GEOGRAPHY IGCSE: INDUSTRIES IN MEDCs
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The document discusses economic changes in industrial regions like the Ruhr in Germany and the M4 corridor in the UK, highlighting the decline of heavy industries and the rise of footloose industries. It outlines the impact of de-industrialization leading to job losses, migration, and government interventions to improve local economies. The shift from central business districts to out-of-town retail locations is also examined, noting accessibility and reduced costs as key factors influencing this trend.
GEOGRAPHY IGCSE: INDUSTRIES IN MEDCs
- 1. IGCSE GEOGRAPHY 29. ECONOMIC CHANGE INDUSTRIES IN MEDCs. CASE STUDY: RUHR, GERMANY. CASE STUDY: FOOTLOOSE INDUSTRY M4 CORRIDOR, UNITED KINGDOM.
- 3. Natural resources such as coal, iron ore and limestone enabled the iron and steel industry to develop in the Ruhr. The chemical and textile industries also grew due to good transport links and available workforce. Canals and rivers such as the Rhine were used for transport and power. The area developed industrially in the 1930s and 1940s to supply arms for Germany. Up until the 1970s the factories and associated services were an important source of employment for people in the region.
- 5. The decline in the Ruhr's importance as a heavy industrial area has caused job losses in steelworks and coal mines. Many people have left the area, eg cities such as Dortmund, due to economic and associated social problems. The environmental legacy of the heavy industry in the area includes waste tips from coal mining, air and water pollution.
- 6. There is still a large workforce living in the area that have had to learn new skills as industries have changed. New industries, eg electronics, are moving in to replace the traditional heavy industries. Much of the derelict land has been improved to provide a more pleasant living and working environment. The Ruhr has good access to much of the EU and is once again an attractive location for industry.
- 7. FOOTLOOSE INDUSTRY M4 CORRIDOR UNITED KINGDOM
- 8. Footloose industries are not tied to a particular location. They include high-tech industries and are located near motorway junctions or on the edges of towns and cities in business parks. The products are often electronics and computer components. Examples include Silicon Glen in Scotland and the M4 corridor. Some of the benefits of locating an industry in the M4 corridor are shown in the diagram below.
- 10. The M4 corridor stretches from Heathrow airport in the east to Bath and Bristol in the west. The corridor is home to companies such as Hewlett Packard and Sony who are involved in research and development (quaternary industry) and have links with universities who provide well-qualified graduates. Few raw materials are used and therefore transport costs are low, making the industries 'footloose'.
- 11. AERIAL VIEW OF THE M4 MOTORWAY
- 12. Land on the edge of cities is often cheaper than in the centre. The out of town surroundings and easy access to workers in the suburbs provides an ideal location for building science and business parks. Motorway links and railways also provide access for commuters and for transporting components and products.
- 13. Workers wanting to live near their place of work increases the demand for housing and puts pressure on green belt land. As demand grows, house prices increase. This means that less skilled and lower paid workers are priced out of the market in desirable areas.
- 14. In the past, industry in the UK was mainly located in areas where raw materials and energy was available. Key industrial areas, where iron and steel could be processed, included South Wales and Northern England. As materials became exhausted and imports became more available, the industry in these areas declined. Government intervention has helped some of these areas. Grants have been given for firms to set up in areas of high unemployment. The rise of high technology industries in the UK has meant areas that attract skilled workers and have excellent communication links have benefited from growth. These areas include the M4 Corridor, which contain footloose industries.
- 15. In 2004 eight Eastern European countries joined the EU. One of these countries was Poland. This resulted in workers migrating from Poland to the UK for jobs, sometimes in low skilled manual jobs such as fruit picking. The expansion of the EU has also led to some companies moving out of the UK. Twinings Tea and Cadburys Chocolate are two examples of firms moving production from the UK to Poland.
- 16. Factories based in countries such as India and China have around 25% lower operating costs than the UK. There is growing demand for cheap manufactured goods such as clothing and electronics. Both China and India have a large labour force to provide workers for the factory. They also have a plentiful supply of energy. These countries also have fewer regulations, which make it cheaper for a factory to produce goods. Firms which have a choice of location are attracted to areas where they can make more profit. China is now an important manufacturing industry producing a large share of the world's electronic goods, clothes and shoes.
- 17. Many call centres for insurance companies, banks and railways are also now located in countries which have cheap but skilled labour. Norwich Union is one company which has moved its call centre from the UK to India.
- 18. When there have been large numbers of job losses in an area which has undergone de-industrialisation, such as South Wales, the government and the EU will often intervene to improve the environment and quality of life for local people. Other areas which have been affected include Merseyside, Tyneside and Belfast with the decline of shipbuilding. Industry is actively encouraged to locate in areas of low employment with incentives such as grants, subsidies and low rents.
- 19. Improvements which have accompanied the re-industrialisation in South Wales include: • the Cardiff Bay and Swansea Waterfront redevelopments • the development of business parks • improvements in public transport • refurbishment of old industrial buildings
- 20. Traditionally, most retail outlets were located in the Central Business District (CBD). The centre of town was a logical place for shops because it was the most accessible part of a town and transport links radiate out from this point. In the late 20th century, traffic congestion reduced accessibility to inner cities. This led to out of town locations becoming favoured for the retail industry. They are close to the suburbs and are accessible for many people via ring roads and motorways. Land is also cheaper in this part of a settlement, making it attractive to retailers.
- 22. The result of this is that more people shop out of town, rather than in a CBD. The reduction in profits in the CBD can cause smaller branches of chain stores to close down, eg Next in St Albans has closed in favour of the larger out of town store at the nearby Colney Fields retail park. Colney Fields benefits from free parking and easy access to the M25, giving it a wider sphere of influence than the smaller town centre store. Can you think of an example in your local area? If this becomes widespread, areas in the centre of town can become derelict and unattractive, further discouraging people from shopping there. Also, unless bus or rail links are adequate, people without cars have limited access to shopping facilities.