Block 4 (Economic Change And Social Inequalities In Deindustrialised Urban Places)

Question 1

What are the positive economic consequences of the loss of traditional industries in urban areas?

Answer 1

• Cheaper products (lower production costs when imported)
• Diversification of economy
• Replaced with higher paid tertiary + quaternary industry
• NEEs that gain industry have higher GDP + develop

Question 2

What are the positive social consequences of the loss of traditional industries in urban areas?

Answer 2

• Push for higher education (to get skills for quaternary industry)
• Fewer dangerous jobs (e.g. mining/factory work)

Question 3

What are the positive environmental consequences of the loss of traditional industries in urban areas?

Answer 3

• Lower emissions in HICs (1970-2013 industrial combustion emissions in UK fell by 94%)

Question 4

What are the negative economic consequences of the loss of traditional industries in urban areas?

Answer 4

• Lower GDP in industrial areas
• Increased structural unemployment in industrial areas
• Decreased wages for those remaining in traditional industries (unions have less power)

Question 5

What are the negative social consequences of the loss of traditional industries in urban areas?

Answer 5

• Unemployment in industrial areas
• Social exclusion (unemployed workers marginalised - less income, get stigma + can’t afford to participate socially)
• Loss of working communities
• Decentralisation of population (flight to suburbs by rich)
• Decrease in public services (flight by rich - less qualified teachers,etc)
• Health problems (lower life expectancy + mental health strain)
• Higher substance abuse and petty crime

Question 6

What is he comparison of life expectancy for males in most deprived and least deprived areas?

Answer 6

• Most deprived = 74

- Least deprived = 83

Question 7

What are the negative environmental consequences of the loss of traditional industries in urban areas?

Answer 7

• Infrastructure decline (accelerated by broken windows theory)
• Derelict buildings are polluting
• Increased emissions globally, as goods transported
• Increased emissions in NEEs, with less environmental laws

Question 8

Define the broken windows theory

Answer 8

Visible signs of crime/antisocial behaviour may occur due to boredom etc, these signs encourage more crime/antisocial behaviour

Question 9

Outline the cycle of deprivation

Answer 9

• Decline in manufacturing (de-industrialisation)
• Suburbanisation by wealthy, mobile residents
• Poorest residents left in inner city
• Environmental and property decline
• Lack of investment by local authorities
• Spiral of decline
• New industries and businesses reluctant to relocate there

Question 10

Define suburbanisation

Answer 10

Intra-urban migration from inner city to suburbs

Question 11

What are 3 government policies used to reverse the negative impacts of deindustrialisation?

Answer 11

• Retraining
• Stimulating tertiary growth + investment by foreign MNCs
• Environmental policies

Question 12

What is retraining?

Answer 12

Implementing policy to retrain workforce in an area that has suffered deindustrialisation

Question 13

How does retraining help?

Answer 13

• Helps unskilled workers get back into employment

- This helps economy (tax + positive multiplier effect)

Question 14

Give an example of retraining

Answer 14

MG Rover Plant closure, Longbridge 
- 2005
- 6000 jobs lost 
- Unemployment rose to 6.2%
Bourneville college used to retrain 
- Unemployment fell to 3.7% (below city av)

Question 15

What is foreign direct investment (FDI)?

Answer 15

Investment made by a company based in one country, to a company based in another country

Question 16

Who does FDI?

Answer 16

MNCs

Question 17

Why does FDI help?

Answer 17

Brings employment and income into an area that has declined

Question 18

How do companies attempt to attract FDI?

Answer 18

• Create a skilled workforce

- Lower production costs (e.g. tax incentives)

Question 19

Give an example of FDI stimulating economic growth

Answer 19

Sunderland
- Coal mining (p) + ship building (s) declined in 70s+80s
- Mass unemployment + decline
- Gov tried to attract FDI - tax incentives for MNCs
Nissan
- Japanese car company
- Attracted in 1986
- Provided major employment - 7000 direct

Question 20

How do environmental policies help?

Answer 20

• Encourage investment

- Improve the standard of living, that is falling due to decline (e.g. physical and mental health improvements)

Question 21

Give example of an environmental policy by gov

Answer 21

Chicago
- US 3rd largest city (just under 10 mill)
- Deindustrialisation in late 1900s
- Major Daley wants to make it greenest US city
Policies
- Green roofs programme (e.g. City Hall)
- More green space (e.g. Millennium Park)
- Water conservation (saving over 160 mill gallons per day)