Deindustrialisation Essay

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Analyse the impacts of deindustrialisation and the global shift east on the western world (15 marks) Deindustrialisation and the global shift east have both impacted upon the western world. Deindustrialisation is the reduction of industrial activity or capacity in a region or economy. Port Talbot is an example of how deindustrialisation impacts a region. The global shift east expresses the idea that world power is now inexorably tilting east. As a result of this shift east, deindustrialisation is exponentially increasing as manufacturing becomes more expensive to achieve. Deindustrialisation impacts the western world in a widely negative way, during the past 25 years, employment in manufacturing as a share of total employment has fallen dramatically…show more content…
Social impacts of deindustrialisation in Port Talbot (Wales) are job loss and living standards. Jobs are lost as manufacturing factories are closed which results in people having lower living standards as workers will not be earning money as they try to find jobs elsewhere. The economy was also impacted upon in Port Talbot, as coal and iron became too costly to get at for Port Talbot and so these materials had to be bought from abroad. This importation meant less money was being made for Wales’ own economy. As well as these negative impacts, the environment in Port Talbot was positively impacted as less ore and limestone was being extracted which meant habitats could be rebuilt and not destroyed by machinery used in manufacturing. This deindustrialisation also meant factories were closed down which decreased the volume of pollution in Port…show more content…
General Electric, a giant US multinational conglomerate, was a pioneer when it decided to shift thousands of back office jobs to India. What began as a trickle is now a flood of numerous leading companies in insurance, banking, travel, electricity generation and telecoms transferring their operations to India (this is an example of outsourcing). This global shift east has resulted in outsourcing which can lead to a minimum of 20% saving on processing costs. Currently, an Indian call centre worker earns around £3000 per year compared to £13,000 for a UK call worker in Newcastle. This cost saving will increase profits and shareholder’s returns on their investments capital, however, the UK will be negatively impacted as this cheap labour will be wanted by eastern companies and so jobs will be lost to this cheaper

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