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Why are some places more switched on to globalisation than others?

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Presentation on theme: "Why are some places more switched on to globalisation than others?"— Presentation transcript:

1 Why are some places more switched on to globalisation than others?

2 It is global networks creating flows (trade, money, workers, information), being in a network and being as close to a hub as possible, that makes a place switched on. It is being largely excluded from global networks and flows and having little contact with hubs that makes a place switched off.

3 Key Enquiry Question 1: What are the causes of globalisation and why has it accelerated in recent decades? Lesson 5 LO: To be able to explain how and why globalisation has affected some places and organisations more than others. Concept Checker: 3.2a. Degree of globalisation varies by country and can be measured using indicators and indices (AT Kearney index, KOF index). 3.2b. TNCs are important in globalisation (P: role of TNCs) both contributing to its spread (global production networks, glocalisation and the development of new markets) and taking advantage of economic liberalisation (outsourcing and offshoring) 3.2c. There are physical, political, economic and environmental reasons why some locations remain largely ‘switched off’ from globalisation (North Korea, Sahel countries) Key terms: Least Developed Countries Flows Hubs

4 Measuring globalisation
Uneven levels of globalisation can be measured using indicators and indices. Half the room has information about KOF and the other half has information about AT Kearney World Cities Index. Explore and summarise the information about these two measures. See Information sheets PPT in Lesson 5 folder.

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7 What are the wealthiest regions?
The distribution of light shows where both population and wealth is found and were it is not What are the wealthiest regions? What are the core areas within more impoverished regions? Brightly lit places are those where energy is in use (to light and heat homes, offices and shops or to produce goods). They are the places most connected to the world economy though consumption and production of goods. We call them “switched-on places”

8 What are the poorest regions?
The distribution of light shows where both population and wealth is found and were it is not What are the poorest regions? These places are not completely cut off But they are more poorly connected to the global network and are said to be “switched-off places” ….only indigenous populations in wilderness locations are completely cut off from the global economy.

9 Why do some places remain ‘switched off’?
Colour code into Physical, Economic, Political and Environmental Make a copy of this Venn diagram

10 Why are large parts of Africa bypassed by globalisation
Why are large parts of Africa bypassed by globalisation? A stereotypical western business view Corruption Corruption pervades many African societies. Politicians and police can abuse authority by being corrupt. This increases risk of losses and makes it time consuming and frustrating for TNCs to operate. Politically unstable Many countries have been marred by civil wars and insurrection. A supportive government can suddenly be replaced by a hostile one. This can increase risk of losses for TNCs. Weak market Although some TNCs do operate in Africa e.g. flower exports from Kenya, the wages are not high enough to kick start the multiplier effect. This results in a weak market – TNCs cannot sell their goods. Negative image Many LDC African countries suffer from a poor image. The 2010 World Cup in South Africa could improve this. Unstable currencies A rapidly changing exchange rate would be financial suicide for TNCs. This brings a high risk of losses. Little government support Due to a lack of volume of business it is harder for TNCs to gain incentives e.g. planning permission for the best sites, tax incentives etc. Crime Kidnappings of foreign workers (and physical threats) are prevalent in many African countries. This is high risk to TNC staff. High Risk & Low Returns Debt Many Sub-Saharan countries are weighed down by enormous debts taken on to fund infrastructure projects in the 1970s. They could not repay these loans so the IMF has made the loans more affordable (Structural Adjustment Packages). In return many LDCs have had to cut their government spending. This has many effects. Have pupils then read pages 178 for Switched off places case studies – they are to summarise in their notes why these two examples are ‘switched off’ and research North Korea in greater detail using iPads (must have the categories for physical, environmental, political and economic. Poor infrastructure International debts mean African governments have no money to invest in a modern world-class infrastructure. Few regular flights and shipping operators. They cannot compete with China, India and other NICs. Unskilled labour Although labour is cheap, governments’ debts and reduced spending on education mean that populations are technically unskilled. (Few universities).

11 Homework Actively read the geofile sheet provided on Show My Homework (paper copy can be provided). Answer the review questions at the end.


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