3.1.1 Globalisation Case Studies

Case Study: Globalisation in India

Location of Jodhpur

Graph of Indian Exports and GDP Per Capita (PPP)

Jodhpur is a city in the state of Rajasthan in north-west India, a dry and desert-like part of the country. For centuries it has been home to skilled craftsmen who are known for their beautiful hand-carved wood items. Modern furniture manufacturers in Jodhpur continue this tradition and produce furniture that is famous for its quality throughout the world.

A Skilled Craftsman

Example of Jodhpur furniture workshop, with products ready for export.

In the 1990s India reformed its economy to be less state-planned and more market-orientated. One result of this was to allow furniture makers in Jodhpur to sell their exports across the world. Foreign interior-furnishing companies such as Laura Ashley (founded in the UK, Malaysian-owned) and Crate and Barrel (USA) made large orders from furniture-makers in Jodhpur. Skilled carpenters in India are able to make around 500 rupees ($7.50) per day, compared to a national average of 270 rupees ($4) per day. The national minimum wage in the USA for low skilled workers is $7.25 per hour. Consumers in Europe and America value the high quality of the products that are produced here. Furniture of similar quality made in Europe and America retails at a higher price than Indian-made furniture. By 2010, 90% of production of furniture manufactured in Jodhpur was exported abroad, mostly to Europe and America.

1. Explain the effect of globalisation on:
   1. Workers in Jodhpur
   2. Consumers in America
   3. Global companies such as Laura Ashley and Crate and Barrel

Case Study: Globalisation in the United States of America

Locations of Silicon Valley and Flint

Apple Headquarters

Silicon Valley, California

Silicon Valley is a region in California, USA, near San Francisco. It is home to many of the most successful technology companies in the world. Companies such as Google, Apple and Facebook were created or developed here, and their reach and customer base is now global.

Apple uses global marketing to sell millions of iPhones. In the first three months of 2017, the company sold 78.29 million iPhones. This is equivalent to 554 iPhones every minute. In 2017 Apple reported profit of $48.3bn. Software engineers working at Apple’s headquarters in California earn on average $150,000 per year, compared to an annual household income of $59,000 nationally. San Francisco is now one of the most expensive places to live in the USA, with average house prices in the city of $1.61 million compared with $188,000 nationally.

Flint, Michigan

Downtown Flint

A House for Sale in Flint

Flint is a city in Michigan, USA. It was once a major centre of US automobile production. In the past 50 years American car manufacturers have moved their production facilities to countries with lower labour costs, such as South Korea, India, and China. In 1968 the city employed 80,000 workers in car factories in Flint; by 2011 there were only 6,000. The average household income in Flint is now $44,000 per year, compared to $59,000 nationally. In 2017, 45% of residents in Flint lived below the poverty line. In March 2018 the unemployment rate in Flint was 10.4%, compared with 4.1% nationally. In 2016 Donald Trump won the state of Michigan by 11,000 votes (of 4.8m votes cast), running on the promise of bringing back manufacturing jobs to America.

2. Explain the effect of globalisation on:
   1. Workers in Flint, Michigan
   2. Software Engineers in Silicon Valley
   3. Technology firms such as Apple
   4. Residents of Silicon Valley who do not work in technology