Unit 1: How has the location of manufacturing industries in Hong Kong changed over time? Flashcards

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1
Q

Sectors of industry

A
  1. Primary Industry
  2. Secondary Industry
  3. Tertiary industry
  4. Quaternary Industry
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2
Q

Primary Industry

A

Industries which extract / collect materials found in nature
e.g. farming,, mining, fishing, lumbering

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3
Q

Secondary Industry

A

Industries which assemble/process raw materials or semi-finished products -> more valuable products
e.g. manufacturing, construction, supply of utilities (electricity, gas, water)

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4
Q

Tertiary Industry

A

Industries which provide services to other industries + to people
e.g. banking, retailing. tourism, transport

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5
Q

Quaternary Industry

A

Industries which are concentrated with
1. information
2. application
3. manipulation
4. transmission
e.g. space industry, medical research, software development

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6
Q

Manufacturing system of a furniture factory

A

Inputs -> process -> outputs

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7
Q

Inputs in manufacturing of a furniture factory

A

physical inputs
1. raw materials
2. land

cultural inputs
1. capital
2. government policy
3. labour
4. power supply
5. technology
6. transport

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8
Q

production processes in manufacturing of a furniture factory

A

cutting leather -> cutting wood -> making structure -> mounting

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9
Q

outputs in manufacturing of a furniture factory

A

useful products + industrial waste -> market -> cash (-> cultural inputs)

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10
Q

how are manufacturing industries classified?

A

by:
1. weight and amount of raw materials + products (light/heavy industry)
2. inputs of capital and labours (labour-intensive / capital-intensive industry)
3. level of technology + research and development (low-tech/high-tech industry)

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11
Q

characteristics + examples of light industry

A

characteristics:
1. light raw materials are used
2. light products are used

examples:
1. electronics
2. textiles

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12
Q

characteristics + examples of heavy industry

A

characteristics:
1. heavy + bulky raw materials are used
2. heavy products are produced

examples:
1. iron + steels
2. shipbuilding

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13
Q

characteristics + examples of labour-intensive industry

A

characteristic:
1. much labour (large amount of workers)is used in production
2. relatively small amount of capital investment

examples:
1. textile + garment
2. watch-making

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14
Q

characteristics + examples of capital-intensive industry

A

characteristics:
much capital is used in production
examples:
1. petrolchemical
2. car-making

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15
Q

characteristics + examples of low-tech industry

A

characteristics
1. little investment + few resources put into research + development
2. traditional methods of production are used
3. simple tools + methods employed in production of goods

examples
1. incense stick making
2. handicrafts

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16
Q

characteristics + examples of high tech industry

A

characteristics
1. much investment + many resources are put into research + development
2. advanced technology is used

examples
1. smartphone making
2. genetic engineering

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17
Q

major manufacturing industries in Hong Kong from the 1950s-1970s

A
  1. Light industry (Textile and Garment)
  2. Labour-intensive industry (plastics)
  3. Low-tech industry (electronics)
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18
Q

stages of industrial development between 1950s-1970s

A

stage 1: 1950s -> two sides of Victoria harbour
stage 2: 1960s -> extended further North, East, West along both sides of Victoria Harbour
stage 3: 1970s -> in industrial estates + industrial areas in new towns

19
Q

favourable location factors for industrial development in Hong Kong in the 1950s

A
  1. deep natural harbour
  2. free port policy
  3. good port facilities and transport connections abroad
  4. availability of capital, managerial skills and technology
  5. abundant cheap labour
20
Q

why was a deep natural harbour a favourable location factor for industrial development in Hong Kong in the 1950s

A

to facilitate import of raw materials + export of finished product

21
Q

favourable location factors for industrial development in Hong Kong in the 1960s-1970s

A
  1. simple tax system with low tax rates
  2. efficient telecommunications and postal facilities
  3. free port policy
  4. abundant cheap labour
  5. good supply of high quality manager and support services
  6. better transport infrastructure
  7. well established legal system
    –1970s—
  8. well-planned industrial land with more space in new towns with better infrastructure
  9. lower land rents in new towns
22
Q

why has the importance of the manufacturing industry changed in Hong Kong since the 1980s

A

decrease of shares:
1. of workers in the secondary industry
2. of GDP in the secondary industry

23
Q

how has the location of the manufacturing industry in Hong Kong change from the 1980s to the early 2000s?

A

hong kong manufacturing firms
1. relocate factories -> Guangdong (Zhujiang Delta Region)
mode of production single point -> multi point

  1. headquarters
  2. sales + marketing
  3. design
  4. Research + development
    in HK

“Front shop, back facing”

24
Q

front shop, back facing

A

hong kong manufacturing firms :
factories -> Guangdong (Zhujiang Delta Region)

  1. headquarters
  2. sales + marketing
  3. design
  4. Research + development
    in HK
25
Q

major manufacturing centres in the ZDR

A
  1. Guangzhou
  2. Foshan
  3. Dongguang
  4. Zhongshan
  5. Shenzhen
  6. Zhuhai
26
Q

characteristics between single-plant firms + multi-plant firms

A
  1. scale of operation : smaller vs larger
  2. market : local/regional vs global
  3. location of the headquarters, R&D centres and production plants : often at the same location vs different locations
  4. decision making : individual owner-manager vs by professional managers based on corporate strategy
  5. mode of production : single-point vs multi-point production
  6. response to changing locational factors: slower vs faster
27
Q

what are the factors causing the relocation of factories from Hong Kong to the ZDR

A

push + pull factor of Hong Kong
1. labour
2. land
3. government policy
4. proximity to Hong Kong

28
Q

push factor of hong long causing the relocation of factories from Hong Kong to the ZDR : labour

A

labour
most manufacturing industries in Hong Kong were labour-intensive
high labour costs in Hong Kong -> raised production costs + lowered profit of the firms

29
Q

push factor of hong long causing the relocation of factories from Hong Kong to the ZDR : land

A
  1. Land availability:
    lack of flat land -> forced firms to carry out production operations in flatted factories -> hindered expansion + lowered production efficiency
  2. Land Prices:
    higher land price
30
Q

push factor of hong long causing the relocation of factories from Hong Kong to the ZDR : government policy

A

strict environmental protection regulations -> increase production costs + lowered profit
etc. air pollution control ordinance and water pollution control ordinance

31
Q

pull factor of hong kong causing the relocation of factories from Hong Kong to the ZDR : labour

A

low labour costs in the region -> greatly reduce production costs of labour-intensive industry -> increase profit of the firms + lower production cost

32
Q

pull factor of hong long causing the relocation of factories from Hong Kong to the ZDR : land

A

Land availability
extensive flat land available in the delta region -> makes expansion of production facilities possible

land price
lower land price

33
Q

pull factor of hong long causing the relocation of factories from Hong Kong to the ZDR : government policy

A
  1. industrialists needed to not invest plenty of money in environmental protection -> loose regulations
  2. local governments provided basic facilities + infrastructure
  3. favourable terms were offered to foreign investors
34
Q

pull factor of hong long causing the relocation of factories from Hong Kong to the ZDR : proximity to Hong Kong

A
  1. travel time between ZDR + HK -> short
    efficient railway + road networks linking HK + different manufacturing centres in the ZDR enabled industrialists to manage factories in the region + obtain technological + other support services from HK conveniently
  2. HK industrialists have relatives in ZDR -> knew places well + had good connections
35
Q

how has the location of the manufacturing industry in Hong Kong changed since the early 2000s?

A

HK manufacturers from ZDR ->
1. lower cost locations on the Mainland
2. south + south-east asian countries

36
Q

factors facilitating the relocation of factories from the ZDR to other regions/countries

A
  1. labour
  2. government policy
  3. trade relations
37
Q

push factor of the ZDR in factors facilitating the relocation of factories from the ZDR to other regions/countries in labour

A
  1. rapidly rising labour costs
  2. better economic development -> fewer workers willing to go to the ZDR to find jobs
38
Q

push factor of the ZDR in factors facilitating the relocation of factories from the ZDR to other regions/countries in government policy

A

since late 2000s -> adoption of policy of “emptying the cage and letting the right birds in”
-> forced low value-added + polluting industries to move out

39
Q

push factor of the ZDR in factors facilitating the relocation of factories from the ZDR to other regions/countries in trade relations

A

tense trade relations (between USA + China) + high tariffs imposed by forged in countries on China + high tariffs imposed by foreign countries on Chinese imports increase production costs

40
Q

pull factor of the ZDR in factors facilitating the relocation of factories from the ZDR to other regions/countries in trade relations

A

less affected by overseas protectionist measures

41
Q

pull factor of the ZDR in factors facilitating the relocation of factories from the ZDR to other regions/countries in government policy

A
  1. more lenient environmental protection regulations
  2. tax incentives provided to foreign investors
42
Q

pull factor of the ZDR in factors facilitating the relocation of factories from the ZDR to other regions/countries in labour

A

lower labour costs

43
Q

why do the manufacturing firms still keep their headquarters in Hong Kong?

A

Hong kong:
1. provides excellent supporting services
etc. banking + logal services for industrialists
2. effective telecommunications facilities-> enable headquarters to get latest market trends easily
3. well-established legal system -> favours business development
4. efficient international transport networks -> business people all over the world can visit the city for businesses trips easily
5. large pool of high quality managers/accountants.engineers/technicians