F2 - SEM2 - What are the factors causing the global shift of manufacturing? - 3.4 Flashcards
What are 4 major factors causing the global shift of manufacturing?
3.4 What are the factors causing the global shift of manufacturing?
- Technological advancement
* Improvement in Transport
* Production technologies
* Breakthrough in Information and communication Technology (ICT) - labour cost reduction
- Market expansion
- Policitical consideration
* Favourable policies
* Reduction of trade barriers
3.4 What are the factors causing the global shift of manufacturing?
How does technological advancement in Transport causing the global shift of manufacturing?
3.4 What are the factors causing the global shift of manufacturing?
good transport facilities and networks help reduce transport costs, e.g.
* modern container ships - has large capacity to carry bulk amount of raw material, energy resources and goods at low cost
* air transport - provide a fast means to ship products and allow people to travel between places easily
3.4 What are the factors causing the global shift of manufacturing?
How does technological advancement in Production technologies causing the global shift of manufacturing?
3.4 What are the factors causing the global shift of manufacturing?
give industries more freedom to choose their location, e.g.
* moden steel plants can reuse scrap iron as raw material => no need to be located near iron mines
* refrigeration and preservation technologies keep food fresh for a longer time => no need to be located near the marker
3.4 What are the factors causing the global shift of manufacturing?
How does technological advancement in ICT causing the global shift of manufacturing?
3.4 What are the factors causing the global shift of manufacturing?
- speed up information exchange between headquarters and regional offices
- e.g. emails, video conferences
3.4 What are the factors causing the global shift of manufacturing?
Why labour cost in LDCs are generally lower?
3.4 What are the factors causing the global shift of manufacturing?
abundant supply of cheap labour
3.4 What are the factors causing the global shift of manufacturing?
What kinds of industries are attracted by low labour cost?
3.4 What are the factors causing the global shift of manufacturing?
labour-intensive and low-tech industries
3.4 What are the factors causing the global shift of manufacturing?
Name a country has many educated but low wages professionals with low wages professional
3.4 What are the factors causing the global shift of manufacturing?
India
3.4 What are the factors causing the global shift of manufacturing?
Explain why LDCs become new markets for manufactured products
3.4 What are the factors causing the global shift of manufacturing?
- LDCs have rapid economic development
- => income level rises
- => demand for consumer goods increase
3.4 What are the factors causing the global shift of manufacturing?
Give examples of favourable policies that attract foreign company
3.4 What are the factors causing the global shift of manufacturing?
- setup industrial parks
- lower tax rates
- priority in power supply
- more relaxed pollution control policies
3.4 What are the factors causing the global shift of manufacturing?
Explain why many countries impose tariffs or quotas on imported goods?
3.4 What are the factors causing the global shift of manufacturing?
protect local industries by raise the production cost of foreign cost of foreign manufacturer and prevent them from entering local market
3.4 What are the factors causing the global shift of manufacturing?
How can foreign manufacturers do to reduce trade barrier?
3.4 What are the factors causing the global shift of manufacturing?
setup factories directly in these countries
3.4 What are the factors causing the global shift of manufacturing?
