© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? 3.5What is the impact of changes in of changes in industrial location and industrial location and modes of production? modes of production?

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? More people come to the area New industries set up Jobs created More money available to be spent in local shops and services Local economy grows Increase in tax for local government Infrastructure improved Cycle of economic growth Attract other industries ______________ effect Multiplier What are the benefits of having manufacturing industries in an area?

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? Why do industries move away from an area? Please click above for animation Reason 1 Reason 1 Changes in location factors Reason 2 New production modes Reason 3 Reason 3 Concern about the environment

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? What is the impact of industrial relocation and the appearance of new modes of production? 1Socio-economic impact AFlow 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... The East to... Inland

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? As IT firms locate in the green field sites, workers move from … Example 2 IT industry in the USA city centre to... suburbs As production bases are set up overseas, workers move from … MDCs to... LDCs Scientists, engineers, professionals Managerial personnel, technicians 1 Socio-economic impact A Flow of labour This creates an ________ _______ flow of labour. intra- urban What kind of workers move? This creates an _______ _________ flow of labour. inter- national What kind of workers move?

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? Industrial relocation may trigger the decline of local economies. Factories are forced to close Job losses Decline in the quality of infrastructure for the local community and industrial development Relocation Less money to spend in local shops and services Failure in subsidiary industry New investment shrinks Less tax income for local government People move away Local economy declines 1 Socio-economic impact B Unemployment

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? Example 1 Iron and steel industry in Anshan, China Restructuring of the Angang Shut down of outdated mills Workers are laid off Unemployment Social problems such as drug addiction drunkenness family abuse 1 Socio-economic impact B Unemployment

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? Example 2 IT industry in the USA Shifting of production plants to ______ developed countries Unemployment of ___________ and ___________ workers in the USA less unskilled Recent trend of moving _________ and management posts to India, the Philippines, etc. research Unemployment of ___________ and ___________ in the USA researchers managers semi-skilled A decline in IT-related jobs in the USA Increasing popularity of the Internet and inexpensive long-distance telecommunication services 1 Socio-economic impact B Unemployment

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? Factories were moved to the Zhujiang Delta Region (ZDR) Headquarters have remained in Hong Kong Business between Hong Kong and the ZDR have become busy The demand for producer services such as ________, ________, _________ has expanded quickly finance banking logistics 1 Socio-economic impact C Restructuring the economy

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? Employment structure in Hong Kong in 1980 and Socio-economic impact C Restructuring the economy 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

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? What is the impact of industrial relocation and the appearance of new modes of production? 2Environmental 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)

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? What measures can be taken to ease problems caused by changing industrial locations and modes of production? 1Eco-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.

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? 1Eco-efficiency in production There are some measures to achieve eco-efficiency in production. Reduce material use Reduce toxic dispersion Reduce energy use Recycle material Use of renewable resources Make products more durable Provide service on the efficient use of the product

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? 2Building a sustainable economy A sustainable economy can last for a long time and bring continuous prosperity to a community. Can you suggest some strategies for making the economy sustainable? Example Road to a sustainable economy suggested by Barack Obama, the US President 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 (Credit: The Obama-Biden Transition Project) Barack Obama We are facing an economic decline. We must do something to make our economy sustainable.

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? Example s 1980s ______ labour cost and production costs Low High _____ labour cost _____ land cost Government __________ Low incentives Industrial relocation Location factors may change with time. When the location factors of an area are no longer favourable, factories will move to other places. 1Changes in location factors

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? Example s 1Changes in location factors 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

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? Example s 1Changes in location factors 1980s Advancements in technology result in: amounts of coal and iron ore needed ( / ) transport costs ( / ) use of ________ iron and steel scrap Location importance of coalfields and iron ores ( / ) Government policy Location importance of coastal regions ( / ) Coastal shift

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? Example 1 _________________, automation and restructuring of iron and steel works into a larger scale of production Iron and steel industry in China Many outdated, _______- and _________-sized iron and steel works, e.g. in Anshan, have been shut down. Closed Example 2 Hard disk drive manufacturing industry in the USA Advancements in technology ____________________ can be set up away from the headquarters ____________ production Production plants move from _______ to ________ Modernization small medium Production plants Multi-point MDCsLDCs 2Appearance of new production modes

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? Burning of coal by iron and steel industry SO 2 + NO x CO 2 Acid rain Gobal warming 3Concern about the environment Fumes emitted by the iron and steel works Most industrial waste will pollute the surroundings, leading to environmental degradation. (Credit: Colin Garratt; Milepost 92½/Corbis)

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? During the manufacturing processes of semiconductor chips, some toxic materials are used. The liquid waste discharged may cause serious water pollution problems. To reduce production costs, some factories move to areas with less strict environment controls. 3Concern about the environment

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? Any examples? Example 1 Hong Kong has implemented strict requirements on pollution control  Factories are relocated to mainland China... fitting particulate traps in chimneys. For example, levying industrial sewage charges and... 3Concern about the environment

© Oxford University Press 2009 Part 3 Changing industrial location─How and why does it change over space and time? To ensure clean air at Beijing for the 2008 Olympic Games  Shougang has moved from Beijing to Caofeidian in Hebei Present location of Shougang New location of Shougang Example 2 3Concern about the environment