iGCSE Industrial Systems Case Study

MANUFACTURING & TNC’s: FORD Ford started production in 1995 The assembly plant was located in Chennai in partnership with an Indian company Plant used 95 Indian suppliers & opened 33 dealerships

EMPLOYMENT1800 direct skilled jobs created in the factory Indirect jobs created within 95 suppliers Service tertiary jobs such as cafes, banks created as more money goes into the economy due to a higher disposable income.

WHY FORD LOCATED IN INDIA?

A huge population with over 60 million in the middle class A growing economy so people have higher disposable incomes so there is a large potential market Lots of well-educated hard-working work force. High unemployment so people want and need the jobs so are more committed & fight harder to keep them. Fewer trade unions, government regulations & health and safety regulations so lower set up and overhead costs Ford seems friendlier than some Indian companies because they give higher than average wages & longer than average holidays, but lower than most countries

DID INDIA BENEFIT?

Unemployment decreased More jobs in the local economy Larger incomes & a better standard of living for those employed Business pays tax and that can be sent on local infrastructure so the local area becomes more developed Ford Paid for 2 health clinics to be opened Ford treats all waste water on site so there is ni harmful water which could wash into local rivers etc & harm local wildlife The cars are designed to be more environmentally friendly & 85% of the components used can be recycled or dismantled Ford is trying to be more sustainable Ford is in partnership with an Indian Firm so not all the profits leave the country The image of the area is improved therefore other TNCs are attracted there creating more employment

SOURCE: http://www.revisionworld.com/gcse-revision/geography/industry/industry-ledcs

geographil@philranday

EXAM STYLE QUESTION

For a named country or area which you have studied, explain why TNCS located

there.