F2 - SEM2 - MDCs Flashcards

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1
Q

What are the benefits of global shift of manufacturing to MDCs?

MDCs

A
  1. more tax income
  2. cheaper products
  3. reduce industrial pollution
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2
Q

Explain why MDCs have more tax income after global shift of manufacturing.

MDCs

A

factories relocated to LDCs
=> TNCs can make more profit (cost savings and market expansion)
=> home countries collect more taxes from TNCs

MDCs

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3
Q

Explain why MDCs have more cheaper products after global shift of manufacturing.

MDCs

A

production cost in LDCs is lower
=> TNCs sell product at cheaper cost
=> local company lower product’s price to compete

MDCs

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4
Q

Explain why MDCs have industrial pollution reduced after global shift of manufacturing.

MDCs

A

highly polluting industries are moved to LDCs
=> pollution problems in MDCs are reduced

MDCs

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5
Q

What are the challenges to MDCs after global shift of manufacturing?

MDCs

A
  1. local industries face strong competition
  2. unemployment rate rises
  3. decay of industrial area
  4. economic recession

MDCs

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6
Q

Explain why local industries in MDCs face strong competition after global shift of manufacturing

MDCs

A

products made in LDCs are cheaper
=> local companies in MDCs face strong competition
=> local companies close down

MDCs

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7
Q

Explain why unemployment rate rises in MDCs after global shift of manufacturing

MDCs

A

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

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8
Q

Explain why industrial areas decay after global shift of manufacturing

MDCs

A

factories close down and left abandon
=> former factories have fallen into disuse
=> traditional industrial areas begin to decay

MDCs

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9
Q

Explain economic recession cycle after global shift of manufacturing

MDCs

A

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

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10
Q

What are impacts of economic recession?

MDCs

A
  1. government receives less tax income
  2. infrastructure is poorly maintained
  3. urban decay
  4. many factories shutdown

MDCs

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11
Q

How do MDCs tackle the challenges due to global shift of manufacturing?

MDCs

A
  1. move towards high-tech industries (industrial restructuring)
  2. develop tertiary industries
  3. support unemployed workers

MDCs

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12
Q

Explain how government help manufacturing companies in MDCs move towards high-tech industries

MDCs

A
  1. offer subsidies
  2. lower tax rate
  3. cheaper lands

MDCs

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13
Q

What are the 4 characteristics of high-tech industries?

MDCs

A
  1. location are not limited by traditional locational factors
  2. involve advance technology and focus on R&D of products
  3. capital intensive - lots of money is invested in R&D, buy machinery and hire professionals
  4. high value-added industries - product high-end profitable products

MDCs

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14
Q

How does government in MDCs support unemployed workers?

MDCs

A
  1. unemployed benefit - allow workers to maintain basic standard of living
  2. job matching services - help them to find new jobs
  3. retraining programme - equip workers with new skills, they can work in other industries

MDCs

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15
Q

Give some examples of high-tech industries

MDCs

A
  • IT industries
  • medicine manufacturing
  • aerospace technology

MDCs

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16
Q

Explain why develop the tertiary industry help MDCs tackle the challenges.

MDCs

A
  1. diversify economic structure
  2. promote economic growth
  3. provide many job opportunities for former manufacturing workers

MDCs

17
Q

What are the traditional locational factors?

MDCs

A

near raw material, energy resources and markets

MDCs