HKDSE Geography

3
Changing Industrial Location
How and why does it change over space and time?

3.6 What are impact of changes in

industrial location and modes of production?

Lesson Workbook

Name: Yuen Wing Ho Class: F. 4C ( 24 )

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What are the impacts of industrial relocation?
• We have learnt that location factors changes over time and industries may relocate their production
units accordingly.
• Such a change in industrial location will affect both areas where factories move in and move out.
Positive impacts 正面影響：
A on the new location (where factories move in )
J facilitates economic growth 經濟增長

à setting new industries in a region may have a multiplier effect 乘數效應

Economic
impact(s):

• When industries are set up in an area, jobs are created and people’s
income will increase. With a higher income, more money can be spent
in local ships and on local goods and services .
• In this way, the local economy will grow. This will increase the tax
revenue of the local government. Then, the local government will have more
money to improve infrastructure . This will attract more people to
come and more new industries will set up in the area.

J facilitates technological transfer 科技轉移

à LDCs can use the advanced technology and management skills from MDCs
à increase production efficiency and product quality

J improves quality of life 生活素質

Social à relocation provides more job opportunities to semi-/ unskilled labour
impact(s): à more industries provide more diversified and cheap industrial products
à higher purchasing power à higher living standard and quality of life

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B on the original location ( where factories move out)

J facilitates economic restructuring 促進經濟轉型

à shift to produce high-tech/ high value-added products

à more profitable
For example:
Economic Hong Kong has changed into tertiary industry after industrial relocation to ZDR since
impact(s): the 1980s and transformed into an International and Financial Centre.

J increases c ompetitiveness 競爭力 of the local enterprises

à less local firms à less keen market competition à lower labour wage & land rent
à lower production cost
à less local firms à more space for firm expansion

Social J facilitates redevelopment 重建

impact(s):
à provides a better living environment à higher quality of life

J allows re-planning
à tackle the land use conflict between industrial and residential land uses

J improves e nvironmental quality

Environmental à alleviate / ease air pollution à less air pollutant emission à less smog & acid rain
impact(s): à less industrial production à less water and noise pollution
For example:
Beijing reduces 18,000 tonnes (20% of total) of PM10 every year after relocation of
Shougang to Caofeidian.

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Negative impacts 負面影響：
A on the new location (where factories move in )
L more intense market competition
à local enterprises may be replaced by traditional enterprises
Economic
L major economic revenue has transferred to overseas
impact(s):
L increasing dependence on local economy to transnational enterprises
à weakening the negotiation power of local government
L endangers agricultural development in rural areas
à more industrial development à more land are occupied
Social à urban encroachment à endangers agricultural development
impact(s): L increases social costs
à pollution à harm public health à increase medical cost
惡化 à deteriorating living environment
L creates land use conflicts
à land use conflict between industrial land use and residential land use

L environmental problems

Environmental
impact(s):

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B on the original location ( where factories move out)
L economic decline 經濟衰退

Economic
impact(s):

L unemployment
à relocation of industries à factories are forced to close à job losses
à labour is unable to find jobs because they are not well-educated or they can only
find jobs of lower skill level
Social à they may have no income or a lower income
impact(s): à this reduces their purchasing power à lower living standard à lower quality of life
à social problems such as drug addition, drunkenness and family abuse may occurs

L widening wealth gap

à social unrest

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Extra Exercises
1 Refer to the photograph below which shows a factory in the UK.

(Credit: Ralph Gant/Flickr)

Which of the following are the negative effects on the local area when the plant shown is relocated to other
places?
1 Reduce air pollution
2 Reduce multiplier effect
3 Create social problems associated with unemployment
A 1 and 2 only
B 1 and 3 only
C 2 and 3 only
D 1, 2 and 3

2 Which of the following are the impacts of industrial relocation of the IT industry on the USA?
1 Reduces job opportunities
2 Reduces government revenue
3 Restricts innovation
A 1 and 2 only
B 1 and 3 only
C 2 and 3 only
D 1, 2 and 3

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3 Which of the following consequences are brought by industrial relocation to Hong Kong?
1 Increased unemployment
2 Increased government expenditures on social welfare
3 Change in employment structure
A 1 and 2 only
B 1 and 3 only
C 2 and 3 only
D 1, 2 and 3

4 Which of the following are the reasons for the HKSAR government to develop the IT industry in
recent years?
1 To revive the manufacturing industry in Hong Kong
2 To diversify local economic development
3 To increase the competitiveness of Hong Kong
A 1 and 2 only
B 1 and 3 only
C 2 and 3 only
D 1, 2 and 3

5 Refer to the photograph below which shows an environmental problem in an industrial area.

(Credit: Mark Dixon, Blue Lens, LLC/Flickr)

Which of the following measures help solve the problem?
1 Tighten the environmental regulations
2 Redevelop the factories into modenise ones
3 Install devices in the factories to filter out the pollutants before emission
A 1 and 2 only
B 1 and 2 only
C 2 and 3 only
D 1, 2 and 3
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