Unit3.5(industry) What Is The Impact Of Changes In Industrial Location And Modes Of Production Flashcards
how industrial development brings benefits to a region?
When industries are set up in a region, jobs are created and people’s income will increase With a higher income, more money can be spent in local shops and services. The local economy starts to grow and this will increase the tax revenue of the local government. Then, the local government will have more money to improve the infrastructure. This ill attract more people to come and more new industries will be set up in the region
What do we call such effect brought by industrial development to a region?
Multiplier effect
What the reasons for the changes in the location of the production plant of Firm ?
- Advancements in telecommunication technologies
- The flow of information between the headquarters and the production plant in different countries is efficient and the cost of communications is low.
- The production plant can be located away from the headquarters to the less developed country to tap the advantages of low wages and land costs,
- Appearance of new production mode: multi-point/ multi-national production
If you were a manufacturer of semiconductor chips, where would you locate your production plant in terms of economic consideration only?Explain your answer.
A. B Environmental awareness High. Low Of people Pollution control Strict. Less strict
- place B
- The production plant not only produces useful outputs, but also harmful outputs such as toxic chemicals. These harmful outputs will pollute the surrounding environment.
- People in Place A may protest against the establishment of the production plant as their environmental awareness is high. In addition, the pollution control is strict and this will increase production costs
- In contrast, it would be easier to set up the plant at Place B as the environmental awareness of the people is low, and the pollution control is less strict These will help lower production costs
how industrial relocation affects labour the flow of labour ?
Use the example of China
•Relocation of industry Would affects Job opportunities in both old and new industrial areas
•Examples :The iron and steel industry in China in the 1960s
~Factory workers were encouraged to move to the inland regions as the central government had relocated the iron and steel industry there
~This had created an inter-regional flow of labour
how industrial relocation affects the flow of labour ?
Use the examples of USA
•Relocation of industry affects the opportunities in both old and new industrial areas
•Examples :The IT industry in the USA
~Production plants relocated to the less developed countries as to enjoy lower production costs, so some managerial personnel and specialists in the USA are sent to the less developed countries. This creates an international flow of labour.
~ R&D centres are relocated to the suburbs/suburban areas of large cities which attracts scientists and engineers to move from the urban areas to the suburban areas. This creates an intra-urban flow of labour.
Briefly describe how the following changes give rise to unemployment in local areas.
Appearance of new production modes in the iron and steel industry in China
•The iron and steel works have to adopt new modes of production in order to be more competitive. This has forced many outdated iron and steel works to close or merge into the larger enterprises. The restructuring of the iron and steel enterprises has caused many workers to lose their jobs.
Briefly describe how the following changes give rise to unemployment in local areas
Relocation of the IT industry in the USA
As an increasing number of US IT firms relocate their production bases and software development processes to the less developed regions/countries, many IT-related jobs have moved overseas. Many semi-skilled and skilled workers have become unemployed
What adverse/negative effects may unemployment cause?
Unemployment may cause social problems such as drug addiction, drunkenness and family abuse
What is the impact of the relocation of factories in HK to the ZDR ?
Moving factories to the ZDR cause large scale of production of the factories in the ZDR and more business tie between Hong Kong and the ZDR as the firms keep their headquarters in HK. This cause a high demand of producer services in HK eg. Finance, banking and logistic results in restructuring of the economy. Old industrial area in HK are used for commercial land use and high-tech industry. Therefore, more people work in tertiary sector of HK
What is the environmental impact of relocating the computer manufacturing industry from the more developed countries to the less developed countries?
Toxic chemicals such as mercury are used in computer manufacturing. When these materials are not treated or disposed of properly, it may cause serious water pollution and affect human health. As more and more IT firms set up computer manufacturing factories in the less developed countries since the environmental regulations are less strict there, pollution has become an increasingly serious problem in these countries.
In addition, a large amount of electronic waste is sent to these less countries for disassembly and disposal. The improper dismantling methods have caused serious environmental problems there.
how the governments could help building an economy that can sustain growth.
- Diversifying the economy by developing other industries. This can secure the economy by reducing the dependence on some particular industries. •Lowering taxes and improving infrastructure to attract new industries.
- Setting up industrial parks to provide improved facilities for industries.
- \Subsidizing the manufacturing firms to adopt advanced technology in production. This helps increase production efficiency.
how the government could help the laid-off/unemployed workers and maintain the productivity of the workers ?
- Providing retraining programs for workers so as to equip/teach laid-off workers with new skills for employment in other industries.
- Providing education to all people to ensure they have adequate skills.
- Improving the social security system to provide a safety net for those who are less fortunate.
Why is it not easy to build an economy that sustains growth?
- Adopting these measures requires a large amount of additional financial inputs. Lowering taxes will also reduce the revenue of the government. Therefore, it is difficult for a declining economy to afford such expenses. .
- There are diversified interests among different social groups in a community. Conflict may arise as policies or programmes cannot satisfy all social groups.
What are the advantages of adopting the principle of eco-efficiency in production?
More goods and services can be created by using fewer materials and less energy. This can increase profits on one hand and reduce waste and pollution on the other hand
