Using Item B, analyse the effects of increasing global interdependence on employment in the UK.
How to approach this question
1. Understand that 'global interdependence' is another term for globalisation. 2. Recognise that the effects can be both positive and negative. 3. Use Item B to identify a negative effect: MNCs locating in other countries can mean jobs move out of the UK. Analyse this in terms of structural unemployment. 4. Use Item B to identify a positive effect: UK businesses can sell to more people worldwide. Analyse this in terms of job creation in export-focused, high-skilled sectors. 5. Conclude by summarising that the effect is a change in the types of jobs available rather than just a net loss or gain.
Full Answer
Global interdependence affects UK employment in two main ways:
1. **Job destruction (negative effect):** Companies can move production to countries with lower labour costs. This is particularly true for low-skilled manufacturing jobs. As Item B mentions MNCs locating in less developed countries, this implies a potential shift of jobs away from developed countries like the UK. This leads to structural unemployment, where there is a mismatch between the skills of the unemployed and the skills required for new jobs.
2. **Job creation (positive effect):** Globalisation allows the UK to specialise in areas where it has a comparative advantage, such as financial services, technology, and creative industries. As Item B states, businesses in developed countries can 'sell goods and services to many more people'. This increases demand for UK exports, leading to the creation of new, often high-skilled and higher-paid, jobs in these sectors.
The overall effect is a structural shift in the UK labour market away from traditional manufacturing and towards services and high-tech industries.
Common mistakes
Only focusing on the negative aspect of job losses without considering the jobs created in other sectors. Not linking the points back to the information provided in Item B.
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