Impact of structual economic change Flashcards

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1
Q

Deindustrialisation

A
  • Job losses in ACs, factory closures
  • Mining, ship building, textiles badly affected
  • Industrialised regions poor, abandoned
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2
Q

Positives - ACs

A
  • Cheaper imports
  • Greater efficiency, increase productivity
  • LIDCs demand exports from ACs
  • Promotion of labour market
  • Greater industrial efficiency, dev of new tech, promotion, attracts FDI
  • Loss of mining & manufacturing = improved enviro quality
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3
Q

Negatives - ACs

A
  • Job exports / automation= job losses
  • Unskilled workers loose jobs
  • Gaps develop between skilled & unskilled workers
  • Industrial countries need to keep wages down
  • Job losses in certain industry = regions of unemployment
  • Branch plants particularly vulnerable in recession, job losses
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4
Q

Positives - EDC & LIDC

A
  • Higher export = income (multiplier effect)
  • High paid jobs, local areas
  • Reduce negative trade balance
  • New tech, skill improvement
  • Employment grown in labor intensive manufacturing (reduce dev gap)
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5
Q

Negatives - EDC & LIDC

A
  • Unlikely decrease inequality, concentrated in core areas not rural
  • Disruptive social impacts, exploitation
  • Overdependence on narrow economic base
  • Destabilise food supplies, less agriculture
  • Environmental issue, over industrialisation
  • Health & safety, tax legislation
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6
Q

Multiplier effect

A
  • Investment in 1970 to 1980 from foreign TNC
  • Training + employment = multiplier effect
  • Firms have specialised areas in the tech and innovation eg, Cambridge
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