Assess the importance of the global shift on one named
country [12 marks]
The global shift, which is a consequence of globalisation, is the shift of FDI from HICs, such as the
USA, to NEEs such as India and China. For countries such as the US, the impacts have been
particularly felt in areas of industry, where deindustrialisation has led to many cities experiencing
elevated levels of dereliction and unemployment.
In the US, this is particularly seen in Detroid, situated in the Rust Belt. Detroit was once the 4 th
largest city in the US during its peak as a car-manufacturing city with Ford and General Motors based
there. However, the global shift has meant production has moved to Asian countries such as China
and Japan where costs are much cheaper.
As a result, an impact of the global shift has been that unemployment is remarkably high. In Detroit,
unemployment is 7.9%, compared to the US average of 3.7%. This has triggered a spiral of decline,
where thousands of people have fled the city in order to find work elsewhere. The city loses 0.5% of
its population each year, making the city an example of the negative effects the shift has had on the
USA.
The consequence of depopulation in Detroit are no that many buildings and warehouses have been
left derelict. As a result, there has been a rise in crime and other social issues have worsened due to
the city receiving less tax revenue. The city was declared bankrupt in 2013, only making tackling
these issues more difficult and encouraging even more people to leave the city, enhancing the cycle
of decline for Detroit.
With little money to tackle social issues such as education and health, literacy rates dropped to 53%
and life expectancy is 3 years below the US average. With worse education and poorer health, many
residents are even less able to find work, causing even more businesses to leave the area.
It is clear that the global shift has had an overly negative effect on the city of Detroit. As it relied so
much on one industry which has moved abroad due to cheaper costs, the quality of life for people in
Detroit has worsened and created a cycle of depopulation, unemployment, and poverty. Many
residents have negative equity, with their homes being worse less than they paid, due to how severe
the decline has been. While many NEEs have experienced growth, for Detroit, they have only seen
decline.
country [12 marks]
The global shift, which is a consequence of globalisation, is the shift of FDI from HICs, such as the
USA, to NEEs such as India and China. For countries such as the US, the impacts have been
particularly felt in areas of industry, where deindustrialisation has led to many cities experiencing
elevated levels of dereliction and unemployment.
In the US, this is particularly seen in Detroid, situated in the Rust Belt. Detroit was once the 4 th
largest city in the US during its peak as a car-manufacturing city with Ford and General Motors based
there. However, the global shift has meant production has moved to Asian countries such as China
and Japan where costs are much cheaper.
As a result, an impact of the global shift has been that unemployment is remarkably high. In Detroit,
unemployment is 7.9%, compared to the US average of 3.7%. This has triggered a spiral of decline,
where thousands of people have fled the city in order to find work elsewhere. The city loses 0.5% of
its population each year, making the city an example of the negative effects the shift has had on the
USA.
The consequence of depopulation in Detroit are no that many buildings and warehouses have been
left derelict. As a result, there has been a rise in crime and other social issues have worsened due to
the city receiving less tax revenue. The city was declared bankrupt in 2013, only making tackling
these issues more difficult and encouraging even more people to leave the city, enhancing the cycle
of decline for Detroit.
With little money to tackle social issues such as education and health, literacy rates dropped to 53%
and life expectancy is 3 years below the US average. With worse education and poorer health, many
residents are even less able to find work, causing even more businesses to leave the area.
It is clear that the global shift has had an overly negative effect on the city of Detroit. As it relied so
much on one industry which has moved abroad due to cheaper costs, the quality of life for people in
Detroit has worsened and created a cycle of depopulation, unemployment, and poverty. Many
residents have negative equity, with their homes being worse less than they paid, due to how severe
the decline has been. While many NEEs have experienced growth, for Detroit, they have only seen
decline.
