1.1 Global shift

• Aardrijkskunde
• Middelbare school
• vwo
• Leerjaar 3

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Instruction

1.1 Is the balance of economic power shifting?

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Goods production shift

In 1990 70% of all industrial goods were made in Western countries. 

In 2018 that was just half.

Factories also left the Netherlands. Some buildings are still empty.

The share of the BRICS countries increased from 10 to 35% in this period.

BRIC-countries are:

1. Brazil, Russia, Iceland en China
2. Bali, Russia, India en Colombia
3. Brazil, Russia, India en China
4. Brazil, Romania, Indonesia en China

Wait, who is S in BRICS?

What are core countries (centrumlanden)?

1. The most developed countries in Europe.
2. The most developed countries in Afrika.
3. The most developed countries in the world.
4. The most developed countries in the periphery.

Which sector is dominant in the semi-periphery?

1. Services
2. Agriculture
3. Industry

BRICS-countries belong to:

1. Core
2. Semi-Periphery
3. Periphery

World system theory

Learning objective: You can describe the economic world system (of Wallerstein) and classify countries/areas within this model.

Goods production shift

Western multinational companies (MNOs) in particular are driving this shift.

What reasons do the MNOs have?

• Nowadays products are not only made, but developed in low-wage countries.
• Emerging countries are a new market due to the increase in purchasing power.

Trade patterns are changing

World trade has increased because:

• the production chain is divided;
• transport of goods is faster (just-in-time);
• trade borders are disappearing.

Trade patterns are changing

What is increasing global trade?

A car that is assembled in Europe consists of parts that come from all over the world.

Trade borders

Which organisation stimulates world trade?

WTO – World Trade Organization

When countries protect their own market by import duties, a conflict can arise. Such a conflict is called a trade war.

Trade borders

Protection of your own market is not in line with the development of countries becoming increasingly intertwined.

What is another name for the increasing intertwinement of countries?

Due to recent developments, the economic centre of gravity of the world has shifted to

South- and East-Asia.

The name of this shift is gobal shift.

Globalisation

Perhaps the world is moving towards a multipolar global economy.

The Ever Given

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Section 1.1: 6 + 1, 2, 4

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Page 6 and 7 of your workbook.

6 Learning objectives

What is global shift?

1. The expansion of world trade
2. The relocation of the main production areas
3. That something is shifting in the world globally
4. The expansion of contacts between countries in the world

Global shift happens from:

1. periphery -> core
2. (semi)periphery -> core
3. core -> (semi)periphery
4. semi-periphery -> periphery

Next lesson

1.2 Development of the world economy