Upload
christina-sparks
View
235
Download
0
Tags:
Embed Size (px)
Citation preview
Industr
ializatio
n
Key Issue #3: “Where is industry expanding?”
Changing Distributions Within PEDs• Intraregional Shifts in
Manufacturing:• Historically – factories
located inside cities• Situation – proximity to
market• Site – lots of labor and
sources for capital• Increasing Site Problem –
obtaining enough land for manufacturing
Where could you locate this factory for maximum profit?
Modern Factories
• Likely to be suburban or rural• Require large tracts of land• Land is cheaper outside of a city• Location near highways is more
important than railways• Factories cluster in industrial
parks near suburban highway junctions Where is this GM plant
located?
Interregional Shifts in Manufacturing• Manufacturing has shifted towards the South and West in the United
States• In Western Europe, governments have encouraged relocation toward
economically distressed areas• Result = the distribution of manufacturing is less clustered
Southern and Western U.S.• The NE U.S. has lost 1 million manufacturing jobs in the last
few decades• Manufacturing jobs have grown by 1/6 in the South and West
since the early 70’s
Right-to-work laws• A right-to-work law requires a factory to maintain a so-called
“open shop” and prohibits a “closed shop”• A “closed shop” = a company and union agree that everyone
must join the union in order to work• Southern states have made it difficult for unions to organize
workers, collect dues, and bargain with employers
A “closed shop” – Workers in the Garment Industry Strike
Manufacturing in the South• Steel, textiles, tobacco
products, and furniture industries are scattered across the South
• The Gulf Coast has become an important industrial leader because of oil and natural gas
Katrina threatened oil supply by cutting power to the refineries in Mississippi
Colonial Pipeline brings oil and natural gas to the South
Manufacturing in the West• Completion of the LA harbor (1910) and Panama Canal (1914)
allowed the West Coast to open up to processing• LA is the country’s leading producer of textiles and second largest of
furniture and food processing• A large pool of unorganized workers has been assembled in LA
through immigration, especially from Mexico and Asia
Interregional Shifts in Western Europe• Manufacturing has diffused from traditional centers in NW
Europe to southern and eastern Europe• European governments have explicitly encouraged this
industrial relocation• Western Europeans used incentives to lure industry into
poorer regions• The EU assists in lagging regions• Spain
New Industrial Regions• Example – Steel: In 1980, 80% of the world’s steel was
produced in PED• In 2005, just 45% is produced in PEDs• China = the world’s largest steel producer
China• The largest manufacturer of textiles, steel, and household
products• Two principal assets:
• Largest supply of low-cost labor• The world’s largest market
Chinese Population = 1,343,239,923 (2012)
Other Asian Countries
• Thailand – set a 120% tariff on imported vehicles in 1974; lowered to 20% in the 90s
• India – liberalization program in 1991 eliminated many restrictions on foreign investment
Latin America• Mexico and Brazil are the two leading industrial centers in
Latin America• Manufacturing is clustered in the largest city: Mexico City and
Sao Paulo – proximity to the major market• North American Free Trade Agreement (NAFTA) – eliminated
restrictions on trade• Average wage = $400 per month
“Central” Europe• Poland, Czech Republic, and Hungary have had the most
industrial growth• Central Europe offers two assets:
• Labor• Market proximity