1. Negative multiplier effect
Full story from -
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
Negative Multiplier Effect

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

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

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

5. Negative multiplier effect … Example: Environmental effect
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
Negative Multiplier Effect

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.
Negative Multiplier Effect

7. Redundant workers have less money to spend
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
Negative Multiplier Effect