China's global shift in manufacturing

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  • REASONS FOR GROWTH IN CHINA
    • Guangdong
      • free trade zone
      • coastal area
      • borders Hong Kong
    • Economic
      • industry uses technology
      • Free zone created2015
      • special econmomic zones allow foreign trade & investment to occur without authorisation. local govt offer tax incentives to FI
    • Physical
      • coastal = ports for trade. encourages importsand exports
      • borders hong kong = leading international financial centres, low taxation and free trade. busiest port and close to china
    • Political
      • communist govt. economic reform in 1978 and privatised many sectors to allow people to earn more. brought out 608 million out of poverty.
    • Costs
      • People & Environment
        • loss of productive farm land
        • increase in unplanned settlements
        • pollution and health problems
          • 100 cities suffer extreme water shortages
          • 360 million have no access to clean water
        • resource pressure
        • loss of biodiversity
    • Benefits
      • People & environment
        • reduction in poverty
        • better education & training
    • Example of TNC
      • Lenovo
        • healthy and significant Chinese multinational
        • 2014 = operating incomes over a billion dollars
        • benefits: 1. investment in infrastructure 2. reductions in poverty 3. increase in urban incomes 4. better education & training

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