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Acadamic Subjects > Geog development EQ 3 > Flashcards

Geog development EQ 3 Flashcards

1
Q

When ad where did firms begin to move their manufacturing?

A

Beginning in the late 1960s, firms began to move their manufacturing to the LICs, which produced goods that were also sold to consumers in the HICs.

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2
Q

What are some reasons for the change in location of industries?

A
  1. Decisions of transnational corporations (TNCs) to gain advantage.
  2. Improvements in space-shrinking technology.
  3. Competitive government policies.
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2
Q

what is known as the Global Industrial Shift

A

The movement of manufacturing activities from HICs to LICs is known as the Global Industrial Shift.

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2
Q

This shift in industries then resulted in…

A

the New International Division of Labour, where manufacturing jobs are located mainly in the LICs and MICs, while research and development happens in the HICs.

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2
Q

what is New International Division of Labour

A

Separation of processes into different tasks. Each person will specialise in that particular task, and become more skillful, efficient, and productive. An international division of labour is the division of tasks into different places.

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3
Q

What are TNCs?

A

TNC - Trans National Companies
TNCs are companies that operate in more than one country.

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4
Q

How do TNCs operate globally?

A
  1. Operations are spread across multiple countries.
  2. TNCs may not directly own all their foreign operations.
  3. Many of the world’s largest firms are TNCs.
  4. TNCs have headquarters in their home countries.
  5. They have branches or suppliers in other countries.
  6. These branches or suppliers handle manufacturing and sales.
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5
Q

TNCs are ____________ enterprises

A

profit-oriented

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5
Q

What do TNCs achieve advantages through?

A
  1. Transnationalising operations
  2. Outsourcing
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6
Q

How do TNCs aim seek advanatages

A
  1. TNCs are profit-driven.
  2. Lower production costs -> increase revenue.
  3. TNCs choose locations offering advantages over others (Locations may offer better quality or more efficient production, not just cheaper costs.)
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7
Q

How does transnationalising help TNCs achieve advantages?

A

Transnationalising operations allowed firms to take advantage of what different countries have to offer to increase their profits.

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8
Q

What is outsourcing?

A
  1. Firms may outsource production to other companies instead of producing inputs themselves.
  2. They place large orders with specialized firms (e.g. assembly, building the screen, designing, etc.) -> reducing production costs
  3. These specialized firms act as suppliers or subcontractors.
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9
Q

Outsourcing is a _________ process. …

A

Outsourcing can be a multi-tiered process. Each supplier can further subcontract its inputs to other suppliers, and so on.

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10
Q

Talk about:
1. Access to workers
a. Cheap, abundant and flexible labour

A
  1. Labour-intensive processes (e.g. electronics assembly, clothing manufacturing) -> rely on low-skilled, low-salary workers.
  2. A large pool of workers can be quickly mobilised for last-minute changes or extended hours ->lowers production costs + allows for fast, large-scale production
  3. Quick production is crucial for industries with rapidly changing products, like electronics and fashion.
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11
Q

What is the difference between Transnationalising and Outsourcing ( Candy Shop Example)

A

In transnationalizing, the candy company owns and controls its operations (factories, processing plants, distribution centers) across different countries. In outsourcing, it relies on external companies (not owned by them) in different countries to supply certain materials or services, like packaging or flavor production.

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12
Q

Location decisions can be influenced by?

A
  1. Access to workers
    a. Cheap, abundant and flexible labour
    b. Skilled labour
  2. Access to customers
    a. Nature of products
    b. Customers’ taste and preference
    c. avoid import tax
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13
Q

GIVE EXAMPLE FOR:
1. Access to workers
a. Cheap, abundant and flexible labour

A

Nike, headquartered in Oregon, USA, manufactures its shoes and clothing in Indonesia, Vietnam, China, and Thailand. It has around 800 contracts with factories employing nearly 1,000,000 workers, who are paid about 10% of what a U.S. worker earns.

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14
Q

Talk about:
1. Access to workers
b. Skilled labour

A
  1. Some processes require skilled labor due to being capital-intensive( sophisticated equipment and specialized knowledge is needed)
  2. Advanced manufacturing sectors, like high-tech equipment and medicines, are typically found in developed regions.
  3. Such regions often have higher education levels to support these industries.
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15
Q

GIVE ME EXAMPLE FOR:
1. Access to workers
b. Skilled labour

A

Tech companies like Apple design their products at their headquarters in Cupertino, USA (the design of high-tech products occurs at its headquarters, where sophisticated knowledge is essential), while outsourcing components to various countries. The final assembly is done by Foxconn in China.

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16
Q

Talk about:
2. Access to customers
a. Nature of products

A
  1. Electronics and clothing can be shipped long distances, while fresh food cannot -> perishable items often locate closer to consumers.
  2. Bulky items, like cars, are expensive to transport -> more cost-effective to transport components closer to customers for assembly and delivery.
17
Q

Talk about:
2. Access to customers
b. Customers’ taste and preference

A
  1. Wealthier consumers may change their tastes, preferring luxury brands or products.
  2. Companies may locate near these customers to capture the market and increase revenue.
  3. Proximity to markets allows companies to study customer preferences and customize products accordingly.
18
Q

Talk about:
2. Access to customers
c. avoid import tax

A
  1. Some countries impose high taxes on imported goods.
  2. To avoid these import taxes, firms may relocate their manufacturing to those countries so that they don’t need to pay “IMPORTED TAXES”.
  3. This allows them to sell directly to local consumers.
18
Q

what does improvement for space shrinking tech means

A
  1. Transport and communication technologies have improved -> people, goods, and information to travel further and faster -> costs for transportation and communication have decreased
  2. TNCs can expand operations to other countries.
  3. Improved technologies enable TNCs to maintain control and coordination across locations because they are able to efficiently communicate with their overseas bases.
19
Q

What are the 2 technologies under space shrinking technologies

A
  1. Transportation technologies
    a. Development of commercial jet aircraft
    b. Containerisation
  2. Communication technology
20
Q

Talk about:
2. Communication technology

A
  1. Deep-sea optic fiber cables enabled fast, cheap global communication.
  2. Satellites enabled wireless data networks like 4G and 5G.
  3. Mobile phones became widespread, even in less developed countries (LDCs).
  4. More people and places gained internet access, including rural areas (e.g. Rural areas in Africa and Asia)
20
Q

Talk about:
1. Transportation technologies
a. Development of commercial jet aircraft

A
  1. Large numbers of people can now travel long distances quickly and affordably.
  2. Staff from different countries can hold regular face-to-face meetings with overseas counterparts.
  3. Lightweight, high-value goods (e.g., computer chips) + perishable goods can now travel long distances quickly
21
Q

Give an example for:
1. Transportation technologies
a. Development of commercial jet aircraft

A

Airbus A380 – world’s largest passenger aircraft; or Boeing 787, efficient
long-distance aircraft.

22
Q

Talk about:
1. Transportation technologies
b. Containerisation

A
  1. Standardized containers simplified long-distance transport by rail and sea, reducing costs.
  2. Over 90% of manufactured goods are now transported by container ships.
  3. Container technology has advanced, including refrigerated and ‘smart’ containers with real-time tracking capabilities.
23
Q

Talk about Government policies:

A
  • Governments influence the location of industries through policies.
  • Policies can encourage or restrict industrial development.
  • Governments can promote their country as attractive for foreign investment.
  • Such policies can enhance economic growth.
  • Governments play a key role in national development decisions.
24
Q

Examples of some government policies:

A
  1. Lowering corporate taxes for foreign companies to attract investment.
  2. Development of infrastructure (ports, rail, energy, communications) crucial for TNCs and local firms.
  3. Working with educational institutions to create industry-related programs and build a skilled workforce.
25
Q

Giver government policies (tax incentives) example

A

The Singapore Economic Development Board (EDB) offers 5% or 10% tax exemptions for five years through the Pioneer Certificate Incentive (PC) and Development and Expansion Incentive (PEI) to encourage companies to expand into new activities or set up regional/global HQs in Singapore.

26
Q

Giver government policies (purpose built infrastructure) example

A

Jurong Island was created by reclaiming seven islands to serve as a hub for the energy and chemical industry, housing over 100 companies today, with comprehensive security to protect the facilities.

27
Q

What are the economic advantages of Global Shift on LICs

A
  • TNCs provide foreign direct investment (FDI), helping to improve infrastructure, bring new technology, and create jobs.
  • More jobs mean people earn more money, which they can spend on goods and services, boosting the local economy.
  • The government collects more taxes from this activity, which it can use to improve roads, schools, and healthcare, raising the quality of life for everyone.
27
Q

Give government policies (education) example

A

The government collaborated with educational institutions like the Singapore Institute of Technology (SIT) to offer aerospace engineering programs, creating a skilled workforce for the aerospace industry in Singapore.

28
Q

What are the economic disadvantages of Global Shift on LICs

A
  1. Economic leakage occurs when TNC profits are repatriated to the home country instead of remaining in the host country.
  2. TNCs typically outsource low-wage jobs, while higher-paying positions remain in the home country, widening the income gap between urban and rural areas.
29
Q

What are the social advantages of Global Shift on LICs?

A
  • Government investment in social services may increase, improving healthcare and education.
  • TNCs often provide training, boosting productivity and education levels.
  • More women enter the workforce, enhancing their financial independence.
30
Q

What are the environmental advantages of Global Shift on LICs?

A

-Some TNCs have to comply with stricter environmental regulations of their home countries, and they could introduce better environmental practices to the host country.

31
Q

What are the social disadvantages of Global Shift on LICs?

A
  • The increase in income from TNC jobs may only benefit part of the population, leading to a widening income gap.
  • Poor working conditions in TNCs can worsen the standard of living for workers, as seen in cases like the Rana Plaza collapse and issues at Foxconn factories.
32
Q

What are the environmental disadvantages of Global Shift on LICs?

A
  • Many LICs have lax environmental protection laws.
  • The arrival of industries can lead to environmental degradation, particularly from polluting heavy industries like steel production, which causes severe air and water pollution due to unregulated waste disposal.
  • Rapid industrial expansion may result in deforestation as natural forests are cleared for space.
33
Q

talk about RANA PLAZA CASE STUDY! What is the connection between this case stuyd and EQ 3?

A

disadvantages tncs bring to lics, specifically social aspect

  1. Bangladesh has over 5,000 garment factories, contributing nearly 80% of exports, with over 4 million low-paid workers, mostly women.
  2. The Rana Plaza collapse on April 24, 2013, killed over 1,100 people, exposing unsafe working conditions.
  3. The Rana Plaza disaster showed that TNCs prioritise profits over safety, forcing workers back despite known building issues.
34
Q

What are the other strategies to bridge the development gap

A
  1. improve access to education
  2. improved housing
  3. improving access to water and sanitation
  4. population control
35
Q
  1. improve access to education
    EXAMPLE

and the challenges

A
  • Hill Area Education Project (HAEP), launched in 1981, aims to provide low-cost schooling to about 1 million ethnic minorities, including the Karen and Hmong.
  • The curriculum includes Thai language, mathematics, and vocational training to improve job access and farming techniques.

Challenges:
1. Many villages are isolated and lack resources, hindering outreach.
2. Language barriers exist, as schools often rely on volunteer teachers who do not speak indigenous languages.

36
Q

Talk about:
1. improve access to education

A

Improving access to education enhances the labor force quality, attracts foreign direct investment, and leads to better employment opportunities and a higher standard of living.

37
Q

Talk about improving access to water and sanitation services

A

Improving water supply and sanitation enhances hygiene and healthcare, reducing disease susceptibility and improving overall quality of life.

38
Q

Talk about improved housing! Theres and example here too. + challenge

A

Investment in cheap, affordable housing and relocation of residents from slums and other forms of informal housing.

The Housing Development Board (HDB) in Singapore, established in 1960, has relocated many kampung residents and now provides affordable high-rise housing for over 80% of Singaporeans. BUT IS HOUSING AFFORDABLE?

39
Q

improving access to water and sanitation services EXAMPLES + CHALLENGES

A
  1. Over 110 million toilets built by the Indian government, granting access to toilets for over 600 million people.
  2. Open defecation rates have dropped to 10%, significantly improving sanitation.

Challenges:
- Many still prefer open defecation due to cultural views, seeing it as enjoyable.
- Existing urban infrastructure is outdated, unable to handle current sewage volumes.

40
Q

Talk about population control policies

A

Countries with population control policies can focus resources on economic and social development instead of just meeting basic needs of the people.

41
Q

EXAMPLE:
Population control to bridge development gap

A
  1. China’s One-Child Policy reduced the Total Fertility Rate (TFR) from 5.8 in 1979 to 2.1 by 1999, with a current birth rate of 10.65 per 1,000 in 2023.
  2. Singapore’s Two-Child Policy cut the crude birth rate from 23.1 to 14.8 per 1,000 from 1972 to 1986, lowering the TFR from 3.07 to 1.43.

CHALLENGES:
Both countries face an ageing population due to lower birth rates.
Issues like the “Little Emperor” phenomenon in China and gender imbalance persist.

Acadamic Subjects (35 decks)

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