Globalisation

How has Globalisation Affected Migration? E Technology People can now research destinations in advance

GEO1-Roberts

There is the availability of booking flights online in advance You can research and buy housing online Ability to stay in contact due to e.g. Skype Buy favourite products on the internet Greater awareness of the world

Relaxation of National Boundaries First 15 EU members have freedom of movement Boundaries are now becoming stricter

Improved global transport links Development of budget airlines e.g. EasyJet 1995 and Ryanair Cheap flights allowed economic migration, e.g. Poland to UK People can do weekly migration The Channel tunnel has allowed easy access to France and England, increasing commuters from France

Global Shift Changing location of production

Began in 1950s and 60s with low-tech production Accelerated in 1990s when consumer electronics shifted to China and other low-cost locations

Many call centres and software hobs have shifted to India This is due to increasing profit due to reduced costs

New International Division of Labour: A new way in which jobs are organised so that different tasks within a company are carried out in different parts of the world. For example Nike has its HQ in the USA but its trainers are made in India

Glocalisation: Large companies build global networks by setting up branches and call centres abroad, or by completing international business deals They used glocalisation strategies to build a customer base in different countries E.g. Burkini Barbie McAlooTilcki Kosher Subway

McCurry Pan

Global Transport and Trade The Box (BBC initiative): Lower prices Greater choice 50 years approx. Ease of transport (cargo) One size fits all standardised ships/lorries/ports/cranes o Faster and cheaper trade Furniture, clothes, food electrical 90% of imports/exports in containers Economies of scale Doing things in bulk to reduce overhead costs

Cheaper to produce overseas 95% of the worlds trade 40ft long boxes Scotch whisky to shanghai Containers everyday things Waited in Japan for 3 moths

First decline in global trade in a quarter of a century recession Box in numbers: 3,229 miles by train 1,349 miles by road 47,076 miles by ship 421 days 51,654 miles (2.08 laps of the world) 15,120 bottles of whisky 4,320 bathroom scales 95,940 tins of cat food

EasyJet and the EU (article and TB pg115) Fact file: Launched in 1995 Started as a small venture flights solely in the UK 170% more routes at fares 40% lower Linking smaller cities and regions Product of EU single market 4th largest airline in Europe

More than 58 million passengers a year Europes number 1 air transport network Leading presence on Europes top 100 routes and at Europes 50 largest airports

600 routes between 130 airports Founded by Sir Steelios Haji-loannou 1998: acquired 40% of the swiss air company TEA One of the first airlines to embrace the opportunity of the internet First online sale in April 1998 2006: owned 122 airplanes 33 million people in 2006 and 2 billion 2005 outside Europe: Marrakech and Istanbul 1995: 30,000 passengers 2006: 32,953,000 passengers (over 1000 times)

What factors have enabled EasyJet to expand? Europes free market EU pushed through protectionism reform (slots at airports) Protectionism: shielding a countrys domestic industries (legacy companies) from foreign competition

Product of EU single market Provided what passengers want at a price they like Welcomes initiatives from Brussels Supports secondary trading Using the internet and latest technology (online booking) reduce staffing Airbuses (more passengers) economies of scale Liberalisation of European aviation 1994 Trade Blocs

Transnational Corporations McDonalds: $41 billion dollars (2003) double Afghanistan GDP 31,000 restaurants in 118 countries 1.5 million employees Main branches in: USA, UK, Japan, Europe (switched on) Hardly any in Africa and former soviet union (switched off)

Starbucks: Each coffee from around 19 countries Connects wealthy and rich countries 6,200 stores

Main branches in: USA. Japan, Asia, Europe

Global Trade: Rooted in 18th-19th century colonialism e.g. the UKs East India Company was one of the first global companies (shipped tea from India) Today there is evidence of reserve colonialism: developing countries investing overseas Why are TNCs sometimes described as the architects of global trade? International mergers and acquisitions o Big, global, business deals (Kraft and Cadburys) 2009 launched hostile bid for Cadburys 2011 Cadbury allowed Kraft to be restructured and split into 2 companies by end of 2012 Outsourcing o Starting to produce goods in different countries to reduce costs of production Grocery: $16bn, Snack: $32bn Needed Cadburys to provide scale Kraft itself was the product of acquisition Seven brands for an annual revenue of $1bn

Creating connections

Assembly industry o Parent company: The original business that a global TNC has developed around, and whose directors still make decisions that affects the organisation as a whole. o Spreading out of headquarters and production o Come together at the end

Global products o Products can be sold and recognise globally (e.g. McDonalds)

Tesco: Timeline: 1919: Tesco begins as a grocery stall in the East End of London 1956: 1st Tesco self-serve supermarket Early 1990s: UKs second largest food retailer Mid 1990s: Expansion into Europe 1998: Strikes a deal with Samsung 1998: Asian expansion programme Thailand and South Korea (more than 800 stores) Late 1990s: Widened gap between Tescos and other supermarket

2000: Deal swap with Carrefour 2004: Entry into China Mid-2000: A multinational retailer 2006: First USA store (Fresh n Easy) commits $1.25b over 5 years 2007: 27.6% share of UK grocery market 2008: 1047 stores in Asia accounting for 33% of firms operating space 2008/2009: Sales of almost 60 billion 2009: 64% of Tescos operating space now outside of UK; more than 130 stores in USA Shell in Nigeria Operates in the Niger delta area Produces half the countries oil output 8 natural gas stations 6000km pipelines

Pros: 5000 people, 95% Nigerian and 66% form local area 20,000 people are indirectly employed Oil accounts for 95% of Nigerias exports Payment of local people is 13% of the oil revenue

Cons: Had an oil-based economy which gave large oil TNCs considerable power and influence Local people saw few financial rewards for disruption Unrest between TNCs and Ogoni people tribes Oil Spills Gas flaring Deforestation

Advantages Disadvantages Raising living standards Tax avoidance Transfer of technology Limited linkages Political stability Growing global wealth divide Raising environmental awareness Environmental degradation Increased employment in the formal High paying jobs by immigrants sector Chances to increase skills Corrupt government Exports for country Profits back to home country Multiplier effect Bad working conditions

Indirect employment Children working

Globalisation: A Risky Business Hub company: A TNC at the core of a global supply chain network GPN: Chain of connected suppliers of parts and materials that contribute to the manufacturing or assembly of consumer goods. The network serves the business needs of a hub company A TNC orchestrates many supply chains A supply chain is the distribution channel of a product, from the initial sourcing of parts to the final delivery to the end consumer. It may include growing crops and acquiring raw materials and/or manufacturing or assembling products Closed network are tightly integrated where the technology used by suppliers has to have in part been developed by the TNC Open network designs and makes generic components A GPN allows for the least-cost supply sites and suppliers Factors enabling companies to establish GPNs: o Tariff removal o Container shipping

o ICT They can be disrupted by: Natural hazards (Japan Tsunami) electronics and precision machinery parts Economic disasters (Credit crunch) Banks, luxury goods Political uprising (Syria and Libya) French telecom Oil spill (Deep-water horizon) BP

Japanese Earthquake and Tsunami: Supply and demand chain damage for smartphones Precision machinery parts Increased oil dependence

Ways to manage risk: Deglobalise Re-globalise Business as usual

Deglobalise most effect as it also reduces the costs of globalisation

What is a Global Network?

How global economies/people/the environment are connected to each other to form interactive groups (networks). The connections are created through flows of money, trade, workers and information.

Network: How places or people are linked together

Flow: Transfers within a network

Example: Global Network: Tesco Flow: Trade/money Global Network: Tourism Flow: People/money Global Network: Internet Flow: Information

Switched On: More connected to economic production and consumption (USA, UK) Large networks/global hub

World cities Technopoles (clusters of businesses e.g. Silicon Valley) Core regions well connected, many connections and other places want to connect with them

E.g. The Gulf Natural Resources: o Strategic location o Coastline ideal for trade o Oil resources o Physical factors aid growth of industry

Human Resources Large labour force Affluence attracts service providers Skilled labour Languages spoken

Flows of internal migrants Flows of capital and TNC investment Flows of international migrants Government policy: Open to investment

Switched Off: Less connected to economic production and consumption (CAR, Afghanistan)

HICs generally have hubs in the core and periphery (major hubs in the centre spread outwards) trickle down

MICs generally have hubs just in the core: Greater regional and social disparities (Mumbai, Nairobi, Rio)

LICs remain relatively switched off from global networks Problems: o A widening gap between rich and poor countries o They are then dependent on richer nations o Reliance on borrowed money (debt)

Global Groupings In the past: LEDC and MEDC, have and have nots Richard Brandt: North as wealthy core, south as poor periphery 1981 Discovered that crude terms werent working as some were emerging, as there was no longer an obvious divide

Now: BRICs: Brazil, Russia, India, China, South Africa emerging economies MINTs: Mexico, Indonesia, Nigeria, Turkey later emerging economies OECD, G8, OPEC, all global groupings

Population: Increased birth rates o 2012: highest BR in 40 years o Migrants of child bearing age (fertility rate of 2.2 v 1.9) o IVF advancements o Grandchildren of 60s boomers o More primary school places needed esp. in London (30% overseas born) o However overall birth rate is in decline, but mini baby boom in past few years Population increase 63.7 million Increased life expectancy o Increased men 75 or over since 2001 increased healthcare o 60s baby room now at retirement age

o Issues with taxes and pensions o Increasing cost of care

Migration: Immigration: People entering country Migration: The movement of people form one area to another, qith the intention of remaining there permanently or semi-permanently Emigration: People leaving country

Short term: Very in time (usually less than a year) Called circulation movements Variety of time scales E.g. o University terms o Commuting to work o Seasonal jobs (agriculture) o Shopping o Holidays

Classification: Long/short term National/international Voluntary/forced Legal/illegal

Asylum Seeker: A well-founded fear of being persecuted for reasons of race, religion, nationality, membership of a particular social group, or political opinion, is outside the country of their nationality, and is unable to or, owing to such fear, is unwilling to avail him/herself of the protection of that country (p 135)

Illegal Immigrant: People who avoid border and immigration controls and enter a new country illegally. Many are voluntary migrants seeking work, but some may be forced as part of human trafficking to enter prostitution or other illegal activities.

Reasons: Push:

People move to get away from something they do not like Racial tension Environmental pollution War Natural disaster

Pull People are attracted to move to another area that is of greater benefit to them Excellent job prospects Access to good transport links Free healthcare Good schools

Lee (1966) Intervening Obstacles: International frontiers Cost of moving

Facilitating factors: Language Culture

Media Ease of visas and permits

Why do people migrate? Work (economic migration) Medical tourism (e.g. teeth whitening in Bulgaria) Retirement Sport (temporarily for matches e.g. Olympics) Family

Understanding Migration Trends

Why has migration accelerated over the past 50 years? Better global networking transport links, internet etc Relaxed boundaries between countries: the Schengen Agreement and the European Union Certain areas have become migration hotspots, attracting large numbers or migrants More women taking up employment opportunities

Demand for labour

Migration hotspot: Somewhere that attracts large number of migrants. Some attract economic migrants, other refugees E.g. USA: Illegal and legal from Mexico Business from EU and Asia Family from Asia

Europe: Porous south border illegal migration from Africa Post accession migration from eastern Europe Family repatriation from former colonies

Middle East Low wage labour migration from south Asia

Near East War and conflict

Other

Between former Soviet Republics Conflicts in Africa

Post accession migration from eastern Europe: (map in folder) The Start: 1995 EU Schengen Agreement Proposed that all people living within the EU are its citizens and should be allowed to move freely within it As a consequence, it abolished border controls between all those countries which signed the agreement (the UK did not) Today there are 25 countries in the Schengen Agreement o 1995 Belgium, France, Germany, Luxembourg etc o 1997 Italy and Austria o 2000 Greece o 2001 Denmark, Sweden, Finland, Norway and Iceland (Norway and Iceland not in EU) o 2007 Czech Republic, Estonia etc

o 2008 Switzerland (not in EU)

EU evolved from the European Economic Community in 1993 To begin with 15 countries were included with the aim of promoting economic development and Euro cooperation

EU has grown with the accession of more countries in 2004 and 2007 to 27 countries today

EU A10 and A2 countries Enlarged in 2004 with: Cyprus, Malta, Estonia, Latvia, Lithuania, Poland, Slovenia, Czech Republic, Slovakia and Hungary These eight were joined by two more countries in 2007: Romania and Bulgaria Most countries already within the EU chose not to allow the free movement of the new EU citizens into their territories, except UK, Ireland and Sweden

Post-Colonial Migration

Refers to the migration of people who live in former British colonies

1920s British explores colonised places around the world British build up empires in these new locations After WW2 these empires broke up as countries stated o claim independence However, more labourers were needed in the UK to re-build the war-torn country

The British government recruited workers from former colonies to meet the labour shortages

More than 60,000 Indians moved to the UK by the mid 1950s. Many of these filled vacancies for qualified doctors in the NHS

Today there are more than 550,000 people in the UK who describe themselves as Caribbean and come from the former colonies

Immigrants from the former French empire filled job gaps in France

Case Study: Mumbai Expensive property in the world 27 skyscraper -$2 billion, one family home Dharavi (India's largest slum) o 1 million people in 1 square mile o Low unemployment o Low crime rates o New arrivals live under the bridge o Sewage water runs through o No permissions, no plans and no permanent rights o All on top of a rubbish tip and pipe

o Toxic compounds o Human faeces on streets o Vast labyrinth o Heart is more permanent with organised roads and solid buildings o No maps or tour guides o Transit camp right in centre o 12x12 foot home with extended family o Not enough water water is rationed o Standpipes on at 5.30am for 2 hours o Enough water for next morning o Over 500 people share each latrine o High levels of diphtheria, TB and typhoid o 14,000 illnesses per day due to poor sanitation o Open sewage draining into cleaning water o Fully functioning high street o Street turns into mosque o Changing spaces with peoples need o Kumbawada oldest neighbourhood in Dharavi o Pottery area

o Small group of potters from Gujarat 70 years ago now grown to 10,000 people o Each room is a sleeping quarter for 5 people o Most densely populated slum on earth o Drudgery is a social affair o Bad air quality o 85% have a job in the slum o Lamp-post 69 self-made millionaire that lives in the slum o Mr Moubine o 3p per suitcase trolley o 7-800 made per day o $1 billion dollars a year o 15,000 one room factories o Illegal, untaxed and thriving industries o 300 bakeries in Dharavi, rebranded so people arent worried for H&S o Maximum use of space and cheap labour o Low production costs o 25% sleep in factory o Everything is compressed and condensed

o Appalling working conditions o No minimum working age o Vast majority of children at school then college o Safe street conditions o Virtually no crime o