Industry

What is ICT industry? Manufacturing Services

Goods related & intangible Secondary, tertiary &

quaternary

ICT industry = high value-added industry?

In general ; Yes

In LDCs, processing & routine assembly ; No

Global scale Industrial globalization

Transnationals

FDI

Transnationals = multinationals?

Division of transnationals Headquarters

R & D centres

Branch plants

Product life cycle theory

Reasons for transnational production

Improved communication

Lower production cost

Improved transport

Major branch plants of U.S. ICT industry

Mexico (Tijuana Triangle) Israel (Tel–Aviv–Yafo) India (Bangalore) China (Zhongguancun) H.K. (Cyberport & Science Park) S.E. Asia (Hsinchu, Singapore, Multimed

ia Super Corridor)

Unemployment, urban decay & labor flow caused by industrial relocation & new production mode

New production mode?

Factors causing unemployment

& urban decay (ICT industry)

U.S.

Branch plant area

Factors causing labor flow

International

Local