Why have industries located there 1. Cheap Labour Force – China’s population is one of its main resources, and because there are so many people it means that the cost of hiring them is low. 2. Few Environmental Regulations – China is big on developing, not on protecting the environment, so it is cheaper for companies to locate here as they don’t have to pay as much to get rid of their waste. 3. Flatland – Flatland at the delta of the Pearl river (the lower course) means that it is easy to build factories. 4. Space to expand – there is plenty of space to expand the buildings for the factories. 5. Good Access – there are five major airports in the region (in particular Shenzhen airport so shoes can be air freighted easily. There are 6 deep water ports and 13 shallow water ports so it is easy to get products out to the rest of the world. How has this been beneficial to China • MNCs have followed each other to locate there, making it the workshop of the world. • Lots of job opportunities for locals, causing arise in income for its people. • More tax (paid by the MNCs) for government to spend on health, education and infrastructure improvements. • More transport links (airports, roads, railways) built – so beneficial for the development of the region. • More recently, due to huge environmental problems in the area, environmental regulations have been toughened up.
