Lecture 6 Global Shift

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• Leerjaar 3

Global Shift

TTO 3 lecture 6 

There are more people living in this circle than outside the circle 

Inhabitatans per country

India and China together have more inhabitants than Europe and Africa.

 

China has about 1.4 billion inhabitants.

India also has about 1.4 billion inhabitants.

Together, they have more than 2.8 billion people.

Europe has about 750 million inhabitants.

Africa has about 1.5 billion inhabitants.

If you add Europe and Africa together, you get about 2.25 billion people.

China van made in China to designed in China.

India: 'Silicon Valley of Asia'.

Other coming up tigers: Malaysia, South-Korea, Singapore, Indonesia

The shift in this centre of gravity shows a global shift.

The economic and political centre of gravity is shifting.

Pacifische oceaan

Pacific ocean

Atlantische oceaan

Atlantic ocean

Atlantische oceaan

Atlantic ocean

Atlantische oceaan

Atlantic ocean

Global  shift:

Atlantic Rim shifts  to the Pacific Rim

Triade 

The international trade and

investment flows are still

especially place between the 3

core areas

USA 

EU

Japan

BRICS

Brasil

Rusland

India

China

South- Africa

BRICS

The BRICS group was founded in 2009 as a counterweight to the dominance of the G7, the group of rich Western industrial countries. Members of the first hour are Brazil, Russia, China, India, and South Africa.

Last year, Egypt, Ethiopia, Iran and the United Arab Emirates joined.

In 2025, Indonesia also joined.

Global Shift

Global shift is the shift of economic center of gravity and activities around the world as a result of economic economies of scale.

Economies of scale are the economic advantages that are achieved by producing on a larger scale. A lot at the same time, which reduces the cost per product!🚗👕🎮

Centre of gravity

The economic centre of gravity indicates where in the world the most money is earned and spent. For a long time, the largest economies were in Europe and the US, but in recent decades this has shifted to Asia, especially to countries such as China and India.

Moving the product/ supply chain

1. Low labor costs

2. Environmental regulations

3. Regulations regarding working conditions

For companies such as Apple, Nike, Shell, H&M, Volkswagen and Amazon, this can pose a threat because:

New competition – Local companies in emerging economies are growing rapidly and can make products that better meet the needs of their own market. For example: Chinese car brands are becoming increasingly popular and compete with Volkswagen.

2. Changing consumer preferences – What works in Europe or the US doesn't always work in Asia or South America. Large companies need to adapt their strategy to remain attractive.

3. Less influence on the market – As the center of gravity shifts, Western companies lose some of their control and decisions are increasingly made in countries where they have less power

4. Political and economic uncertainty – Trade regulations, taxes, and political tensions between countries can make it more difficult for these companies to remain successful globally.

Assignment 6 

Criteria

Extra info

https://www.youtube.com/watch?v=jjr4czDkDEE

https://www.youtube.com/watch?v=650vqwKOBmI