India _ LG Case Study by keralaguest


									  People, Work and Development Exam Revision: Use pgs 59- 83 & your classwork to fill in the gaps. Answer the q’s on pg 84&85
Location: India, an LEDC.                                           Location: Newport, South Wales, the UK, an MEDC.
What the case study shows: How the employment structure             What the case study shows: The effects of overseas investment
has changed over time. Changes in job opportunities over            on a region. Why a TNC invested in South Wales.
time outside the UK.
How job opportunities have changed:                                 Why LG located in South Wales:
1975:                                                               LG is a South Korean MNC who have located in South Wales
    Most people worked in the primary sector – 75%.                Workers:
    Few people worked in secondary – 10%                               Wages in South Wales are amongst the lowest in Europe.
    Few people worked in tertiary – 15%                                Workers in South Wales rarely go on strike.
What India did:                                                         Workers in South Wales have skills in manufacturing.
    India wanted to increase its GDP so it tried to get more       Location:
       tertiary jobs into the country.                                  South Wales is near to Port Talbot = good for bringing in
    It invested in IT and English education for schoolchildren.           parts & exporting finished goods.
    It wanted the money, skills & technology foreign IT bring          South Wales is on the M4 = good workers and parts.
       with them.                                                       A large piece of flat land, with room for expansion.
    It advertised its low labour costs; highly educated workers    Government Help:
       and created export processing zones where services or            The Welsh Development Agency gave £200m as an
       goods made could be exported for nothing.                           incentive for LG to locate in South Wales.
    Microsoft, AOL & IBM have opened branches in India             Positive Impact:
2005:                                                                   6000 jobs created.
    More people work in the tertiary sector, especially young          The positive multiplier effect – indirect employment
       educated males – 25%                                                created in companies&services that LG use like banks,
    More people work in the secondary sector, especially men              local suppliers, local services that have more customers in
       who have moved from rural to urban areas – 20%                      jobs spending money in their shops. The PME created
    Fewer work in primary sector – 55%                                    another 15000 jobs in the area.
How these changes have affected people:                             How investment by a foreign company is sometimes bad:
    More people in India can use their IT training to help their       They close foreign factories before their home ones if they
       business. E.g. farmers use the Internet to find out which           are doing badly. LG cut back 3000 jobs in the area after a
       crops needing least water, but sell at a higher price they          recession in South Korea.
       should grow.                                                     LG decided not to open a component factory because of
    More people earn more money, especially in cities like                economic recession in South Korea.
       Mumbai, as tertiary jobs pay more than secondary or              Negative Multiplier Effect – when job losses in a factory
       primary.                                                            cause job losses in companies providing goods and
    Women are badly affected, as it is usually men who gain               services to the factory and in local areas where the
       the education needed to work in IT. They have to work in            unemployed people live.
       the primary sector.
 People, Work and Development Exam Revision: Use pgs 59- 83 & your classwork to fill in the gaps. Answer the q’s on pg 84&85
How employment in LEDCs is formal or informal:                 How employment in MEDCs is formal:

Areas of the UK that have suffered from unemployment & why:    Areas of the UK that have gained employment & why:

How technology changes employment:        How investment changes employment:         How governments influence employment:

What fairtrade is and how it works:

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