Patterns of production, distribution and consumption Flashcards
Globalisation made an international division of labour, into what 2 groups.
Highly skilled, paid, decision making research on a global scale concentrated in more developed countries.
Poorly skilled, paid tend to be located in developing countries where there is lower labour costs.
What has changed in the last 40 years?
Many countries classified as less developed countries are now newly industrialised countries.
They have developed their own TNCs and commercial bases.
Where has there been an increase in newly industrialised countries.
4 Asian Tiger economies of Hong Kong, Singapore, South Korea and Taiwan.
Which were followed by the BRIC and MINT economies.
In the past where was manufacturing most prominent?
In 1954 manufacturing was concentrated in industrialised economies of western Europe, North America and Japan.
Products largely consumed in country of origin.
Define decentralisation.
Transfer of authority from central to local government.
What are BRIC countries.
Brazil. Russia. India. China. Economies advanced since 1900s.
What are MINT countries.
Mexico. Indonesia. Nigeria. Turkey. More recently emerging economies.
What has decentralisation to TNCS?
They have been set up in developing countries.
Lower land, labour costs.
Incentives.
All encourages many TNCs to relocate the production abroad.
This has lead to global shift.
What is global shift?
The movement of manufacturing industry away from developed countries to lower wage less developed countries.
What has the transfers of technology to the less developing world achieved?
Its increased productivity without raising their wages to the same level as those in developed countries.
Name a disadvantage to decentralisation on richer country?
Loss of industry.
Loss of jobs in manufacturing sector.
Give an example of a loss of manufacturing jobs in a rich country.
In the Uk manufacturing employment fell around 50% in the 30 years between 1983 and 2013.
The decline has now steadied and on the rise again.
Where are manufacturing jobs primarily located?
50% in developing world so 50% in developed world.
60% of exports are to the developed wold and are manufactured goods.
Apart from global shift what else has led to the decline of manufacturing in the developed world?
Outmoded production methods.
Production at end of life cycle.
Poor management.
Reversal of this has been promoted by foreign TNCs investing in deindustrialised regions.
How has manufacturing transfers been made easy?
Lower costs.
Availability of skilled/educated workforce.
Latest technology.
Government incentives -tax breaks.
Access to large markets without tariff barriers.
