1. Vocabulary
Fordist – form of mass production in which each worker is assigned one specific task to perform repeatedly mostly on an assembly line.
Post-Fordist – adoption by companies of flexible work rules, such as the allocation of workers to team that perform a variety of tasks.
Textiles – cloth used to make clothes
Right to Work Laws –Laws preventing a union and a company from negotiating a contract that requires workers to join a union as a condition of employment.
Maquiladora – A factory in Mexico that is owned by a transnational corporation

2. Vocabulary
Break of Bulk Points – Parts of a transportation route where the method of transportation changes
Weber’s Least Costs Theory – location of manufacturing establishments is determined by the minimization three critical expenses: labor, transportation, and agglomeration
Cottage industry – manufacturing in people’s homes
Central Place Theory – A model that calculates the potential customer base and the likelihood they will use a specific service

3. Industry manufacturing of goods in a factory
US lost 20% of its manufacturing jobs from
Outsourcing
Overseas, companies can reduce labor cost (Huffy - 25 cents an hour in China)
US benefits by a low price on consumer goods
Industry has diffused to LDCs
Transnational corporations operate at a global scale

4. Best location for a factory
Where the markets for the product are located
Where the resources needed to make the product are located
Raw materials can be gathered from all over the world and sent to factories

5. Where is Industry distributed
¾ of the world’s industrial production is in 4 regions
Western and Eastern Europe
North America
East Asia

6. Western Europe
Important due to their access to raw materials and large markets for consumer goods
4 zones
United Kingdom
Rhine-Ruhr Valley
Mid-Rhine
Northern Italy

7. Western Europe United Kingdom
19th century dominated industry due to Industrial Revolution (3 key site-factors of production ; land, labor and capital)
Industrialization diffuses - Northern U.S., Europe, Japan
Resulted in new political, social, and economic innovations as well
New high-tech industries (Japanese factories)
Lower taxes on business, reduce government regulations, convert monopolies to private ownership, utilize computers
Southeastern London is the best spot due to transportation and population

8. Western Europe Rhine-Ruhr Valley Mid-Rhine
Europe had political problems throughout most of the 1800’s and therefore delayed proper railways
Iron an steel manufacturing – proximity to coal fields
Mid-Rhine
2nd most important industrial area in Western Europe
SW Germany, NE France, Luxembourg
Center of the urban market
Frankfurt – Germany’s most important financial and commercial hub (railroads, roads, air)
Alsace and Lorraine – Europe’s largest iron ore field

9. Western Europe Northern Italy
Joined Industrial Revolution in the 20th century
Po River Basin – textile manufacturing
Numerous workers are willing to accept lower wages and inexpensive hydroelectricity from the Alps
Raw material processors and mechanical parts assemblers

10. Eastern Europe 4 regions Central St. Petersburg Volga Urals
19th Century
St. Petersburg
Volga
20th Century
Urals

11. Eastern Europe Central Industrial District
Moscow; near the country’s largest market
Linen, cotton, wool, silk
St. Petersburg Industrial District
2nd largest city
Railways were put in earlier than anywhere else
Shipbuilding, and sea industries

12. Eastern Europe Volga Industrial District Ural Industrial District
Petroleum and natural gas
Ural Industrial District
Mining region; iron, copper, potassium, salt

13. North America
Manufacturing was more expensive in the US than in Britain because labor and capital were scarce and shipping to markets was expensive
Samuel Slater – 1st textile mill in the U.S.
By 1860 the US became a major industrialized nation mostly food and lumber

14. US Industrial Areas Northeast 1st area where Europeans settled
Tied to European markets
Raw materials; iron ore and coal
Good transportation

15. US Industrial Areas Pg. 371 New England Middle Atlantic Mohawk Valley
Pittsburgh – Lake Erie
Western Great Lakes

16. East Asia Large labor force Japan = high tech electronics
Prices kept low due to cost of labor being low
Japan = high tech electronics
China’s eastern coast

17. Why do industries have different distributions?
Situation factors – transporting materials to and from factories.
Want a place that minimizes the costs
Site factors – unique characteristics of the location
Land, labor, and capital

18. Modern Industrial Distribution
Most industry was concentrated in the interior of a city
Transportation improvements allows for diffusion
Intraregional shifts from Inner Cities to suburban or Rural
Interregional shifts from industrialized to the periphery
U.S. Northern states to Western and Southern States
Right to work laws – Anti Union laws
Northwestern Europe to Eastern Europe and Spain
National governments policies (taxes and tariffs)

19. Situation Factors
Locate the factory as close as possible to both buyers and sellers
A company that obtains all inputs from one source and sells all outputs to one customer can easily figure out the best place to build based on transportation costs
If the transportation costs exceeds the transportation inputs, then you’ll want to build by your customer

20. Proximity to Inputs
Inputs eg. Minerals, wood, animals, other materials made by other companies. The heavier the input, the greater the transportation cost
Copper industry – after mining it goes to a Concentration Mill where it is crushed and mixed
Bulk reducing industry; final product weighs less than it inputs
After concentration goes to smelters (bulk-reducing therefore built near main inputs

21. Proximity to Markets
The cost of transporting goods to customers is a critical locational factor for three types of industries
Bulk gaining
Gains volume and weight in the process; soda cans
Fabricated metals and machinery; cars
Single market
Manufacturers that produce goods for one type of market; for “just in time” delivery
Perishable
Food, newspaper

22. Transportation Costs The further you go the less it costs
People have to be paid for loading and unloading the goods
Truck are best for short distances
Ship is better than trains
Air is good for small-bulk, high-value items that need a timely delivery
Bulk of break points
Transport from one mode to the other
The location where transfer among transportation mode is possible
Seaports and airports

23. Vocabulary
Agglomeration – when businesses arise in a similar location that mutually benefit each other
Deglomeration – the over-saturation of an industry
Non Basic Industry – Industries that sell their products primarily to consumers in the community.
Central Business District – The downtown or nucleus of a city where retail stores, offices, and cultural activities are concentrated; building densities are usually quite high; and transportation systems converge.
Basic Industry – Industries that sell their products or services primarily to consumers outside the settlement

24. Vocabulary
Service Center – businesses that develop to provide service for people
Footloose Industry – an industry that can be placed anywhere
Cumulative causation – one singular action has many different effects that can both be positive or negative to a place in the economy
Outsourcing – the shipping of jobs to places with cheap labor

25. Weber Least Cost Theory – Actual Factory Placement
Factories must consider a triangular equation of the source of raw materials and access to the markets
Weight-Gaining Industries- finished products weighs more than the raw materials
Factory must be built closer to the market
Weight-Reducing Industries – finished product weighs less than the raw materials
Factory must be built closer to the raw materials
Raw Materials Weight differences – factories must be built closer to the heavier natural resource
Footloose Industries – Placed anywhere (low weight items) spatially fixed costs, the costs of the products do not change despite where the product is assembled. ex - Diamonds and computer chips

26. Site Factors Land, Labor, and Capital
Site factors for economic success
Environmentally Friendly activities – acceptable to the place
Political support – Support of local and national governments
Societal Acceptance – Local and national cultural acceptance
Economic Support – Worker ability, capital, infrastructure

27. Land
Factors to consider; climate, topography, recreational opportunities, cultural facilities, cost of living, cost of energy source.
examples – outdoor sporting supply shop, near the stadium, how the mall is laid out.

28. Labor Most important globally
Labor-intensive industry: wages and other compensation paid to employees constitutes a high percentage of the expenses
Higher than >11%, < 11% = capital incentive
High wage industry vs. labor-intensive industry

29. Capital
Manufacturers borrow funds to establish new factories or expand existing ones
California’s silicon valley; more than skilled labor was Banks willing to provide $ for new software and communication firms
LDC’s seek loans from banks in MDC’s problems occur with unstable governments, high debt level, or poor economic policies

30. Where is Industry Expanding?
Changing distribution within MDCs
New Industrial regions
Manufacturing has declined in MDCs and increased in LDCs

31. Changing Distribution Within MDCs
Intraregional Shifts
From inside cities due to large market, shipping by rail, large supply of labor, and sources of capital
Negatives; not enough space
To suburban or rural due to large areas of land in a one story building that costs less. Additionally, shipping and delivering off major highways

32. Changing Distribution Within MDCs
Interregional Shifts US
From northern - the southern and western states
South lured people with the “right to work act” – required a factory to maintain open shop policies instead of closed shopped ones – worked for companies that did not want to deal with unions
Rustbelt to the sunbelt
Western Europe
Northwestern Europe – southern and eastern Europe
European govt. encourages industrial relocation
Want to gain industries in poorer regions and not richer regions

33. Other Countries MDC - LDC
China, India and other parts of East Asia
China developed new Special Economic Zones
Latin America and Mexico
NAFTA has encouraged shift – No Tariffs
Development of Maquiladoras
Easier environmental standard in Mexico, Mexican govt. allowed special rules within 100 miles of the border, abundant cheap labor, Proximity to US markets

34. Why are Location Factors Changing?
Attraction of new industrial regions
Renewed attraction of traditional industrial regions

35. Attraction of New Industrial Regions
Labor costs – textile and apparel industry constantly open in lower wage locations while shutting down higher wage locations
NE US – SE US – LDCs
Outsourcing
Transnational corporations and low cost labor
Low-paid low-skilled jobs in LDC and High-skilled workers in MDCs
Selective transfer of some jobs to LDCs = new international division of labor

36. Renewed Attraction of Traditional Industries; availability of skilled workers
New work rules known as flexible production – post-Fordist production; flexible production, as a contrast to Fordist production
Teams, problem solving, leveling
Computer manufacturing; concentrated in high-wage, high-skilled regions next to major university centers

37. Renewed Attraction of Traditional Industries; rapid delivery to market
Rise in “just in time delivery”
Materials arrive frequently (daily or hourly)
Does not waist inventory and can reduce size of the factory – pushes inventory on the supplier
Must be located near the factory