HKDSE Geography/M3/Manufacturing System

Inputs

Inputs of a manufacturing system are diverse. (Here, the economic classification of 'land, labour, capital, entrepreneurship' is used.)

• Land
• Raw materials
• Power

• Labour supply (skilled? unskilled?)

• Fixed capital
• Working capital

• Venture capital
• Management

• Technology
• Government policies/Institutional factors
• Markets

Processes

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

Output

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.