Negative Multiplier Effect: Full story from - http://news.bbc.co.uk/1/hi/wales/4773779.stm

1. Negative Multiplier Effect: Full story from - http://news.bbc.co.uk/1/hi/wales/4773779.stm Hundreds of motor firm jobs shed One of Blaenau Gwent's biggest employers has announced that it is shedding up to 350 jobs - in addition to 70 cuts already announced. Continental Teves which makes brake calipers for the motor industry is switching production to Slovakia. Monday, 15 May 2006 Around 500 people work at the Ebbw Vale plant

2. 500 well paid jobs lost Negative multiplier effect … Example: Environmental effect Factory building left unoccupied

3. 500 well paid jobs lost Negative multiplier effect … Example: Environmental effect Factory building left unoccupied

4. 500 well paid jobs lost Negative multiplier effect … Example: Environmental effect Factory building left unoccupied Buildings are vandalised and become derelict

5. 500 well paid jobs lost Negative multiplier effect … Example: Environmental effect Factory building left unoccupied Buildings are vandalised and become derelict Area becomes unsightly and less attractive to new businesses to move there

6. 500 well paid jobs lost Redundant workers have less money to spend People short of money -with nothing to do. People decide to move to find work Sort out the boxes on the next slide and put them under the correct column heading. The result should be three columns explaining three ways a negative multiplier effect might work if a big factory closed in an area. For example Continetal Teves leaving Ebbw Vale.

7. 500 well paid jobs lost Redundant workers have less money to spend People short of money -with nothing to do. People decide to move to find work Local shops and services (e.g. cinemas) lose trade and may close too Rise in crime and antisocial behaviour e.g graffiti Flood of houses for sale in area Houses prices fall. No-one buying. Even less money spent in local area – more shops close Area seen as unattractive with problems