(Re)location

Description

Revision flashcards on the factors which affect the location of economic activity and those which influence the movement of manufacturing industry mainly focused on the Dyson case study
Jess Molyneux
Flashcards by Jess Molyneux, updated more than 1 year ago
Jess Molyneux
Created by Jess Molyneux over 8 years ago
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Resource summary

Question Answer
What is Dyson? A British company run by James Dyson which manufactures high technology goods, and recently became Britain's leading exporter
Where is the Dyson research and development HQ located? Malmesbury, Wiltshire South West England Small market town
What was previously located on this site? A Dyson manufacturing plant
Where is Dyson's manufacturing now based? (Bonus: when did this change occur?) Malaysia 2002
Give geographical pull factors which caused James Dyson to move his manufacturing plant to Malaysia. (Hint: there are 3) Component suppliers in Eastern Asia Best sales in Australia and New Zealand - China potential market (close to Malaysia) Quality ports, railways and motorways
Give economic pull factors which caused James Dyson to move his manufacturing plant to Malaysia. (Hint: there are 3) Low manufacturing costs Low land and building costs (larger factories - more production) Government support for industry
Give social pull factors which caused James Dyson to move his manufacturing plant to Malaysia. (Hint: there are 3) English widely understood Government funded universities - highly qualified labour Low labour costs yet high productivity
What is the difference in labour costs between the UK and Malaysia? UK worker: £9 per hour Malaysian worker: £3 per hour
What is the difference in rent between the UK and Malaysia? UK office rent: £114 per sq m annually Malaysian office rent: £38 per sq m annually
Give economic push factors which caused James Dyson to move his manufacturing plant to Malaysia. (Hint: there are 4) Difficult to get staff (uncompetitive wages - £16 000 per year AND labour shortages) No motorway or railway connections Local complaints (24 hour production) No expansion opportunities (so no production increase for new markets)
What are the advantages of Malmesbury as a location for a research and development plant? (Hint: there are 4) World's top universities - close by AND good education level in UK (skilled workers) Quaternary sectors of other companies based in UK British roots Attractive place to live - best workers
Why is Malmesbury an even better research and development location than it was a manufacturing one? (Hint: there are 3 points) Local complaints no local relevant Lack of access not problematic No need for expansion
What benefits did Dyson see as a result of the relocation? (Hint: there are 4) Production costs fell by 30% £102.9 million profit (2007 - 137% increase) No. 1 best US seller (above Hoover) Research allows innovations (Airblade - 80% less energy - green company)
What were the advantages to the UK of the Dyson relocation? (Hint: there are 4) 100 extra designers More corporate tax with higher profits Research job opportunities (£40 million spent on research annually) 1200 head office and research employees
What was the disadvantage to the UK of the Dyson relocation? 800 semi-skilled workers lost jobs
What were the advantages to Malaysia of the Dyson relocation? (Hint: there are 2) Job opportunities (relatively high pay - boosts economy) Inward investment helps development
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