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.