WHAT ARE MULTINATIONALS ?

• Companies that have headquarters in 1 country and at least 1 branch in another country. Eg LG (Korea & Wales)

• What are the advantages and disadvantages of MNC’s locating in the UK? Complete the table in your booklets.

What is the multiplier effect?

• This can be positive and negative but it the knock on effect of an industry either closing down on locating in that area.

Circle of Decline

High unemployment

People have more time and less money and fewer opportunities.

Less taxes and business rates are paid to the local council.

The local council invests less in housing, roads and education.

Young people leave school with fewer qualifications.

Petty crime often increases.

Coal mines and iron and steel plants close.

People have less money to spend on goods and services.

Positive multiplier effectNew Industry

Jobs providedLocal business improves for shops

More money comes into the area

Services improve

House prices rise

More people move into the area

FOOTLOOSE INDUSTRIES:FOOTLOOSE INDUSTRIES:

• The term footloose is applied to those firms which have a relatively free choice of location.

• Many of these newer industries provide services for people and are therefore market orientated. The raw materials are often component goods made elsewhere, and the finished product is usually light and easily transportable by road or air.

Advantages of Advantages of an out-of-town an out-of-town

locationlocation

Cheaper land values away from the CBD as competition for land is lower near to the city boundary (lower rents and rates).

Ample space for the construction of large buildings, car

parks and lorry unloading bays,

together with room for possible future

expansion.

Well planned, modern estates,

often with local roads, service and

factory units built in advance.

A good internal road system linked by

main roads to motorway junctions

for easy access

Adjacent to modern, suburban housing estates, both private

and council, as well as access to commuter villages which provide

a local labour force – an increasing proportion of which is

female.

What is high technology (high tech) industry?What is high technology (high tech) industry?

High technology industry involves a highly skilled workforce and its products require a high proportion of research and development.

High technology industry is relatively footloose since access to raw materials is not very unimportant.

Which of the following could be called ‘high tech’ industries?

biotechnologyiron and steel

printingcomputer software

tourism

car manufacturing

What is the difference between a business and a science park?

A science park is a planned industrial complex which contains quaternary companies while a business park can also contain manufacturing companies.

Business Park

Science Park

Cambridge Science Park

• This was the park towards the end of WW2, follow the online timeline of the site and see how it has changed over the years.

Cambridge Science Park

The site was farmland until World War II and then remained derelict until it was developed by Trinity College in 1970.

Cambridge Science Park

What type of industries locate in Cambridge Science Park?

High tech industries, such as biotechnology and computer companies locate in the Science Park. ExamplesOption Cambridge located in the park in July 2000. This is a Research and Development division of a company which produces products for portable computers. It employs 28 people. GeoInformation is a company which produces high resolution aerial photography for 180 urban areas in the UK.

Why does industry locate in Cambridge Science Park?

Cambridge Science Park

CambridgeCambridge Science Park

M11

A45

A10

A45

A11A1303

A1309

Reasons for CSP’s location

• Look at p219 in Key Geography and write down 5 main points about its location.

You need to know specifics, such

as…

CSP Specifics

• The train takes 52mins to London Kings Cross.

• There has bee a positive multiplier effect, St Johns Innovation centre

• The high quality graduates from the university colleges make ideal employees for these hi tech industries.