Assess how globalisation creates winners and losers for both people and the physical environment in the developed world. [20 Marks]

Assess how globalisation creates winners and losers for both people and the physical
environment in the developed world. [20 Marks]

AO1 = 10 marks, AO2 = 10 marks

AO1 – Knowledge and understanding of competing national interests and TNCs in energy production and
distribution. Knowledge and understanding of the environmental impacts of a major energy resource.

AO2 – Application of knowledge and understanding to evaluate the extent to which TNCs involved in energy
production cause environmental damage.

Mark scheme:
Level 4 (16–20 marks)
• Detailed evaluative conclusion that is rational and firmly based on knowledge and understanding
which is applied to the context of the question. (AO2)
• Detailed, coherent and relevant analysis and evaluation in the application of knowledge and
understanding throughout (AO2).
• Full evidence of links between knowledge and understanding to the application of knowledge and
understanding in different contexts (AO2).
• Detailed, highly relevant and appropriate knowledge and understanding of place(s) and
environments used throughout (AO1).
• Full and accurate knowledge and understanding of key concepts and processes throughout
(AO1).
• Detailed awareness of scale and temporal change which is well integrated where appropriate
(AO1).

Answer:

Globalisation is the process of people, government’s and businesses being increasingly more interconnected with
each other and the rest of the world thanks to increase in technology, communication and travel, among other
factors. The economic, political and social consequences of it are vast and create a large amount of people who
benefit and suffer due to it.

Transnational corporations (TNCs) are businesses that operate on a global scale. Their HQs are usually in the
developed world and are owned by wealthy western individuals. They benefit largely from being able to access
new markets across seas and borders as well as reduce their costs of production thanks to cheap imports, lower
wages in foreign countries and lack of regulation in the developing world, meaning TNC owners and shareholders
clearly are winners of globalisation. Meanwhile, low-skilled workers are left behind as TNCs move their
manufacturing out of the developed western world to other countries. They are often too old, too poorly educated,
have untransferable skills or do not have the financial or social capability to find new work. This leads to increased
poverty and areas becoming derelict and then abandoned. There are lots of examples of this in the UK, such as the
ship-building industry in the North-West decreasing due to costs of steel and labour costs being too high as well as
competition from abroad. This has led to large areas of cities such as in Liverpool becoming very poor. Similar
situations have occured in the North East and South Wales in coal mining towns, who are obviously losers to
globalisation.

However, manufacturing leaving the developed world has led to better air quality and less polluted lands,
decreasing their carbon emissions slightly. Less factories means less air pollution. From a domestic point, it could
be argued that environmentally the developed world is a winner. However, this has been balanced by the increase
of imported products. Both cargo ships and planes burn fuel to transport consumer goods to the developed work,
meaning just because a country has less heavy industry doesn’t necessarily mean they do less damage to the
environment. Furthermore, when you look at it on an international scale, the manufacturing sector has not
decreased, but only moved away out of sight to the far east, meaning the actual amount of factories has remained
the same or, more likely, increased as more countries adopt consumer-based lifestyles, increasing demand, meaning
the environment as a whole is actually a loser to globalisation.