Geography Study Notes: The Global Shift of Manufacturing Industry
Welcome, Future Geographers! 🗺️
Hey everyone! Ever looked at the label on your clothes, your phone, or your shoes and wondered, "Why was this made so far away?" It's a great question! For a long time, many things were made in places like the USA or the UK. But now, factories are all over the world, especially in Asia.
This big move is called the Global Shift of Manufacturing Industry. In these notes, we'll explore this fascinating topic. We will find out:
• Why factories have moved from some countries to others.
• Who the big players are in this global game (hello, TNCs!).
• The good things (opportunities) and the bad things (threats) this shift creates for different countries.
• How we can try to make manufacturing fairer and better for everyone and the planet.
Understanding this helps us see how connected our world is. Let's get started!
1. What's Happening? The Big Picture
So, what is manufacturing?
It's a simple idea! Manufacturing is the process of turning raw materials into finished products that we can use.
Analogy time! Think of baking a cake. You take raw materials (flour, sugar, eggs) and use a process (mixing, baking) to create a finished product (a delicious cake!). A factory does the same thing, but on a much bigger scale, to make things like cars, computers, and clothes.
Factories on the Move: The Global Shift
The Global Shift of Manufacturing is the movement of factory production and jobs from More Developed Countries (MDCs) like the USA, UK, and Japan, to Less Developed Countries (LDCs) like China, Vietnam, and Mexico.
This didn't happen overnight! It’s a huge trend that has changed the world over the last 50 years.
A Quick Look at Hong Kong's Story
• In the past: Hong Kong used to be a manufacturing powerhouse! In the 1960s and 70s, our city was full of factories making clothes, toys, and electronics. You could see "Made in Hong Kong" on products everywhere.
• What happened?: Starting in the 1980s, it became cheaper to run factories just across the border in Guangdong, China. So, many Hong Kong factory owners moved their production there.
Key Takeaway
The Global Shift is the relocation of factories from richer countries (MDCs) to poorer countries (LDCs) to make goods. Hong Kong is a classic example of a place that has seen its factories move elsewhere.
2. Why Do Factories Move? Location Factors
A company doesn't just randomly pick a spot for a new factory. They think about many things called location factors. These factors have changed over time.
Traditional (Old-School) Factors
In the old days, factories needed to be close to a few key things. A simple way to remember them is with the idea of making and selling something basic, like a steel pipe.
• Raw Materials: You need iron ore to make steel, so you'd build your factory near an iron mine.
• Labour (Workers): You need people to work in the factory, so you build it near a town or city.
• Transport: You need to get raw materials in and finished pipes out, so you build near a river, railway, or port.
• Market (Customers): You want to sell your pipes, so you build near the cities or construction sites that will buy them.
The Game Changers: New Factors
Today, the world is much more connected! New factors have become super important and have allowed the global shift to happen. Don't worry if this seems tricky, we'll break it down.
1. Advancement in Technology (especially ICT):
ICT stands for Information and Communication Technology. Think internet, email, and video calls. A manager in New York can now easily talk to a factory manager in Vietnam. This makes it easy to control a factory from far away.
2. Cheaper & Better Transport:
Huge container ships and cargo planes can now move goods around the world cheaper and faster than ever before. It might even be cheaper to make a T-shirt in Bangladesh and ship it to the UK than to make it in the UK itself!
3. Relative Labour Costs (This is a BIG one!):
This just means how much it costs to pay workers. Workers' wages are much lower in many LDCs compared to MDCs. Companies can save a lot of money by moving their factories to places with cheaper labour.
4. Political Influences:
Governments in LDCs often encourage foreign companies to build factories there. They might offer them tax breaks (paying less tax) or create special areas called Special Economic Zones (like in Guangdong) where there are fewer rules.
5. Research and Development (R&D):
This is the "thinking" part of the business - designing new products and technology. Companies often keep their R&D departments in MDCs where there are more universities and highly skilled scientists, while moving the "making" part (manufacturing) to LDCs.
Quick Review Box
Factories used to be located based on: Raw Materials, Labour, Transport, Market.
Now, the most important factors are: Technology (ICT), Cheaper Transport, Cheaper Labour Costs, and Government Support.
3. The Big Players: Transnational Corporations (TNCs)
Who are TNCs?
A Transnational Corporation (TNC) is a massive company that operates in many different countries. They are the main drivers of the global shift. You know many of them!
Examples: Apple, Nike, Adidas, Samsung, Toyota, McDonald's.
They usually have their headquarters (the main office or "brain") in an MDC, but they have factories, shops, and offices all over the world.
Did you know?
The money some TNCs make in a year is more than the total economy of some countries! They are incredibly powerful.
How TNCs Organise the Global Shift
Let's use a smartphone as an example:
Step 1: Design & R&D - The phone is designed by highly-paid engineers in California, USA (an MDC).
Step 2: Sourcing Parts - The parts are made by different companies all over the world. The screen might come from South Korea, the processor from Taiwan.
Step 3: Assembly - All these parts are shipped to a giant factory in China (an LDC), where thousands of workers assemble the final phone.
Step 4: Sales - The finished phones are shipped and sold all over the world.
This complex system is possible because of the "new" location factors we just talked about!
Key Takeaway
TNCs are giant global companies that lead the shift. They split their operations across the world, keeping high-skill jobs in MDCs and moving manufacturing jobs to LDCs to save money.
4. Winners and Losers? Opportunities and Threats
The global shift has huge effects on everyone. For every country, there are good things (opportunities) and bad things (threats).
For Less Developed Countries (LDCs) - Where factories are MOVING TO
Case Study Example: Guangdong, China
The Opportunities (The Good Stuff) 👍
• Jobs are Created: This is the biggest benefit! It provides millions of people with jobs and a way to escape poverty.
• Economic Growth: New factories mean more money for the country, which can be spent on building roads, schools, and hospitals.
• New Skills and Technology: Local workers can learn new skills and use modern technology, which helps the country develop further.
The Threats (The Problems) 👎
• Exploitation of Workers: To keep costs low, workers might be paid very little, work very long hours, and have unsafe working conditions.
• Environmental Pollution: Factories can cause serious air and water pollution if there aren't strict laws to protect the environment.
• Over-dependence: If a TNC decides to move its factory to an even cheaper country, the local area can suddenly lose thousands of jobs.
For More Developed Countries (MDCs) - Where factories are MOVING FROM
Case Study Examples: The Great Lakes Region in the USA (the "Rust Belt") or parts of the UK.
The Opportunities (The Good Stuff) 👍
• Cheaper Products: We can buy things like clothes and electronics for lower prices.
• Focus on High-Skill Jobs: The country can focus on better-paying jobs in R&D, finance, and design.
• Less Pollution: Closing down old, heavy factories can lead to a cleaner environment at home.
The Threats (The Problems) 👎
• Job Losses: When factories close, thousands of workers lose their jobs. This is called industrial decline.
• Urban Decay: Old industrial areas can become rundown, with empty factories and high unemployment. These areas are sometimes called "Rust Belts".
• Skills Gap: Factory workers may not have the skills for the new high-tech jobs, so they struggle to find new work without retraining.
Key Takeaway
The global shift is a double-edged sword. It brings jobs and money to LDCs but can also cause pollution and exploitation. It gives consumers in MDCs cheaper goods but can lead to job losses and urban decay.
5. Making it Better: Towards a Sustainable Future
So, the global shift has both good and bad sides. How can we manage it better?
What is Sustainable Industrial Development?
It's about making things in a way that is good for everyone, now and in the future. Think of it like a three-legged stool:
1. Economic Leg (Profit): Companies need to make money.
2. Social Leg (People): Workers must be treated fairly and communities should benefit.
3. Environmental Leg (Planet): We must protect our planet from pollution and damage.
If any leg is weak, the stool will fall over! Sustainable development means balancing all three.
Measures to Alleviate Problems
Here are some ways countries are trying to fix the problems of the global shift:
• In LDCs:
- Governments can create stronger laws to ensure worker safety and protect the environment.
- They can set a minimum wage so workers are paid fairly.
- They can invest in education to move towards higher-skilled industries.
• In MDCs:
- Governments can fund retraining programs to help former factory workers learn new skills.
- They can invest money to clean up and redevelop old industrial sites, turning them into parks, offices, or new housing.
Final Takeaway
The global shift of manufacturing has reshaped our world. It shows how interconnected we are. By aiming for sustainable development, we can try to share the benefits more fairly and reduce the harm, creating a better future for people and the planet.