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Winners and losers: consumers, the Rustbelt and switched-off places

Edexcel IAL Geography · WGE01 Global Challenges

In developed countries globalisation has benefited consumers but harmed some workers and regions, and its benefits are unequally distributed: some places are switched off while world cities and elites gain most.

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Consumers and critics in developed countries

Global consumers benefit from low-priced goods and global brands made in low-cost locations.

Anti-globalisation groups argue this comes at a cost:

exploitation of low-paid workers in supplier countries
loss of manufacturing jobs at home
environmental damage and emissions from production and transport
loss of local culture and businesses (cultural homogenisation).

Deindustrialised regions: the US Rustbelt

The Rustbelt of the north-eastern and midwestern USA lost much manufacturing (steel, cars) as production moved overseas and automated. Detroit had more than 1.8 million people in 1950 and 639,111 at the 2020 Census, down 10.5% since 2010 (Michigan Public).

Problems: dereliction (empty factories and houses), depopulation, crime, high unemployment, falling tax revenue for services.

Switched-off places

Some developing locations are weakly connected to the global economy:

Physical: landlocked, mountainous, remote, harsh climate, poor soils.
Political: conflict, corruption, sanctions, closed economies.
Cultural: some communities choose to limit outside contact; language barriers.

Implications: little FDI or trade, limited jobs, poor services, out-migration.

World cities, hubs and elites; Skill (10)

World cities such as London and Singapore are global hubs of finance, transport and communications; they attract TNC headquarters, talent and investment, and a global elite of high earners benefits disproportionately.

Network maps show nodes (places) and links (routes or connections). The beta index = links / nodes measures connectivity: higher values mean a better-connected network.

Worked example

Calculate the minimum percentage fall in Detroit's population from 1950 (more than 1.8 million) to 2020 (639,111).

Use 1,800,000 as a minimum for 1950.
Fall = 1,800,000 - 639,111 = 1,160,889
1,160,889 / 1,800,000 x 100

Answer: At least 64.5%.

Key idea: Consumers gain cheap goods; critics cite exploitation, job loss and environmental costs. Rustbelt: deindustrialisation, dereliction, depopulation (Detroit over 1.8 million in 1950, 639,111 in 2020). Switched-off: physical, political, cultural barriers. World cities and elites gain most.

Check yourself

Detroit had more than 1.8 million people in 1950 and 639,111 in 2020. Using 1.8 million, calculate the percentage fall to 1 decimal place.
Show answer
64.5 %. (1,800,000 - 639,111) / 1,800,000 x 100 = 64.5%.
A network map has 8 nodes and 12 links. Calculate the beta index.
Show answer
1.5. 12 / 8 = 1.5.
What was the main cause of decline in the US Rustbelt?
- A rise in farming jobs
- Manufacturing moved to lower-cost countries and was automated
- Rapid in-migration of workers
- Higher demand for steel in the USA
Show answer
Manufacturing moved to lower-cost countries and was automated. Deindustrialisation followed the global shift.
Which is a political reason why a place may be switched off from globalisation?
- Being landlocked
- A desert climate
- Civil war and international sanctions
- Speaking a minority language
Show answer
Civil war and international sanctions. Conflict and sanctions deter trade and investment.
Why do world cities such as Singapore and London gain most from globalisation?
- They are hubs of finance, transport and communication that attract TNC headquarters and skilled workers
- They have the cheapest labour
- They are switched off
- They have no airports
Show answer
They are hubs of finance, transport and communication that attract TNC headquarters and skilled workers. Their connectivity concentrates high-value activity.
Which is a benefit of globalisation for consumers in developed countries?
- Loss of factory jobs
- Pollution in supplier countries
- Cheaper goods and a wide choice of global brands
- Derelict factories
Show answer
Cheaper goods and a wide choice of global brands. Low-cost production lowers prices.
Explain one cost of globalisation argued by anti-globalisation groups.
Show answer
Workers in supplier factories are exploited with low wages and poor conditions, because TNCs move production to wherever labour is cheapest.. Name the cost and explain it.

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Last updated 8 November 2026. Spotted a mistake? Tell us.