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Economic Growth and Challenge: China

Global shift, offshoring and the workshop of the world

  • 3 things to know
  • Component 3 Section B

Overview

Global shift, agglomeration economy and china plus one strategy.

What you need to know

Answer each one before you reveal it.

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Key term

What is meant by the global shift?

Numbers

Why is China called the workshop of the world?

Evaluation

What advantages attracted manufacturing to China?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is meant by the global shift?

    Model answer

    The global shift is the relocation of manufacturing from developed to emerging economies. Lower wages, containerisation and trade liberalisation made it possible.

  2. 2

    Why is China called the workshop of the world?

    Model answer

    China assembles a very large share of the world's clothing, electronics, toys and appliances. Exports of goods exceeded 3.5 trillion United States dollars by 2022.

  3. 3

    What advantages attracted manufacturing to China?

    Model answer

    A vast, disciplined and low-cost labour force was combined with reliable power, ports and roads. Government incentives and a huge domestic market reinforced the pull.

  4. 4

    Distinguish offshoring from outsourcing.

    Model answer

    Offshoring means moving production to another country, possibly within the same company. Outsourcing means contracting the work to a different firm, at home or abroad.

  5. 5

    What is the Pearl River Delta known for?

    Model answer

    The Pearl River Delta around Guangzhou, Shenzhen and Dongguan is the largest manufacturing cluster in the world. Electronics, toys and furniture dominate its output.

  6. 6

    What is an agglomeration economy, and how does it apply to Shenzhen?

    Model answer

    Agglomeration economies are the cost savings firms gain by clustering near suppliers, workers and customers. Electronics firms in Shenzhen can source almost any component within hours.

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