Homework: Switched on and Switched off Places:

1. "Explain why some locations remain ‘switched off’ from globalisation." [6 Marks]

2. Build a case study of North and South Korea as examples of countries that are switched off and switched on to globalisation.

­ Give evidence that North Korea is 'switched off' ­ Aim to get economic, political, physical and environmental evidence

­ Explain WHY it is switched off. Make particular reference to the way political decisions affect globalisation.

­ Give evidence that South Korea is 'switched on' ­ Aim to get economic, political, physical and environmental evidence

­ Explain WHY it is switched off. Make particular reference to the way having an open economy accelerates globalisation.

Corruption pervades many switched off places. Politician and police can abuse authority by being corrupt. This increases risk of losses and makes it time consuming and frustrating for TNCs to operate.

Political Instability: Many countries have been marred by civil wars and terror attacks. A supportive government can suddenly be replaced by a hostile one. This can increase risk of losses for TNCs. While abundant natural resources are usually a blessing, sometimes when poorly managed they can be the source of war (Sierra Leone and diamonds, Congo and rare earth minerals.)

Weak market: Without consumer spending power, TNCs can not sell their products. This leads to weak penetration of global goods in poor countries where FDI and therefore wages are low.

Lack of government support FDI is often dependent on governments offering incentives to TNCs such as tax relief and good infrastructure in the form of SEZs or Enterprise Zones.

Negative Image: Many LDCs (esp in Africa) are portrayed in the media as 'basket cases' which deters investment from TNCs. Images of war, corruption, famine and natural disasters can hide success stories.

Unstable currencies: A rapidly changing exchange rate would be financial suicide for a TNC. This brings high risk of losses.

Debt: Many LDCs (esp in SS Africa) are weighed down by enormous debts taken on to fund infrastructure projects in the 1970s. Repayment of these limits government spending leading to weak infrastructure making it harder to attract FDI.

Unskilled Labour: Although labour is cheap in many LDCs, debt and subsequent government spending on education mean populations are technically unskilled. This limits growth, both by making it harder to attract certain TNCs but also in driving domestic growth.

Poor Infrastructure: Debt means many LDCs have no money to invest in modern world class infrastructure such as container ports, high speed boradband, airports etc. This makes it harder to compete with more switched on places like china .

Crime: Kidnappings and robbery from foreign citizens and workers make investment from TNCs high risk for staff.

Colonialism:During colonialism some countries (in Africa) had their resources exploited by the mother country (Europeans) therefore it was the Europeans who benefited and not the countries in Africa.

Government backing Governments can open up their economies to FDI and TNCs by establishing FTZs, SEZs and Enterprise zones. Some governments (Malaysia, China), part own some of the companies that foreign TNCs would do business with which reduces the risk of losses for TNC.

Politically stability: This reduces the risk for TNCs making them more likely to invest in a place.

Domestic Market: As LEDCs become NICs, people become consumers which not only spreads globalisation by exposure to the outside world but also attracts TNCs to operate there to increase sales.English Speaking: Countries with lots of English speaking graduates will be attractive locations for outsourcing of tertiary industries such as call centres.

Stable Currency: stable exchange rates reduce the risk of losses for TNCs

High Speed Broadband: Allows outsourcing/attracts FDI from TNCs, particularly ICT based activities.

Good infrastructure: This attracts TNCs/FDI. With the dominance oif containerisation, ports that accommodate the newest, largest container ships will be the most attractive locations for TNCs.

Technical Skills: Vast pools of highly qualified quaternary­sector labour will be particularly attractive to TNCs.

Cheap labour: Cheap labour reduces costs for TNCs and maximises profits

Oil Resources: Abundant oil reserves have an instant source of wealth and will both create their own and attract other TNCs. Note that success is not a given though (Nigeria)

Large labour force: Key for attracting FDI and a common characteristc of all successful and newly emerging NICs. Note that infrastructure must be in place though to attract TNCs.

Coastal location: Ideal for trade giving such locations a comparative advantage over landlocked countries.

Historical physical factors:In pre modern times wealth was closely related to physical factors such as soil fertility, accessibility (for ships) and natural resources (minerals). Some countries grew from these beginnings , became growth hubs and remained switched on ever since

Land locked:Without a coastline trade is much more difficult and it becomes harder to attract TNCs/FDI. Tourists also less likely.

MountainsMountainous terrain can make agriculture and secondary industries difficult. This will have limited early growth and then TNC investment in contemporary times.

Natural Disasters: Economic development is held back in countries that suffer repeated natural disasters such as drought, hurricanes and earthquakes. These countries find it harder to attract TNCs ­ high risk. They get trapped in a poverty cycle. Level of globalisation is linked to wealth.

North vs South Korea. It's certainly not comparing like with like: North Korea is a small, impoverished, isolated country switched off to globalisation; South Korea is wealthy, democratic and switched on to the full forces of globalisation. While the South is westernised and industrialised, the North has the distinction of being the most corrupt country in the world (joint with Afghanistan, according to Transparency International, have a high infant mortality rate and homicide rate ­ plus have one of the lowest press freedom scores anywhere in the world. The big caveat with all this data is the fact that we know very little, really, aboutNorth Korea. These numbers, estimates as they are by the UN and other bodies, are almost certainly wrong. But they are the best numbers we have.

South KoreaKorea's economy ranks 13th purchasing power parity GDP in the world, identifying it as one of the G­20 major economies. It is a developed country with a high­income economy and is the most industrialized member country of the OECD. The country's national economy benefits from a highly skilled workforce and is among the most educated countries in the world with the one of the highest percentage of its citizens holding a tertiary education degree. South Korea's tiger economy was one of the world's fastest­growing from the early 1960s to the late 1990, soaring at an annual average of 10% for over 30 years. South Korea is still one of the fastest­growing developed countries in the 2000s. The South Korean economy is heavily dependent on international trade, and in 2014, South Korea was the 5th largest exporter and 7th largest importer in the world. South Korean brands such as LG Electronics and Samsung are internationally famous. It is Highly urbanized at 92%, South Koreans lead a distinctive urban lifestyle; half of them live in high­rises concentrated in the Seoul Capital Area with 25 million residents. A long legacy of openness and focus in innovation made it successful. It has free trade agreements with 75% of the world economy and is the only G20 nation trading freely with China, the US and EU simultaneously. High civil liberties led to the rise of a globally influential pop culture such as K­pop and K­drama, a phenomenon called the Korean Wave, known for its distinctive fashionable and trendy style. South Korea is East Asia's most developed country in the Human Development Index. It has the world's eighth highest median household income, the highest in Asia. In 2005, it became the world's first country to fully transition to high­speed Internet and today it has the world's fastest Internet speed and highest smartphone ownership. South Korea hosted the fifth G20 summit in its capital city, Seoul, in November 2010. South Korea has a technologically advanced transport network consisting of high­speed railways, highways, bus routes, ferry services, and air routes that criss­cross the country. South Korea's largest airport, Incheon International Airport, was completed in 2001. By 2007, it was serving 30 million passengers a year. In 2012, 11.1 million foreign tourists visited South Korea, making it the 20th most visited country in the world.