Globalisation Case Studies
China (SEZ/ Open door policy):
Initially China was switched off from the global economy until 1978 Open Door policy where in rural
areas agricultural communes were dismantled, farmers were allowed to make profit and controls on
the number of children to curb population growth. It became more urban and industrialised with
300 million leaving rural areas leading to the growth of low-wage factories and links with TNCs. This
led to a decrease in poverty by 400 million people.
North Korea (switched off places):
Deliberately chosen to remain switched off by its leaders. Citizens have no access to internet or
social media, no undersea data cables connecting North Korea to anywhere else. Divided from South
Korea in 1948, which went on to become developed.
The Sahel region (switched off places):
Some of the world’s least developed countries include: Chad, Mali and Burkina Faso because of the
mismanagement of resources, lack of coastline reduces FDI, arid conditions and desertification. Any
link with other countries tends to be shallow. Farmers may become more dependent on outside aid,
some grow crops for TNCs for low wages- they are not yet seen as viable markets.
India (outsourcing of services):
Call centre services provided for US and UK because many Indian citizens are English speakers and
broadband capacity in Bangalore is high and it is a technology hub due to investment from
companies and TNCs in the 1980s. Although this provides good wages and brings money to the local
area, the gap between rich and poor had widened and some workers complain they are exploited.
China (outsourcing of manufacturing):
Extreme poverty decreased from 60% in 1990 to 16% in 2005. Provides investors with low cost
labour but with workers in poor factory conditions. These have been improved since 2000 after
protests, and wages increased. Increasingly, high value products are made in China with cheaper
goods now being manufactured elsewhere. Costs: workers exploited, pollution of air and water.
Benefits: income gains, adopted technologies and management techniques from TNCs.
Mumbai (megacity growth):
Doubled in size between 1970 and 2015 as a result of people moving there from impoverished rural
states e.g. Uttar. Urban employment covers a range of economic and skill sectors, some employed
by TNCs. Wealthy people such as Bollywood starts and TNC managers drive up house prices in
affluent areas by spending in that area. Rising land prices are putting pressure on redeveloping slum
areas where people mostly work in recycling industry.
India to UAE (low-wage economic migration):
2 million Indian migrants live un UAE making up 30% of the population. $15 billion is returned to
India annually as remittances. Most migrants work in transport, construction and manufacturing
with 1/5 working in service industries.
Asian diet (cultural change):
Traditional diets of little mean and lots of vegetables is giving way to more fast food and meat. By
2015 it was the world’s biggest market for processed food. Livestock farming has increased, leading
to more methane emissions, crops are imported to feed the farm animals and rainforest have been
cleared. As more people escape poverty, food demand increases.
China (SEZ/ Open door policy):
Initially China was switched off from the global economy until 1978 Open Door policy where in rural
areas agricultural communes were dismantled, farmers were allowed to make profit and controls on
the number of children to curb population growth. It became more urban and industrialised with
300 million leaving rural areas leading to the growth of low-wage factories and links with TNCs. This
led to a decrease in poverty by 400 million people.
North Korea (switched off places):
Deliberately chosen to remain switched off by its leaders. Citizens have no access to internet or
social media, no undersea data cables connecting North Korea to anywhere else. Divided from South
Korea in 1948, which went on to become developed.
The Sahel region (switched off places):
Some of the world’s least developed countries include: Chad, Mali and Burkina Faso because of the
mismanagement of resources, lack of coastline reduces FDI, arid conditions and desertification. Any
link with other countries tends to be shallow. Farmers may become more dependent on outside aid,
some grow crops for TNCs for low wages- they are not yet seen as viable markets.
India (outsourcing of services):
Call centre services provided for US and UK because many Indian citizens are English speakers and
broadband capacity in Bangalore is high and it is a technology hub due to investment from
companies and TNCs in the 1980s. Although this provides good wages and brings money to the local
area, the gap between rich and poor had widened and some workers complain they are exploited.
China (outsourcing of manufacturing):
Extreme poverty decreased from 60% in 1990 to 16% in 2005. Provides investors with low cost
labour but with workers in poor factory conditions. These have been improved since 2000 after
protests, and wages increased. Increasingly, high value products are made in China with cheaper
goods now being manufactured elsewhere. Costs: workers exploited, pollution of air and water.
Benefits: income gains, adopted technologies and management techniques from TNCs.
Mumbai (megacity growth):
Doubled in size between 1970 and 2015 as a result of people moving there from impoverished rural
states e.g. Uttar. Urban employment covers a range of economic and skill sectors, some employed
by TNCs. Wealthy people such as Bollywood starts and TNC managers drive up house prices in
affluent areas by spending in that area. Rising land prices are putting pressure on redeveloping slum
areas where people mostly work in recycling industry.
India to UAE (low-wage economic migration):
2 million Indian migrants live un UAE making up 30% of the population. $15 billion is returned to
India annually as remittances. Most migrants work in transport, construction and manufacturing
with 1/5 working in service industries.
Asian diet (cultural change):
Traditional diets of little mean and lots of vegetables is giving way to more fast food and meat. By
2015 it was the world’s biggest market for processed food. Livestock farming has increased, leading
to more methane emissions, crops are imported to feed the farm animals and rainforest have been
cleared. As more people escape poverty, food demand increases.
