F2 - SEM2 - MDCs Flashcards
What are the benefits of global shift of manufacturing to MDCs?
MDCs
- more tax income
- cheaper products
- reduce industrial pollution
Explain why MDCs have more tax income after global shift of manufacturing.
MDCs
factories relocated to LDCs
=> TNCs can make more profit (cost savings and market expansion)
=> home countries collect more taxes from TNCs
MDCs
Explain why MDCs have more cheaper products after global shift of manufacturing.
MDCs
production cost in LDCs is lower
=> TNCs sell product at cheaper cost
=> local company lower product’s price to compete
MDCs
Explain why MDCs have industrial pollution reduced after global shift of manufacturing.
MDCs
highly polluting industries are moved to LDCs
=> pollution problems in MDCs are reduced
MDCs
What are the challenges to MDCs after global shift of manufacturing?
MDCs
- local industries face strong competition
- unemployment rate rises
- decay of industrial area
- economic recession
MDCs
Explain why local industries in MDCs face strong competition after global shift of manufacturing
MDCs
products made in LDCs are cheaper
=> local companies in MDCs face strong competition
=> local companies close down
MDCs
Explain why unemployment rate rises in MDCs after global shift of manufacturing
MDCs
factories relocated to LDCs
=> low-educated workers are difficult to shift to tertiary industry (no more secondary industry)
=> unemployment rises
=> many social problems (e.g. poverty, drug abuse and alcoholish, crime rate increase)
MDCs
Explain why industrial areas decay after global shift of manufacturing
MDCs
factories close down and left abandon
=> former factories have fallen into disuse
=> traditional industrial areas begin to decay
MDCs
Explain economic recession cycle after global shift of manufacturing
MDCs
many factories shutdown
=> jobs in MDCs are lost and unemployment rate rises
=> people leave the city and population drops
=> economic development slows down
=> economic recession occur
=> government receives less tax income
=> infrastructure is poorly maintained
=> urban decay
=> many factories shutdown
MDCs
What are impacts of economic recession?
MDCs
- government receives less tax income
- infrastructure is poorly maintained
- urban decay
- many factories shutdown
MDCs
How do MDCs tackle the challenges due to global shift of manufacturing?
MDCs
- move towards high-tech industries (industrial restructuring)
- develop tertiary industries
- support unemployed workers
MDCs
Explain how government help manufacturing companies in MDCs move towards high-tech industries
MDCs
- offer subsidies
- lower tax rate
- cheaper lands
MDCs
What are the 4 characteristics of high-tech industries?
MDCs
- location are not limited by traditional locational factors
- involve advance technology and focus on R&D of products
- capital intensive - lots of money is invested in R&D, buy machinery and hire professionals
- high value-added industries - product high-end profitable products
MDCs
How does government in MDCs support unemployed workers?
MDCs
- unemployed benefit - allow workers to maintain basic standard of living
- job matching services - help them to find new jobs
- retraining programme - equip workers with new skills, they can work in other industries
MDCs
Give some examples of high-tech industries
MDCs
- IT industries
- medicine manufacturing
- aerospace technology
MDCs