Kariega is a small town in the Eastern Cape, surrounded by automotive industry giants such as Volkswagen South Africa and Goodyear. These industries (directly and indirectly) generate thousands of jobs. These jobs vary from more specialised jobs such as production, industrial and electrical engineers to information technology specialists and nurses to general assembly workers and canteen staff. The community directly surrounding the factories are generally living in informal settlements where poverty and unemployment levels are high and education levels are low. The Eastern Cape is one of the most poverty‐stricken provinces in South Africa and the presence of the automotive industry in this area is critical for sustained job provision and continued job creation. Thanks to the engine manufacturing section of the factory and passenger vehicle manufacturing for both the local and export market, additional jobs are also created as certain local components being required for vehicle manufacturing. Fully assembled vehicles also require transportation to either local car dealerships or transportation to one of the local harbours for export to the international market. Furthermore, the company runs various initiatives to upskill its employees in addition to various community educational projects and bursary schemes. Based on the scenario provided, identify and discuss (with the help of specific examples from the scenario), the power variables that are at play.

MACROECONOMICS FOR TODAY
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ISBN:9781337613057
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Chapter19: Economies In Transition
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Kariega is a small town in the Eastern Cape, surrounded by automotive industry giants such as Volkswagen South Africa and Goodyear. These industries (directly and indirectly) generate thousands of jobs. These jobs vary from more specialised jobs such as production, industrial and
electrical engineers to information technology specialists and nurses to general assembly workers
and canteen staff. The community directly surrounding the factories are generally living in informal settlements where poverty and unemployment levels are high and education levels are low. The Eastern Cape is one of the most poverty‐stricken provinces in South Africa and the presence of the automotive
industry in this area is critical for sustained job provision and continued job creation. Thanks to the engine manufacturing section of the factory and passenger vehicle manufacturing for both the local and export market, additional jobs are also created as certain local components being
required for vehicle manufacturing. Fully assembled vehicles also require transportation to either local car dealerships or transportation to one of the local harbours for export to the international market. Furthermore, the company runs various initiatives to upskill its employees in addition to
various community educational projects and bursary schemes.


Based on the scenario provided, identify and discuss (with the help of specific examples from the
scenario), the power variables that are at play.

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