Repetition 1.2 and 1.3

• Aardrijkskunde
• Middelbare school
• vwo
• Leerjaar 3

Globalization

1.2 Is the economic global situation shifting?
1.3 Development of the trade flows

What are the BRICS countries?

1. Brazil, Russia, Indonesia, China, South-America
2. Belgium, Romania, Italy, Cyprus, Slovakia
3. Belgium, Romania, Ireland, Cyprus, Sweden
4. Brazil, Russia, India, China, South-Africa

What does BRIC also mean?

1. A group of countries working together
2. A group of countries that experience a rapidly economic growth
3. A group of countries that first belonged together in a larger empire
4. A group of countries that are lagging behind and getting poorer

Growing middle class = rising consumer market

Explain this:
Growing middle class = rising consumer market

What is NOT a cause for this global shift?

1. Extension from manufacturing industry to low-wage countries
2. Decrease in industrial employment in Western countries
3. Growing sales market in rising countries
4. Division of the production chain of goods

Global Shift

Global Shift refers to the massive and complex shift in global economic power from the West to the East.

Please name a positive thing and a negative thing about globalization

Some positive effects

1. Cheaper imports of manufactured goods which can keep the cost of living down (Making products more affordable)

2. Retraining opportunities for workers in higher wage industries

3. More efficient industries which remain, which could lead to economic growth and job creation (more opportunities in poorer countries)

Some negative effects

1. Exploiting of cheaper labor markets

2. Unequal economic growth and development

3. Lack of (small) local business

4. Job displacement (it redistributes jobs by moving production from high-cost countries to lower-cost ones. High-cost countries often lose jobs due to globalization, as production goes overseas)

Why would some companies rather work with Poland than with China?

What is meant by outsourcing?

1. Companies can decide for themselves what they want to produce.
2. Way of working in the SEZs
3. Dividing work by giving companies abroad something to do.
4. Doing research on what is the best way of selling products on the market

Which example of outsourcing mainly applies to India

1. Companies that make computer chips
2. Design studio's
3. Callcenters
4. Toy factory

Some positive effects

1. You do not have to hire more employees

2. Access to a larger talent pool

3. Lower labor costs
4. More work for the semi periphery

Some negative effects

1. Lack of control
2. Communication issues
3. Problems with the quality
4. Less work in the core

Why where the colonies so important for the mother countries?

Economies

Capitalist country with a free market economy = country in which production is in the hands of private companies, which decide themselves what they produce and which services they offer.

Communist country with a planned economy =country in which production is run centrally by the State. The State decides what is produced and which services are offered.

--> protectionism: Protection of the national market and companies against foreign competition (import tax raises)

Angola model