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The Impact of Globalization on Deindustrialization in MEDCs: Economic, Social, and Environmental Effects

This analysis delves into the multifaceted effects of globalization on MEDCs, particularly focusing on the consequences of deindustrialization. Key economic impacts include a significant loss of manufacturing jobs in the UK, leading to rising unemployment, skill loss, and shifting gender roles in the workforce. Social repercussions, such as increased crime and health issues, alongside environmental challenges like derelict buildings and polluted landscapes, reveal the widespread consequences of industrial decline. However, there are also positive outcomes, including productivity increases, growth in the tertiary sector, and opportunities for small businesses.

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The Impact of Globalization on Deindustrialization in MEDCs: Economic, Social, and Environmental Effects

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  1. KI5 Who loses from Globalisation? MEDCs – the effects of deindustrialisation.

  2. Economic effects • Rising unemployment. • UK 3.4million lost jobs in manufacturing 1975-1995 • Lost skills e.g. ‘metalbashing’ in West Midlands. Older workers not passing skills to next generation. • Well paid traditional ‘skilled working’ jobs (replaced by lower paid, lower skilled work) • Rising male unemployment • risingfemale employment as a proportion of workforce eg s. Wales Valleys

  3. Economic effects • Long term unemployed • Concentration of unemployment in manufacturing sector • Regional differences (‘north’ / ‘south’ divide) • Demultiplier effect

  4. Demultiplier effect eg Ebbw Vale in south Wales 14,500 jobs in 1967 when nationalised. Closure of steelworks in 1978 and tinplate works in 2002 (780 jobs)

  5. Demultiplier effect eg Ebbw Vale in south Wales 14,500 jobs in 1967 when nationalised. Closure of steelworks in 1978 and tinplate works in 2002 (780 jobs) Labour displacement Intervention – WAG – ‘The Works’. Outmigration of people and decrease in spending power Regional problems Development of social problems Unviability of services – schools, hospitals, local shops.

  6. Social Effects • Crime • Violence • Vice • Health issues • Depression • Unhealthy lifestyle • Particular impacts on some social groups … gender, age, minorities

  7. Environmental Effects • Derelict buildings – Ebbw Vale tinplate works, old mine buildings. • Scarred landscapes – spoil heaps (Aberfan) • Polluted waste land – Llandarcy oil refinery • Inner city slums e.g. Cardiff Docks (Bay) and Swansea Docks – urban redevelopment sites.

  8. POSITIVE EFFECTS of DEINDUSTRIALISATION • Productivity increased – ‘leaner, fitter’ more competitive manufacturing sector • Reindustrialisation – TNC inward investment from Japan, Taiwan and S. Korea. (1980s & 90s) • Growth of small businesses • Growing Tertiary sector “TERTIARISATION” – In 2000 75% UK labour force in tertiary and 20% in manufacturing. • Social changes – more jobs for females, more part-time • Rise of Quaternary sector (subset of Tertiary)– research and development , pharmaceutical, ICT– Science Parks e.g. Cambridge. Technium – Swansea SA1

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