World of Work

The new economy

Old economy• Production of manufactured

goods• Locally or regionally based• Industry attracted to raw

materials, power, cheap land, good transport etc

• Local labour• Mass production• Job specific skills e.g. engineer• Mainly male employment

New economy• Production of knowledge, ideas and

services• Globally based and interconnected• Human resources are very

important• Risky• Specialised services• Global labour force• Equal male and female employment

Examples:Iron and steel industryTextile industryCar assembly

ExamplesICT industriesTechnology such as mobile phonesTV production

Globalisation refers to growth and the spread of ideas on a global or world wide scale

What do you think? Is Globalisation good or bad?

Global distribution of three income groupings, based on GNI per capita 2003

One feature of Globalisation is the dependence between countries. Look at the production chain involved in a pair of trousers and identify the links between income and the position of the country in the production chain.

Cotton grown in Egypt

Cloth woven in Thailand

Trousers made in Bangladesh

Trousers shipped to Rotterdam ( Netherlands)

Trousers distributed to retails outlets in UK

Synthetic fibre made in China

Buttons and zips made in India

The production chain of a pair of trousers.

In 1960The richest 20% of people shared 70% of global wealth between them.

By 2004:The richest 20% controlled over 90% of the world’s wealth.Globalisation Winners • Well educated young workers in developing countries who are a potential workforce• Women, TNC’s offer job opportunities to women who in traditional societies would not have been able to work• young workers who are mobile and willing to emigrate to find jobs

Globalisation Losers• Poorly educated people working in farming as they have few skills to offer• Workers in industries unable to survive competition with TNCs.• workers in farming in developing countries as cheap imports of food may cause farming to collapse• workers in developed country factories forced to close due to cheap imports or factories closing

Read p 255 from your textbook. Describe the problems that Globalisation has

created for both Bangalore and China.