MARCH 12 2018 GET OUT STUFF FOR NOTES

MARCH 12, 2018 GET OUT STUFF FOR NOTES DEINDUSTRIALIZATION TEST CORRECTIONS UNTIL WEDS HW: READ PGS. 396 -401

NEW INDUSTRIAL AREAS From cities to suburban/rural areas In Europe, shift from North/Western to South/Eastern countries Shift to LDCs China, Mexico, Brazil, Poland, Czech Rep. , Hungary

REASONS FOR NEW INDUSTRIAL AREAS New International Division of Labor Low skill work done in low wage LDCs Higher skilled work still done in MDCs Low wages offset shipping costs Shipping costs lower due to containerization Outsourcing

TRENDS IN USA Shift from NE and Midwest to Southeast and West Right-to-work states Lower wages Creation of Rust Belt

GLOBAL MANUFACTURING TRENDS Shift to low wage countries Outsourcing

NAFTA North America Free Trade Agreement No tariffs, cheaper labor, cheaper land, fewer regulations Maquiladoras

SPECIAL ECONOMIC ZONES Different tax laws and regulations Encourage foreign investment

NEW PRODUCTIONS METHODS IN MDCS “Just-In-Time” production High skilled workers Closer to markets

SUMMARY The concept of manufacturing goods in a factory originated with the Industrial Revolution in the U. K. and later diffused to to other present-day developed countries. Manufacturers select location for factories based on assessing a combination of situation and site factors. Industry is a major polluter of air, land, and water, because the production of goods and services also produce some degree of waste. Industry is on the move within developed countries, as well as to emerging developing countries, because firms are always looking to gain a competitive edge over the competition and increase their profit margins.