Ch 3.1 How has the location of manufacturing industries in Hong Kong changed over time?

Question 1

What is the location of manufacturing industries in Hong Kong in the 1950s?

Answer 1

On the two sides of Victoria Harbour. Examples: Hong Kong Island: From North Point in the east to Sheung Wan in the west.
Kowloon: Hung Hom, Yau Ma Tei, To Kwa Wan.

Question 2

What is the production mode manufacturing industries in Hong Kong in the 1950s?

Answer 2

Single Point production.

Question 3

What are the favourable location factor manufacturing industries in Hong Kong in the 1950s?

Answer 3

1. Abundant cheap labour supply due to the large amount of migrants from the mainland.
2. Capital, managerial skills and technology brought by the Shanghai industrialists.
3. Deep natural harbour, free port policy, good port facilities and transport connections abroad facilitated the import of raw materials and the export of products.

Question 4

What is the location of manufacturing industries in Hong Kong in the 1960s?

Answer 4

Extended further north, east and west along both sides of Victoria Harbour, i.e. from Kwun Tong to Tsuen Wan on the Kowloon side and Chai Wan to Western District on the Island side. Examples: Tsuen Wan, Cheung Sha Wan, San Po Kong, Kwun Tong, Quarry Bay, Chai Wan.

Question 5

What is the production mode of manufacturing industries in Hong Kong in the 1960s?

Answer 5

Single point production.

Question 6

What are the favourable location factors of manufacturing industries in Hong Kong in the 1960s?

Answer 6

1. Abundant cheap labour supply.
2. Good supply of high quality professionals like managers, accountants and engineers.
3. Development of large housing estates with flatted factory buildings nearby.
4. Improved telecommunications and postal facilities.
5. Low tax rates.
6. Well-established legal systems.

Question 7

What is the location of manufacturing industries in Hong Kong in the 1970s?

Answer 7

In industrial estates and industrial areas in new towns. Examples: Fanling, Tuen Mun, Yuen Long, Sha Tin, Tai Po.

Question 8

What is the production mode of manufacturing industries in Hong Kong in the 1970s?

Answer 8

Single point production.

Question 9

What are the favourable location factors of manufacturing industries in Hong Kong in the 1970s?

Answer 9

1. Abundant cheap labour supply.
2. Abundant industrial land in the new towns.
3. Improved transport infrastructure between the New Territories and the main urban areas.
4. Adequate infrastructure like sewage systems, parking facilities for lorries, road network

Question 10

What are the differences between a factory and a manufacturing firm?

Answer 10

A factory is a place where production of goods is carried out. A manufacturing firms has various departments responsible for different manufacturing activities like accounting and human resources, design and RnD, production, sales and marketing, logistics.

Question 11

What are the locations of manufacturing industries in Hong Kong in the 1980s- the early 2000s?

Answer 11

Headquarters: Hong Kong (R&D, Marketing, Logistics, Account keeping, Product design)
Factories/ production: Zhujiang Delta region: Guangzhou, Fo Shan, Dong guan, Zhong Shan, Shenzhen, Zhuhai

Question 12

What is the production mode of manufacturing industries in Hong Kong in the 1980s- the early 2000s?

Answer 12

Multi-point production.

Question 13

What are the favourable location factors of manufacturing industries in Hong Kong (Headquarters) in the 1980s- the early 2000s?

Answer 13

1. Abundant supply of high quality professionals.
2. Stable political and business environments.
3. Well-established legal system.
4. Efficient transport network and telecommunication facilities.
5. Good connections with overseas market.
6. Good supply of talents.
7. Good supporting services.

Question 14

What are the favourable location factors of manufacturing industries in Zhujiang Delta (factories/ production) in the 1980s- the early 2000s?

Answer 14

1. Lower labour costs.
2. Extensive flat land with low prices.
3. Less strict pollution controls.
4. Incentives provided by the government.
5. Proximity to Hong Kong and close cultural ties with Hong Kong.

Question 15

What does the production arrangement of the headquarters in Hong Kong and production in Zhujiang Delta Region called?

Answer 15

Front shop back factory.

Question 16

What is the push factor of Hong Kong in terms of labour?

Answer 16

Most manufacturing industries in Hong Kong were labour-intensive. The high labour costs in Hong Kong raised production costs and lowered profits of the firms.

Question 17

What is the pull factor of the ZDR in terms of labour?

Answer 17

Low labour costs in the region greatly reduced the production costs of labour-intensive industry. This helped increase the profit of the firms.

Question 18

What are the push factors of Hong Kong in terms of land availability?

Answer 18

1. Lack of flat land forced firms to carry out production operations in flatted factory.
2. This hindered expansion and lowered production efficiency.

Question 19

What are the pull factors of ZDR in terms of land availability?

Answer 19

Extensive flat land is available in the delta region. This makes expansion of production facilities possible.

Question 20

What is the push factor of Hong Kong in terms of land prices?

Answer 20

High land price.

Question 21

What is the pull factor of ZDR in terms of land prices?

Answer 21

Low land price.

Question 22

What is the push factor of Hong Kong in terms of government policy?

Answer 22

New environmental protection regulations increased production costs and lowered profit. E.g. Air and water pollution ordinance.

Question 23

What are the pull factors of ZDR in terms of government policy?

Answer 23

1. Industrialists needed not to invest plenty of money in environmental protection because of the loose regulations.
2. The local governments provide basic facilities and infrastructure. E.g. Transport network, electricity and water supply.
3. Favourable terms such as incentives provided like tax concessions or low land rent.

Question 24

ZDR is closely tied to Hong Kong physically and culturally, How did this make the region a favourable location for the Hong Kong industrialists to set up their factories there?

Answer 24

First, the travel time between the ZDR and HK was short. Efficient railway and road networks linking Hong Kong and different manufacturing centres in ZDR enabled industrialists to manage their factories in the region and to obtain technological and other support services from HK conveniently.
Second, many Hong Kong industrialists are Cantonese and have relatives in the ZDR. They knew the places and culture and had good connections.

Question 25

What are the locations since the early 2000s?

Answer 25

Headquarters: HK
Factories/ Production: Northern part of Guangdong, the inland provinces like Hunan.
South and South-east Asian countries like Vietnam, Cambodia and Indonesia.

Question 26

What is the production mode since the early 2000s?

Answer 26

Multi-point production.

Question 27

What are the favourable location factors since the early 2000s for factories and production?

Answer 27

1. Lower labour costs.
2. Lower land costs.
3. Lenient pollution controls. (In contrast, polluting industries have been forced to move away from the ZDR).
4. Tax incentives provided by the government.
5. Less affected by overseas protectionist measures.

Question 28

What are the push factors of ZDR in terms of labour in stage 5?

Answer 28

1. Rapidly rising labour costs.
2. Due to the better economic development of the other places on the Mainland, fewer workers are willing to go to the ZDR to find jobs.

Question 29

What is the pull factor of other regions or countries in stage 5?

Answer 29

Lower labour costs.

Question 30

What is the push factor of ZDR in terms of government policy in stage 5?

Answer 30

Since the late 2000s, the adoption of the policy of “Emptying the cage and letting the right birds in” has forced the low value-added and pollting industries to move out.

Question 31

What are the pull factors of other regions in terms of government policy in stage 5?

Answer 31

1. More lenient environment protection regulations.
2. Tax incentives provided to foreign investors.

Question 32

What are the push factors of ZDR in terms of trade relations in stage 5?

Answer 32

1. Tense trade regulations between USA and China.
2. High Tariffs imposed by foreign countries on Chinese imports. -> Increasing the production costs.

Question 33

What is the pull factor of the other regions in terms of trade relations in stage 5?

Answer 33

Less affected by overseas protectionist measures.

Question 34

What are the reasons of the manufacturing firms still keep their headquarters in Hong Kong?

Answer 34

1. Hong Kong provide excellent supporting services like Banking and legal services for the industrialists.
2. Efficient telecommunications facilities enable the headquarters to get the latest market trends easily.
3. Hong Kong has a well-established legal system. This favours business development.
4. Industrialists can gain access to information about government policies and regulations easily.
5. Hong Kong has efficient international transport networks. Business people all over the world can visit the city for business trips easily.
6. There is an adequate supply of talents like high quality managers, accountants, engineers and technicians.