THEME 3: ECONOMIC DEVELOPMENT, UTILISATION AND MANAGEMENT OF

RESOURCES
TOPIC: INDUSTRIES
Objectives
 Describe the features of the craft industry
 Describe the advantages and disadvantages of the industry
 Explain the impacts of the industry to the environment
 Describe high technology industries
 Describe and explain the location of science and business parks
 Describe the features of a motor vehicle assembly plant
 Describe and explain the advantages and disadvantages of TNCs
Introduction
Craft industries are mainly associated with LEDCs where they form an integral
part of the rural economy. The lesson will focus on the features of this industry
and the impacts it has on people and the environment.
The lesson will further describe high technology industries and the
development of science and business parks like the Royal Science and
Technology Park in Eswatini.

CRAFT INDUSTRIES

-A craft industry is a small-scale industry that produces hand-made goods from

local raw materials using traditional skills.

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Examples of craft industries in Eswatini
1. Wood carving - Gone Rural in Malkerns
2. Basket making- Tintsaba Master weavers in Pigg’s Peak

1. Pottery making - Gone Rural in

Malkerns
3. Glass blowing - Ngwenya Glass

CRAFT INDUSTRY AS A SYSTEM

Inputs Processes Outputs
Wood carving Sculptures, wooden dish/ spoon
Grass weaving grass mats, basket
Clay moulding clay pots, vases
Wool knitting jerseys, scarves
Other examples of raw materials used in the handcraft industry
- Animal skin / hides
- Grass
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 - Sisal (halibhoma)
- Shrubs
- plastics
Features of craft industries
-Use local raw material, this depends on the area if it has grass the products
will be based on grass, soapstone then products made of soapstone e.g. along
Matsamo Piggs Peak road.
-Use cheap raw materials, since these are locally available though sometimes
they may be acquired away from the area.
-Traditional tools, hands or simple technology are used.
Examples of simple tools

-Sold to tourists/ roadside sale

-Small scale industries

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-Employs more females

-Requires low capital

-Products are mainly for local market

BENEFITS / ADVANTAGES OF CRAFT INDUSTRIES IN LEDCs SUCH AS EWATINI

1. Reduces rural-urban migration as people may be self- employed in the rural
areas.
2. They provide employment especially in rural areas resulting to improved
standard of living for the people.

3. Aids the tourism industry as many tourists are attracted by the good
produced in this industry and this in turn promotes foreign exchange.

4. Retains traditional skills which could be passed from one generation to

another.

5. The products may be used by locals for domestic uses

6. It helps to preserve local culture.

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NEGATIVE IMPACT OF CRAFT INDUSTRIES TO THE ENVIRONMENT.
1. Cutting down of vegetation such as trees for wood carving and grass for
basket making result to the release of carbon dioxide to the atmosphere which
is the main greenhouse gas for global warming / cutting down of trees also
leads to soil erosion.
2. Destruction of habitat for important animal species which may become
extinct due to deforestation.

3. Depletion of natural resources such as clay (used for pottery) and soap stone
(used for making sculptures) which may not be found by the coming
generations.

4. Visual pollution caused by the pits left behind when soapstone for making
sculptures is mined.

Efforts by governments towards improving the craft industry

1. Loans are offered to local entrepreneurs which they could use to acquire
raw materials and simple tools or machinery.

2. Hand craft producers are educated or trained on the necessary skills that will
enable them to produce goods of high standard.

3.They are also given the opportunity to market their products during the
International Trade Fair at Mavuso Exhibition Centre. They are allowed to sell
their goods in the Manzini city every Thursdays (besides the normal market).

HIGH TECHNOLOGY INDUSTRIES

-Hi Technology or Hi-Tech industries are industries that produce new,
innovative and technological advanced products.

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- Examples of products: Computers, computer software, lasers, silicon chips,
body scanners, space rockets.

Case study: Germany

 Bio Economy Cluster in Leipzig
 Solar watt in Dresden
 Silicon Saxony in Dresden

Factors that influence the development of High-tech industries

1. Availability of skilled labour as these industries produce technological
advanced products.
2. Nearness to Universities for research.
3. Nearness to other related firms for purposes of sharing ideas/ information.
4. Access/proximity to transport links such as air, road, and air links to
transport components to the market / for access to markets.

*High- tech industries are often referred to as foot loose industries because
they can locate anywhere as they use light raw materials / they are not tied
to the source of the raw material.

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SCIENCE AND BUSINESS PARK
A science and business park is an area designed to promote innovation.
Location of a science and business park in the UK

A Science and business park

Reasons for the location or development of Science and Business Parks.

1. Nearness to Universities for research and for the provision of skilled labour.
2. Nearness to transport links such as rail and road links for the transportation
of products and people, and nearness to air links for international business.

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3. At the edge of the cities/Greenfields for the following reasons:
-land is cheaper
-Plenty of land/low density housing for expansion
-pleasant land where there is minimal noise, and many leisure facilities.
The Royal Science and Technology Park - Eswatini

Why do firms locate next to each other in a Science and Business Park?
(ADVANTAGES)
1. They are able to exchange ideas and information with neighbouring firms.
2. They are able to share maintenance and support services.
3. They are able to share basic amenities such as connecting roads.
4. They are able to share inputs such as highly skilled labour and raw materials.
*All firms in a Business Park are usually High-tech industries, e.g. software
design.

MOTOR VEHICLE ASSEMBLY / CAR ASSEMBLY PLANT.

A car assembly plant is a huge factory where different components produced
by other companies are put together to make cars.

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EXAMPLES: 1. VOLKSWAGEN in South Africa
2. Ford assembly plant in Port Elizabeth in South Africa
3. Toyota Mirai production assembly in Japan

Key features of a car assembly plant

1. Occupies a large gentle sloping land to:
 accommodate the long assembly line

o park new cars

 store components
2. Has workers’ houses nearby to provide accommodation.
3. Tarred roads to transport workers, components to the plant and finished
cars to the market.
4. Located close to component factories to save transport costs.
5. Recreational facilities for relaxation of the workers.
6. Power lines to supply power for manufacturing purposes such as running
machinery and robots.

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Factors that have influenced the development the motor vehicle assembly
plant in Japan
1. Raw materials - Japan is able to import raw materials such as coal and iron
ore from South Africa which she then uses to manufacture steel needed in the
motor vehicle industry.
2. Power - Japan has nuclear power stations and many fast flowing rivers
which enables Japan to generate nuclear and hydroelectricity needed to run
machinery during the manufacturing of motor vehicles.
3. Labour – Japan has many highly skilled and semi-skilled workers who are
extremely hardworking and loyal to the companies they work for.

4. Transport- Roads, railways and harbours are well developed which makes
the transportation of raw materials and fished products easy.
5. Markets – Japan has is relatively close to market such as USA, China and
Korea to which it exports finished products. The high population of Japan also
provides large domestic market.
6. Capital- Japanese government provides financial assistance to the motor
vehicle industry.
7. Availability of large land for parking the carks.
Outputs in a car assembly
-Cars
-Waste products including gases such as carbon dioxide, solid waste and liquid
waste.

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Problems caused by waste to the environment
1. Air pollution caused by the release of carbon dioxide which is the main
greenhouse gas for global warming.
2. Liquid waste deposited into river which affects river quality and kills aquatic
life.

Advantages of car assembly plants to the local people

1. Employment leading to improved standard of living.
2. Improvement of infrastructure such as roads leading to easy transportation.
3. Improvement of social services such as health care and education.
4. Better paying jobs leading to improved standard of living.
5 Greater demand for products produced by local people such as vegetables
leading to improved standard of living.

TRANSNATIONAL COMPANIES (TCSs) / MULTI-NATIONAL CORPORATION

(MNC)

TNSs are large companies which have branches or offices in a number of

different countries.
- Multinational companies operate different aspects of their industry in
countries that provide the most benefits. As a result, research and
development operations are usually in MEDCs where staff expertise and

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research facilities are more advanced. Production plants are usually in LEDCs as
labour costs are cheaper. Head offices are usually in MEDCs.

EXAMPLES
1. Unilever based in the UK- London.
2. MTN in Africa
3. Samsung
4. Volkswagen
5. Coca Cola

Advantages of TNCs
1. Provide employment to many local people resulting to improved standard of
living.
2. Boost the economy as the local government receives taxes from the people
working in the companies.
3. Improve the level of education and technical skills of the local government
as the companies send local people to overseas for training or bring experts to
train the local people in different kinds of jobs.
4. Bring foreign currency to hosts countries when goods are sold abroad thus
boosting the economies of countries.
5. Help in the improvement of infrastructure such as rail, road and air links
which can be used by local people for transportation purposed, can also
promote trade.
Disadvantages of MNCs

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1. Higher – paid positions and management positions are filled by expatriates /
foreign nationals leading to high unemployment rate of local skilled labour.
2. Local labour force is exploited / receive low wages and work for long hours
resulting to low standard of living.
3. Most of the profits from the companies go overseas leading to lack of local
investment.
4. MNCs can pull out anytime leaving local workers without jobs leading to
poverty.
5. MNCs are not concerned about the damage that the industry may do to the
environment of the LEDC host country.

Conclusion;
Multinational corporations have continued to play an important role in the
development of global economies. Recent development globally has also seen
an increase in the number of high technology industries and science and
business parks. The move towards a digital world has seen more companies
embracing technology. This is now a common trend especially in MEDCs.

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