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Define 'Global Shift' (1)
Movement of the global economic centre of gravity to Asia, outsourcing of manufacturing and service provision to Asia
Suggest one reason why labour costs are cheaper in places such as Bangladesh (3)
- Lower cost of living, as housing/food costs are lower, so company can recruit workers on lower wages
- Fewer regulations in factories, so there is no sick pay, which means employers only pay for hours that are worked
Define population structure (1)
Gender and age composition of a population
By using examples, explain the social and economic disadvantages TNCs being to countries they choose to invest in (5)
- Majority of wealth sent home to TNC country of origin
- Workers often exploited (Nike, employing 70,000 workers in Asia)
- Sets long working hours
- Families divided as parents away
- May have child labour in some places
- Apple outsourced to foxconn (suicides due to poor human rights)
- local businesses cannot compete
Explain the possible socio-economic consequences of population movements for source countries of Europe (5)
Positive:
- Remittances received, invested in local businesses
- Less unemployment as people have moved elsewhere
- Wages rise as fewer workers available
- New job opportunities, especially for women, as men tend to migrate
- Less overcrowding of schools
Negative:
- Loss of skilled workers
- Loss of tax revenue
- Loss of culture
- Families divided so impacts on mental health etc
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