Patterns Of Productuon , Distribution And Consumption Flashcards
What are the 2 divisions of labour?
Highly skilled
Unskilled
The highly skilled group…
Highly paid
Decision making
Largely concentrated in HICs
The unskilled group…
Poorly paid
Located in LICs
Lower labour costs
How has this group changed in the last 40 years?
Many countries classified as LICs have become NECs.
They have Developed own industrial/commercial bases and TNCs
What countries developed from LICs to NECs in last 40 years
Asian ‘Tigers’ Hong Kong / Singapore And then BRIC economies Then MINT economies
Where was manufacturing prime in 1954
95% in industrialised economies of Western Europe, North America and Japan.
And then consumption was in country of origin
Define decentralisation
Transfer of authority from central to local government
Why did decentralisation occur?
Due to foreign direct investment by TNCs into developing countries.
Name another incentive to why governments set up TNCs in developing counties?
Lower land costs
Lower labour costs
Define global shift
Movement of economic activity from HICs to LICs
Name some factors which HICs give to LICs for TNC benefit
Transfer of technology
Enables increase in productivity without raising wages to same levels in HICs
Name 1 consequence of global shift
Deindustrialisation In Richer counties and loss of jobs in manufacturing sector
Example of deindustrialisation in UK
Employment in manufacturing fell by 50% in 30 years from 1983-2013.
This has steadied now as productively is rising again
Where are most manufacturing jobs?
50% in LICs
Over 60% of exports goes to HICs
What is the other factor other than global shift which causes a decline in manufacturing in developed countries ?
Outmoded production methods.
Products at end of life cycle.
Poor management
(Reversal occurring in LICs)
Name some factors affecting the location choice of entrepreneurs in LICs/ NEEs
Lower costs Skilled / educated work force Government incentives. Opportunity to build new plant with latest technology. Access to large markets
What does it mean by government incentives
Tax breaks
Enterprise zones
Where does product consumption occur?
Richer counties
Where does manufacturing occur and distribution and consumption ?
Manufacturing = NICs
Distributed to = Europe / japan / North America.
Example of TNC setting up in another country
Dyson.
Uk based vacuum cleaner manufacturer.
Moved to assemble products in Malaysia.
Sells bulk to Uk/ Europe
How is the pattern of distribution and consumption changing
NEEs developing = more affluent population = demand more products
What happens as Asia becomes more competitive?
Growing Regions exports will be to countries in Asia
Where can financial services locate?
Western financial companies can expand to Asia Pacific region
