Section A (Source-based Case Study) [25 marks] Question 1 is compulsory for all candidates.

Study the sources carefully, and then answer all the questions. You may use any of the sources to help you answer the questions, in addition to those sources which you are told to use. In answering the questions you should use your knowledge of the topic to help you interpret and evaluate the sources. 1 (a) Study Source A What is the message of this cartoon? Explain your answer.
(b)

[5]

Study Sources B and C How different are these two sources? Explain your answer. [6]

(c)

Study Source D How reliable is the source in reflecting that globalisation has produced positive impact? Explain your answer. [7]

(d)

Study Source E How useful is the source in showing the impact of globalisation? Explain your answer. [7]

Is globalisation a source of wealth or woe?

BACKGROUND INFORMATION Read this carefully. It may help you answer some of the questions.

While there may be disagreement as to the potential benefits of globalisation, it has certainly not halted the increase in world poverty. Almost half of the world's six billion people now live on less than $2 a day, while 1.2 billion people live on less than $1 a day. In addition, the gap between the richest 20% of the world's population and the poorest 20% has doubled in the past 40 years. The assets of the world's three richest billionaires exceed the gross national product of all 48 least developed countries and their 600 million people. The big question remains. Is this growth in inequality a result of globalisation, or has globalisation stopped it from being even worse? There is no doubt that the globalisation of the world economy has created significant wealth. Yet it is far less clear whether that new wealth has gone to the poor who need it most, or whether it is responsible for increasing the gap between the haves and the have-nots. Source A: Cartoon showing the impact of globalization by an Australian.

Source B: Opinion by John Philpot, a journalist, in Personnel Today

Perhaps the best way to allay current fears about offshoring is to draw a parallel with the loss of manufacturing jobs overseas that began in the 1970s. Combined with technological change, this eventually resulted in the UKs manufacturing workforce being halved, but the sector today is more highly skilled and productive, while the level of employment in the economy as a whole is higher than ever before. The new jobs that have been created in the sector are rich in knowledge skills or require a degree of the personal touch that is not easy to offshore. *

offshoring - the practice of moving business processes or services to another country, especially overseas, to reduce costs
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Source C: Opinion by Bob Davis, a journalist of Wall Street Journal Then there's China. One of the fastest-growing economies in the world has generated significant wage gains for its rank and file. Yet income inequality is also growing because of the huge gains being posted by the upper crust. Between 1984 and 2004, China's income inequality as measured by the Gini index zero is perfect equality and 100 is perfect inequality increased to 47 from 29, according to World Bank researchers Martin Ravallion and Shaohua Chen. From 2000 to 2005, per-capita income of the bottom 10% of urban households in China rose 26% while those at the top saw gains of 133%. Source D: An extract from the The Impact of Globalisation on Workers and their trade unions.

An opposing view, set forth for example by the *IMF is that globalization through foreign investment, trade and new technology contributes to growth, which is the key to employment . Unemployment, on the other hand, is mainly due to governmentsfailure to adopt sound economic and labour market policies. *IMF is the International Monetary Fund which is an international organisation of 185 member countries. Its operations involve surveillance, financial assistance, and technical assistance to meet the changing needs of its member countries in an evolving world economy. Source E: A view from a Canadian blogger on South Asian Voice, an online Canadian newspaper

Another outcome of globalization has been a huge increase in salaries of senior managers, accountants, lawyers and public-relations personnel working for MNCs or their local competitors. For the IT-literate, job opportunities have been plentiful, and there are also opportunities to live and earn abroad.The local availability of imported European cosmetics and fashions, imported drinks and confectioneries-these have all become important to those who have sufficient disposable income to purchase such items.

1 a.

Study Source A What is the message behind the cartoon? Explain your answer. 3m for 1 inference supported and 4m for 2 inferences supported eg: The cartoonist wants to show that globalisation has resulted in exploitation of the people of the developing country by the West(developed country). This is evident from the Source A which shows the Caucasian boss shouting Just Do It at the cowering workers to work beyond the hours and refusing their demands of fair work conditions(kicking a worker whom is carrying a placard in his face with his Nike clad foot). eg. The cartoonist is trying to show that the Indonesian workers are working under impoverished conditions. This is evident from the words ...a sweatshop somewhere in Indonesia implying that they work long hours earning meagre wages under poor working conditions. Purpose of the Source: L3 + Action eg: The purpose of the cartoonist is to raise awareness of the exploiting exploitation of the workers of developing countries by the giant TNCs despite offering them employment opportunities. He hopes that the governments of the developing countries or the world would step up pressures to offer protection for these exploited workers. (5)

b.

Study Sources B and C How different are these two sources? Explain your answer. Similarity/difference based on content supported Award 3m for one supported comparison and 4 marks for two supported comparison that highlights both difference and similarity Similarity Both sources are similar because both agree that the level of employment has risen due to globalisation. Source B says that the level of employment in the economy as a whole is higher. Likewise, Source C shows the fastest-growing economies in the world has generated significant wage gains for its rank and file. Difference Both sources differ in the views on the effects of globalisation in terms of skills and income. Source B has a favourable view that outsourcing has caused a refocus to a highly skilled and productive work force as seen by the sector are rich in knowledge skills or require a degree of the personal touch that is not easy to offshore On the other hand, Source C has a negative outlook. It says that despite significant wage gains for its rank and file, income disparity is apparent between the classes as reflected by Yet income inequality is also growing because of the huge gains being posted by the upper crust. Similarities or/and Differences in tone: Source B has a defensive tone as it tries to downplay any negative impact of globalisation, ..allay current fears about offshoring is to draw a parallel with the loss of manufacturing jobs overseas. On the other hand, Source Cs tone is concerned as it globalisation has brought about income disparities . Similarities or/and differences on purpose. Source B wants to convince her people(UK citizens) that offshoring(outsourcing) may cause people to lose their jobs initially but on the hindsight it has benefited the country with retrained highly skilled personnel. The journalist is encouraging the people to be receptive to this change. Source C wants to raise the awareness of the realistic situation where globalisation may have failed to benefit developing countries in real terms though the economy has grown. By highlighting this, the journalist is convincing the government to do something to help the lower income group. Study Source D How reliable is the source in reflecting that globalisation has produced positive impact? Explain your answer. Answer based on cross-referencing to other sources Reliable or not reliable based on cross-referencing to other source(s) Award 6m if additional information is given.

(6) 4

(7) 5 5-6