C1 P2 Is the economic global situation shifting?

• Aardrijkskunde
• Middelbare school
• havo, vwo
• Leerjaar 3

C1 P2
Is the economic global situation shifting?

Part 1

! Everything written in red is a note, you have to write this down in your notebook.
I will check everything next lesson!

Why have many Western factories moved to Semi-peripheral countries?

What are the characteristics of:

Core

Semi-periphery

Periphery

Goods production in full swing

1990 - 70% goods made in centre

2012 - 45% in centre

Now <25%

BRICS countries

Brazil, Russia, India, China and South Africa

Why are these "BRICS countries" so attractive to Western entrepreneurs?

Business Center -> Semi-Periphery

1. Low wages
Attractive for labor-intensive manufacturing industries
2. Rising prosperity (sales market)
Growth of sales market, more purchasing power

3. Increase in education level
More training, service companies are moving

Generally in rich countries:

Declining low-tech sector (assembly of products in large quantities) due to outsourcing.

Growing high-tech sector (design and production of biotech, IT and robotics) thanks to highly skilled people

Shifting trade patterns

World trade continues to grow because

1. Division of production chain

2. Transport: cheaper and faster

3. WTO

Grab your notebook and write down the meaning of the WTO while you watch the video.

(explain it)

MAKE IN YOUR NOTEBOOK: Despite the fact that hourly labor costs in Poland and Turkey are higher than in Bangladesh, some European clothing companies decided to move production to Poland and Turkey instead of Bangladesh.

1. Give two reasons why European clothing companies made this decision.

2. Why is Poland a more popular destination for European companies than Turkey? Give three reasons based on three different dimensions (political, economic, cultural)

C1 P2
Is the economic global situation shifting?

Part 2

What are we going to do?

Hw check

Repeat lesson material

New material 

Get started yourself

Why are low-wage countries interesting as a sales market?

1. Products can be produced cheaper and therefore more competitive
2. Products can be produced more expensively and therefore be more competitive
3. Products are not produced in low-wage countries
4. Products cannot be sold in Low-wage countries

What are the BRIC-countries?

1. Countries that make and export bricks
2. Emerging countries linked to prosperity
3. The largest countries in the world
4. The four richest countries in the world

What is a sales market?

1. A market where only cars are sold
2. A market where products or services are sold
3. A market where only food is being sold
4. A market where only clothing is being sold

What are the BRIC-countries?

1. A group of countries working together.
2. A group of countries that are growing rapidly economically.
3. A group of countries that first belonged together in a larger empire.
4. A group of countries that are lagging behind and becoming increasingly more poor.

Globalization is...

1. The process by which all areas of the world are becoming increasingly connected.
2. The money that all residents of a country earn together in a year.
3. Making goods using machines in a factory .
4. All companies engaged in providing services.

Trade patterns are changing and intensifying

1. Fragmentation and internationalization of the production chain.

Important term = outsourcing (sending parts of production abroad).

Core: Research & Development / Design / Market Research

Semi-Periphery: Production of semi-finished and end products

(Semi-)Periphery: Resources

Core: Distribution, sales and marketing

(Global shift and Multipolar World Economy)

2. Improvements and innovations: transport and communication technologies --> Just in time

Container ships (!!!)

Internet

3. Expansion of the free trade ideology (WTO) --> elimination of tariff barriers

Then there was
Fordism

System of organization of the production process in which the assembly line, which brings the work to the people, plays a leading role

Fordism

- Large scale

- Speed ​​of production and labor increases

- Affordable

- More wages for the workers

After this: Post-Fordism

https://www.nike.com/nl/w/nike-by-you-schoenen-6ealhzy7ok?cp=23937804368_search_