Explain the shift in manufacturing locations from the First World to the Third World during the 1970s to the present. Comparing the conditions between MDCs and LDCs, give TWO examples from each of the following factors to illustrate your answer: Labor Government regulations

ENGR.ECONOMIC ANALYSIS
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  1. Explain the shift in manufacturing locations from the First World to the Third World during the 1970s to the present. Comparing the conditions between MDCs and LDCs, give TWO examples from each of the following factors to illustrate your answer:
  • Labor
  • Government regulations
Expert Solution
Step 1

Manufacturing had basically started with industrialization in England.

England is the first world or developed country.Since then developed countries have dominated manufacturing sector more than third world or developing countries.

Comparing the conditions of more developed countries(MDCs) and less developed countries(LDCs) from 1970

1.Labor

Labor laws have been more advance in more developed countries than less developed countries.

Example 1

More than three fourths of people live in developing countries,but only 16%,of world's income is there in these countries.

Developed countries have more income of the world.

The reason behind this are the labor laws of developed and developing countries.

Developed countries have labor laws that increase employment and more income is generated,while developing countries don't have more such labor laws.

Example 2

The other factor are the labor laws that support more manufacturing in developed countries.

Agriculture contributes about 14% of gross national income in developing countries,whereas in developed countries it contributes 3%.

Therefore in developing countries labor laws have not been channeled more towards manufacturing,due to which manufacturing has not developed as much as developed countries.

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