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Push Factor in Hong Kong :
Higher wages and rents.
Strict controls on pollution.
There wa a sharp increase in wages and rents. To lower land rents, some factories moved from the main urban areas to the suburbs.
Pull Factors in the ZDR:
Lower wages and rents.
Loose controls on pollution.
Open policy to provide incentives like low taxes. Near Hong Kong.
Hong Kong manufacturers know the place better
Hong Kong is more efficient , has a better transport network with overseas connection, has a good legal system, high education levels, etc.
The HKSAR government encourages high-tech industries.
Land and wages keep on rising in Hong Kong. High value-added products can cover the high costs.
Like 1960s-mid-1070s, the light industries like making of garment, textile and plastics are the major industries.
1. Most manufacturing industries, particularly
the labour-intensive ones, moved to the Zhujiang Delta Region (ZDR) in Guangdong
2. Head-offices remained in Hong Kong.
3. High valued-added and technology-intensive manufacturing were developed like high-cost garment making and IT making
Costs of labour, land, power, etc. All have gone up in the ZDR.
Pollution controls in the ZDR have become more strict .
Attractive government policies, lower labour and land costs are provided in the inland areas and other less developed Asian countries.
the Guangdong government upgrades the industrial structure of the ZDR. It gives incentives to the high-tech industries and discourages low-tech and polluting industries.
Different light industry expanded quickly. Major ones included the making of garments, textiles, plastics, toys and electronics.
Some labour-intensive industries have moved further inland in Guangdong like Heyuan and Shaoguan
Some have moved to other provuinces like Hunan, Jiangxi and Sichuan
Some have even moved to other Asian countries like Indonesia, Malaysia, the Philippines, Vietnam and Cambodia.
Some remained in the ZDR.They make high valued-added products and upgrade the production processes like using automation.
Many migrants from the mainland of China provided skills, capital and a large pool of labour . All these factors favoured the industrial development in Hong Kong.
Hong Kong has a good harbour and a free port policy. These factors allow the easy and free import of raw materials and export of finished products.
Lower costs in LDCs:
Wages are lower and workers are given less benefits in LDCs than MDCs.Land rent and operating costs are lower, too.
Attractive government policies in LDCs:
Incentives are provided in special economic zones in China and maquiladoras in Mexico.
Rising markets in the LDCs:
With improved living standard, some LDCs have become new market for many goods. Setting up factories in these new markets makes it easier to make goods that suited to the local tastes
Light industry like textile, plastics, wig making and food processing are the major industries .
Hong Kong was a famous world industrial centre in the past . The manufacturing industry was the largest employer. Single-point production used at that time.
However, due to the changes in location factors since the 1980s, it has become less important in Hong Kong. Almost 90% of Hong Kong 's labour force is now working in the tertiary industry. Also the production mode has changed to multi-point production since 1980s. Only administration, design, R&D, marketing those offices are remained in Hong Kong. The manufacturing firms were all moved to China and other Asian countries.
activities which produce raw materials
e.g. farming and fishing
Advancement in transport:
Development of transportations lower transport time and cost of goods. This weaken the location ties of raw materials,power and market.
Advancement in ICT:
The widespread use of the Internet and quick flow of information allows a firm to manage its labour, money flow in overseas branches more easily.
The roles of TNCs:
They target world market and have large-scale production, so they enjoy economies of scale. And Wide choice of suppliers of raw materials and parts around the world, so they are able to access the cheapest suppliers. They bring great economic benefit to countries, so they have strong bargaining power on where to locate their factories. In addition, they have a widespread network covering the world, they are senstive to market change, so they can easily relocate any production process to any production process to any part of the world to get the highest profit.
Industry refers to activities that produces goods or services. A manufacturing system consists of inputs ( land, power supply, labour, machines and technology, research and development and transport, government policy, capital and management), processes and outputs (products and air pollutants)
Location factors are conditions that affect how a manufacturing firm locates its factories
Five Great Lakes lie at the border between The USA and Canada. Since 19th century, areas near there were major industrial regions because of some location factors like the rich underground resources (iron ores and coal) , cheap water transport in the lake region, extensive flat land, cheap labour supply and large market due to the nearby cities, the areas developed to several important industries like iron and steel industry in Pittsburgh and Buffalo. But in recent years, only the main offices like headquarters remain there because of high education and technology level, etc. Other low-tech jobs like production plants are moved to LDCs. It's called multi-point production.This type of firm is called transnational corporation(TNC)
activities which provide services other industries or people.
e.g. tourism and retailing
Generally, there are four major industrial regions in the world, they are Eastern North America, Western Europe,Eastern Europe and East Asia. In recent years, there is a rise of new industrial regions include South China, Mexico, Brazil, South India and South-east Asia.
This global shift in manufacturing activity caused the multi-production on a global scale and division of labour on a global scale is formed.
1.The MDCs mainly focus on high- skilled jobs like R&D, design and high-tech profuction steps
2.Low-skilled jobs like processing and assembly are mainly found in the LDCs.
Globalization in production occurs. It means that interpendency among places has increased.
activities which support all industries
e.g. software development
Pros in Home country:
1. focus on high-valued production/service. This increases productivity.
2. products become more competitive.
3. people can buy cheaper goods.
2 less pollution
Pros in Host country:
1. provide jobs and income.
2. more tax to local government to improve infrastructure and social facilities.
Improve technical skills.
Cons in Home country:
1. unemployment leads to social unrest and problems.
2. less tax.
3. Urban decay and economic decline
Cons in Host country:
1. pollution problems.
2. Loss of natural areas and farmland.
1. provide jobs and income to a
community continuously
1. use fewer resources.
2. produce less waste in the production processes.
1. provide opportunities for different
social groups.
2. share the benefit of industrial
development
Stable development of local economy
minimize environmental problems caused by the manufacturing industry.
Everyone has the chance to take part
in and enjoy a fair share from industrial development
Measures of sustainable industrial development in the UK..
1. Lower tax rates for manufacturing to attract local and overseas investment.
2. Develop new clusters for high-tech and high value-added industries.
3. Attract talent to develop manufacturing.
4. Develop green industry.
5. Provide funds for reseach in energy efficiency and waste treatment.
6. Invest more in R&D, education more R&D and high-tech talents
7. Provide funds to re-tain wokers so that they can shift to high-tech and high value-added industries.
8. Provide regional community development funds to improve the economy, social facilities and sercices of the affected areas.