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Sectoral Shifts and NIDL (New International Division of Labour) Case Study: The British clothing Industry.

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Presentation on theme: "Sectoral Shifts and NIDL (New International Division of Labour) Case Study: The British clothing Industry."— Presentation transcript:

1 Sectoral Shifts and NIDL (New International Division of Labour) Case Study: The British clothing Industry

2 As a country undergoes sectoral shifts, older, lower sector activities and industries may delocalise abroad, become abandonned or become dominated by foreign competitors. This results in what has been termed the New International Division of Labour (NIDL). Since World War II, the British textile industry, once dominant on a global scale, has declined, and been transferred to developping LEDCs and NICs. First to « first generation NICs » like South Korea, then, as these have also undergone sectoral shifts, to more recent, « third generation NICs » like China. Britain, meanwhile, has moved up into higher level manufacturing and, since the 1980s, Tertiary and Quaternary sector activities.

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4 Traditional Scottish Industries in Decline

5 1)The interest in more profitable, better paying higher sector activities. 2)The increase in British standards of living and wages: the introduction of the national minimum wage (1999). The increasing costs to companies of ensuring good working conditions, accident insurance etc… 3)The long term loss of comparative advantage in textiles 4)Minor reasons such as the diversification of the textile sector

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7 Consequences In the UK, the proportion of workers employed in industry has fallen from around 40% at the beginning of the 20 th century to less than half that now The manufacturing is now done in LEDCs by trans-national companies who generally have their headquarters in the home country of the brand. Sectoral shifts in MEDCs. In the UK, the tertiary sector represents 73% of GDP

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