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Globalisation case study - growth in manufacturing


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Second largest econamy
This is what China is, it is only just behind the USA, there are 5 reasons for this
1st reason
cheap labour - this sources labour here more attractive than in other countries
minimum wage
This is not set in China so varies on location
£90 per month
Shenzhen minimum wage
£70 per month
Beijing minimum wage
£990 per month
UK minimum wage
2nd reason
Long working hours
Long working hours
The rules on these are not strictly enforced so are easy to get around
3rd reason
Health and Safety regulation
Health and safety laws
These are not enforced
100s of factory workers
got mercury poisoning in the past 10 years despite the laws with toxic materials
4th reason
Prohibition of strikes i all workers can go on strike but the ACFTU get people back to work asap
ACFTU
All-China Federation of Trade Unions
Unions
It is illegal for people to join any union other than the ACFTU
5th reason
tax incentives and tax free zones
SEZ
Specialised Economic Zones - these offer tax incentives for foreign buisnesses
1st two years
foreign businesses don't have to pay tax
7.5%
foreign businesses have to pay of the tax for years 3-5
15%
foreign businesses have to pay of tax from years 5 onwards
Beijing Olympics
This helped the country as it could showcase its improvements and entice companies
3 Gorges Dam
This is the worlds biggest HEP provider