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1. Identify three ways in which the use of the factors of production - land, labour and capital - change during the industrialization process. More
1. Identify three ways in which the use of the factors of production - land, labour and capital - change during the industrialization process. More capital is invested, and financial capital is transformed into physical capital such as machinery. As industrial production increases, agricultural production decreases and there is a decline in the value of land. As machinery replaces labour in the industrial production, the value of industrial labour decreases. There is an increasing demand for natural resources, for example coal and iron, used in industrial production. ) The value of labour goes up as industrial workers improve their skills and there are innovators and engineers developing and applying new technology. 2. Identify two reasons why existing textile production in Africa struggled to develop and thrive during the colonial era. There was not enough labour to develop a labour intensive manufacturing in parallel with food and cash crop production in the agricultural sector. There was competition from imported industrially produced European textiles that were cheaper. There was no local demand for textiles and hence no market opportunities. There was not enough African labour with the skills required to produce textiles. 3. After independence, most African countries pursued so called Import Substitution Industrialization, ISI, strategies. What would be a correct definition of ISI? ()Trade agreements regulating sales of industrial goods are established between newly industrializing countries. O Import quotas and high import duties are used to protect domestic industrial production from international competition on the domestic market. () Emerging industrial countries produce primarily for exports and secondarily for the domestic market
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