CHP. 11 INDUSTRY

KEY ISSUE 3 & 4Where is industry expanding?

Why are location factors changing?

KEY ISSUE 3

WHERE IS INDUSTRY

EXPANDING?

“THE STORY OF STUFF” 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/

CHANGES Since 1970’s, manufacturing has decreased

in MDC’s and increased in LDC’s MDC’s

factories are in periphery instead of city centerLocated in less traditional regions

Right to work laws in the South > no unions

NEW INDUSTRIAL REGIONS:ASIA

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.

NEW INDUSTRIAL REGIONS: LATIN AMERICA

Mexico and Brazil are leaders1960’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.

BRIC New economic alliance between Brazil,

Russia, India, and China These countries control 1/4th the world’s

land and 2/5th the population, but only 1/6th

the GDP Want to become largest trading bloc.

Combine labor force (C & I) and inputs (R & B) = STRONG

NEW INDUSTRIAL REGIONS:“CENTRAL” EUROPEFall 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.

KEY ISSUE 4

WHY ARE LOCATION FACTORS

CHANGING?

ATTRACTION OF NEW INDUSTRIAL REGIONS 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.

MODERN PRODUCTION PG. 390

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

Labor cost per hour in clothing manufacturing

FOOT LOOSE INDUSTRIESFootloose 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.

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 FordHenry Ford was an American

industrialist, the founder of the Ford Motor Company, and developed the assembly line technique of mass production

RENEWED ATTRACTION OF TRADITIONAL INDUSTRIAL REGIONS

Fordist – dominant mode of mass production during the twentieth century, production of consumer goods at a single site.

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.

RENEWED ATTRACTION OF TRADITIONAL INDUSTRIAL REGIONS PG. 391

Post-Fordist company: Toyota

TIME-SPACE COMPRESSION 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.

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