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CH. 11—Industry

CH. 11—Industry . KI 4: Why are location factors changing?. New Industrial Regions. Labor is the site factor that has changed dramatically in recent years, leading to relocation of many industries MDCs US- shift away from NE to S and W

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CH. 11—Industry

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  1. CH. 11—Industry KI 4: Why are location factors changing?

  2. New Industrial Regions • Labor is the site factor that has changed dramatically in recent years, leading to relocation of many industries • MDCs • US- shift away from NE to S and W • NE lost 6 million manufacturing jobs between 1950 and 2009 • Industrialization originally bypassed South, but has seen major industrial growth since 1930s • Europe- shift away from traditional centers to distressed peripheral areas • NW to E (E has less skilled workers and is still close to markets) • Economic policies have encouraged relocation

  3. # of production workers in manufacturing jobs

  4. Right to work laws played a large role in shifting industrial areas— “closed shop” all workers must be union members— “open shop” not all members must be union members (this is good for manufacturers)

  5. International shifts in Industry • 1970- ½ of world’s industry in Europe, 1/3 in North America • 2010- over ½ of industry in LDCs • East Asia • China, Japan, South Korea (lots of ports and container ships) • South Asia • India (textiles)—GDP is projected to match U.S. in 2050 • Latin America • Mexico (cheap labor close to major market), Brazil leading industrial country (primary domestic market, most labor)

  6. Outsourcing • Transnational corporations use low-cost labor in LDCs • Not all jobs are transferred to LDCs, more skilled jobs remain in MDCs—new international division of labor • Corporations scrutinize each step of the manufacturing process to determine to optimal location of each step • Ex. Carmakers used to make all of their own parts, now contracted independent companies account for around 70% of a cars value in parts • Read “What is an American Car?” pg. 367

  7. Staying in Traditional Industrial Regions? • Proximity to skilled labor • Jobs like computer manufacturing require skilled workers as do “high-end” cloths • Post-fordist production • Toyota is pioneering company • Use 3 types of work rules: • Teams: workers placed in teams, learn how to perform a variety of tasks • Problem Solving: problems addressed through consensus and critical thinking • Leveling: factory workers and managers are treated alike • Just-in-Time Delivery • Proximity to markets and manufacturers

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