Impact of structual economic change

Question 1

Deindustrialisation

Answer 1

• Job losses in ACs, factory closures
• Mining, ship building, textiles badly affected
• Industrialised regions poor, abandoned

Question 2

Positives - ACs

Answer 2

• Cheaper imports
• Greater efficiency, increase productivity
• LIDCs demand exports from ACs
• Promotion of labour market
• Greater industrial efficiency, dev of new tech, promotion, attracts FDI
• Loss of mining & manufacturing = improved enviro quality

Question 3

Negatives - ACs

Answer 3

• Job exports / automation= job losses
• Unskilled workers loose jobs
• Gaps develop between skilled & unskilled workers
• Industrial countries need to keep wages down
• Job losses in certain industry = regions of unemployment
• Branch plants particularly vulnerable in recession, job losses

Question 4

Positives - EDC & LIDC

Answer 4

• Higher export = income (multiplier effect)
• High paid jobs, local areas
• Reduce negative trade balance
• New tech, skill improvement
• Employment grown in labor intensive manufacturing (reduce dev gap)

Question 5

Negatives - EDC & LIDC

Answer 5

• Unlikely decrease inequality, concentrated in core areas not rural
• Disruptive social impacts, exploitation
• Overdependence on narrow economic base
• Destabilise food supplies, less agriculture
• Environmental issue, over industrialisation
• Health & safety, tax legislation

Question 6

Multiplier effect

Answer 6

• Investment in 1970 to 1980 from foreign TNC
• Training + employment = multiplier effect
• Firms have specialised areas in the tech and innovation eg, Cambridge