Effects of technological developments

Mass production:

The mass prodcution of goods is mainly driven by two factors

The consumer society

Built in obsolescence

The consumer society:

A society in whcih the buying and selling of goods and services is the most important social and economic activity

Built in obsolescence:

A policy of planning or designing a product with an artificially limited useful life, so it will become obsolete

Advantages to the manufacturer:

Advantages
Increased sales and profit Customers will buy the latest product which will boost demand Manufactuers control when to release new products Less money tied up in stock Fewer spares needed to be stocked Fewer repairs need doing Cheaper materials can be used Warranties can be given in confidence

Advantages to the consumer:

Advantages
Manufacturers make the best products to keep ahead of the competition Allows for consumer to keep up to date in fashion/follow trends Companies are in greater competition to deliver new products Consumers have a wider choice of products Designs can become more innovative As products are upgraded the second-hand market thrives

The effect mass production has on employment:

Mass production:

Started during industrial revolution

Inspired by Henry Ford (assembly line)

Workfore split into categories

High automated

High skilled technical roles that require lots of training

Low skilled manual labour roles

Advantages	Disadvantages
High pay for the technical staff Cost effective for company Low labour costs for campany - increased profits Offshore manufacturing advantages included	Workers replaced by machines Low job satisfaction Low wages for low skilled jobs Poor quality living conditions Sweatshop employment conditions in some countries Poor/unsafe working conditions in some countries Unemployment/less demand for labour

Effect on employment:

Mass production increases unemployment but also gives low skilled labour jobs

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The 'new' industrial age of high-technology prodution

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Computers in the development and manufacture of products:

CIM systems incorporating CAD and CAM used in modern manufacturing

Helps meet quick-turnaround jobs

Helps reduce development times and costs

Information can be quickly stored and transferred

Computer-to-plate (CTP) technology quickly produces printing plates

Miniturisation of products and components:

Advanced integrated circuits (ICs):

Allow more circuitry to be included on each microchip, increasing functionality and power

Advanced battery technology:

Lithium-ion rechargeable batteries, providing a lightweight means of storing a lot of energy resulting in thinner and more powerful fuel cells

Advanced liquid crystal displays (LCD):

Enabling colour screens that are thinner and brighter and require much smaller current, meaning greater energy efficiency and slimmer housings

Reduces unit cost so that low cost electronics can be produced

REFER TO NOTES IN MATERIALS SECTION

Offshore manufacturing:

Advantages	Disadvantages
Lower labour costs Greater availability of labour Cheaper/more available land Less strict H&S restrictions, tax, environmental standards Lower energy costs	Jobs lost in host nation Low income for employees Exploitation of employees H&S and environmental issues etc Local community dependent on multinationals

Advantages for a country hosting offshore manufacturing:

Advantages
Increased employment Wider expertise brought into the country Increased training Advanced technology Increased reputation of country More investment/stronger economy A better standard of living is possible

Multinational companies:

A company that operates in more than one country (e.g. Nike, Apple, Nisan, BP)

Outsourcing:

Obtaining goods and services from an outside supplier

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