1. Good morning!!! You have READING and VOCAB quizzes today
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Take out the following vocab cards
substitution principle, fixed cost, multiplier effect, variable cost
Take out reading guide
22 days until AP test (including weekends) HOLY CRAP
30 days until SUMMER (including weekends)

2. Developments Industrialization & New Division of Labor

3. Decline of Secondary Industries in MDCs
Deindustrialization
Transition of primary economic activity of a country to shift from Secondary to Tertiary industries
Especially in MDCs since 1950s
Otherwise known as the post-industrial era
Changes in manufacturing in MDCs
Increased automation
High-Technology production

4. Case Study: Deindustrialization in Europe

5. Case Study: The United States

6. Impacts of Deindustrialization
Transnational Corporations
Increasing trend of corporations having entities in different countries
Offshoring and Outsourcing used to maximize profits
Industrial Decay
Decline of traditional manufacturing centers
The Ex. Rust Belt

7. Impacts of Deindustrialization
Industrialization of LDCs
Corporations moving production centers to LDCs in favor of lower land and Labor costs
Leading to unemployment in MDCs
Development of Trading Blocs to increase trade between neighboring countries
Ex. NAFTA

8. Case Study: Detroit Michigan

9. Case Study: Maquiladoras

10. New International Division of Labor
Transfer of some types of jobs, especially those requiring low-paid, less-skilled workers, from more developed to less developed countries.
Specialization in types of economic activities
Ex. China as manufacturing center and London as a banking center

11. New Industrial Zones China taken over as dominant industrial power
Begins in 1970s
Foreign interest begins in 1990s
Mexico and Brazil
Specifically around Sao Paulo and Mexico City
Central Europe
Poland, Czech Republic, Hungary