In 1954 > 95% of all manu was conc in the industrialised countries of W Europe, NA and Japan
most products made were consumed in country of origin
decentralisation occurred in end of 20th century as a result of direct foreign investment by TNCs in developing countries that were able to offer competitive labour prices
encouraged TNCs to relocate production oversea > 'global shift'
A consequence of the global shift...
deindustrialisation in developed countries
in UK > manu employment fell by 50% over 30 years up to 2013
productivity here has begun to rise again
more than 50% of manu jobs located in developing world
60% of exports from these countries to developed are manu goods
What has caused the decline in manu in the developed world?
outdated production methods
products at end of life cycle
poor management
high costs
Reversal of these trends has been prompted by TNCs investing in deindustrialised areas e.g. Nissan in Sunderland
Factors influencing entrepreneurs choices for manu locations:
availability of skilled workers
reasonably priced workforce
new technological advances > more efficient factories
access to large market without tariffs thanks to trade agreements and gov incentives like tax breaks or enterprise zones with pre-developed infra
