On the global scene

1. Sectoral Shifts andNIDL (New International Division of Labour) Case Study: The British clothingIndustry

2. As a country undergoessectoral shifts, older, lowersectoractivities and industries maydelocaliseabroad, becomeabandonned or becomedominated by foreigncompetitors. 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 developpingLEDCs and NICs. First to « first generationNICs » like South Korea, then, as these have alsoundergonesectoral shifts, to more recent, « thirdgenerationNICs » like China. Britain, meanwhile, has moved up intohigherlevelmanufacturing and, since the 1980s, Tertiary and Quaternarysectoractivities.

3. On the global scene

4. Clothingindustry in the UK • Traditional Scottish Industries in Decline

5. WHY? • The interest in more profitable, betterpayinghighersectoractivities. • The increase in British standards of living and wages: the introduction of the national minimum wage (1999). The increasingcosts to companies of ensuring good working conditions, accident insurance etc… • The long termloss of comparative advantage in textiles • Minorreasonssuchas the diversification of the textile sector

7. Consequences • In the UK, the proportion of workers employed in industry has fallen from around 40% at the beginning of the 20th 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

8. Textile factory in Africa

9. Labour cost in the apparel industry (hourly wages)