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Where is industry expanding? Why are location factors changing?

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Presentation on theme: "Where is industry expanding? Why are location factors changing?"— Presentation transcript:

1 Where is industry expanding? Why are location factors changing?

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3  As we watch the video, create a continuum/timeline that explains “the story of stuff”.  What is “planned obsolescence”?  What might happen if we stick to a “linear model”?  http://storyofstuff.org/movies/story-of-stuff/ http://storyofstuff.org/movies/story-of-stuff/

4  Since 1970’s, manufacturing has decreased in MDC’s and increased in LDC’s  MDC’s  factories are in periphery instead of city center  Located in less traditional regions  Right to work laws in the South > no unions

5  China: leader in steel, textiles, and household products.  Low cost labor.  Large market.  1990’s gov’t policy opened China to foreign investment.  Has created large “wealth gaps” (have’s vs. have not’s) in China.  India’s move from Self Sufficiency to International Trade in the 1990’s has increased growth there as well.

6  Mexico and Brazil are leaders  1960’s to 1980’s: rules and oil shortages caused industry/foreign investment to decline.  1990’s-today: NAFTA encourages industry. Maquiladora’s.  What is “free trade” vs “protectionism”?  Video: “Free Trade”. Create a mind map as we watch. Think about pros and cons.

7  New economic alliance between Brazil, Russia, India, and China  These countries control 1/4 th the world’s land and 2/5 th the population, but only 1/6 th the GDP  Want to become largest trading bloc. Combine labor force (C & I) and inputs (R & B) = STRONG

8  Fall of communism brought foreign investment.  Attractive because of less skilled/cheaper labor AND proximity to the north western European market (site & situation)  Poland, Hungary, Czech Republic are the big 3.

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10  Labor is main site factor  To minimize labor costs, some manufacturers are locating in places where wage rates are lower than traditional industrial regions  Textile and Apparel Industry  shift locations within a country or to another country  U.S: started in Northeast early 1900s (why?)…moved to Southeast (why?) Fig. 11-18: Hosiery manufacturers usually locate near a low-cost labor force, such as found in the southeastern U.S.

11 Outsourcing – moving individual steps in the production process (of a good or a service) to a supplier, who focuses their production and offers a cost savings. Offshore – Outsourced work that is located outside of the country. New International Division of Labor– Selective transfer of some jobs to LDC’s

12 Labor cost per hour in clothing manufacturing

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14 Footloose industry is a general term for an industry that can be placed and located at any location without effect from factors such as resources or transport…in other words, geography does not matter.

15  Why would industries remain in traditional regions when there is the lure of low-cost labor elsewhere?  Availability of skilled labor and rapid delivery to market  Henry Ford  Henry Ford was an American industrialist, the founder of the Ford Motor Company, and developed the assembly line technique of mass production

16 Fordist – Fordist – dominant mode of mass production during the twentieth century, production of consumer goods at a single site. Post-Fordist Post-Fordist – current mode of production with a more flexible set of production practices in which goods are not mass produced. Production is accelerated and dispersed around the globe by multinational companies that shift production, outsourcing it around the world. Post-Fordist company: Toyota

17  Just-in-time delivery rather than keeping a large inventory of components or products, companies keep just what they need for short-term production and new parts are shipped quickly when needed. Global division of labor corporations can draw from labor around the globe for different components of production.

18 Time-Space Compression  David Harvey coined the term for the idea that the world is moving at a faster pace due to capitalism and greater connectivity of transportation and communication systems.  This has altered the division of labor  When the world was less connected, goods were produced close to market or point of consumption.  Through improvements in transportation and communications technologies, many places in the world are more connected than ever before and proximity to market is less important


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