chapter 24 deindustrialization and the rise of the service sector
Download
Skip this Video
Download Presentation
Chapter 24 Deindustrialization and the Rise of the Service Sector

Loading in 2 Seconds...

play fullscreen
1 / 20

Chapter 24 Deindustrialization and the Rise of the Service Sector - PowerPoint PPT Presentation


  • 144 Views
  • Uploaded on

Chapter 24 Deindustrialization and the Rise of the Service Sector. In the past three decades. Deindustrialization. Decrease in the cost of transportation. Rise of public sector and. Information and communication technologies. Growth in Mechanization of production . Growth of Service Sector.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Chapter 24 Deindustrialization and the Rise of the Service Sector' - Anita


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
in the past three decades
In the past three decades

Deindustrialization

Decrease in the cost of transportation

Rise of public sector and

Information and communication technologies

Growth in Mechanization of production

Growth of Service Sector

categories of service industries
Categories of Service Industries
  • “Fordist” - Henry Ford’s idea of “assembly line” pioneered the production process.

Was challenged in the early 1970s

Postindustrial/post-Fordist

economic order

tertiary industries service sector
Tertiary Industries - Service Sector

Broad range - broken down into 3 categories

Tertiary

Quaternary

Quinary

Higher/more specialized knowledge skills- finance, admin, insurance, legal services, computer services

Basic business-Personal services associated with retailing, restaurants/hotels,transportation, comm, utilities,etc

High-level decision makers/advanced human capacities- CEO, CIO, CFO, top govt officials, research professors,

Began expanding in WWII

Growth up in early 20th century

Last three decades

service industry giant tourism
Service Industry Giant - Tourism
  • 11% of all the jobs around the world, employ 260 million (expected to reach 400 million next decade), 4 trillion economic value in 1997.

Why?

Increase Income

No political barriers

Better fringe benefit

early retirement

lengthier lives

Growing infrastructure

Better jet/airport/travel options

Cruise

finland is home to world s largest cruise ship ever built in the world
Finland is Home to World\'s Largest Cruise Ship Ever Builtin the world
  • From CNN -
  • Three-hundred-and- eleven meters long and nearly 50 meters wide on the deck level, the ship would be way too large to fit into the Panama Canal. Not even necessary, since the ship is tailor made for the Caribbean. .
  • Luxury doesn\'t come cheap. The ship has a price tag of 500 million U.S. dollars, and a typical one-week cruise will cost nearly $2000. In return, you get just about everything, a TV studio, an ice skating rink, a golf course, and a casino, pools, and a dozen fancy restaurants. The theater is named after the famous Las Cala (ph) in Milan, but is bigger than the original. Size does matter, says the cruise operator.
new international division of labor
New International Division of Labor
  • Increase in Value of Manufacturing Exports to OECD (Organization of Economic and Development, 29 countries) Figure 24-1
  • Behind this figure, there are 1) rise of service sector, 2) New locations (peripheral) for the labor-intensive manufactures 3) research/hi-tech still in core and 4) the core - high demand and major suppliers of manufactured goods and 5) exporters of manufactured goods- newly industrializing countries.5) trade between peripherals is low (they are rivals)
where did the merchandise come from link
Where did the merchandise come from ? (link)

800 items surveyed of Cookeville Stores

Country No. %

China 277 28.88

US 198 24.75

Mexico 52 6.50

Taiwan 19 2.37

Bangladesh 18 2.25

Indonesia 16 2

Dominican Rep 16 2

Korea 16 2

India 15 1.87

Guatemala 13 1.62

Thailand 12 1.5

Malaysia 11 1.37

Philippines 11 1.37

the pacific rim four dragons tigers
The Pacific Rim “Four Dragons/Tigers”

Automobile, grand piano, computer and calculators. 1997 economic crisis hit Korea

Korea

PC, telecommunications equipment precision electronic instruments, other hi-techs

Taiwan

Break-of-bulk point, started with textile and light industries, it becomes a world trade center due to its situational advantages

Hong Kong

Singapore

Was “entrepot”(transshipment point), developed into a center for quaternary industries.

just do it nike
Just do it - Nike
  • Never has its plants built in Oregon
  • The headquarter employs financial administrators, marketing and sales specialists, information technological directors, computer technicians, lawyers and support personnel.
  • International exchange network influence each node it connects.
  • First shoe production in Japan then moved to Taiwan, S Korea, then Malaysia, Indonesia, China (due to labor cost)
conglomerate corporations companies engaged in quite different activities
Conglomerate Corporations - companies engaged in quite different activities
  • Philip Morris - Marlboro,Miller Lite,Kraft-cream cheese, Maxwell House Coffee, JELL-O Oscar Mayer-hot dogs, real estate, publishing...

Transnational Corporations - beginning in the 70s, a sharp increase occurred in the growth of transnational conglomerates, by 1995, there are 35,000 such companies, and the top 300 control 1/4 of the world’s productive assets.

Nation-States and transnational corporations compared

joint ventures auto industry
Joint Ventures - Auto Industry
  • Citroen (Peugeot, France) -made in Taiwan
  • Geo Prizm (Toyota Corolla) - made in CA, marketed by GM
  • Geo Metro(Suzuki and Isuzu)-market by GM
  • Fordist Jaguar
  • Mazda Navajo = Ford Explorer
  • DaimlerChrysler

Offshore Financial Centers

sources of us clothing retailers
Sources of US Clothing Retailers

Bolivia

Russia

Peru

Nicaragua

Central America

Caribbean

Eastern Europe

Indonesia

Columbia

Vietnam

Burma

Sri Lanka

Malaysia

Turkey

Oman

Taiwan

Mauritius

Mexico

Italy

France

UK

Japan

Chile

South

China

Madagascar

Hong

Kong

South

Korea

El Salvador

Zimbabwe

India

Pakistan

United

Arab Emirates

N Korea

Brazil

Singapore

Kenya

Cambodia

Thailand

Egypt

Macau

Saipan

Philippines

Tunisia

Lesotho

Maldives

Interior China

Morocco

Bangladesh

Oatar

Yap

Bahrain

Laos

Fiji

Cyprus

source of data: Knox,Marston, 2000

financial relations
Financial Relations

Core countries - US, Japan, UK, Germany, Italy, France

Foreign Direct

Investment

International banking

mostly

Go to other core and

newly industrializing

periphery

Largest banks in the world

Exceptions - Tatung,

Hyundai, Samsung

from Taiwan,

Korea and Singapore

new influences on location
New Influences on Location
  • Service industries - no need for raw materials and energy

Tertiary

Transp and Comm

Hotels/Rest/Retail

Tied to

pop patterns and

locations of primary and

secondary industries

Consumer Market

quaternary service
Quaternary Service
  • Some are tied to the local activities
  • Retail Banking - interpersonal contact
  • National banking/credit services - find locations with better infrastructure, less expensive, favorable tax rates

Quinary Sector

  • Centered around nodes of quinary activities - gov’t offices, universities, and corporate headquarters
  • university town, government seats in small towns.
world cities john friedmann proposed
World Cities - John Friedmann proposed
  • Where The world’s most important financial and corporate institutions are located and where decisions are made that drive the world economy
  • Most of them are located in the developed core.
  • Geographical affinity - quaternary and quinary sectors
  • Figure 24-3 Major World Cities
sezs specialized economic zones
SEZs (Specialized Economic Zones)

Manufacturing export zones

in poorer countries

H-tech corridors

in weathier countries

60 countries established such zones

Especially, China and Mexico

UC Berkeley and

Stanford

Silicon Valley in CA

a “technopole”,

Similar technopole in Boston,

Route 128 h-tech corridor

Harvard and

MIT

hi tech industries
Hi-Tech Industries
  • Pollution-free
  • advantageous economic position
  • in coming years

Drawbacks

  • Toxic chemicals
  • Negative environmental impact
  • Large amount of water required
time space compression by david harvey
Time-space compression-by David Harvey
  • “Time-Space convergence”, advance in transportation makes the distance factor less important, but this term too limited to describe the development in recent decades
  • Stock market’s chain-reaction, fruit and product shipped to another continents next day, Fedex, UPS and other cross-country services make the distance shrunk. WWW …..
  • Technology and global economy development make “the end of geography”
ad