1. Three sectors of the economy, cont.

2. HW check: RB, p 20, II: Correct order? quarry – warehousing - raw - ore – trawl - distribution process – gravel Correct order: 1. raw 2. quarry 3. trawl 4. warehousing 5. ore 6. gravel 7. distribution process

3. HW check: RB p 22 (two teams – test the rivals x 5) I Match the definitions...II Classify the industries... 1i13 tPRIMARY SECTOR: 2w14 l w 3k15 s 4v16 h 5a17 uSECONDARY SECTOR: 6o18 ga, b, c, e, i, j, k, l, p, t 7q19 d 8b20 e 9p21 jTERTIARY SECTOR: 10 r22 m d, f, g, h, m, n, o, q, r, s 11 c23 f u, v 12 n

4. RB, p 24: Where did all the jobs go? Vocabulary While reading find the words meaning: Pg. 1: wholeproductionjob entiremanufacturingworkplace Pg. 2: iron & carbon mix the central part stopped steel heartland ceased area where factories have closed to transport “rust-belt”to ship Pg. 3: endangeredto move very small part threatenedto relocate fraction to arrange for sb outside a company to do some work for the company = outsource

5. HW: Complete the notes JOBS GRAVITATE TO THE EAST MANUFACTURING GROWS IN THE EAST EXAMPLES OF GROWTH IN THE EAST: INDUSTRY → COUNTRY 1) 2) 3) REASONS : 1) 2) MANUFACTURING JOBS DECLINE IN THE WEST EXAMPLES : 1) 2) 3) CONSEQUENCES : 1) 2) 3) LOSS OF JOBS IN KNOWLEDGE-BASED INDUSTRIES!!! 1) 2)

6. JOBS GRAVITATE TO THE EAST Practice retelling the text with notes MANUFACTURING GROWS IN THE EAST 1) toys, shoes, steel → China 2) shipbuilding → South Korea 3) skilled labour, hi-tech industries → Bangalore REASONS: 1) low labour costs 2) efficient production methods MANUFACTURING JOBS DECLINE IN THE WEST 1) shipbuilding in Europe 2) coal mining in Britain 3) steel industry in the US CONSEQUENCES: 1) unemployment (shipbuilding) 2) outsourcing 3) low job security LOSS OF JOBS IN KNOWLEDGE-BASED INDUSTRIES!!! 1) IT development (programming) 2) call centres in India → Compare: RB, p. 76

7. JOBS GRAVITATE TO THE EAST, RB p 14 Example notes 2 IMANUFACTURING JOB MOVEMENTS (pg. 1) before 1970vs. nowadays GB- manufacturing →China... II MORE EVIDENCE (pg. 2) US (rust-belt)vs.China European shipyardsSouth Korea Steel, coal III NOT MANUFACTURING ONLY (pg. 3) Also: knowledge-based services: high-tech (telecom, computers, aeronautics), pharmaceuticals

8. → RB, p 23 John Kenneth Galbraith (1908-2006) Manufacturing and services Read and answer the questions –Why do people worry about the decline of manufacturing? –Which activities are as important as the production of goods? –Should people worry about this state of affairs? (According to J. K. Galbraith...)

9. → RB, p 23 John Kenneth Galbraith (1908-2006) Manufacturing and services HW: Make structured notes on Manufacturing and services (p 23) More on J. K.Galbraith… Richard Parker: John Kenneth Galbraith: His Life, His Politics, His Economics http://www.youtube.com/watch?v=HPTxpX6KsUo

10. Why is manufacturing moving to developing countries? (outsourcing – delocalization – offshoring)

11. Cellphone pioneer Motorola has announced it’s closing a Texas manufacturing facility just a year after announcing its opening. (AP, 2014) 3,600 jobs lost

12. cheap labour, long hours, no protection of workers’ (human) rights, low health standards, low safety standards

13. low safety standards, low real estate costs, low maintenance costs, no insurance costs

14. low / no environment protection costs → air pollution, environmental degradation, diseases (externalities)

15. low / no environment protection costs → water pollution, environmental degradation, diseases (externalities)

16. Karlovac, 2007: a CO 2 leak poisons and kills a man walking his dog nearby Karlovačka pivovara Inadequate control of the manufacturing process and byproduct disposal Safety standards? Three years later, 5 managers sentenced to 2.5 – 3 yrs in prison Fine: HRK 3M; no compensation to the family, a civil suit still pending

17. Break Outsourcing in the tertiary sector, an example http://dsc.discovery.com/tv-shows/other-shows/videos/thomas-l- friedman-reporting-accent-neutralization.htmhttp://dsc.discovery.com/tv-shows/other-shows/videos/thomas-l- friedman-reporting-accent-neutralization.htm Take a quiz and find out how many slaves work for you http://slaveryfootprint.org/survey/#where_do_you_live

18. Arguments pro manufacturing in advanced countries vs. Arguments pro services in the advanced countries → MK, p 45: Manufacturing & services HW: FREEDOM FROM WANT, RB pp 26-28 1) Scan the text to find the answers to questions 2) Paraphrase the main idea of one paragraph (Look at the number you drew from the bag :D That’s the paragraph you should tackle.)