China as the new economic giant Flashcards
Where are most industrial industries located in China? Why?
By the sea- the Eastern coast - because it is easier for global shipping.
Give 3 reasons that the economy in China has grown?
- One child policy means more people are wealthy, so they want more electrical goods.
- Cheap labour- wages are 95% lower than in the USA.
- Three Gorges Dam- China produces the most amount of HEP (hydro-electric power) than any other country. This type of power is in high demand throughout the world.
- A big population- more workers available.
- Workers get free health insurance from the government in case they fall ill.
Give 3 disadvantages of China being the new economic giant?
*China has 16/20 of the world’s most polluted cities.
*20% of the population live on less than $1 a day.
*Child labour is sometimes used.
Conditions in factories are often dangerous due to little or no health and safety legislation.
Give 2 examples of industry in China?
Nike.
Steel
Bicycles
What does the future look like for China’s economy?
- In 2018, there will be an economic growth of at least 7%.
- The rate of industrial growth will slow down but currently is far greater than any other nation.
- More education will mean people will want higher wages, so TNC’s will move elsewhere, to still exploit cheap labour markets.
What is an SEZ
Special Economic Zones were set up in China to entice TNC’s to come as a result of favourable conditions, such as ADVANCED FACTORIES and tax incentives.
Why are strikes important?
In China, strikes are prohibited. The disruption and lower production output isn’t good news for TNC’s, so the fact they are banned in China is a real bonus for profits.
