Patterns Of Productuon , Distribution And Consumption

Question 1

What are the 2 divisions of labour?

Answer 1

Highly skilled

Unskilled

Question 2

The highly skilled group…

Answer 2

Highly paid
Decision making
Largely concentrated in HICs

Question 3

The unskilled group…

Answer 3

Poorly paid
Located in LICs
Lower labour costs

Question 4

How has this group changed in the last 40 years?

Answer 4

Many countries classified as LICs have become NECs.

They have Developed own industrial/commercial bases and TNCs

Question 5

What countries developed from LICs to NECs in last 40 years

Answer 5

Asian ‘Tigers’ 
Hong Kong / Singapore
And then 
BRIC economies 
Then 
MINT economies

Question 6

Where was manufacturing prime in 1954

Answer 6

95% in industrialised economies of Western Europe, North America and Japan.
And then consumption was in country of origin

Question 7

Define decentralisation

Answer 7

Transfer of authority from central to local government

Question 8

Why did decentralisation occur?

Answer 8

Due to foreign direct investment by TNCs into developing countries.

Question 9

Name another incentive to why governments set up TNCs in developing counties?

Answer 9

Lower land costs

Lower labour costs

Question 10

Define global shift

Answer 10

Movement of economic activity from HICs to LICs

Question 11

Name some factors which HICs give to LICs for TNC benefit

Answer 11

Transfer of technology

Enables increase in productivity without raising wages to same levels in HICs

Question 12

Name 1 consequence of global shift

Answer 12

Deindustrialisation In Richer counties and loss of jobs in manufacturing sector

Question 13

Example of deindustrialisation in UK

Answer 13

Employment in manufacturing fell by 50% in 30 years from 1983-2013.
This has steadied now as productively is rising again

Question 14

Where are most manufacturing jobs?

Answer 14

50% in LICs

Over 60% of exports goes to HICs

Question 15

What is the other factor other than global shift which causes a decline in manufacturing in developed countries ?

Answer 15

Outmoded production methods.
Products at end of life cycle.
Poor management
(Reversal occurring in LICs)

Question 16

Name some factors affecting the location choice of entrepreneurs in LICs/ NEEs

Answer 16

Lower costs 
Skilled / educated work force
Government incentives.
Opportunity to build new plant with latest technology.
Access to large markets

Question 17

What does it mean by government incentives

Answer 17

Tax breaks

Enterprise zones

Question 18

Where does product consumption occur?

Answer 18

Richer counties

Question 19

Where does manufacturing occur and distribution and consumption ?

Answer 19

Manufacturing = NICs

Distributed to = Europe / japan / North America.

Question 20

Example of TNC setting up in another country

Answer 20

Dyson.
Uk based vacuum cleaner manufacturer.
Moved to assemble products in Malaysia.
Sells bulk to Uk/ Europe

Question 21

How is the pattern of distribution and consumption changing

Answer 21

NEEs developing = more affluent population = demand more products

Question 22

What happens as Asia becomes more competitive?

Answer 22

Growing Regions exports will be to countries in Asia

Question 23

Where can financial services locate?

Answer 23

Western financial companies can expand to Asia Pacific region