Changing Nature of Manufacturing and Services in the Developed and Developing Countries
Economic activities related with all processing and conversion of raw materials into finished goods come within the domain of the manufacturing sector. Due to globalization, the whole world can be considered as one unit and due to increasing mobility of labour and capital, the political boundaries have lost their significance in regulating trade, and rapid development of transport and communication, traditional locational factors of manufacturing industries are not very important today.
Changing Nature of Manufacturing and Services in the Developed and Developing Countries are follow:
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- Rapid Technical Changes
- Economic Distance Shrinking
- Liberalisation Policy
- Growth of Manufacturing Exports
- Shift of Hazardous Industries
Now let's discuss the Changing Nature of Manufacturing and Services in the Developed and Developing Countries.
1. Rapid Technical Changes
To remain viable Enterprises in all countries have to use modern technologies. New technology includes not just products and processes but also organization of firms, supply chains, human resources development; technology links, etc. Industrial leaders have to invest in technological innovation to compete in the world market. Developing countries are doing well in all technology categories.
2. Economic Distance Shrinking
Due to technical progress in information processing, transport and communication, economic distance is shrinking. New market opportunities are increasing due to increasing international competition. With some exceptions, global markets are more open than before and exports can reach the market more cheaply and efficiently.
3. Liberalisation Policy
For the development of industries, progressing countries have adopted liberalization policy, With this foreign investment was allowed. As a result, there is not only rapid development of industries but there is also diversification of industries in developing countries.
4. Growth of Manufacturing Exports
In the developing country's growth of manufacturing exports is increasing. Many developed countries have lost their former comparative territorial advantage in such products. Due to low labour cost, low cost of land, developing countries are able to offer superior sites for producing such products. Products like radios, televisions, washing machines, fridges, Pocket calculators, etc . were first produced in advanced countries are not regularly produced in developing countries.
5. Shift of Hazardous Industries
In developing countries, the environment awareness has been increased. Rules and regulations have become very strict for hazardous industries. So, the advanced countries have started shifting of hazardous industrial plants to developing countries of Asia, Africa and South America. They are developing new industries in developing countries by using old machinery to reduce the cost. Some chemical industries use or produce toxic substances, which cause damage to human beings. Bhopal Gas Tragedy is the best example.
Thus from Above we can say that advanced technology has become a powerful stimulus for fast changes.