Three sectors of the economy, cont.

HW check:RB, p 20, II:

Correct order? quarry – warehousing - raw - ore – trawl - distribution process – gravel

Correct order: 1. raw2. quarry3. trawl4. warehousing5. ore6. gravel7. distribution process

HW check: RB p 22 (two teams – test the rivals x 5)

I Match the definitions... II Classify the industries...

1 i 13 t PRIMARY SECTOR:

2 w 14 l w

3 k 15 s

4 v 16 h

5 a 17 u SECONDARY SECTOR:

6 o 18 g a, b, c, e, i, j, k, l, p , t

7 q 19 d

8 b 20 e

9 p 21 j TERTIARY SECTOR:

10 r 22 m d, f, g, h, m, n, o, q, r, s

11 c 23 f u, v

12 n

RB, p 24: Where did all the jobs go? Vocabulary

While reading find the words meaning:Pg. 1: whole production job

entire manufacturing workplacePg. 2: iron & carbon mix the central part stopped

steel heartland ceasedarea where factories have closed to transport“rust-belt” to ship

Pg. 3: endangered to move very small partthreatened to relocate fraction

to arrange for sb outside a company to do some work for the company

= outsource

HW: Complete the notesJOBS GRAVITATE TO THE EAST

MANUFACTURING GROWS IN THE EAST• EXAMPLES OF GROWTH IN THE EAST: INDUSTRY → COUNTRY 1) 2) 3)

• REASONS: 1) 2)

MANUFACTURING JOBS DECLINE IN THE WEST• EXAMPLES : 1) 2) 3)

• CONSEQUENCES: 1) 2) 3)

LOSS OF JOBS IN KNOWLEDGE-BASED INDUSTRIES!!!1)2)

JOBS GRAVITATE TO THE EAST Practice retelling the text with notesMANUFACTURING GROWS IN THE EAST 1) toys, shoes, steel → China 2) shipbuilding → South Korea 3) skilled labour, hi-tech industries → Bangalore REASONS: 1) low labour costs 2) efficient production methodsMANUFACTURING JOBS DECLINE IN THE WEST

1) shipbuilding in Europe2) coal mining in Britain3) steel industry in the US

CONSEQUENCES: 1) unemployment (shipbuilding) 2) outsourcing

3) low job securityLOSS OF JOBS IN KNOWLEDGE-BASED INDUSTRIES!!!

1) IT development (programming)2) call centres in India → Compare: RB, p. 76

JOBS GRAVITATE TO THE EAST, RB p 14 Example notes 2

I MANUFACTURING JOB MOVEMENTS (pg. 1)

before 1970 vs. nowadays

GB- manufacturing → China...

II MORE EVIDENCE (pg. 2)

US (rust-belt) vs. China

European shipyards South KoreaSteel, coal

III NOT MANUFACTURING ONLY (pg. 3)

Also: knowledge-based services: high-tech (telecom, computers, aeronautics), pharmaceuticals

→ RB, p 23John Kenneth Galbraith (1908-2006)

Manufacturing and servicesRead and answer the questions

– Why do people worry about the decline of manufacturing?

– Which activities are as important as the production of goods?

– Should people worry about this state of affairs?

(According to J. K. Galbraith...)

→ RB, p 23John Kenneth Galbraith (1908-2006)

Manufacturing and services

• HW:• Make structured notes on Manufacturing

and services (p 23)

More on J. K.Galbraith… Richard Parker: John Kenneth Galbraith:

His Life, His Politics, His Economicshttp://www.youtube.com/watch?v=HPTxpX6KsUo

Why is manufacturing moving to developing countries?

(outsourcing – delocalization – offshoring)

Cellphone pioneer Motorola has announced it’s closing a Texas manufacturing facility just a year after announcing its opening. (AP, 2014)

3,600 jobs lost

cheap labour, long hours, no protection of workers’ (human) rights,low health standards, low safety standards

low safety standards, low real estate costs, low maintenance costs, no insurance costs

low / no environment protection costs → air pollution, environmental degradation, diseases (externalities)

low / no environment protection costs → water pollution, environmental degradation, diseases (externalities)

Karlovac, 2007: a CO2 leak poisons and kills a man walking his dog nearby Karlovačka pivovaraInadequate control of the manufacturing process and byproduct disposalSafety standards?Three years later, 5 managers sentenced to 2.5 – 3 yrs in prisonFine: HRK 3M; no compensation to the family, a civil suit still pending

BreakOutsourcing in the tertiary sector, an example

• http://dsc.discovery.com/tv-shows/other-shows/videos/thomas-l-friedman-reporting-accent-neutralization.htm

• Take a quiz and find out how many slaves work for you

http://slaveryfootprint.org/survey/#where_do_you_live

Arguments pro manufacturing in advanced countriesvs.

Arguments pro services in the advanced countries

→ MK, p 45: Manufacturing & services

HW: FREEDOM FROM WANT, RB pp 26-28

1) Scan the text to find the answers to questions

2) Paraphrase the main idea of one paragraph

(Look at the number you drew from the bag :D

That’s the paragraph you should tackle.)