Hong Kong Factories have moved to China…. What does the data show?

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Presentation transcript:

Hong Kong Factories have moved to China…

What does the data show?

The number of manufacturing firms (companies) has declined in HK since around 1980

What might have helped cause this change?

Began to allow foreign companies to come to China and open busineses. Chinese policies in the early 1980's…

This opened up an opportunity for HK manufacturers that did not exist before.

Suddenly, companies and factory owners in Hong Kong were faced with a choice How did they make this choice?

Some of them are Sticky Factors! They had to look at the Push Factors and Pull Factors

things that make you want to leave a place Push Factors are…

things that make you come to a place Pull Factors are…

Take a look at these factors and decide if they are HK or China Then decide if it is a Push Factor or a Pull factor

Remember that these are from the perspective of the company owners

Hong Kong High wages Push Factor

China Low cost for land Pull factor

China Lots of flat land Pull Factor

Hong Kong Excellent telecommunications Sticky Factor

China More relaxed laws on pollution Pull Factor

Hong Kong Higher taxes Push Factors

Sticky Factor Skilled Labor Pool Hong Kong

Limited amount of flat land Push Factor

Sticky Factor Excellent transportation System Hong Kong

Strict laws on Pollution Push Factor

Hong Kong Access to other International Companies Sticky Factor

Hong Kong Stable Economy and Safe Banking System Sticky Factor

Let’s look at which parts of manufacturing activities have physically moved to the Mainland So when we talk about Hong Kong industries moving to China..

How would you describe the trend, or pattern of which parts of the manufacturing activities have moved to China from HK? What could explain this?

So now, you have an idea of why factories have relocated to China (and more recently, India, Vietnam, Pakistan…)

Let’s practice by looking at a map. Try to identify as many factors that influence where these industries have been located. In the next chapter (3.2), we will be looking at where factories should be located

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