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easier Hign unemployment rate

more convenient Large populations Larger pool of available workers

Lower labour costs in LDCs
increased level of Low level of education
interaction between received by people
people Commercial jet aircrafts Lower costs
Difficult to expand factory
processing factories no longer space in DCs Land built-up and urbanised High land costs
need to be near source of raw transportation of
Lower production costs in LDCs Abundance of nat.
materials perishable goods possible
resources and land Only embarked on
Transportation of large in LDCs industrialisation in 1960s
amounts of goods over long More cost-effective Transport technology
Cargo ships Heavy investments
distances than air transport Tax exemptions(eg. Malaysia) Apply to projects involving
manage operations in one place Use of high technology
Help free industries from being located infrastructure is built
manufacture goods
near or at sources of raw materials or
in another companies can govt. requirements are lowered
transport products by Area in country where
incentives such as tax exemption
air or sea to markets for are given to attract foreign
sale Reasons for Competitive advantage Attractive govt. incentives Free Trade Zones(FTZs) companies
Space shrinking technology
faster Global Industrial Encourage growth of
more efficient
Shifts foreign exchange
unloading of goods hold goods Use of standard-sized containers Containerisation Objectives
shortens time that ships Generate jobs
have to dock at port Include more specific zone
transmit information at types such as FTZs
not affordable by all however cables are expensive very high speeds Optical fibre systems Special Economic Zones(SEZs) Increase foreign investments
people even can Communications technology Objectives Flexible economic laws
communicate from remote attract investors
areas instantaneous communication satellite technology
Close proximity to
immensely large
populations(eg. middle class markets
Large markets China,India) predicted to rise with growth of these economies