This is a focussed revision guide for use closer to the final exam – a star* next to the slide...

This is a focussed revision guide for use closer to the final exam – a star* next to the slide number

indicates a slide you must become an expert about as the exam approaches

Ideas how to use the revision cards:- Colour code the cards to show how confident you are with the topic- Ask someone at home to test you- Test yourself & highlight key words- Annotate (label) the cards- Re-write your own definitions- ‘Look, cover, check’- Draw a mind map for some topics- Expand on key words- Explain a topic to someone else- Cut out cards & stick around a room

1

Contemporary Themes

Who are producers and consumers?

The Global Citizen

2*

Economic activities of people and countries can be classified into two broad categories.

- Economic producers and economic consumers.

Key definitions:

Economic – relating to trade, industry and money.

Producer – a country or an individual who makes or grows products.

Consumer – someone who uses a product or resource (e.g. by driving a car we consume oil – we are also consumers if we send a text or watch a concert).

Contemporary Themes


The Global Citizen

3

There are different scales of production and consumption, which vary across the world.

• Individual - one person producing goods (e.g. coltan miner in the Democratic Republic of Congo).

• Small company - when a group of 2-50 people work together to produce goods (e.g. Mazuma – mobile phone recycling company)

• National company - a company with branches in different places in a country (e.g. Foxconn – manufacture mobile phones).

• Multinational company - a company with branches in different countries around the world (e.g. Nokia) – sometimes referred to a transnational corporations (TNCs).

Contemporary Themes


The Global Citizen

4

There are different scales of production and consumption, which vary across the world.The global pattern of production and consumption:

Production:• MEDCs produce more ‘expensive’ manufactured goods (secondary products such as cars and computers).• LEDCs produce more ‘cheap’ primary products like foods (e.g. tea and coffee) and raw materials (e.g. crude oil, iron ore and cotton).

Consumption:• More than 50% of trade takes place between the top seven trading nations – MEDCs such as Germany, UK, France and the USA.• The world’s wealthiest 20% of countries account for 77% of total world consumption, the poorest 20% account for 1.5%.

Contemporary Themes


The Global Citizen

5*

There are different scales of production and consumption, which vary across the world.The global pattern of production and consumption:

The patterns of production and consumption show that countries are interdependent. Interdependence describes the relationship that exists between countries that share a need to exchange one another’s goods and services:

The pattern of world trade means that LEDCs export mainly primary products, which are low in price. Exports of manufactured goods from MEDCs are high in price. As a result, many LEDCs have big debts – peoples’ lives don’t improve – people in LEDCs lack purchasing power. MEDCs become richer allowing peoples’ standard of living to improve as they consume more products and services.

Contemporary Themes

What types of products and services are there, how and where are they produced?

The Global Citizen

6*

Products are produced and services are provided in different places.

Definition and the process of globalisation:

Globalisation is the way different countries are more and more connected to each other. These connections make them more interdependent.

Contemporary Themes


The Global Citizen

7

Multinationals/Transnational corporations (TNCs) are major companies that operate in more than one country: e.g. a company might have its headquarters in Switzerland, produce its goods in China, and sell them in the US and Europe.

TNCs can also have advantages (e.g. generate wealth) and disadvantages (e.g. closure of factories in MEDCs because costs/wages are lower in factories in LEDCs) in MEDCs.

Advantages of TNCs in LEDCs Disadvantages of TNCs in LEDCs

Multiplier effect – other industries grow up around TNC factories and supply them with parts/services

Pay low wages and expect long hours

Improve infrastructure (e.g. roads and energy supplies)

Jobs are often boring, repetitive and don’t develop many skills

Create jobs – people can then buy things and pay more tax

Most profits go back to the TNC’s base in an MEDC

Contemporary Themes


The Global Citizen

8*



Model answer 1

Describe how TNCs influence global interdependence/globalisation

TNCs are companies that operate in more than one country. TNCs generally have their headquarters in richer countries but locate their production in poorer countries. That makes the poorer countries dependent on the TNCs for jobs and investment. At the same time, TNCs rely on poorer countries for their profits, because they can make things cheaply and then sell them for a lot more money. Also TNCs increase global interdependence because they sell their products globally. All round the world people wear the same fashions, watch the same films, eat and drink the same products.

Contemporary Themes


The Global Citizen

9*



Model answer 2

Explain why some people might disagree with globalisation.

People disagree with globalisation because of child labour in countries such as China. Companies such as Foxconn use workers, including children, who work long hours in factories (known as sweatshops) for very little money (maybe less than 50p a day). Conditions in these factories are not very safe because there are few health and safety laws. The factories often pollute the air and water around the factory where the workers often live. This can cause disease and illness. People in countries such as the UK may also disagree with globalisation because when companies set up factories abroad, factories in this country may close down and lead to unemployment.

Contemporary Themes

How do we measure and classify economic activity?

The Global Citizen

10*

There are different ways of measuring economic activity:

One way is to use economic indicators. These show how financially well off a place is. Two commonly used economic indicators are:

• GDP = Gross domestic product, the value of everything produced within a country; • GNP = Gross national product, the value of what’s produced by a country’s residents, even if they live in a foreign country.

More economic indicators:

• Trade balance – the difference between the amount of money a country spends on imports and the amount it earns from exports. A positive balance is a trade surplus and a negative balance is a trade deficit.

• Employment structure - how the workforce is divided up between the three main employment sectors – primary (harvesting natural resources), secondary (making things) and tertiary (services).

Contemporary Themes


The Global Citizen

11*


Trade balance can also show how developed a country is – key terms:

If someone wants something that someone else has, they have to trade for it:

• imports – a country buys goods and services that it either doesn’t have enough of, or can get more cheaply from somewhere else.• exports – things one country sells to another.• trade balance – the difference between imports and exports:• trade surplus = value of exports greater than value of imports = increased wealth = better standard of living• trade deficit = value of imports greater than value of exports = debt = country stays poor = living standards don’t improve

• MEDCs – export expensive manufactured goods and import cheap primary products/raw materials to make into manufactured goods = trade surplus• LEDCs – export cheap primary products and import manufactured goods they can’t make = trade deficit = debt = hard to develop

Contemporary Themes


The Global Citizen

12*


Employment structure can show how developed a country is:

• MEDCs – lots of people work in tertiary activity – secondary activities still exist but lots of workers have been replaced by machines – few people work in primary industry e.g. UK.

• LEDCs – people are poor with a low standard of living – most work in primary activities – mainly agriculture (farming) e.g. Kenya.

• Rapidly industrialising/developing countries – fewer people work in farming (being replaced by machines). More people have migrated to work in towns and cities in factories (secondary activities). As the country becomes richer, there's an increase in tertiary jobs e.g. Brazil.

Contemporary Themes


The Global Citizen

13*

Different employment sectors produce different products and services:

Product – an item that can be purchased – physical objects.

Service – when someone performs an action for someone - helps or does work for them – a combination of skills, information or entertainment.

Food Product - primary

Clothing Product - secondary

Electronic products Product - secondary

Transport Service - tertiary

Healthcare Service - tertiary

Tourism Service - tertiary

Utilities supplies e.g. gas, electricity and water

Product – secondary (although utilities companies do also offer services)

Contemporary Themes


The Global Citizen

14*

Economic activities can be classified into different sectors, which can vary:

Not only are there differences between primary, secondary and tertiary activities, there are also formal and informal employment sectors:

Formal sector – where people are employed by a company - where people work to receive a wage and have rights such as sickness leave.

Informal sector – where people make money but are not employed by anyone - unofficial jobs, such as selling matches on the street.

Most jobs in MEDCs are in the formal sector – not only does this provide more security for workers, it also allows governments to collect taxes to spend on things such as health services and education. In LEDCs the informal sector is far less controlled and involves a much greater variety of people and jobs. Most street workers in these countries do not appear on any statistics - these include street vendors, shoe-shine boys, car washers, litter pickers, as well as employees of back street workshops who work long hours in dangerous conditions.

Contemporary Themes


The Global Citizen

15*

Choose one named product and one named service - you need to apply your knowledge and understanding of production and consumption to:

A product – an item that can be purchased – physical objects – mobile phone.

A service – when someone performs an action for someone - helps or does work for them – a combination of skills, information or entertainment – package holiday.

http://www.google.co.uk/url?sa=i&rct=j&q=mobile+phone&source=images&cd=&cad=rja&docid=LpxQj0xiiuy5nM&tbnid=RhPwh6ib703wQM:&ved=0CAUQjRw&url=http%3A%2F%2Fdeafblind.org.uk%2Fdonate%2Fdonate-by-phone-or-post%2Fmobile-phone%2F&ei=rfgMUvapCMrB0QXS44C4Dg&bvm=bv.50723672,d.d2k&psig=AFQjCNF_MKmq62yps5-jVAhyexRf6qs13g&ust=1376668196063491

http://www.google.co.uk/url?sa=i&rct=j&q=jet%202%20package%20holidays&source=images&cd=&cad=rja&docid=VllHegqnoFG61M&tbnid=rQuH_OgLWM2bMM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.dartgroup.co.uk%2Fjet2holidays%2F&ei=dPkMUvqjIOSl0QWL6ICgBA&psig=AFQjCNFXh6lw2jaixKYgnhJCWariiUN-eQ&ust=1376668391704964

Contemporary Themes


The Global Citizen

16


Analysis of the global distribution of the production of mobile phones - Nokia.

Research and development – most mobiles are made by a few large companies based in MEDCs. Research and development mainly takes place in MEDCs, particularly northern Europe and the USA. In these countries there are research facilities and a large number of graduates.

Contemporary Themes


The Global Citizen

17



Material extraction and processing – a good example of how globalisation works – coltan is an essential mineral in the production of mobile phones (it can store and release an electric charge) – TNCs like Nokia depend on the mining of minerals like coltan – the Democratic Republic of Congo (DRC - an LEDC in central Africa) has 80% of the world’s coltan.

Contemporary Themes


The Global Citizen

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Manufacturing is concentrated in eastern Europe, South America and Asia. Countries such as India, Brazil and China are LEDCs so labour is cheaper with longer working hours and a lack of strict regulations.

Contemporary Themes


The Global Citizen

19*

Employment conditions can vary – working conditions, pay and hours in the mobile phone industry:

Primary sector – individual scale of production – informal sector:One of the materials needed to make mobile phones is coltan. One of the places this is mined is the Democratic Republic of Congo (DRC).

Working conditions:

Dangerous and poor conditions. Mined by people digging in groups – an area of forest is cleared by hand and then the rock is dug out just below the surface. No safety equipment for miners, many of which are children.

Pay:

Workers involved in extracting coltan in the Democratic Republic of Congo get paid very little , about $200 per month, because they work in the informal sector in an LEDC where they have no legal rights for a minimum wage. The price of coltan can go up or down – miners were able to earn $80 day during the boom years, but now barely scrape a living – working many hours to earn $1.

Hours:

The DRC is an LEDC and therefore the workers have no legal working rights such as conditions of employment. Miners barely scrape a living and have to work until they have found the coltan they need – can take a long-time to earn just $1.

http://www.google.co.uk/url?sa=i&rct=j&q=DRC+map&source=images&cd=&cad=rja&docid=L99Rwl6H3J_9BM&tbnid=nW1IKDuQn3RwoM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.worldatlas.com%2Fwebimage%2Fcountrys%2Fafrica%2Fcd.htm&ei=DbYgUem9IuOq4ATM3oC4AQ&bvm=bv.42553238,d.bGE&psig=AFQjCNHudyClyRPyHOcFvPzix7ZlMn2eAg&ust=1361184636822533

http://www.google.co.uk/url?sa=i&rct=j&q=coltan+mining&source=images&cd=&cad=rja&docid=k4uKgSfmPm0BgM&tbnid=a_lMEZCoj1U5FM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.cognitivespace.co.uk%2F2012%2F04%2F28%2Fcoltan%2F&ei=nLYgUeGKCqSD4gToqYHYAQ&bvm=bv.42553238,d.bGE&psig=AFQjCNENS6xKzOaNFVUEcEvllwkusYtP6w&ust=1361184742752132

Contemporary Themes


The Global Citizen

20*


Secondary sector – national & multinational companies – formal sector:Many mobile phones are made in China. They are made in huge factories (sweatshops – factories with poor working conditions) . Longhua Science and Technology Park in Shenzhen – produces mobile phones for Nokia:

Pay:

Wages for women start at £14 per month – half the minimum wage in China. Some wages reach £60 a month, good by Chinese standards but low by British standards.

Hours:

Shift work around the clock, working six days a week, for eight to ten hours per day – lack of strict regulations.

There is also evidence that children are employed in factories. Foxconn produce iPhones in their Chinese factories – there were13 suicides at Foxconn factories in 2010 – investigators say that this is down to working conditions – suicide nets have been installed outside windows.

Working conditions:

There can be 100 people to every dormitory (large rooms that the workers sleep in) – very difficult to form friendships for workers a long way from home & assembly line work – very boring in very hot conditions – workers are banned from talking. If they are more than 5 minutes late workers can lose 30 minutes pay. Some chemicals are stored close to drinking water.

http://www.google.co.uk/url?sa=i&rct=j&q=foxcon+factory&source=images&cd=&cad=rja&docid=GRT_PoZR7W6MFM&tbnid=LPT-Qfl_6y7B5M:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.businessinsider.com%2Ffoxconn-factory-tour-2012-2%3Fop%3D1&ei=BrkgUbqXGqiG4ASy0ICwCA&bvm=bv.42553238,d.bGE&psig=AFQjCNFTvfxXpcP3nBr0CIXjDiQ-LbZFVQ&ust=1361185397043121

Contemporary Themes


The Global Citizen

21*


Tertiary sector – national and multi-national companies – formal sector: Mobile phones are sold in shops and at markets all over the world.

Working conditions:

Working in a shop (a safe, comfortable environment) – serving customers at the till, greeting customers and providing customer service. Chance to work with up-to-date technology – full training provided.

Pay:

Wages start at £6.50 an hour - a retail assistant in the UK can earn £780 a month for part time work. In the UK people are guaranteed a minimum wage of £6.70 by law and these rules are strictly followed by employers.

Hours:

Flexible working hours including weekends – can be part time work - legal working rights such as minimum wage and conditions of employment – limit on the hours than can be worked (with breaks provided).

http://www.google.co.uk/url?sa=i&rct=j&q=mobile+phone+shop&source=images&cd=&cad=rja&docid=yOst-r2H4iy7uM&tbnid=stwXvjfcm0QI-M:&ved=0CAUQjRw&url=http%3A%2F%2Fsabermas.net%2Ftag%2Fvodafone%2F&ei=erogUcGgH-SH4ASV7YGADQ&bvm=bv.42553238,d.bGE&psig=AFQjCNEdV39WnvDlJ9ttqoRaYpeQyeA7fQ&ust=1361185749457366

Contemporary Themes


The Global Citizen

22*


Model answer - with reference to a product you have studied, explain why workers involved in primary production are paid so much less than workers in shops selling the product.

The product I have studied is the mobile phone. Workers involved in extracting coltan in the Democratic Republic of Congo get paid very little, about $200 per month, because they work in the informal sector in an LEDC where they have no legal rights for a minimum wage. There is very high unemployment so employers can pay as little as they like. Compare this to a retail assistant in the UK who earns £780 a month for part time work. In the UK people are guaranteed a minimum wage of £6.70 by law and these rules are strictly followed by employers.

Contemporary Themes

Who are the different consumer groups for products and

services and who can access them?

The Global Citizen

23*

Accessibility of mobile phones can be dependent on time, cost, available technology and distance.

Person/location Use of mobile phone Accessibility of mobile phones

UK • Teenagers - keeping in touch with friends, safety when out.• Business people – email customers & colleagues.• Tourist – finding places using map apps.

• High levels of mobile phone ownership – 18 millions mobiles replaced each year in the UK.

Africa • People can contact distant family members without travelling on poor roads. • Easier to find employment by phoning employers. Farmers get better prices for their crops by checking the market price.

• Fastest growth of mobile phone use – often phones are second-hand (sent from MEDCs at the end of their useful life) making them cheaper. • More people have access to a mobile than a landline. Overall the levels of mobile phone ownership are low when compared with richer areas of the world.

Romania • Teenagers use mobiles for socialising. • Nurses can make home visits to isolated villages – they then use a mobile to consult a doctor – this saves the patient an entire day travelling to hospital – many people have no cars and roads are poor.

•One of Europe’s poorest countries – only the wealthy can afford landlines – average wage is £35 a month – workers can afford a £10 refurbished phone.

Contemporary Themes



The Global Citizen

24

Model answer:

With reference to a product you have studied, explain how time, cost, available technology and distance may affect the way different groups of people use the product. (6 marks)

In Africa landlines are scarce, so the availability of cheap, reconditioned mobile phones has changed peoples’ lives. A fisherman in Kenya phoned for help on 3 occasions when his boat sank. His income went up by 10 times because he could find the best price for fish at different markets. This meant he could buy 4 more boats and employ 24 local people. Phoning markets also meant he had to travel less and this saved him time which he could use to fish more.In the UK new mobile technology is relatively cheap and easily available. 18 million mobiles are replaced in the UK each year and most people already have a phone. Phones are used by young people for entertainment, using apps such as Spotify for listening to music and also social networking apps such as twitter and Facebook. Business people can use mobile phones for communicating information, sending emails being a good example which saves them time. They can also use FaceTime to hold business meetings reducing the need to travel. Mobiles can also be used for obtaining information. Tourists can using GPS based mapping apps to find the cheapest and best hotels and restaurants, saving time and money.

NOW TRY ADDING TO THE ANSWER BY EXPLAINING HOW MOBILES ARE USED IN ROMANIA

Contemporary Themes

To what extent can consumers influence sustainability?

The Global Citizen

25

Consumer decisions can have social, economic and environmental consequences in different places.

Is the mobile phone industry socially sustainable? – meeting peoples’ needs so that they can live happy and contented lives.

• no – Chinese workers work 8 to 10 hours a day/6 days a week in very hot conditions and use toxic chemicals causing injury/sickness; workers live in dorms – no privacy; evidence of 11 suicides in one year at Chinese factories.

• no – DRC – it is difficult to know who is working and for how long – health and safety conditions are very poor & workers are intimidated by militia groups – using rape and murder.

Contemporary Themes


The Global Citizen

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Is the mobile phone industry socially sustainable? – meeting peoples’ needs so that they can live happy and contented lives.

• yes – reconditioned mobiles are put to good use in places such as Romania (allowing nurses to travel to remote villages to provide healthcare – using the phone to consult a doctor) and Kenya (fisherman not only used the phone to get a higher price for his fish, he also used the phone to save his life when his boat sank).

• yes – use of mobile phones in MEDCs by different groups for social and business purposes (entertainment, obtaining information and sending information).

Contemporary Themes


The Global Citizen

27


Is the mobile phone industry economically sustainable? – generate money to support people and fund future development.

• no – China – factory workers earn £14 a month – half the minimum wage.

• no – DRC – if the market price for coltan drops, workers have to mine for hours to earn as little as a dollar.

• yes – mobile phone shops offer a secure job with good pay in MEDCs – pay is above the minimum wage and there are regulated working conditions.

Contemporary Themes


The Global Citizen

28


Is the mobile phone industry environmentally sustainable? – doesn't harm the environment and protects resources.

• no – coltan mining in the DRC – miners clear forest to mine and also use it to provide wood for fuel and animals for bushmeat. The whole tropical rainforest ecosystem is threatened – an estimated 8,000 gorillas have been killed.

• no – discarded mobiles are often sent to LEDCs for disposal – they contain toxic substances such as lead and arsenic – landfill sites are polluted – in China women and children work on landfill sites.

• yes – increase recycling of mobile phones brings benefits – 80% of each mobile can be re-cycled (e.g. gold, aluminium, copper and platinum) – recycling means less raw materials need to be taken from the earth.

Contemporary Themes


The Global Citizen

29


How can the mobile phone industry be made more sustainable?

• use of renewable energy for Chinese factories and UK shopping centres.

• DRC – government could take control of mines and organise workers into co-operatives so that they can work together to protect themselves from militia groups.

• develop ethical trading (shopping that tries to reduce the harmful impact of purchases on people and the environment) – a ‘Fairtrade’ system for mobile phones – ensuring a fair and stable wage for miners & a premium which can be spent of large projects (e.g. health clinics or training miners with new skills so that they can leave the mines).

Contemporary Themes

What are the alternative futures for products and services?

The Global Citizen

30

How might demand mobile phones change in the future?

All of the issues relating to globalisation make the future uncertain – be prepared to offer ideas for the future – JUSTIFIED SPECULATION – any ideas you have for the future of the mobile phone industry must be backed up by reasons: • What if people become more aware of human rights or environmental issues? - people might only buy ethical mobile phones with improvements to workers conditions and greater environmental protection.

• What if more people choose to recycle their mobile phones? – less new raw materials would be needed reducing the environmental impact of collecting them. More re-conditioned mobiles might be available for use in LEDCs.

• What if the governments of China/DRC introduced new laws to protect the rights of workers and improve their wages? – peoples’ quality of life might improve, but phones could become more expensive because the cost of producing them has gone up.

Contemporary Themes



The Global Citizen

31

Products are transported to markets for selling to consumers.

Containers have transformed trade:

Transportation costs are reduced = goods cost less

One size fits all – containers easily moved from ships to lorries – less handling of goods = easier and faster transport

Easier and more secure to transport goods in a box

Contemporary Themes



The Global Citizen

32


• The most important container port in the UK is Felixstowe.

• London Gateway was opened in 2013 – it will be the UK’s largest container port – it has direct access to London where there is a huge demand for goods.

• From the container ports goods are transported to warehouses in the Midlands – from here goods are distributed to the rest of the UK.

Contemporary Themes



The Global Citizen

33


Goods can be transported across the UK by road or rail:

Road Rail

• no ‘break of bulk’ – once loaded, goods are not handled until they reach their destination. • quick delivery of light, delicate and perishable goods.• greater choice of routes – can park outside shops, warehouses and distribution centres.

• can carry large volumes on each journey• good for heavy, bulky and non-perishable goods.• safer for toxic and dangerous freight.

Contemporary Themes



The Global Citizen

34*

Model answer:

With reference to a product you have studied, describe the ways that it is transported over different distances. (4 marks)

Mobile phones are transported by ship from China to the UK, they are put in containers, then loaded in stacks on the ship. When they arrive in the UK ships will dock at ports such as the London Gateway. When the ships are unloaded the container will usually be put onto a lorry so that the phones can be taken the shorter distance from the port to a warehouse, usually in the Midlands. From here the phones can be distributed to shops and other retailers around the UK.

Containers are used because they are secure and can easily be moved from ships to trucks. Ships are the cheapest way of transporting large amounts of goods large distances around the world, and trucks are used in the UK as they are the best option for transporting delicate goods to exactly where they are needed.

Contemporary Themes


The Global Citizen

35*

Economic activity requires energy, which can come from renewable and non-renewable sources – energy sources are renewable and non-renewable including:

• solar• wind• wave• hydro• biomass• biofuel• geothermal• nuclear• coal• oil• natural gas

SEE REVISION GUIDE - ISSUES IN OUR FAST CHANGING WORLD – ENERGY FOR BACKGROUND INFORMATION AND PROS AND CONS OF EACH TYPE OF ENERGY

Contemporary Themes


The Global Citizen

36*

Ethical consumerism – shopping that tries to reduce any harmful impact on the environment or people. To be an ethical consumer you need to be able to make informed choices:

Consumer decision

Ethical choice Less ethical choice

Energy - choosing an

energy supplier

A ‘green tariff’ which means that the provider commits to generating the electricity that you use from renewable sources.

A standard tariff – much of the electricity is produced by burning fossil fuels - creating CO2 and adding to climate change.

Food - buying fruit

Buying Fairtrade bananas – the producers are paid more and have decent working conditions.

Workers badly paid/working in poor conditions.

Transport - transporting

goods produced in

China

Purchasing products transported by ship – smaller use of fossil fuels – less CO2 created.

Purchasing products transported by plane – carbon footprint much larger.

Contemporary Themes


The Global Citizen

37*

Ethical consumerism – shopping that tries to reduce any harmful impact on the environment or people.

Model answer: How can ethical consumerism and consumer decisions contribute to a more sustainable future?

People could choose to buy products with a Fairtrade label. These products have to achieve high social, economic and environmental standards. These include a guaranteed minimum price which ensures that farm workers get fair pay. This means a lot more certainty for people who can plan for the future and educate their children and also buy medicine.

Farmers and workers also get the Fairtrade premium which is extra money to invest in social, environmental or economic improvements. An example of this is the production of Fairtrade tea in Uganda. The Fairtrade premium has been spent on new roads, a clean water supply and a health clinic for treating malaria and HIV/AIDs.

Contemporary Themes


The Global Citizen

38

Localisation and globalisation of economic activities may have different impacts on different areas.

Localisation is often seen as a solution to problems caused by globalisation.

A good example of localisation is the campaign for locally produced food – trying to convince supermarkets to stock more local food:

By using locally produced food, transport of food products across the globe will be reduced – this would reduce the amount of CO2 being created by different methods of transportation. It would also protect the jobs and income of people in the UK involved in the food industry. It could also result in higher food prices as cheap food from abroad is no longer widely available – food produced to high standards could be expensive in the shops.

Contemporary Themes


The Global Citizen

39*

Climate change may have an impact on demand for and availability of products and services in the future.

One major issue with globalisation is how much it contributes to climate change through the production of greenhouse gases. Think about the mobile phone industry and how raw materials and finished products are transported across the globe using transport that burns fossil fuels – think about the electricity used in shops in the UK and factories in China – much of this is produced by burning fossil fuels.

In the future people may want to/have to consider the impact on climate change of their purchases.

In the future will mobile phone companies consider how much CO2 is produced in the production, transportation and use of their products? – if they take action, will this have an impact on the people who produce and consume mobile phones (e.g. using renewable energy to supply electricity to factories is more expensive – will this make mobile phones more expensive? – will companies reduce the wages of factory workers to cover the cost of more expensive electricity?).

Contemporary Themes


The Global Citizen

40*

Choose one named product and one named service - you need to apply your knowledge and understanding of production and consumption to:

A product – an item that can be purchased – physical objects – mobile phone.

A service – when someone performs an action for someone - helps or does work for them – a combination of skills, information or entertainment – package holiday.

http://www.google.co.uk/url?sa=i&rct=j&q=mobile+phone&source=images&cd=&cad=rja&docid=LpxQj0xiiuy5nM&tbnid=RhPwh6ib703wQM:&ved=0CAUQjRw&url=http%3A%2F%2Fdeafblind.org.uk%2Fdonate%2Fdonate-by-phone-or-post%2Fmobile-phone%2F&ei=rfgMUvapCMrB0QXS44C4Dg&bvm=bv.50723672,d.d2k&psig=AFQjCNF_MKmq62yps5-jVAhyexRf6qs13g&ust=1376668196063491

http://www.google.co.uk/url?sa=i&rct=j&q=jet%202%20package%20holidays&source=images&cd=&cad=rja&docid=VllHegqnoFG61M&tbnid=rQuH_OgLWM2bMM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.dartgroup.co.uk%2Fjet2holidays%2F&ei=dPkMUvqjIOSl0QWL6ICgBA&psig=AFQjCNFXh6lw2jaixKYgnhJCWariiUN-eQ&ust=1376668391704964

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Services are provided in different places – analysis of the global distribution of the availability of chosen service – package holidays.

Who are the producers? Who are the consumers?

• People who go on holiday are the consumers of tourism services.

• The people who provide the experience are the producers e.g. hotel workers, travel agents.

• People may go on holiday in their own country – this is domestic tourism.

• People may travel overseas on holiday – this is outbound/international tourism.

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An example of a package holiday:

How the package holiday works:• a tour operator selects a hotel• it books a block of rooms for the next season(s)• it also books some planes (or may even buy its own)• then it sells the complete holiday (flight + hotels & at least some meals) to tourists

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The graph shows that most British tourists travel to Europe. The largest number travel to the closest countries (Spain and France). Fewer tourists travel further, although the USA attracts the fourth most.

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Tourism is an example of globalisation and interdependence.

Case study – Ibiza, Spain:

• Ibiza offers – wildlife, culture, bars, celebrity homes, beaches and clubs – 700,000 British people visit each year.

• Ibiza benefits too – tourism brings in $939 million a year and creates a range of jobs (e.g. bar work, hotel receptionist & airport baggage handler).

Ibiza needs tourists, and tourists need Ibiza – they are interdependent (depend on each other)

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Qv1KK81VIvDmcM&tbnid=3begVqJqLP7ydM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.lafuel.com%2F2013%2F10%2FPros-and-Cons-of-Working-in-a-Bar%26d%3D78&ei=dUMHU7LzJajt0gWQpYGIAQ&bvm=bv.61725948,d.ZG4&psig=AFQjCNFdRXc9F4TV8skJpSR9fXh9wwSYZQ&ust=1393071329372804

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=qp_kbV8T_mDugM&tbnid=qSGHbvV9BUffdM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.dailymail.co.uk%2Ftravel%2Farticle-2365466%2FSpain-holidays-British-holidaymakers-flocked-Spain-May.html&ei=4UIHU97OHeKy0QWTwIHYCA&bvm=bv.61725948,d.ZG4&psig=AFQjCNEFlTMkswO-X948sJRHjbhCohtWbQ&ust=1393071172299162

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=TnyLatddWvNJuM&tbnid=NPgSolUrSEw6PM:&ved=0CAUQjRw&url=http%3A%2F%2Fmetro.co.uk%2F2013%2F08%2F23%2Fgallery-european-tourists-flock-to-ibiza-for-their-summer-holidays-3935221%2Feuropean-tourists-flock-to-ibiza-for-their-summer-holidays-23%2F&ei=FUMHU6K_EKm70QWQ24GwDQ&bvm=bv.61725948,d.ZG4&psig=AFQjCNEFlTMkswO-X948sJRHjbhCohtWbQ&ust=1393071172299162

Contemporary Themes


The Global Citizen

45*


Tourism has now become a global industry – cheaper air travel and shorter flying times has opened up far-away locations to ordinary travellers - interdependence and tourism:

• more people in MEDCs are looking for new experiences and new places to visit – they want to escape from the cold European and North American winters; have the leisure time and money to travel to distant countries on long-haul holidays.• LEDCs such as Thailand can offer year-round hot climates; beautiful beaches and scenery, different cultures to experience and relatively cheap holidays.

However, as usual the balance is tilted in favour of MEDCs, where the tour operators are based. Customers pay for their complete package holiday in their own country and don’t need to take much money when they go abroad, allowing only a small percentage of the total holiday cost to trickle down to the host LEDC.

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Economic activities can be classified into different sectors, which can vary – the package holiday industry.

Tourism can make a huge contribution to the economy of LEDCs (e.g. Kenya – 500,000+ jobs directly/indirectly related to tourism), although jobs in the tourist industry often have low pay, low status and are temporary/seasonal – think about the working conditions of porters at Machu Picchu.

Despite this, jobs in tourism in LEDCs often make a better alternative to primary jobs such as farming and fishing.

However, tourism jobs often go to reps from countries where the tourists come from and much of the money generated goes to MEDCs (80% of hotels and travel companies in Kenya are owned by multinational companies).

Package holidays in LEDCs – money for all-inclusive holidays is paid by the customer to the travel agent in an MEDC – the money stays in the MEDC – customers don't need to take much money to the LEDC for the actual holiday – little is spent in the LEDC.

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Example of those providing a service in the tourist industry:

• individuals – farmers, fishermen, street vendors, taxi drivers, DJs

• small companies – local independent travel agents, restaurants and cafes

• national companies – travel agents (e.g. Co-op Travel), tour operators (e.g. Thomas Cook)

• multi-nationals – airlines (e.g. Virgin Atlantic), hotel chains (e.g. Hilton Hotels), car rental (e.g. Avis)

http://www.google.co.uk/url?sa=i&rct=j&q=chain+of+distribution+in+travel+and+tourism&source=images&cd=&cad=rja&docid=h5-ercSEAGfc0M&tbnid=hk50iX8vxbNJWM:&ved=0CAUQjRw&url=http://www.hotelmule.com/forum/viewthread.php?tid=1076&ei=ltkrUYHXIsrT0QXu-YCwDA&bvm=bv.42768644,d.d2k&psig=AFQjCNG_7huLDS4yDOn8Uv_vAlHOXXSqFQ&ust=1361914641643054

Contemporary Themes


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48*

Economic activities can be classified into different sectors, which can vary – the package holiday industry.

Primary sector – farming & fishing – selling fruit and other foods to hotels.

Secondary sector – building the infrastructure for the tourist industry (e.g. hotels, airports, roads, sewage systems).

Tertiary sector – tourism is a very labour intensive service industry – think of all the service jobs involved in hotels, shops, transport and visitor attractions.

Formal sector – where people are employed by a company – e.g. a hotel.Informal sector – where people make money but are not employed by anyone, such as street vendors selling postcards, or people selling things on the beach. If many people are in the informal sector it creates difficulties in measuring economic activity because there is no official information about who does what.

Contemporary Themes


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49*

Employment conditions can vary – working conditions, pay and hours in the tourism industry:

Secondary sector – migrant workers building hotels in Dubai – formal sector*:

Pay:

Typically a migrant worker earns about £100 a month.

They support their families back in Asia by sending 75-80% of their wages home. *Whilst this is a formal sector job, the workers have few rights and are employed in an informal way with few health and safety conditions and little job security.

Working conditions:

Migrant workers live in labour camps in the desert – rows of low-rise huts. They sleep in bunk beds, two in a room, using communal bathrooms, showers and kitchens – little or no privacy.

Hours:

Workers are bussed to and from the city, working shifts to keep building sites working day and night. There is nothing to do but eat, sleep and work.

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=7PdUazujg_4BwM&tbnid=OqDNStDcKQ4POM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.ihrb.org%2Fcommentary%2Fstaff%2Fon_international_migrants_day-call_for_migration_with_dignity.html&ei=UHMHU6evEOaj0QWk3oGgBg&bvm=bv.61725948,d.ZG4&psig=AFQjCNG7X16W0twd4A6KcJI-xa3zyqaZCw&ust=1393083548181720

Contemporary Themes


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Tertiary sector – hotel workers in Kenya (an LEDC) – formal sector*:

Pay:

UK tourists pay £600 a week for an all-inclusive holiday – the money goes mainly to the travel company in the UK and tourists don't need to take much money to Kenya. The hotel workers get paid very little – the basic wage is £3.60 a day although many earn less than £3 a day (despite there being a £3 a day minimum wage in Kenya) – not enough to live on – workers can’t afford medicine or to send their children to school.

Working conditions:

Working conditions in the actual hotels are often very good – 5 star hotels. However, the workers can only afford to live in very poor conditions in nearby shanty towns – open sewers, little electricity or water – dirty water and crowded conditions.

Hours:

Hotel workers can start the day at 8am and finish at 11pm – regularly working over 10 hours a day for 6 days a week. *Although the jobs are formal, they have many features of informal employment – long hours and little job security with low pay.

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=YmyKJtVG6uHW7M&tbnid=F5Gdk9HqAh9Y9M:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.operationworld.org%2Fkeny&ei=Km4HU7vXJ-ek0QXjnIH4AQ&bvm=bv.61725948,d.ZGU&psig=AFQjCNEQplKE6Y4FibbcHWqMVOb17oCyXg&ust=1393082259123687

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=37KHIQroZzc0TM&tbnid=00ieXg8wZTwmGM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.silverbirdtravel.com%2Freef-hotel%2F&ei=5W4HU8zmHuaj0QWk3oGgBg&bvm=bv.61725948,d.ZGU&psig=AFQjCNFMPmWglbjP-i1yymwjPy04jS-Mmw&ust=1393082436306311

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51*


Tertiary sector – tourism consultant – UK travel agent – formal sector:

Working conditions:

Comprehensive sales, product and leadership training with good career prospects & worldwide opportunities.

Working in a shop (a safe, comfortable environment) – serving customers, greeting customers and providing customer service.

Hours:

3 month sabbatical (break from work) allowed after 5 years employment. Regulations in place to control working hours.

Pay:

Base salary of £15,000 a year – performance related pay – up to £1,000 a week.

Discounted travel, free financial advice, free health consultations and discounted fitness sessions.

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=UM9am6J5UaP4jM&tbnid=bn9iAWaOIlBJoM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.telegraph.co.uk%2Ffinance%2Fmarkets%2Fquestor%2F7945724%2FThere-are-sunny-times-ahead-for-Thomas-Cook.html&ei=oXcHU5iaO-SV0AXj6IHgBw&bvm=bv.61725948,d.ZGU&psig=AFQjCNHyTqhC48-MPbJxqJXtZPfdh5P_wQ&ust=1393084663054831

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Specimen exam questions:

1. Give two advantages of globalisation for travel companies. (2 marks)Tour operators are mostly based in MEDCs. Globalisation has meant that holidays are now becoming more popular in LEDCs, so operators can sell a wider range of holidays in countries such as Kenya. The customer pays the full cost of the holiday in the MEDC so the tour operator is able to keep most of the money. People work for very little in hotels in LEDCs so tour operators only give a small proportion of the money they earn to the hotel and are able to make large profits.

2. Give reasons why many people disagree with globalisation. To what extent do you agree with them? (6 marks)In the tourist industry the benefits are in favour of MEDCs, where the tour operators are based. They strike hard bargains with local tour operators in LEDCs , who have to rely on them to find customers for their tourist products. European and American tour companies prefer to use their own airlines and international hotel chains, allowing only a small percentage of the total holiday cost to trickle down to the host LEDC. This means that companies in MEDCs make more money while workers in hotels are paid very little, work long hours and live in poor conditions. For example, an agent in the UK can earn on average £1,000 a week, while a security guard in Kenya might only earn £25 a month, living in a shanty town with no clean water or electricity.

Contemporary Themes



The Global Citizen

53*

Products and services are consumed by different groups of people and accessibility to products and services varies.

Accessibility of holidays can be dependent on time, cost, available technology and distance.

Accessibility of package holidays has changed – people are taking more holidays, for longer, and spending more on them:

• distance – improved roads and increased car ownership, introduction of large jet aircrafts and cheap flights have resulted in more places becoming accessible to people• time – changing work patterns – fewer hours worked so people have more leisure time, with increased wages = people can afford to take more and longer holidays• cost – travel companies offer cheap, organised package holidays & cheap air travel available• available technology – people are exposed to exotic locations in the media – a variety of adventurous and exciting holiday activities are now available – growth of the internet makes booking holidays easier.

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People Holiday Accessibility – time, cost, available technology and distance

Group of 6

friends

18 – 30 holiday on the Spanish island of Ibiza

The 6 friends have all started work and only get 4 weeks holiday each year – they want to make the most of this time and make sure they book two weeks during the summer when Ibiza is most lively (time); the cost is higher because flying is more expensive during the school holidays, but the all-inclusive price is still quite cheap and allows them to control their spending – they don’t need to take much money with them (cost); easily booked at the local travel agent – the travel company make all the arrangements necessary, putting all the elements of the holiday together using the internet (available technology); the journey to the island is now quick and easy using the airline owned by the travel company – the journey to the hotel is quick using the new motorway built from the airport in Ibiza (distance).

Accessibility of holidays can be dependent on time, cost, available technology and distance – e.g.

Contemporary Themes



The Global Citizen

55*

Different places attract tourists for different reasons – here are some examples:• coasts – sun, sand and sea; activities such as swimming and sunbathing• mountains – natural beauty, peaceful locations and a physical challenge; activities such as walking, skiing and mountain biking• cities & special attractions – culture, entertainment and lifestyle; activities such as museums, galleries, shows and nightlife; game parks and historical sites

Who might go to these destinations?• coasts – e.g. Spain, Greece and France - young people, families and seniors• mountains – e.g. Lake District, Alps - walkers, climbers and sightseers• cities and special attractions – e.g. New York, African Game Parks, Machu Picchu - young people and retired people – retired people are richer and healthier than ever before

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The Global Citizen

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The socio-economic and environmental advantages of tourism–

Social:

• local cultures and traditions are preserved

Environmental:

• makes people aware of conservation of landscapes, vegetation and wildlife

Economic:

• more jobs in tourist services and craft industries making souvenirs


Contemporary Themes


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The socio-economic and environmental disadvantages of tourism–

Social:

• tourist look down on local people and treat them badly

Environmental:

• pollution (e.g. litter and untreated human waste going into rivers/sea)

Economic:

• tourist jobs are unskilled, seasonal and poorly paid – some locals such as farmers lose their jobs when tourist facilities are built on the land they use


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The socio-economic and environmental consequences of the purchase of a holiday.

YOU CAN USE YOUR KNOWLEDGE OF THE IMPACTS OF TOURISM AT MACHU PICCHU AS A CASE STUDY TO ANSWER QUESTIONS ON THIS PART OF THE

COURSE.Revise Mountain Environments:

the social, economic and environmental

impacts of tourism at

Machu Picchu.

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=CEf40TXlXwebdM&tbnid=MJJhP4Hnr0B-CM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.peru-machu-picchu.com%2F&ei=aXojUtuUOKLy7AaJ9oGYCw&bvm=bv.51495398,d.ZGU&psig=AFQjCNEITA582Q7Jfo2lE8tp8h6rNondYA&ust=1378143201087655

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=UzbCD_zHWZw1YM&tbnid=KhA05ECwem0lKM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.smh.com.au%2Fnews%2Fnews%2Ftourists-could-love-machu-picchu-to-death%2F2007%2F07%2F10%2F1183833483157.html&ei=nnojUpr7Fc-O7AbMzYCYDg&bvm=bv.51495398,d.ZGU&psig=AFQjCNGJV0uQN7mItmsdj51W7NHdxn790g&ust=1378143243353808

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=w2IOF7bOKfhTQM&tbnid=Te6IenJJeoHMXM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.aranwahotels.com%2Fcusco%2Fblog%2Fcusco_hotel%2Fone-million-tourists-to-visit-machu-picchu-this-year%2F&ei=tXojUtiPMMyB7QaKvoDICw&bvm=bv.51495398,d.ZGU&psig=AFQjCNGJV0uQN7mItmsdj51W7NHdxn790g&ust=1378143243353808

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The socio-economic and environmental consequences of the purchase of a holiday – the impacts of air travel.

Heathrow airport near London is the UK’s largest airport – there are plans to build a third runway and 6th passenger terminal:

• 700 homes will be demolished – negative social impact• one school will be demolished – 3 others will experience more noise – negative social impact• 900 extra flights = more noise and air pollution – negative environmental impact

Contemporary Themes


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The socio-economic and environmental consequences of the purchase of a holiday – the impacts of air travel.

Flying also produces CO2 and other gas emissions that cause climate change – planes create up to 15% of the UK’s greenhouse gases – negative environmental impact.

Expanding Heathrow will have positive effects too:• more flights, more choice for customers & cheaper flights (social)• a range of new jobs at the airport (economic)

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The socio-economic and environmental consequences of the purchase of a holiday – case study – Kenya, Africa

Kenyan golf complex with 5 star hotels – a wall has been built around the complex – this has meant that local villagers can no longer access fresh water from a large spring – they now rely on a small spring ½ mile away – they have to walk to the spring 6 times a day.

Too many people are now using the smaller spring so the water is over-used and dirty – local communities are having to drink dirty water.

= NEGATIVE SOCIAL IMPACT OF TOURISM

310 local people are employed at the golf complex – this number should increase in the future as the complex grows.

= POSITIVE ECONOMIC IMPACT OF TOURISM

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The socio-economic and environmental consequences of the purchase of a holiday – case study – Kenya, Africa

Tourist trips to Masai village – the Masai are indigenous Kenyan people. Tourists staying in lodges are driven to Masai villages to see traditional ceremonies. The Masai people rely on tourism because they have lost access to their farming land. Fees from tourists on day trips are paid to the village people who also sell hand made souvenirs. This allows Masai people to pay for school fees.

However, the drivers who bring the tourists to the villages keep most of the money (e.g. the Masai have to give the driver £40 and keep £3 for each trip) – the Masai can’t afford school fees with the money they eventually earn.

= NEGATIVE ECONOMIC/SOCIAL IMPACT OF TOURISM

Where Masai people own land they are being paid rent of £1000 a year by safari tourist operators setting up tented camps .

= POSITIVE ECONOMIC IMPACT OF TOURISM (although the

Masai are often cheated out of money by tour operators)

Contemporary Themes


The Global Citizen

63*

Localisation v globalisation – the tourism industry:

Globalisation in tourism has bought many advantages – e.g.

• cheap, all-inclusive package holidays in a variety of increasingly exotic locations such as Thailand and Kenya (socially sustainable – meeting peoples’ needs)• employment opportunities in LEDCs – in locations where there are few jobs available and the traditional farming way of life is very challenging (economically sustainable)• tour operators in MEDCs can make large profits (economically sustainable)

Globalisation in tourism has bought disadvantages too – e.g.

• an increase in air travel – significant contributor to climate change as CO2 emissions from planes have increased (environmentally unsustainable)• exploitation of workers in LEDCs – e.g. hotel workers paid low wages & living in poverty (economically/socially unsustainable)• the growth of all-inclusive package holidays means that little money is spent in tourist destinations – little benefit to the local community (economically unsustainable)

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If globalisation of tourism is unsustainable does the future lie with localisation?

Contemporary Themes


The Global Citizen

65*

Localisation v globalisation – the tourism industry – socio-econoimc and environmental impacts of sourcing services locally:

Could locations in the UK be the future of tourism? A form of LOCALISATION – purchasing locally produced products/services.

Positive impacts of local holidays:• less CO2 emissions from planes = less impact on climate change (environmental)• tourism jobs in UK holiday resorts (economic)• improved facilities in UK holiday resorts (e.g. leisure facilities could also be used by local people – social impact)

Negative impacts of local holidays:• unemployment in LEDC tourist areas (socio-economic)• more expensive holidays (socio-economic)• increased car use – pollution and congestion (environmental)

Contemporary Themes


The Global Citizen

66*

Demand for holidays may vary in the future – climate change may have an impact on demand for and availability of holidays:

What about the future? Where will we be going, and what will we be doing?

Justified speculation – given all you have learnt about tourism, what do they think the future demand for tourism will be like?

e.g. consider:

• climate change – people might start to take less flights to cut down on CO2 emissions = more holidays in the UK. If the climate in places like Spain becomes too hot and dry people will be less likely to go on holiday there = more holidays in the UK (especially if the climate in the UK gets warmer) = localisation.

• the advantages of localisation – if globalised tourism is unsustainable (e.g. due to pollution and the poor working conditions for people in LEDCs) more people will go on holiday in the UK.

Contemporary Themes


The Global Citizen

67*

Demand for holidays may vary in the future – consumer decisions can contribute towards a more sustainable future:

Is sustainable/green/ethical/eco-tourism the answer? Could this make global tourism sustainable? – keeping the benefits of globalisation but reducing the negative impacts.

Tourism that protects the environment and meets the needs of local people so that they benefit too:

• most of the money goes to the local community• the environment is little changed and wildlife is conserved• small numbers of tourists do not affect the character of the resort• tourists behave well and respect local culture• simple lifestyle – little pressure on resources (especially water)

Could the future for flying to foreign destinations involve not

jet planes, but a form of propellers with a 40% cut in

CO2 emissions for each flight?

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Demand for holidays may vary in the future – consumer decisions can contribute towards a more sustainable future:

The next 2 slides are taken from the revision pack on Extreme Environments – they give excellent examples of eco-holidays that you can use for this section of the course:

• place-specific examples from the Sahara

• high Inca trail trek to Machu Picchu

69 Extreme Environments

Hot Desert Environments

What challenges do hot deserts pose to people and how can

they be overcome?

Hot deserts pose many challenges to different groups of people who live, work and travel in them and they are dealt with in different ways:

Tourism:

Tourism can be managed sustainably – eco-tourism is a way to avoid the negative impacts of tourism – place-specific examples from the Sahara:

• use of locally owned accommodation, local guides, local drivers and vehicles – money goes to the local community (e.g. responsible travel.com Morocco holiday to Skoura – 75% of the cost of the trip goes to local people).• Morocco cultural tour – maximum of 11 tourists on each trip – small number of tourists doesn't impact on the character of the desert and puts little pressure on water and energy resources – emphasis of the holiday is building relationships with the local community by using locally owned and run facilities.

Extreme Environments

What are the alternative futures for the Andes?

Mountain Environments

70

Tourism – Machu Picchu – an example of a sustainably managed holiday - eco-tourism :

HIGH INCA TRAIL TREK TO MACHU PICCHU

Economically sustainable?

(generates money for people and future

developments)

YES

Porters, cooks and mule wranglers are formally employed – local people are used and are paid a fair wage.

Socially sustainable?(meets peoples’ needs

so they can live contented lives now and

in the future)

YES

Travel company are committed to staff welfare - camp staff receive all accommodation, transport and food whilst on the trek.Travel company funded a centre to provide advice and support to the local community on a range of social issues

Environmentally sustainable?(protects the

environment from harm and conserves

resources)

YES

All waste is removed from campsites and recycled/composted. Walkers encouraged to stick to footpaths to cut down on erosion

Contemporary Themes

Countries may try to influence trade.

The Global Citizen

71*

Trade agreements and barriers, tariffs, quotas, subsidies and interdependence.

In a fair world countries should be able to trade freely – selling what they produce and buying what they need. But governments interfere with trade:

• quota – a limit set on the amount of something that can be imported.• subsidies – money given, usually by a government, to encourage the development of a product which might not otherwise be economically viable – e.g. extra payments to farmers to encourage them to grow more.• tariff – taxes on imports – making them more expensive.• trading bloc – these are countries which have grouped together to improve their trade balance e.g. the UK belongs to the EU which has grown to over 25 countries – there are few barriers to trade between member countries.

Usually, it is MEDCs that use tariffs, quotas and subsidies the most. They are barriers to trade and make it harder for LEDCs to export to the richer countries.

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Trade agreements and barriers, tariffs, quotas, subsidies and interdependence.

Interdependence describes the relationship that exists between countries that share a need to exchange one another’s goods and services – e.g.• LEDCs make money from selling fuels, raw materials and foodstuffs, which MEDCs need to buy to keep their factories working and to supply their people with food.• LEDCs use the money they have made to buy manufactured goods that they are unable to make for themselves, from which MEDCs benefit by having a larger market for their goods.

In other words, the need for trade between LEDCs and MEDCs clearly exists because each can offer what the other wants.

However, this trade is not balanced – primary products that LEDCs depend on sell at low prices, whereas manufactured goods are bought from MEDCs at high prices – this imbalance creates a trade surplus for MEDCs whilst LEDCs have a trade deficit and accumulate large debts.

Trading blocs like the EU allow MEDCs to maintain this situation – even when LEDCs begin to process and manufacture their own raw materials, trade barriers create another obstacle to development by stopping free trade.

Contemporary Themes


The Global Citizen

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How trade barriers and incentives may affect the mobile phone and tourism industries:

• quotas are usually restricted to primary goods so will have little impact on the mobile phone and tourism industries.

• other trade barriers might prevent LEDCs setting up their own mobile phone manufacturing companies because they will find that tariffs are placed on their exports by MEDCs making the phones more expensive in the shops in MEDCs so less people will buy them.

• barriers might also make it difficult for LEDCs to set up their own travel operators and airlines, because they will be unable to set up branches in MEDCs and fly from MEDC airports. Tourists in MEDCs will still book their holidays through travel operators and airlines in MEDCs who will still have the power to pay as little as possible to hotels in LEDCs. The internet might make some difference because tourists in MEDCs might be able to book directly with hotels in other countries.

This is a focussed revision guide for use closer to the final exam – a star* next to the slide...

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