also by changing local tastes, cultures and traditions with their products –However, TNCs still distribute wealth more effectively than some international aid efforts, but could go further if governments were to introduce more legislation in terms of taxes and minimum wage

What parts of the world are switched off?

So what does the photo show us? The Core – The most developed and highly populated region of a country. The growth of core regions is fed by flows of labour from less well – developed regions. Particularly visible of states like India and China where populations are massive Switched on places – Nations, regions or cities that are strongly connected to other places through the production and consumption of goods and services. In contrast, places that are poorly connected are said to be relatively switched off i.e. North Korea

What builds global networks? Technology has long since been a driver of revolutionising the way in which national and now international networks operate TNCs have used technologies to play a major role in building bridges between countries, while air travel has increased the international flows of tourists

How is the world becoming smaller? Telephones The Internet Air travel GIS and GPS

Networks and Flows We can map out networks and flows on many scales Since the introduction of GIS, we are able to map out cities and countries based on how well connected they are The points that connect are called nodes A global hub is a node that is especially well connected Connections between nodes or global hubs are called flows The world according to Friedman (a Geographer) in This map shows all the links between the countries at the time The world according to GaWC (Globalisation and World Cities) set up at Loughborough University. This map shows the most well connected cities.

Examples of flows within networks MoneyRaw materials Manufactured goods and services Information People

Case study: easyJet easyJet can be seen as a major influence on creating a global network through its cheap flights Make case study notes on easyJet using p. 115 Use the following points to create your case study

How the company has grown How it grew into a TNC The role of technology in its growth The effect that easyJet has on places in adds to its flight network

What happens in global hubs? These are often major network nodes and are switched on places Other places want to connect to them These are often world cities (which we will come on to later) They are normally the core of the country’s economy

Why might countries want to be connected to places like this? What benefits would TNCs in places like this get from connecting with ‘less connected places’

Cumulative causation There is a reason why wealth becomes concentrated in certain places. Globalisation increases in places like this, as local people can find global markets for there products or attract employers with their skills

What happens in middle to low income countries? In the richer parts of the world, wealth has spread to peripheral parts of the economies and is not solely concentrated in the core This is what we call trickle down However, in places that have industrialised quite quickly (like Brazil and South Africa), many people still live in poverty despite the presence of global hubs like Sao Paulo and Johannesburg Other places like Nigeria which have seen massive growth for its elite from the expansion on the oil industry, however, people living in the delta where oil is extracted have received no money and had to suffer an environmental catastrophe

Switched off places The very poorest nations remain switched off They may lack global hubs, or strong flows of trade and investments Conditions are poor for most people in rural and urban areas e.g. Sudan, Chad and Somalia There are many reasons for why places continue to be switched off

Why do some regions remain relatively switched off PhysicalChallengesHuman Vulnerable to climate change and natural hazards Poor resources for agriculture Lack of coastline deters investment from TNCs seeking an import/export base Resources controlled by foreign TNC Resources controlled by a small elite Infighting and civil war over resources Lack of skills and literacy deters investors Low prices for food exports due to over production and trade rules Politically isolated Ethnic clashes between tribes