Delhi-call center/ Bihar, India Steel Mill-red smoke/Shanghai Steel Mill
Henry Ford introduced the assembly line production of automobiles which resulted in agglomeration of auto production in the Detroit and Great Lakes area-now known as the rust belt. Bretton Woods agreement industrial countries adopted the gold standard-value of currency pegged to the value of gold-basis for prosperity and mass production by large corporations
David Harvey coined the term Time-Space Compression-the idea the the world is moving at a faster pace due to capitalism and the greater connectivity of transportation and communication systems. Time-Space Compression has altered the division of labor-when world was less connected, goods were produced close to market or point of consumption.
Containers await shipment in China Bottom Container ship from Europe enter Halifax, Canada’s harbor Major corporations: General Motors, Union Carbide, Exxon and others take advantage of the low transport costs, expanding information technology and favorable government regulations to outsource jobs to specific locations. Multinational Corporations move labor-intensive manufacturing to peripheral countries where laobr is cheap Core manufacturing is increasingly automated
WTO 148 states in 2005 works to negotiate trade agreements
Part 5 industry
South Asia-India• Blessed with large coal deposits, metallic minerals such as iron ore and a vast labor force, India is growing by 8% year.• Despite rapid industrialization it still remains agrarian and underdeveloped due to a poor infrastructure- over 50% of India’s crops rot in the field due to a lack of transportation
South Asia-India• The Bihar Steel Mill in India produces high quality steel at a low price-the down side-low pay, few environmental restrictions=pollution.• India’s service sector is also growing very rapidly.• The Delhi Call Center at right is typical of the the outsourcing done by many Western firms.• India has millions of low paid blue-collar workers and millions of white collar, high tech. workers
How has Industrial Production Changed?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.
Time-Space CompressionThrough improvements in transportation and communications technologies, many places in the world are more connected than ever before.
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.
New Influences on the Geography of Manufacturing• Transportation-intermodal connections where air, rail, truck, ship and barge connect-eases flow of goods-e.g. container shipping• Regional and global trade agreements-WTO, Benelux, European Union, NAFTA, MERCOSUR, SAFTA, CARICOM, ANDEAN AFTA, COMESA, etc. goal to ease flow of goods by eliminating trade tariffs or quotas• Energy-coal was replaced by natural gas & oil after WW II-transported by pipeline or tanker
• Europe-despite North Sea Oil-still must import • Mexico & Canada oil and natural gas• U.S. uses 27% if oil & 37% of natural gas produced in the world. Dependent on imported oil • Saudi Arabia, Kuwait, Iraq, Russia large oil reserves
Where are the Major Industrial Belts in the World Today and Why?Idle steel mill in Pennsylvania, part of the American Rust Belt
Deindustrialization – a process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and work through a period of high unemployment.Abandoned street inLiverpool, England, wherethe population hasdecreased by one-thirdsince deindustrialization
Newly IndustrializedChina – major industrial growth after 1950-Soviet planners helped from 1949 to 1964 Industrialization in the last half of 20th cent. was state-owned and planned: focus on: Northeast district-Dongbei Shanghai and Chang district Today, industrialization is spurred by companies that move production (not the whole company) to take advantage of Chinese labor and special economic zones (SEZs). Rapid growth on the Pacific Rim
As China’s economy continuesto grow, old neighborhoods(right) are destroyed to makeroom for new buildings(below). Beijing, China
Left-Chinese industrial air conditioner plantRight-Singapore container port