CS1 - Global flows & the UK
Which massive flows interconnect the world & the UK?

1. Worldwide trade & investment
• ‘Made in world’ goods
- The technical transport & communication revolutions explain the dramatic fall in the cost of phone calls, passenger and freight traffic. And the political decision to liberalise, deregulate trade opened borders worldwide.
=>It allows a British TNC like GSK Pharmaceuticals to choose where to locate its different activities (R&D, headquarters, plants) depending on the cost and skills of labour, local legislation, currency, taxes rates and incentives. GSK is ready for Brexit as it thinks UK strengths outweighs EU benefits.

• Massive financial flows
- Today’s globalization is financial. Massive capital flows criss-cross the planet at light speed thanks to the communication revolution. They mostly move between developed countries, with the exception of China an increasingly powerful financial centre, and Latin America to a lesser extend.
- In 2015 London became the top world financial centre over New York as it is a business-friendly (deregulated) and connected city with a highly skilled workforce and a good image. The Conservative victory in the 2015 general election and powerful business & finance services also contributed. But Brexit has yet to happen…

2. People on the move
• International tourism on the rise
- 2016 global trends: more tourists => more spending => economic growth and sustainable development. Arrivals to top destinations, developed (EU & US) and emerging countries, increased. Tourists from main sending countries (China n°1 followed by US & EU) also increased.
- The UK is the 8th destination and London attracts many visitors for sightseeing (iconic monuments), cultural activities (concert halls and museums) & deluxe shopping (Harrods).
• Worldwide migration flows
- General trends: From less developed source/sending countries to more developed host/receiving countries within the South, from the South to the North and inside the North
- UK trends: largest outflow to Spain (amenity/lifestyle migration) + largest inflows from developing New CW Indian sub-continent & Zimbabwe + developed US = brain drain, highest increase from Poland (A8) => a more diverse (= multiethnic, cosmopolitan) & multicultural UK, especially London with 1/3 foreign-born.

• Major pull factors
- Most immigrants are attracted by traditional & also by more specific pull factors, like the American Dream.
- But maybe there is a British Dream too as non-White migrants already settled in a EU country with a more extensive Welfare State are ready to immigrate to the UK. They feel non-white self-made people are more celebrated even if it’s harder at first due to UK’s more liberal economy. They also think Commonwealth immigration increased diversity and resulted in a less prejudiced society.