9. Why are large parts of Africa bypassed by globalisation?
A stereotypical western business view
Corruption pervades many
African societies. Politicians and
police can abuse authority by being
corrupt. This increases risk of
losses and makes it time
consuming and frustrating for TNCs
to operate.
High Risk &
low returns
Little government
support Due to a lack of
volume of business it is harder for
TNCs to gain incentives e.g.
planning permission for the best
sites, tax incentives etc.
Debt Many Sub-Saharan
countries are weighed down by
enormous debts taken on to fund
infrastructure projects in the 1970s.
They could not repay these loans
so the IMF has made the loans
more affordable (Structural
Adjustment Packages). In return
many LDCs have had to cut their
government spending. This has
many effects.
Unskilled labour
Although labour is cheap,
governments’ debts and reduced
spending on education mean that
populations are technically
unskilled. (Few universities).
Unstable currencies A
rapidly changing exchange rate
would be financial suicide for
TNCs. This brings a high risk of
losses.
Weak market Although
some TNCs do operate in Africa
e.g. flower exports from Kenya, the
wages are not high enough to kick
start the multiplier effect. This
results in a weak market – TNCs
cannot sell their goods.
Politically unstable
Many countries have been marred
by civil wars and insurrection. A
supportive government can
suddenly be replaced by a hostile
one. This can increase risk of
losses for TNCs.
Negative image Many
LDC African countries suffer from a
poor image. The 2010 World Cup
in South Africa could improve this.
Crime Kidnappings of foreign
workers (and physical threats) are
prevalent in many African
countries. This is high risk to TNC
staff.
Poor infrastructure
International debts mean African
governments have no money to
invest in a modern world-class
infrastructure. Few regular flights
and shipping operators. They
cannot compete with China, India
and other NICs.
10. Why are some locations switched
off?
• Some peripheral locations aren’t connected to
globalisation for a number of different reasons. These
are called ‘switched off’ countries. E.g. North Korea or
Chad.
• ‘Switched on’ locations are those that are connected to
each other heavily through globalisation.
• See if you can sort your cards into three categories:
1. Physical / Environmental
2. Political
3. Economic
13. Why was this film so
controversial?
• The Interview trailer here
14. • On November 24, 2014, an anonymous group identifying themselves as
the "Guardians of Peace" hacked the computer networks of Columbia
Pictures' parent company Sony Pictures Entertainment. The
hackers leaked internal emails, employee records and several recent and
unreleased Sony Pictures films,
• The North Korean government denied involvement in the hack.[] On
December 8, the hackers leaked further materials, including a demand
that Sony pull "the movie of terrorism", widely interpreted as referring
to The Interview
• On December 16, 2014, the hackers issued a warning to movie-goers,
threatening to attack the New York premiere of The Interview and any
other cinema showing it on its theatrical release.
• Two further messages, allegedly from the Guardians of Peace, were
released on December 18. One, sent in a private message to Sony
executives, said that the hackers would not release further information
if Sony never releases the film and removed its presence from the
internet.
• The other, posted to Pastebin, a web application used for text storage
which the Guardians of Peace had used for previous messages, stated
that Sony had "suffered enough" and could release The Interview, but
only if Kim Jong-un's death scene was not "too happy". The message
also threatened that if Sony made another film antagonizing North
Korea, the hackers "will be here ready to fight".
16. Your turn
• Using p178 in the normal text book and any
research you can find, produce a fact file on why
these two areas are so ‘switched off’.
• Must include a map (one on each case study) to
show human and physical features that highlight
the lack of connectedness.
17. Why are countries switched off?
North Korea The Sahel Region
North Korea is politically This area is switched off mainly
isolated because of … due to environmental factors…
18. Extension:
How does being landlocked affect a country’s ability
to be switched on?
http://unohrlls.org/about-lldcs/