Core 3.4 IT industry in USA

Core 3.4 IT industry in USA

What is IT industry?

Multiple Select

What is IT industry?

• it is raw material-oriented.

• It manufactures computer hardware and equipment

• It develops software and related services

• It is high-tech.

• It requires little investement.

What is the information technology (IT)
industry?

Information technology (IT) industry is a type of
__________ industry which produces products
involving IT.

high-tech

Information
technology

Manufacturing of

hardware and

equipment

Development of

software and

related services

Laptop
computers
(Credit:
AaronPatterson/Fl
ickr)

Video
games
(Credit:
jelene/Flickr)

Tablets
(Credit:
viagallery.com/F
lickr)

What are the characteristics of IT industry?

​Manufacturing system of the IT industry

Multiple Select

Which two inputs are more important?

• rawm materials

• power supply

• skilled and semi-skilled labour

• technology

• capital

Multiple Select

Which two processes are more important?

• design

• R&D

• manufacturing

• assembling

• packaging

Multiple Choice

Do you think IT industry is light or heavy?

• light

• heavy

Multiple Choice

Do you think IT industry is weight-losing or weight-gaining?

• weight losing

• weight gaining

Multiple Choice

Do you think IT industry is material-oriented?

• yes

• no

Multiple Choice

Do you think IT industry is power-oriented?

• yes

• no

Multiple Choice

Do you think IT industry is high value-added or low value-added?

• high value-added

• low value-added

Multiple Choice

The life cycle of an IT product is ____.

• short

• long

• competitors are encouraged to produce similar products.

Multiple Choice

Refer to the map on p.18, which production mode do IT firms adopt?

• single-point

• multi-point

Multiple Choice

Where do headquarters, regional headquarters and R&D centres usually locate?

• MDCs

• LDCs

Open Ended

Give one example with reference to the map.

Multiple Choice

Where do production plants usually locate?

• MDCs

• LDCs

Open Ended

Give one example with reference to the map.

Can you name some of these largest high tech companies? Where are they located?

Do they form industrial clusters?

​X=

With reference to the map given.

Describe and explain the locational advantages of developing IT industry in Silicon Valley.

Put your suggestions on the google doc. (10 mins)

well-developed transport network (like main roads and international airports)

• That means the accessibility is good.

• This can attract skilled labour/ foreign investment / transnational corporations

• This also facilitates the export of products

There is a number of (famous) universities nearby.

• This facilitates R&D / the training of well-educated labour (e.g. undergraduates).

• Skilled labour and professionals are available.

• This also facilitates the sharing of information and technologies.

Near to large cities / financial centres (e.g. San Francisco, San Jose)

• Capital esp. venture capital can be easily obtained.

Silicon Valley is a well-known industrial cluster.

• IT firms can enjoy agglomeration economies and have better reputation

​maximize profit

How does an IT industrial landscape look like?

Describe the building types, building height and building density.

To conclude, IT industry has the following characteristics

1. In terms of nature of product:

   1. light, small, high-tech, fabricating, high-tech, high value-added, short life cycle

2. Other characteristics:

   1. R&D-intensive, capital-intensive in development/R&D stage

   2. labour-intensive in production/maturity stage

   3. adopt multi-point production

   4. tends to concentrate in clusters to enjoy agglomeration economies

​past paper questions

Multiple Choice

Past paper p.12 2016 DSE Q21

• A

• B

• C

• D

Multiple Choice

Past paper p.11 2016 DSE Q19

• A

• B

• C

• D

Multiple Choice

Past paper p.11 2016 DSE Q18

• A

• B

• C

• D

Multiple Choice

Past paper p.11 2015 DSE Q18

• A

• B

• C

• D

Multiple Choice

Past paper p.9 2013 DSE Q19

• A

• B

• C

• D

Multiple Choice

Past paper p.8 PP DSE Q20

• A

• B

• C

• D

Multiple Choice

Past paper p.8 PP DSE Q18

• A

• B

• C

• D

Multiple Choice

Past paper p.7 SP DSE Q14

• A

• B

• C

• D

Multiple Choice

Past paper p.6 2009 CE Q32

• A

• B

• C

• D

Multiple Choice

Past paper p.4 2008 CE Q40

• A

• B

• C

• D

Multiple Choice

Past paper p.3 2007 CE Q24

• A

• B

• C

• D

Multiple Choice

Past paper p.3 2006 CE Q39

• A

• B

• C

• D

Multiple Choice

Past paper p.8 PP DSE Q16

• A

• B

• C

• D

Multiple Choice

Past paper p.7 SP DSE Q10

• A

• B

• C

• D

Multiple Choice

Past paper p.7 2010 CE Q36

• A

• B

• C

• D

Multiple Choice

Past paper p.2 2005 CE Q17

• A

• B

• C

• D

Why choose Bangladesh? What are the locational advantages?

Reshoring back to USA --> small in scale, why?

It is because ...

1. other low-cost SE Asian countries are more attractive locations, e.g. ....

2. relocation incurs high cost, e.g. train new labour

3. In USA, labour unions are stronger than that in LDCs. The labour regulations in USA are also stricter. This means the labour costs are still higher.

4. Locate back to USA, IT firms need to spend extra cost to comply with the stricter environmental regulations.

5. Moving production away from China may lower/weaken the competitiveness

Multiple Select

Which of the following are reasons for the increasing integration of economies around the world?

• Improvements in transport

• Improvements in telecommunication technologies

• Improvements in international relationship

• Improvements in natural environment

Multiple Select

How does the IT industrial carry out globalization in production?

• HQs is kept in home country. (e.g. MDCs, USA)

• Standardized production processes are outsourced. (e.g. to LDCs)

• R&D departments are moved to areas with low level of technology. (e.g. Nigeria)

• Production plants are moved to areas with low production costs. (e.g. LDCs)

Where do the different components come from? What are the advantages?

​

​

​

Globalization and TNCs

​

Multiple Choice

Past paper p.3 2007 CE Q23

• A

• B

• C

• D

Multiple Choice

Past paper p.11 2015 DSE Q19

• A

• B

• C

• D

Multiple Choice

Past paper p.11 2015 DSE Q20

• A

• B

• C

• D

Multiple Choice

Past paper p.13 2018 DSE Q21

• A

• B

• C

• D

Multiple Choice

Past paper p.13 2018 DSE Q22

• A

• B

• C

• D

HW

Comparison table p.24-25 Notes

Multiple Choice

Iron and steel industry

It is a type of ...

• light industry

• heavy industry

Multiple Select

IT industry

It is a type of ___________ industry.

• labour-intensive

• capital-intensive

• R&D intensive

Match

Mode of production

• Iron and steel

• IT

• Ignore

single-point

multi-point

Ignore

• single-point

• multi-point

• Ignore

Match

Market

• Iron and steel

• IT

• Ignore

mainly local

mainly global

Ignore

• mainly local

• mainly global

• Ignore

Multiple Choice

Location of Iron and steel industry

between 1950s to 1970s, what is the major reason for the change in location?

• government policy

• labour

• land

• transport