3.5 What is the impact of changes in industrial location and modes of production?

1. 3.5 What is the impact of changes in industrial location and modes of production?

2. What are the benefits of having manufacturing industries in an area? New industries set up Attract other industries Jobs created More people come to the area Cycle of economic growth ______________ effect Multiplier More money available to be spent in local shops and services Infrastructure improved Local economy grows Increase in tax for local government

3. Why do industries move away from an area? Reason 1 Changes in location factors Reason 2 New production modes Reason 3 Concern about the environment Please click above for animation

4. What is the impact of industrial relocation and the appearance of new modes of production? 1 Socio-economic impact A Flow of labour Workers move to places which offer more job opportunities. Example 1 Iron and steel industry in China In the 1960s, factory workers moved from ... to ... The East Inland

5. 1 Socio-economic impact What kind of workers move? This creates an _______ _________ flow of labour. What kind of workers move? This creates an ________ _______ flow of labour. A Flow of labour inter- intra- urban national Example 2 IT industry in the USA As IT firms locate in the green field sites, workers move from … to ... Scientists, engineers, professionals city centre suburbs As production bases are set up overseas, workers move from … to ... Managerial personnel, technicians MDCs LDCs

6. 1 Socio-economic impact B Unemployment Industrial relocation may trigger the decline of local economies. Factories are forced to close Job losses Relocation Less money to spend in local shops and services New investment shrinks Failure in subsidiary industry People move away Decline in the quality of infrastructure for the local community and industrial development Less tax income for local government Local economy declines

7. 1 Socio-economic impact B Unemployment Restructuring of the Angang Iron and steel industry in Anshan, China Example 1 Shut down of outdated mills Social problems such as Workers are laid off drug addiction drunkenness Unemployment family abuse

8. 1 Socio-economic impact B Unemployment Example 2 IT industry in the USA Shifting of production plants to ______ developed countries Unemployment of ___________ and ___________ workers in the USA unskilled less semi-skilled Increasing popularity of the Internet and inexpensive long-distance telecommunication services Recent trend of moving _________ and management posts to India, the Philippines, etc. research A decline in IT-related jobs in the USA Unemployment of ___________ and___________ in the USA researchers managers

9. 1 Socio-economic impact C Restructuring the economy Business between Hong Kong and the ZDR have become busy Factories were moved to the Zhujiang Delta Region (ZDR) Headquarters have remained in Hong Kong The demand for producer services such as ________, ________, _________ has expanded quickly finance banking logistics

10. 1 Socio-economic impact C Restructuring the economy Employment structure in Hong Kong in 1980 and 2007 Source: Hong Kong Yearbooks The employment structure in Hong Kong has changed. An increasing number of people work in the ________ sector. tertiary The land in old industrial areas can be used for commercial activities and ______-tech industries. Economic restructuring may persist as a result. high

11. What is the impact of industrial relocation and the appearance of new modes of production? 2 Environmental impact Since the product life-cycle of IT products is ( short / long ), it generates a large amount of e-waste every year. Computer manufacturing involves the use of toxic chemicals, e.g. mercury is used in making the printed circuit boards Shipped to less developed countries for disposal, e-waste causes serious environmental problems there Imported e-waste in China (Credit: Natalie Behring/Panos Pictures)

12. What measures can be taken to ease problems caused by changing industrial locations and modes of production? 1 Eco-efficiency in production Multinational firms have the responsibility to reduce the ecological impact caused by global production. Businesses should adopt eco-efficiency strategies in production. Eco-efficiency is based on the concept of creating more goods and services while using fewer resources and creating less waste and pollution.

13. 1 Eco-efficiency in production There are some measures to achieve eco-efficiency in production. Recycle material Reduce material use Provide service on the efficient use of the product Use of renewable resources Reduce energy use Make products more durable Reduce toxic dispersion

14. Barack Obama (Credit: The Obama-Biden Transition Project) 2 Building a sustainable economy A sustainable economy can last for a long time and bring continuous prosperity to a community. Road to a sustainable economy suggested by Barack Obama, the US President Example Can you suggest some strategies for making the economy sustainable? We are facing an economic decline. We must do something to make our economy sustainable. Promote the use of clean renewable energy resources to provide ‘green jobs’ and to ease the energy crisis and the air pollution problem Reform the education system to increase the competitiveness of human resources Improve health care quality and efficiency

15. 1960s 1 Changes in location factors Example 1 When the location factors of an area are no longer favourable, factories will move to other places. Location factors may change with time. _____ labour cost Low _____ land cost Low incentives Government __________ Industrial relocation 1980s High ______ labour cost and production costs Low

16. 1960s 1 Changes in location factors Example 2 The iron and steel industry in China was _____________ and ________-oriented raw material power Government policy favoured the development of the iron and steel industry in the ________ areas. inland

17. amounts of coal and iron ore needed ( / ) transport costs ( / ) Location importance of coalfields and iron ores ( / ) 1960s Location importance of coastal regions ( / ) 1 Changes in location factors Example 2 Advancements in technology result in: Coastal shift scrap use of ________ iron and steel 1980s Government policy

18. 2 Appearance of new production modes Hard disk drive manufacturing industry in the USA Example 1 Example 2 Iron and steel industry in China _________________,automation and restructuring of iron and steel works into a larger scale of production Modernization Advancements in technology ____________________can be set up away from the headquarters Production plants Many outdated, _______- and _________-sized iron and steel works, e.g. in Anshan, have been shut down. small medium ____________ production Multi-point Production plants move from _______ to ________ Closed Closed Closed MDCs LDCs

19. 3 Concern about the environment Most industrial waste will pollute the surroundings, leading to environmental degradation. SO2+ NOx Acid rain CO2 Gobal warming Burning of coal by iron and steel industry Fumes emitted by the iron and steel works (Credit: Colin Garratt; Milepost 92½/Corbis)

20. 3 Concern about the environment To reduce production costs, some factories move to areas with less strict environment controls. During the manufacturing processes of semiconductor chips, some toxic materials are used. The liquid waste discharged may cause serious water pollution problems.

21. 3 Concern about the environment Example 1 Hong Kong has implemented strict requirements on pollution control Any examples? Factories are relocated to mainland China For example, levying industrial sewage charges and ... ... fitting particulate traps in chimneys.

22. 3 Concern about the environment Example 2 To ensure clean air at Beijing for the 2008 Olympic Games Present location of Shougang New location of Shougang Shougang has moved from Beijing to Caofeidian in Hebei