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Understanding the ICT Industry: Globalization, Transnationals, and Production Trends

Explore the ICT industry, its manufacturing, services, and related goods, and the impact of globalization on transnationals. Learn about major branch plants, reasons for transnational production, and factors affecting employment and urban decay.

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Understanding the ICT Industry: Globalization, Transnationals, and Production Trends

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  1. Industry What is ICT industry? • Manufacturing • Services • Goods related & intangible • Secondary, tertiary & quaternary

  2. ICT industry = high value-added industry? • In general ; Yes • In LDCs, processing & routine assembly ; No

  3. Global scale • Industrial globalization • Transnationals • FDI • Transnationals = multinationals?

  4. Division of transnationals • Headquarters • R & D centres • Branch plants

  5. Product life cycle theory

  6. Reasons for transnational production • Improved communication • Lower production cost • Improved transport

  7. 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, Multimedia Super Corridor)

  8. Unemployment, urban decay & labor flow caused by industrial relocation & new production mode • New production mode?

  9. Factors causing unemployment & urban decay (ICT industry) • U.S. • Branch plant area

  10. Factors causing labor flow • International • Local

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