• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Account for the rise and subsequent decline of consumer industries in MEDC's

Extracts from this document...

Introduction

a) Outline the main characteristics of consumer industries (5) b) Account for the rise and subsequent decline of consumer industries in MEDC's (20) A) Consumer industries are those that produce goods that are demanded by the market for consumption, the kind of goods produced relate strongly to market trends and fashions. The majority of consumer industries gain economies of scale, this is where the cost of a product is lowered in the long run by producing a large number of the same product. Having a large output, making use of automation, locating manufacturing in NIC's (newly industrialising countries) and having a standard design for a product are all common characteristics shared by consumer industries. B) In the UK the rise of consumer industries began for the middle class in the 1920s with white goods such as fridges. However consumer industries have not been steadily growing since then. There have been growth spurts, and several depressions: mainly due to wars or economic disasters such as the 1973 oil crisis - in the 1980s the consumer industries began to weaken in terms of employment. ...read more.

Middle

This method - "fordism" -- led to cars being sold for cheaper prices than before (since low skilled labour could be used along side highly skilled labour and it is cheaper than highly skilled labour) this meant more people could afford to buy a car. This method was also used in other industries, especially with white goods, meaning price reductions all around for the everyday consumer. Some MEDCs has what is known as a "fordist economy" with large amounts of the workforce working eight hour days and being paid good wages. Henry Ford believed that workers would have enough leisure time and money to consume the mass production goods that were being churned out of the factories - and he was right. Another reason for the rise of consumer industries in MEDCs was that increased technology lead to the use of mechanisation, which was much cheaper in the long run and lead to cheaper products. As the trade unions became stronger and the workers demanded higher wages, companies decided that it would be much cheaper to move production abroad to LEDCs and NICs which were offering government subsidies as well as cheap land and labour. ...read more.

Conclusion

Even though the manufacturing of the consumer industries had moved to NICs the administration and research and development had stayed in the MEDCs, this is a kind of "international division of labour" and means that large amounts of the money made from selling the goods actually ends up returning to the MEDCs instead of where they were produced, an example of this is Dyson who moved his production line of vacuum cleaners to Malaysia but kept the research and development in Malmesbury on the M4 corridor alongside the administration. With the introduction of computerisation even if manufacturing has stayed in MEDCs there has been a decline in the amount of workers who are needed for the factories to produce the same amount of goods. So whether the decline in consumer industries is defined as the number of workers employed, or the actual output supplied makes a difference to the pattern of manufacturing change throughout the world. For the foreseeable future it seems as if consumer industries will continue to decline in MEDCs, because the manufacturing is offered for so much less elsewhere. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Production - Location & Change section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Production - Location & Change essays

  1. Examine the causes and consequences of the rise of manufacturing industry in NIC's.

    These are all consequences of an uncontrolled industrial growth. A rise of manufacturing industries can have an effect on medc's. When companies see the cheap labour in these countries they sometimes decide to relocate and move there. This can have a bad effect on the people who have lost jobs due to companies relocating.

  2. Opportunities in the big emerging markets (BEMs) such as India, Brazil and China.

    Over reliance on interpersonal relationships can result in an undesirable burden, and subsequently, lead to destructive partnerships and unsatisfactory relational outcomes. Hence, ensuring a strong business relationship is the premise to influential co-ordination of channel relationships. 4. International conflict management is an ad hoc learning process that is relatively independent of prior international experiences.

  1. "Can the theories that Alfred D. Chandler developed in his book 'Scale and Scope: ...

    MAN AG M�nchen 16,040.00 Nassauische Sparkasse Wiesbaden 15,847.00 Kreissparkasse K�ln K�ln 15,833.00 KARSTADT QUELLE Aktiengesellschaft Essen 15,815.00 LfA F�rderbank Bayern M�nchen 15,721.00 Volkswagen Bank GmbH Braunschweig 15,123.00 HDI Haftpflichtverband der Deutschen Industrie V.a.G. Hannover 15,014.00 Kaufland Warenhandel West- Th�ringen GmbH & Co.

  2. Examine the causes and consequences of the rise of manufacturing in NIC's [20] ...

    The rise in manufacturing in NIC's increases competition for land, which raises land prices, this in turn may force the poorer citizens of the country to live on the street because they will not be able to afford a house.

  1. What is meant by the terms core and periphery?

    Economic activity in the core will then continue to grow as it attracts new industries and services (Banking, Insurance, Government offices). As a result, levels of capital and technology will increase which will have a positive effect as the area will be able to afford schools, hospitals, shopping centres, good housing and a modern transport system.

  2. Assignment on Computer Integrated Manufacturing

    In fact, in the literal sense, CAM is as broad a scope as CIM except that the latter emphasizes integration. Islands of Automation In the 1970s, another concept that came into being was that of 'flexible automation'. Flexible automation permits computer systems to vary their tasks based on software modifications, the simplest example being a robot.

  1. Case Analysis: Longe Industries v. Archco, JNRP

    is used in one's business, and which gives one an opportunity to obtain an advantage over competitors who do not know or use it." The key factors in determining whether information is a trade secret are the investment of time and/or money in developing the information and the principal's efforts to keep the information secret.

  2. Development Essay - BRAZIL

    From 1889 to 1930, the government was a constitutional democracy, with the presidency rotating between the states of Sao Paulo and Minas Gerais. This period ended with a coup d'etat that placed Get Lio Vargas in the presidency. Just as the change of power took place, in 1889, so did a change of power in 1930.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work