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Globalisation

The global shift and who gains from it

  • 3 things to know
  • Papers 2 and 3

Overview

The shift of world economic output towards Asia, China as a receiver of manufacturing and India of outsourced services, and the infrastructure investment, waged work, poverty reduction and education and training that receiving countries gain.

What you need to know

Answer each one before you reveal it.

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Evaluation

How does the global shift contribute to poverty reduction in receiving countries?

Process

Which way has the balance of world economic output moved, and what two processes drove it?

Key term

What type of economic activity has India particularly benefited from receiving as part of the global shift?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Which way has the balance of world economic output moved, and what two processes drove it?

    Model answer

    Towards Asia, through the global shift of manufacturing and the outsourcing of services.

  2. 2

    Which country is a key example of a nation that has received manufacturing through the global shift?

    Model answer

    China.

  3. 3

    Name a key example of a country that has received outsourced services through the global shift.

    Model answer

    India.

  4. 4

    What type of economic activity has India particularly benefited from receiving as part of the global shift?

    Model answer

    Outsourced services (such as call centres, IT support, and business process outsourcing).

  5. 5

    Why has India become a major destination for outsourced services from developed countries?

    Model answer

    India has a large English-speaking, educated workforce available at lower labour costs, along with developed telecommunications infrastructure and time zone advantages for 24-hour service provision.

  6. 6

    How does India's role in receiving outsourced services illustrate the concept of global shift?

    Model answer

    It demonstrates the transfer of economic activity from developed countries to emerging economies, where services previously performed in HICs are now carried out in India due to cost advantages and available skilled labour.

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