Structural adjustment programmes (SAPs) by the World Bank reduce active role of state: cut government expenditure introduced school fees as part of cost-recovery program reduced spending on health so health clinic fees privatization: firms streamline – unemployment promote international trade and economic competitiveness. Promoted agricultural exports: primary product dependency. Context of USA/Mexico labour flow: over a million Mexicans migrate to US every year. Mostly concentrated in a few states, but now not just traditional destination such as Texas, but also southern and mid-western states like Georgia and Nebraska. Connect to labour. Explain the causes and effects of major flow of labour between USA and Mexico Causes at source and destination 40% unemployment in Mexico vs. many low-skilled jobs for Mexicans which Americans don’t want to do like construction. Range of goods and services in city life vs. rural lifestyle. Perception of America as the land of opportunity and prosperity vs. agricultural society in rural Mexico Better standard of living for children of labourers e.g. 99% vs. 55% literacy, healthcare and schooling Effects at destination Illegal immigration costs US millions of dollars for border patrol and prison Tense political relations: US Border Patrol always tries to control the many illegal immigrants desperate for a better life, militarization Societal tension due to influx of migrants with different culture (xenophobia), competition over jobs, resentful at illegal immigrants Gradual assimilation: cultural enrichment of US Border States with culture, food and music Effects at source Rural economy is depressed due to shortage of economically active population Rise in dependency ratio: the old and the young left behind Remittances pay back $6 billion a year Outsourcing essay intro: Outsourcing is the concept of taking internal company operations and paying an external firm to handle them – usually to reduce costs. Analysis by A.T. Kearney confirms India as the most attractive outsourcing country in the world. (Remember includes physical goods too though.) Role of ICT in international outsourcing ICT is integral to TNC operations; transfer of capital, dividends, credit through online banking – exchange of finance/business transaction more readily occurs Communications technology in the form of transport: Accessibility, time-space convergence (see China air network case study above that facilitated TNCs coming in) Developments in shipping Supply chain management (seeing progress of inventory as it moves through supply chain using ICT) and logistics (warehousing, scheduling and distribution) because great efficiencies in managing information trading relations establish bilateral relations for outsourcing
Structural adjustment programmes (SAPs) by the World Bank reduce active role of state: cut government expenditure introduced school fees as part of cost-recovery program reduced spending on health so health clinic fees privatization: firms streamline – unemployment promote international trade and economic competitiveness. Promoted agricultural exports: primary product dependency. Context of USA/Mexico labour flow: over a million Mexicans migrate to US every year. Mostly concentrated in a few states, but now not just traditional destination such as Texas, but also southern and mid-western states like Georgia and Nebraska. Connect to labour. Explain the causes and effects of major flow of labour between USA and Mexico Causes at source and destination 40% unemployment in Mexico vs. many low-skilled jobs for Mexicans which Americans don’t want to do like construction. Range of goods and services in city life vs. rural lifestyle. Perception of America as the land of opportunity and prosperity vs. agricultural society in rural Mexico Better standard of living for children of labourers e.g. 99% vs. 55% literacy, healthcare and schooling Effects at destination Illegal immigration costs US millions of dollars for border patrol and prison Tense political relations: US Border Patrol always tries to control the many illegal immigrants desperate for a better life, militarization Societal tension due to influx of migrants with different culture (xenophobia), competition over jobs, resentful at illegal immigrants Gradual assimilation: cultural enrichment of US Border States with culture, food and music Effects at source Rural economy is depressed due to shortage of economically active population Rise in dependency ratio: the old and the young left behind Remittances pay back $6 billion a year Outsourcing essay intro: Outsourcing is the concept of taking internal company operations and paying an external firm to handle them – usually to reduce costs. Analysis by A.T. Kearney confirms India as the most attractive outsourcing country in the world. (Remember includes physical goods too though.) Role of ICT in international outsourcing ICT is integral to TNC operations; transfer of capital, dividends, credit through online banking – exchange of finance/business transaction more readily occurs Communications technology in the form of transport: Accessibility, time-space convergence (see China air network case study above that facilitated TNCs coming in) Developments in shipping Supply chain management (seeing progress of inventory as it moves through supply chain using ICT) and logistics (warehousing, scheduling and distribution) because great efficiencies in managing information trading relations establish bilateral relations for outsourcing
global-interactions.docx