HKDSE Geography/M3/Manufacturing System
Inputs of a manufacturing system are diverse. (Here, the economic classification of 'land, labour, capital, entrepreneurship' is used.)
- Raw materials
- Labour supply (skilled? unskilled?)
- Fixed capital
- Working capital
- Venture capital
- Government policies/Institutional factors
For manufacturing system, the main processes are:
- Processing - making raw materials ready, e.g. iron and steel making, aluminium smelting industry
- Fabrication - making final goods directly from raw materials
- Assembly - making final goods from intermediate goods
The outputs include:
- Useful outputs: Finished products, which are sold in the market for money.
- Useless outputs, such as solid waste, polluted air, etc.
Money is used to buy more inputs. This results in a positive feedback loop.