Industrial Geography and Location Factors Flashcards

A set of vocabulary flashcards covering the iron and steel industry in China, the IT industry in the USA, and manufacturing shifts in Hong Kong and the ZDR region.

Backbone of all industry

The iron and steel industry, given that it produces the raw materials for many other sectors like construction and car-making.

Iron and Steel Industry Orientation

Historically raw material-oriented and power-oriented, meaning production was located close to heavy sources like iron ore and coal to save on transport costs.

Weight-losing industry

A manufacturing process where the raw materials lose significant weight; for example, it takes $3.5\text{ tonnes}$ of iron ore to produce $1\text{ tonne}$ of pig iron.

First Five-year Plan (1953)

A central government policy that shifted the iron and steel industry from Northeast China to central and inland regions for economic and strategic growth.

Strategic Safeguarding

The policy of moving industries inland during the 1950s-70s to protect them from international conflicts like the Cold War or Korean War.

Reform and opening-up (1978)

The policy change that allowed state-owned enterprises to make production decisions based on market trends, leading to a coastal shift in the 1980s.

Agglomeration economies

Cost savings and benefits (like shared infrastructure and skilled labor pools) gained when different firms and associated industries cluster in the same area.

Bulk carriers

Large transport ships that reduced the transport costs of heavy raw materials, diminishing the need for steel plants to be located next to mines.

Industrial inertia

The tendency for an industry to remain in a location (e.g., Anshan) even after original local resources are depleted, due to high relocation costs and established infrastructure.

IT Industry Characteristics

A high-tech sector that is capital, technology, and R&D-intensive with short product life cycles.

Product Life Cycle Stages

The phases an IT product goes through: Development, Introduction/Growth, Maturity, and Decline.

Multi-point and multinational production

A strategy where R&D centers are located in more developed regions, while mass production plants are outsourced to less developed countries to save labor costs.

Venture Capital

A form of financing that supports innovation and development, essential for high-risk IT industry startups.

Outsourcing (Offshoring)

The practice of moving software development or system maintenance to regions with cheap, skilled, English-proficient labor, such as India.

Reshoring

The process of moving outsourced production operations back to the home country (e.g., US firms moving back from China) due to rising costs or policy incentives.

Push factors from China (IT)

Negative factors like rising labor and land costs ($6.1 \text{ times}$ higher in 2019 vs 2003) and the appreciation of the RMB currency (23.00 \text{%} between 2002 and 2011).

Protectionist Policy

Government actions like the US imposing a 25.00 \text{%} tariff on imported Chinese LED televisions to encourage domestic manufacturing.

Globalisation

The increasing integration of world economies and societies through the free flow of capital, goods, technology, and people.

Secondary Industry

Activities that transform raw materials or semi-finished goods into more valuable products through manufacturing and construction.

Quaternary Industry

Knowledge-based industries focused on information application, medical research, and software development.

Front shop, back factory

A production arrangement where Hong Kong provides management and R&D (front) while the Zhujiang Delta Region (ZDR) provides the factory for production (back).

Emptying the cage and letting the right birds in

A government policy in Guangdong to replace low-value, polluting industries with high-tech, high-value-added industries.

Multiplier effect

A cycle of economic growth where new industries create jobs and income, leading to more local spending and increased tax revenue.

International division of labour

A global production structure where more developed countries (MDCs) focus on management and R&D while less developed countries (LDCs) handle mass production.

Market-oriented industries

Industries that produce bulky (furniture), perishable (bakery), or fragile (glassware) goods and locate near their customers to minimize transport and preservation costs.