1.5 The Netherlands: winners and losers (v2)

What are we going to do today?
Instruction 1.5 The Netherlands: winners and losers

Discuss the small test

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What are we going to do today?
Instruction 1.5 The Netherlands: winners and losers

Discuss the small test

Slide 1 - Diapositive

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Differences in Europe
Which part of Europe is best developed?
  • North-western Europe

What part is lagging behind in development?
  • Southern and Eastern Europe

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Ruhr region: from grey to green
The Ruhr region got into problems after 1965 because:
  • mines closed
  • blast furnaces were extinguished
  • steel mills closed

These industries moved to low-wage countries.
This has led to de-industrialisation.

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Ruhr region: from grey to green
What advantages have transformed the Ruhr region into a service region?
  • large sales market
  • easily accessible
  • technically skilled workers

The main industry is now: high-tech


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South Germany, more than Bavaria alone
South Germany has long been agricultural and poor. Now this is a leading region in the German and European economy.
Which industries can you find in South Germany?
  • capital intensive industries
This industry is strongly focused on export.

The benefits companies experience by being located near each other are called: agglomeration advantages

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BRICS: Export Processing Zones
 EPZs in China:
On one hand, being the center of industrial development, EPZs take full advantage of their scale effect and agglomeration effect in allocating market resources efficiently to achieve a healthy development of domestic market. On the other hand, being windows opening to the outside world, EPZs serve as major footholds for China to expand its international market share, extend its global production lines, as well as involve in worldwide economic competition.

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Over the last three decades, the blossom of EPZs has made far-reaching contributions to the prosperity of China’s economic development.
Learning objectives
  • You know which factors explain why the Eindhoven region has developed into a brainport.
  • You understand why east Groningen is one of the least economically developed regions in the Netherlands and Eindhoven one of the most succesful.
  • You can asses whether the Netherlands benefits from a more closed or more open world economy.

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Learning objectives
  • Which factors explain why the Eindhoven region has developed into a brainport?
  • Why is east Groningen is one of the least economically developed regions in the Netherlands and Eindhoven one of the most succesful?
  • Would the Netherlands benefit from a more closed or more open world economy?

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Small test 1.1 - 1.3
Free trade (vrije markt): Economic decisions are made by companies/entrepeneurs and not by governments. Prices are determined on demand and supply (vraag en aanbod).

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Next week
Have a nice fall break!

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