F2 - SEM2 - MDCs

Question 1

What are the benefits of global shift of manufacturing to MDCs?

MDCs

Answer 1

1. more tax income
2. cheaper products
3. reduce industrial pollution

Question 2

Explain why MDCs have more tax income after global shift of manufacturing.

MDCs

Answer 2

factories relocated to LDCs
=> TNCs can make more profit (cost savings and market expansion)
=> home countries collect more taxes from TNCs

MDCs

Question 3

Explain why MDCs have more cheaper products after global shift of manufacturing.

MDCs

Answer 3

production cost in LDCs is lower
=> TNCs sell product at cheaper cost
=> local company lower product’s price to compete

MDCs

Question 4

Explain why MDCs have industrial pollution reduced after global shift of manufacturing.

MDCs

Answer 4

highly polluting industries are moved to LDCs
=> pollution problems in MDCs are reduced

MDCs

Question 5

What are the challenges to MDCs after global shift of manufacturing?

MDCs

Answer 5

1. local industries face strong competition
2. unemployment rate rises
3. decay of industrial area
4. economic recession

MDCs

Question 6

Explain why local industries in MDCs face strong competition after global shift of manufacturing

MDCs

Answer 6

products made in LDCs are cheaper
=> local companies in MDCs face strong competition
=> local companies close down

MDCs

Question 7

Explain why unemployment rate rises in MDCs after global shift of manufacturing

MDCs

Answer 7

factories relocated to LDCs
=> low-educated workers are difficult to shift to tertiary industry (no more secondary industry)
=> unemployment rises
=> many social problems (e.g. poverty, drug abuse and alcoholish, crime rate increase)

MDCs

Question 8

Explain why industrial areas decay after global shift of manufacturing

MDCs

Answer 8

factories close down and left abandon
=> former factories have fallen into disuse
=> traditional industrial areas begin to decay

MDCs

Question 9

Explain economic recession cycle after global shift of manufacturing

MDCs

Answer 9

many factories shutdown
=> jobs in MDCs are lost and unemployment rate rises
=> people leave the city and population drops
=> economic development slows down
=> economic recession occur
=> government receives less tax income
=> infrastructure is poorly maintained
=> urban decay
=> many factories shutdown

MDCs

Question 10

What are impacts of economic recession?

MDCs

Answer 10

1. government receives less tax income
2. infrastructure is poorly maintained
3. urban decay
4. many factories shutdown

MDCs

Question 11

How do MDCs tackle the challenges due to global shift of manufacturing?

MDCs

Answer 11

1. move towards high-tech industries (industrial restructuring)
2. develop tertiary industries
3. support unemployed workers

MDCs

Question 12

Explain how government help manufacturing companies in MDCs move towards high-tech industries

MDCs

Answer 12

1. offer subsidies
2. lower tax rate
3. cheaper lands

MDCs

Question 13

What are the 4 characteristics of high-tech industries?

MDCs

Answer 13

1. location are not limited by traditional locational factors
2. involve advance technology and focus on R&D of products
3. capital intensive - lots of money is invested in R&D, buy machinery and hire professionals
4. high value-added industries - product high-end profitable products

MDCs

Question 14

How does government in MDCs support unemployed workers?

MDCs

Answer 14

1. unemployed benefit - allow workers to maintain basic standard of living
2. job matching services - help them to find new jobs
3. retraining programme - equip workers with new skills, they can work in other industries

MDCs

Question 15

Give some examples of high-tech industries

MDCs

Answer 15

• IT industries
• medicine manufacturing
• aerospace technology

MDCs

Question 16

Explain why develop the tertiary industry help MDCs tackle the challenges.

MDCs

Answer 16

1. diversify economic structure
2. promote economic growth
3. provide many job opportunities for former manufacturing workers

MDCs

Question 17

What are the traditional locational factors?

MDCs

Answer 17

near raw material, energy resources and markets

MDCs