Head to www.savemyexams.

com for more awesome resources

Cambridge (CIE) IGCSE Your notes

Geography
Development
Contents
Levels of Development
Inequalities in Development
Economic Sectors
Employment Sectors
Globalisation

Page 1 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

Levels of Development
Your notes
Levels of Development
Development is the progress that a country makes to improve the quality of life for its population and
make the country more independent
The quality of life includes subjective evaluations of life such as happiness
These different components are not independent of each other but linked - for example health and
environment are dependent on income and they in turn may impact happiness:
Physical - Water supply, housing, power and heat, climate, diet and nutrition etc
Social - Family and friends, education, health etc.
Psychological - Happiness, security, freedom etc.
Economic - Income, job security, standard of living, mobility etc
Development is not a smooth, continuous process
Development can occur for a number of reasons:
Investment in agriculture (tractors, fertilisers etc.) improves food supplies, which improves the
health of people
Improvements in supplies of power to rural areas
Improvements in access to education for females and overall literacy rates
It can be slowed, halted and even reversed by:
War/conflict
Disease
Disasters
Economic recession

Cycle of wealth
One of the key indicators of development is the cycle of wealth
Economic development creates wealth and if a country has a stable and effective government this
leads to the development
As the economy grows, more people work and are earning more money:

Page 2 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

The government can then collect more taxes and people have more disposable income to spend
which increases business profits
Your notes
The taxes collected and profits made by companies can then be invested in future growth as well
as infrastructure, education, healthcare etc...

The cycle of wealth

Measures of national income

The traditional method of measuring wealth is through the country's GNP (gross national product), GDP
(gross domestic product) and GNI (gross national income)
Gross Domestic Product (GDP) per capita is the total value of goods and services produced within a
country in a year divided by the population of the country
There can be huge differences in GDP depending on the size and population of a country
Dividing it by the population means that more meaningful comparisons can be made between
countries

Page 3 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

GDP per capita is an average this means that the variation in wealth is hidden
It is possible that two countries can have the same average GDP per capita but that one has a few Your notes
very wealthy people and lots of people living in poverty whereas the other has a more equal
distribution of the wealth
There is no way of knowing what the GDP is spent on - for example, GDP increases after an earthquake
due to the rebuilding which is needed this does not mean that the country is more developed or that
everyone's quality of life has improved
As countries have different numbers of people (population), then GNP per capita (per person) is used
This allows comparison between countries where total population figures are different
GNP of the UK is lower than India, but the GNP per capita of the UK is higher than India (India has a
higher population compared to the UK)
However, GNP per capita does not take into account the cost-of-living in the country - $1 will go
further in Bangladesh than in the USA
To even this discrepancy, the GNP per capita at Purchasing Power Parity (PPP) is calculated
Comparison between countries level of development is easy to see, but it fails to identify:
How wealth is distributed around a country - the wealth gap
Government investment in the country - Cuba has higher literacy rates, a lower infant mortality rate,
and similar life expectancy than America, despite Cuba's low GNP per capita but Cuba's
government has long prioritised social investment
Levels of development vary on a local, national and international scale
There are differences between areas of the same city, the same country and between countries
These include:
Literacy
Life expectancy
Infant mortality
Doctors per 1000 people
Energy consumption per capita
Internet access
Car ownership

Page 4 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

Examiner Tips and Tricks

Remember increasing wealth is not equally distributed. In all countries some people will benefit
Your notes
more from the cycle of wealth and economic development. Often as a country develops the gap
between the rich and poor increases.

Human development index

The Human Development Index (HDI) was developed by the UN in 1990 and is a measure of the
disparities between countries
The index takes into account four indicators of development:
Life expectancy at birth
Mean years of schooling for adults aged 25 years
Expected years of schooling for children at school entering the age
Gross National Income (GNI) per capita (PPP$)
Countries can be divided into four groups using HDI
Very High Human Development (VHHD)
High Human Development (HHD)
Medium Human Development (MHD)
Low Human Development (LHD)
HDI is scored from 0 to 1
The higher the HDI the higher the level of development and quality of life
Norway has the highest HDI at 0.957
Niger has the lowest HDI at 0.394

Gini coefficient index

GNP and HDI are unable to identify inequalities between countries
The wealth gap in some countries is more significant than in others
The Gini coefficient index is used to analyse the distribution of wealth and identify countries where
wealth distribution is the most unequal:
Measured on a scale of 0 - 1.0 or as a percentage

Page 5 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

A low value means that the distribution of wealth is more equal - a measurement of 0 would mean
that wealth is distributed completely equally
Your notes
A high value means the distribution of wealth is unequal - a measurement of 1 would indicate
maximum inequality
The Gini coefficient index is usually between 0.24 and 0.63 or 24%-63%
The highest inequality is currently in South Africa, Central Africa, Namibia, Zambia and Suriname
The lowest inequality is in the Czech Republic and Croatia

Worked Example
Identify the meaning of the term quality of life
[1 Mark]

A A person's well-being in terms of environment, security and health

B A person's level of deprivation

C A person's level of income

D A person's type of job

Answer
A - The other answers are subjective and do not relate to the quality of life

Indices of political corruption

Political corruption can have a devastating impact on both development and human welfare
It means money is often not invested in infrastructure, development and human welfare but goes
to wealthy individuals
It leads to a lack of trust between local/national governments and the population
Transparency International scores 180 countries around the world out of 100 based on the levels
of public sector corruption
The higher the score the less corruption has been found
Denmark, New Zealand, Finland and Singapore have the lowest levels of public sector corruption
scoring 85/100 or more

Page 6 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

Somalia, Syria and South Sudan have the highest levels of public sector corruption scoring less
than 15/100
Your notes

Worked Example
Suggest why GDP per capita is not necessarily a good indicator of the quality of life.
[2 Marks]
Answer - any two of the following
GDP measures only economic production [1]
Quality of life is not only about income [1]
GDP is an average measure so many people may have incomes below this [1]
The wealth is not shared equally across the population [1]
It depends on what the GDP is spent on - weapons do not improve quality of life [1]
It does not consider health or education [1]

Page 7 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

Inequalities in Development
Your notes
Inequalities in Development
Stages of development
All countries move through the different stages of development
The UN identifies four main stages of development

Stages of Development

The development gap

The development gap is the difference in levels of development between the least developed and
most developed countries in the world
There are many factors which lead to the differences in development
Page 8 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

Your notes

Factors Affecting Development and Human Welfare

Physical geography
Landlocked countries find trade more difficult and so often develop more slowly
Small countries develop more slowly due to have fewer human and natural resources
Those countries with extreme climates develop more slowly
The physical geography also impacts on the natural resources available
The natural resources are those things provided by the physical environment

Natural resource Uses

Water Domestic use, energy

Forests Timber, habitat, rubber, recreation, food, medicines

Fossil Fuels Fuel, energy

Soil Growing crops

Page 9 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

Rocks Construction
Your notes
Minerals Glass, jewellery, money

Animals Food, skins

Some countries are able to meet all their needs from the natural resources they have
Many countries have to import some natural resources that are not available within their borders
When countries have to import natural resources, this means they do not have security of supply as
imports could be affected by war or political issues
Water, food and energy security are particularly important to support a country's development
Demography
The population structure of a country
The birth and death rates, as well as immigration, affect the available workforce
Those countries where birth rates have fallen the most, show the highest rates of growth
Technology
Can help to increase water, food and energy security
Mechanisation of farming increases yields and improved land surveying may reveal more energy
sources
Technology can also mean that existing resources are used more efficiently
Social
Levels of education affect the skills people have. The more educated a population is the more a
country will develop
Healthcare affects how well people are which affects their ability to work
Lack of equality can mean that the overall productivity of a country is affected
Government policies
The stability and effectiveness of government can have a significant impact on development and
human welfare
Development and human welfare are greatest where there is a democratically elected
government

Page 10 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

Corrupt governments do not invest in the country's development or in improving the quality of life
for the population
Your notes
A government's economic policy affect development and human welfare through:
Open economy - where foreign investment is encouraged, which generates faster
development
Higher rates of saving and lower spending compared to GDP, results in further development
Differences within countries
As well as differences between countries there are also differences in development within countries:
This can be seen in all countries whether they are developed, emerging or developing
Often development is focused on particular regions
Inequalities within countries are due to several factors
Cumulative causation theory is one explanation for regional differences:
Growth in the core region attracts skilled labour and capital
Areas in the periphery suffer as skilled labour leaves and investment is focussed on the core
The gap between the core and the periphery grows
Eventually the growth of the core region may stimulate growth in the periphery due to the demand
for raw materials

Page 11 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

Your notes

Cumulative Causation

There are three stages of regional inequality:

Pre-industrial stage - regional differences are at their lowest
Period of rapid economic growth - increasing regional differences
Regional economic convergence - where wealth from the core spreads to other parts of the
country

Causes of regional inequalities

Residence - Urban areas generally attract greater levels of investment leading to increased business
and incomes:
There may also be inequality within the urban area

Page 12 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

Ethnicity - Discrimination can result in ethnic groups having income levels significantly below the
dominant groups within a country. This reduces the opportunities open to these groups
Your notes
Employment - The split between formal and informal employment impacts incomes. Formal jobs
usually have higher incomes and greater benefits, such as holidays and sick pay
Education - Those with higher levels of education usually gain higher paying employment
Land ownership -Inequalities in land ownership are strongly linked to inequalities in income

Worked Example
Study the figure below which shows GDP per capita in South America along with the percentage
change in GDP

Page 13 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

Your notes

State one piece of evidence that there is a development gap in South America
[2 Marks]
As this is for two marks, it is important that you use evidence from the source for the second
mark

Page 14 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

There is a difference in GDP per capita between countries [1] French Guiana has a GDP per
capita of less than US$4000 whereas Suriname has a GDP per capita of over US$13,000 [1]
OR Your notes
There is a difference in the percentage increase of GDP per capita [1] Guyana's increase in GDP
per capita is only 1.4% whereas Chile's is 3.7% [1]

Examiner Tips and Tricks

Remember where an exam question asks for one piece of evidence do not give more than that.
In the case of the worked example, the one piece of evidence is the comparison between two
countries.

Page 15 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

Economic Sectors
Your notes
Economic Sectors
An economic activity is the production, purchase or selling of goods and services
Economic activities can be grouped into four sectors:
Primary - mining, fishing, farming etc.
Secondary - factory workers, clothing, steel production etc.
Tertiary - nurses, lawyers, teachers, shop assistants, chefs
Quaternary - hi-tech scientists, research and development

Worked Example
Identify what is meant by an economic sector
[1 Mark]

A. The chain of production in manufacturing

B. An economic shift in employment

C. A classification of types of employment

D. A classification of employment structures

Answer
C [1] - a classification system for types of employment
The other answers are not related to employment sectors which are the four groups - primary,
secondary, tertiary and quaternary

Examiner Tips and Tricks

Remember the economic sectors can also be used to group employment types. For example, a
farmer is employed in the primary sector whereas a teacher is employed in the tertiary sector.

Page 16 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

Employment Sectors
Your notes
Employment in Economic Sectors
Economic sectors are an indicator of a country's economic development using either:
The amount each sector contributes to the Gross Domestic Product (GDP)
The percentage of the population they employ
The proportions of each economic sector GDP and employment changes over time:
In the pre-industrial period, the primary sector dominates with steady increases in the secondary
and tertiary sectors
As countries develop the reliance on the primary sector for GDP and employment rapidly
decreases
During the industrial period the amount of GDP and employment in the secondary sector
increases to become dominant and then decreases. The primary sector continues to decrease
and tertiary sector increases
In the post-industrial phase, the tertiary and quaternary sectors increase whilst the secondary and
primary sectors decrease.
The tertiary sector dominates employment and GDP in the post-industrial period

Clark-Fisher Sector Model

Page 17 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

As countries develop the numbers of people employed in each economic sector changes
This can be seen in the Clark Fisher Sector Model above and in the examples below: Your notes

Examiner Tips and Tricks

You should be able to look at a pie chart or graph of the economic sectors and work out the stage of
development of a country. A developing country will be dominated by primary economic activities,
a newly industrialised country is likely to have fairly equal amounts of each type of economic sector
employment and finally a developed country will be dominated by tertiary economic activities.

Causes of changes over time

There are a number of reasons for the change in percentages employed in each sector:
Increasing mechanisation in agriculture led to a decrease in the jobs available
People moved to urban areas to find jobs in secondary and tertiary sectors
Increasing mechanisation and global changes led to a decrease in secondary employment in
some countries
Technological improvements have led to an increase in tertiary and quaternary employment

Page 18 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

There is a clear link between employment structure and indicators of development

Your notes

Page 19 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

Globalisation
Your notes
Globalisation
Globalisation is where the world has become more interconnected through the processes of
economics, culture, politics, trade and tourism
Environmental globalisation can also be considered part of the interconnection as can be seen with
the impacts of global warming
Globalisation is nothing new; trade between people, business and countries has always existed
Whereas trade would have taken weeks, month or even years in the past, modern transport and
communications has made trading and interaction almost instantaneous - time-space compression
Globalisation has effectively removed the political borders of countries which makes countries more
interdependent on each other, with the more powerful countries and business empires affecting
decisions in other parts of the world
This has seen the rise in global inequality
These improvements and developments in communication and transport have made globalisation
what it is today - a shrinking world

Page 20 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

Your notes

Page 21 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

Your notes

Time-Space Compression

Overall, connections around the globe are:

Faster - faster speeds for talking, travel, money exchange etc
Deeper - connecting lives with faraway places
Longer - connecting links between places are further apart
These connections are considered as network flows to places and populations through four
significant developments:
Appearance of large transnational corporations (TNCs)
Growth of regional economics and trading blocs
Development of modern transport networks
Advances in IT and communications, particularly the WWW and the internet

Page 22 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

Your notes

Production chain
These developments have led to the global economy
Almost every country in the world has 'networked' in one way or another
There are five different network flows:
Trade - import and export of raw materials, food goods and services through the reduction of
trade barriers
Aid - most aid is economic either through receiving or donating, allowing developing countries to
invest in education, health, infrastructure and trade
Foreign investment - either directly or indirectly through business opportunities e.g. Shell oil
investing in Niger

Page 23 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

Labour - important to the working of the global economy and labour migration fuels this market
either with a specialist or cheap labour
Your notes
Information - fast data transfer and communication are vital to the global economy
The global production, supply or commodity chain pulls these flows together to produce goods or
commodity
At each stage of the flow, value is added to the emerging product
Despite the miles involved and the number of countries involved; the product is still cheaper to
produce in various stages
This is known as the Economies of Scale - the cost per item reduces when operated on a large scale
Transport improvements through large container ships mean that costs are reduced and moved further
quicker
Labour costs are cheaper in emerging and developing countries and there are usually reduced legal
restrictions
Global investment
Investment is not just monetary (economic), although this is a large part of it
Investment can be in people, research or products
Foreign investment is where individuals or firms from abroad invest in another country:
Call centres can be located anywhere e.g. India
Investment is made in the country through building the call centre, paying taxes etc.
Local people are employed and trained
Service is provided to the donor country - the UK
Moving manufacturing from developed to developing or emerging countries
China is the main area for manufacturing goods from around the world
Investment is made in China to produce goods
Completed goods are shipped back to the original country e.g. Germany
Investment in people either for cheap labour or for their expertise
Specialist surgeon from the USA to Australia
Investment in developments that attracts cheap labour - construction of Dubai attracts many
Indian migrants

Page 24 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

Research and development investment - motor car industry to build more fuel-efficient motoring -
Elon Musk's Tesla electric cars
Investment can be from aid for rebuilding after a disaster - Ukraine will need aid after the war with Your notes
Russia ends
Aid can be funds sent to the government to use as necessary, although this can often lead to
corruption and funds not going where they should
Aid can be in form of goods and services directed to the affected area - refugee camps or after a
natural hazard such as a tropical storm or earthquake
Transnational corporations (TNCs)
Transnational Corporations (TNCs) operate in foreign countries individually and not through a
centralised management system
TNCs and countries are the two main elements of the global economy
Governments and global institutions set the rules for the global economy, but the main investment is
through TNCs
TNCs involve themselves in all economic sectors and impact the global economy with the largest
TNCs representing the biggest percentage of total global production
TNCs directly invest in one country and later expand to other nations (usually developing countries) to
take advantage of lower labour costs and incentives
They may not be loyal to the operating country's values and will only look to the expansion of their
business as they have no connection to the country they operate in
It is the process of moving manufacturing around the globe that has resulted in the development of
emerging countries such as China, India and Brazil

Examiner Tips and Tricks

Remember that Transnational Corporations (TNCs) are not the same as Multinational
Corporations (MNCs)
The biggest difference is that an MNC has a home country that makes decisions and passes
them around the global companies, whereas TNCs operate independently
An example of an MNC is Apple, where R&D and major decisions are made in California and
passed along the operating chain
Cadbury's chocolate is a TNC as they have to make decisions to vary the recipe to local tastes
and conditions - e.g. the chocolate is sweeter in China

Page 25 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

Worked Example
Your notes
Identify the meaning of the term TNC
[1 Mark]

A Translocal Corporation

B Transnational Corporation

C Transnational Country

D Transporting National Corporation

Answer
B [1] - as none of the other terms exist.

Impacts of globalisation on people

Globalisation has generated benefits and costs for many people but at different levels
Some have benefitted more than others with the poorest tending to be the losers
However, it can be argued that without globalisation the poorest would be worse off than they are now,
as they job opportunities and income from inward investment from TNCs
Countries such as China, Brazil and India have transformed themselves from developing to emerging
economies which has directly benefitted their population
Gender gap within individual countries is generally lower in more globalised countries
Skilled workers are in demand and benefit from globalisation more than unskilled workers
Benefits and Cost of Globalisation to People at a Variety of Levels

Benefit Cost

Local Level Cheaper products available Small local businesses cannot compete with global
for people companies
Greater choice of goods Labour drain - skilled workers migrate elsewhere leaving
unskilled or no workers behind
Bigger export market for
domestic manufacturers Dependence on single TNC employment
Worker exploitation/cheap labour

Page 26 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

Integration of cultures - Closure of TNC leaves high unemployment rates

multi-culture
Cultural dilution or loss of cultural identity Your notes
Education and skills are
improved Environmental cost of increased production, trade and
growth
More freedom of movement
Pollution impacts the health of people
Spread of technology and
innovation Daily living costs increased

A higher standard of living

Availability of housing,
sanitation, food and water is
better
Gender equality and gender
pay gap closing in
developed countries

National Higher levels of incoming Increased levels of disparity between places - some
Level revenue from tourism, towns and cities will benefit more from government
exports and imports policies
Growth of improved health Social mobility is limited to urban areas, people in rural
care, infrastructure, social areas need to migrate
care and education
TNCs control a large labour force and can 'black list'
Social mobility is greater - workers, effectively preventing people from working
access to higher education elsewhere
and senior leadership roles
Industrial growth impacts the environment - burning
TNC offer apprenticeships fossil fuels adds to global warming and pollution
and incentives for
progression Growth of urban slums

International Skilled workers are in Movement of people, transport ownership and loss of
Level demand and can move biodiversity increases globally
relatively easily between
countries The impact is greater on developing countries,
particularly remote rural areas, increasing the
Higher levels of income and development gap
quality of life
Decisions made elsewhere do not consider local or
Access to wide levels of national identities
skills and research

Page 27 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

International trade routes The movement of skilled workers and researchers leaves
and foreign investment an imbalance in developing and emerging countries,
improves opportunities reducing the potential for further development unless Your notes
they pay higher wages, leading to higher global costs

Impacts of globalisation on countries

TNCs are key in globalisation
They link raw materials with manufacturers, research and development opportunities and products
with global markets
Global marketing establishes TNCs as 'the brand' to have
However, TNCs answer to shareholders and need to maximise their profits, usually at the cost of their
workers
TNCs therefore, can impact positively or negatively on countries
Benefits and Cost of Globalisation to Countries at a Variety of Levels

Benefits Costs

TNCs bring skills, opportunities, money and TNCs pay low wages and expect long hours and are
technology to developing and emerging generally exploitive, particularly of female workers
countries

Inward investment to host countries increase TNCs are powerful and are not loyal to a host
the level development country's government - investment can disappear as
quickly as it came

Host country's infrastructure is improved by TNCs can leave a country if global or local economies
TNC or for TNC - access, communications, change or somewhere else becomes more profitable
energy supplies etc.

TNCs create jobs, allowing people to buy more Profits 'leak' out of the host country either to open up
and pay more tax new business elsewhere or are paid in bonuses and
dividends to share holders

Foreign currency is earned through exports TNCs often ignore the environmental and social costs
of their investment

Page 28 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
 Head to www.savemyexams.com for more awesome resources

TNCs have a multiplier effect through TNC jobs are often boring, repetitive and don't
encouraging other industries to grow up around develop skills - effectively trapping their workers in
Your notes
them the company

Case Study - Nike

Make sure you know your case study of the global operation of a TNC
You need to be able to identify the costs and benefits to the host country as well as to the TNCs own
country of origin
For example, you could produce something along these lines on the USA based company Nike

Country Cost Benefit

Vietnam Exploitation of workers Substantial employment

Poor working conditions Pays higher wages than local firms
Child labour Status of brand encourages other TNCs to
invest

USA Indirect loss of jobs as manufacturing is Bigger profits made as manufacturing costs
outsourced are lower
Balance of profit to cost isn't passed onto the High level skills in design, R&D in demand
customer
Company image damaged due to
outsourcing

Remember to keep it simple and use facts and figures to keep it 'real' and not a generic case study

Page 29 of 29
© 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers