Impact of structual economic change Flashcards
1
Q
Deindustrialisation
A
- Job losses in ACs, factory closures
- Mining, ship building, textiles badly affected
- Industrialised regions poor, abandoned
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
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
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)
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
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