Industry and Transportation Lecture 10
Primary secondary tertiary quaternary Pre-Industry Early industry Late Industry Post Industry Types of Economic Activities
Where did the Industry Originate? <ul><li>The modern concept of Industry (meaning the manufacturing of goods in a factory)...
Industrial Revolution
What is so important about I.R? <ul><li>Before, industry was geographically dispersed across the landscape. </li></ul><ul>...
Industrial Revolution Population and Urbanization Technology and Pollution
Was-Balt: Urbanization Change                                                                                             ...
Two hundred years of urban growth for the Baltimore-Washington region. Red pixels denote urban land use as defined by both...
 
How Industry have Progressed? <ul><li>Villages </li></ul><ul><li>Factory Industry – site specific </li></ul><ul><li>Transp...
Transportation Evolution
Transportation
Continental Airlines, Inc
 
Continental Airlines, Inc
 
Population Density - 1990
Where would the factory be locate when? <ul><li>Raw materials are found everywhere? </li></ul><ul><li>Raw materials are fi...
Transportation
Why the evolution of Transportation important? <ul><li>Time </li></ul><ul><li>Distance </li></ul><ul><li>Cost </li></ul>
Weber’s Location Theory <ul><li>Weber’s analysis focus on the role of transportation. </li></ul><ul><li>He devised a model...
Geography of Manufacturing <ul><li>Alfred Weber (1868-1958) </li></ul><ul><ul><li>Focused on the role of transport costs <...
 
Where to Place Industries? <ul><li>Market-oriented Manufacturing </li></ul><ul><li>Perishable – Ex. Baking bread- because ...
 
Weber’s Location Theory
Determining Location Today <ul><li>Weber’s factors still relevant </li></ul><ul><li>Falling transport costs </li></ul><ul>...
 
 
Manufacturing in the U.S. <ul><li>Highest world output at $1.6 trillion </li></ul><ul><li>Falling statistics </li></ul><ul...
What factors involved in location of Manufacturing? <ul><li>Raw materials </li></ul><ul><li>Behavioral factors </li></ul><...
Diffusion of the Industrial Revolution Fig. 11-1: The Industrial Revolution originated in areas of northern England. Facto...
Diffusion of Railways Fig. 11-2: The year by which the first railway  opened shows the diffusion of railways and  the Indu...
Manufacturing Regions Fig. 11-3: The world’s major manufacturing regions are found in North America, Europe, and East Asia...
Industrial Regions of North America Manufacturing was more expensive in the US than in Britain because  labor  was scares,...
ePodunk Inc
Industrial Regions of North America New England  (began with Cotton textiles and cheap immigrant labor); Middle Atlantic  ...
The Maryland Port Administration
Manufacturing Value Change The value and growth of manufacturing in major metropolitan areas in the U.S. between  1972 and...
 
Manufacturing Centers in Western  Europe Rhine- Ruhr Valley-  Location of rivers, industry is dispersed rather than concen...
Manufacturing Centers in Eastern Europe and Russia Major manufacturing centers are clustered in European Russia and the  U...
 
Manufacturing Centers in East Asia Fig. 11-8: Many industries in China are clustered in three centers near the east coast....
Why do Industries have different Distributions? <ul><li>Industry seeks to maximize profits by minimizing  </li></ul><ul><l...
Manufacturing <ul><li>Early stage </li></ul><ul><ul><li>Close to resource </li></ul></ul><ul><ul><li>Near water power, wat...
Copper Industry in North America Is a good example of Locating near the source  of heavy bulky inputs to  minimize transpo...
Integrated Steel Mills Steelmaking is another bulk-reducing that has traditionally has been located to minimize the cost o...
Steel Minimills Fig. 11-11: Minimills produce steel from scrap metal, and they are distributed around the country near loc...
Location of Beer Breweries Fig. 11-12: Beer brewing is a bulk-gaining industry that needs to be located near consumers.  B...
Casualty of the Recession: 2009 <ul><li>http://www.nytimes.com/interactive/2009/03/03/us/20090303_LEONHARDT.html </li></ul...
United States Economy General Welfare 2006 2007 2008 2009 U.S. GDP growth (annual percent change) 2.7 2.1 0.4 -2.4 U.S. fe...
Globalization <ul><li>“ The 1970s marked the emergence of globalization as the latest stage in the evolution of the global...
 
Globalization <ul><li>What is  Globalization ??? </li></ul><ul><li>Globalization is creating two types of people cut acros...
What are the components of Globalization <ul><li>Capital </li></ul><ul><li>Cheap Labor </li></ul><ul><li>Infrastructure </...
Globalization Model GLOBALIZATION More Develop Less Develop X factor: Nike, Wal-Mart, Toyota, etc. Raw Material and Cheap ...
Country A: United States: Markets, Capital Tech Country B: Colombia: Natural Resources  Country C: Vietnam: Cheap Labor
 
Chevrolet Assembly Plants, 1955 In 1955, GM assembled  identical  Chevrolets at ten final assembly plants located  near ma...
Chevrolet Assembly Plants, 2003 In 2003, GM was producing a wider variety of vehicles, and production of various  models w...
Site Selection for Saturn Fig. 11-1.1: GM considered a variety of economic and geographic factors when it searched for a s...
Motor Vehicle Parts Plants Fig. 11-14: U.S.-owned parts plants are clustered near the main final assembly plants. Foreign-...
Car Industry
Car Industry
Car Industry http://www.nytimes.com/2008/11/17/business/economy/17impact.html
 
Car Industry <ul><li>Shares of Ford fell 2.7 percent, to $2.13 a share, after it reported a 29 percent drop in sales, whil...
Car Industry http://www.nytimes.com/2009/03/04/business/04auto.html
Car Industry http://www.nytimes.com/2009/03/04/business/04auto.html?_r=1&ref=automobiles
Car Industry
Car Industry  <ul><li>Car industry Job distribution: </li></ul><ul><li>http://www.usatoday.com/money/autos/2008-12-04-auto...
Other factors in Industrial location <ul><li>Enterprise zones – taxes </li></ul><ul><li>Value of Land – Montgomery Co. </l...
<ul><li>http://www.nytimes.com/2009/10/27/business/media/27audit.html?hp </li></ul>
U.S. Recession http://www.washingtonpost.com/wp-dyn/content/article/2010/01/01/AR2010010101196.html
U.S. Recession http://http://www.nytimes.com/2010/03/30/business/economy/30states.html
Input (Raw Material) Cotton Yarn Production Production of cotton yarn from fiber is clustered in major cotton  growing cou...
 
 
Aerial Photograph of the Duwamish Corridor
 
Why do Industries have different Distributions? <ul><li>Industry seeks to maximize profits by minimizing  </li></ul><ul><l...
Electronic Computer Industry Fig. 11-20: Computer and parts manufacturing requires highly skilled workers and capital. It ...
Silicon Valley
Capital <ul><li>The most important factor in the clustering of high tech industries in California’s Silicon Valley-even mo...
What are some obstacles to Industrialization?  <ul><li>Global perspective </li></ul><ul><ul><li>Stagnant demand </li></ul>...
Globalization Pop Quiz <ul><li>Which of the following companies are American own? </li></ul>http://www.tata.com/tata_motor...
Globalization Pop Quiz <ul><li>Which of the following teams are owned by Americans? </li></ul>http://www.usatoday.com/spor...
Globalization Pop Quiz <ul><li>Which of the following companies are American own? </li></ul>http://www.tata.com/tata_motor...
Globalization: Medellin <ul><li>Exports surged in the 1990s as the United States granted  temporary trade preferences  to ...
Shirt Production Sewing cotton fabric into men’s and boys’ shirts is more likely to be  located near customers in MDCs, bu...
Woven Cotton Fabric Production Production of woven cotton fabric  is labor intensive  and is likely to be  located in LDCs...
Globalization: Medellin
Globalization: Medellin Video <ul><li>http://www.washingtonpost.com/wp-dyn/content/graphic/2008/07/11/GR2008071100549.html...
China and Exports http://www.nytimes.com/2009/10/14/business/global/14chinatrade.html?scp=3&sq=china%20trade&st=cse
India and Investment http://www.nytimes.com/2009/10/14/business/global/14rupee.html?scp=1&sq=india%20is%20awash%20in%20for...
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  • The Baltimore-Washington Regional Collaboratory Land-Use History Research Program by Timothy W. Foresman University of Maryland, Baltimore County 1000 Hilltop Circle Baltimore, Maryland 21250 410/455-3149 [email_address]
  • m/w
  • US old manufacturing belt due to decline in Manufacturing basic hub of steel production textile industries start here some stay some move on. mid atlantic only since 1920’s
  • US old manufacturing belt due to decline in Manufacturing basic hub of steel production textile industries start here some stay some move on. mid atlantic only since 1920’s
  • Remember railroads major industry heartland it is concentrated near these points.
  • Manufacturing major action in china but only at selected points,.
  • Spatially restrictive system. Absense of lack complementarity don’t talk don’t communicate with each other. Butcher baker candlestick maker each doing there own thing. A market town cant be sustained indefintiely . Flee market fairs not enough demand to sustain it on a regular basis.
  • Weaver cannot compete economically with manufacturing textiles, depopulation of rural areas. Manufacturing insatiable appetitel for labor and resourcs. Industrial centers create roads to get goods to the market
  • At the raw material most is waste. Locate near the resource raw material takes on different characteristic ends with high value good.
  • Major metro areas don’t have distilled spirits , raw material oriented alcohol involves grains, alcohol with different pattern from beer rye burbon, rum, brandy. Grapes brandy perishapbel commodity produce brandy from grapes non perishable finished product high value good. Napa. Nature of raw material vs. nature of finished product. Strong raw material orientation – whisky high value Strong market orientation beer differ in value. Scotch bottle in scotland finished product cost is high enough to counter affect of distance. Production city oriented not in remote places. At one time it was spread out but aftr WW2 clusterin due to New Road absent in the south bible belt bourbon TN and KY Small labor needed barley yeiest rice corn transportable not perishable Market locate in citieis not labor intensive Cities special water st. lousi watr less and less of an issue. Market is now becoming critical nature of raw amaterial and finished product affect industry location soda is very similaiar both within easy access to highways.
  • http://www.washingtonpost.com/wp-srv/special/opinions/how-we-are-doing.html
  • t/th
  • m/w
  • Spatially restrictive system. Absense of lack complementarity don’t talk don’t communicate with each other. Butcher baker candlestick maker each doing there own thing. A market town cant be sustained indefintiely . Flee market fairs not enough demand to sustain it on a regular basis.
  • Lecture10 industry

    1. 1. Industry and Transportation Lecture 10
    2. 2. Primary secondary tertiary quaternary Pre-Industry Early industry Late Industry Post Industry Types of Economic Activities
    3. 3. Where did the Industry Originate? <ul><li>The modern concept of Industry (meaning the manufacturing of goods in a factory) began in United Kingdoms in the late 1700s. </li></ul><ul><li>The process of change is know as Industrial Revolution </li></ul><ul><li>Technology created an unprecedented expansion in productivity, resulting in higher standards of living. </li></ul>
    4. 4. Industrial Revolution
    5. 5. What is so important about I.R? <ul><li>Before, industry was geographically dispersed across the landscape. </li></ul><ul><li>Production of goods and markets where local. </li></ul><ul><li>Increase in productivity. </li></ul>
    6. 6. Industrial Revolution Population and Urbanization Technology and Pollution
    7. 7. Was-Balt: Urbanization Change                                                                                                                                                                                                                                                                                                                                          Fig. 5-3. Baltimore simulated forest land cover showing 200 years of urban growth in yellow.
    8. 8. Two hundred years of urban growth for the Baltimore-Washington region. Red pixels denote urban land use as defined by both the USGS and the Bureau of the Census. Was-Balt: Urbanization Change
    9. 10. How Industry have Progressed? <ul><li>Villages </li></ul><ul><li>Factory Industry – site specific </li></ul><ul><li>Transportation- railroad or harbor </li></ul><ul><li>Rapid growth near transportation routes </li></ul><ul><li>Localized Manufacturing </li></ul>
    10. 11. Transportation Evolution
    11. 12. Transportation
    12. 13. Continental Airlines, Inc
    13. 15. Continental Airlines, Inc
    14. 17. Population Density - 1990
    15. 18. Where would the factory be locate when? <ul><li>Raw materials are found everywhere? </li></ul><ul><li>Raw materials are fixed, weight loss 0? </li></ul><ul><li>Raw materials fixed, considerable weight loss? </li></ul><ul><li>Both raw materials are fixed and pure? </li></ul><ul><li>Both raw materials are fixed and lose weight? </li></ul>
    16. 19. Transportation
    17. 20. Why the evolution of Transportation important? <ul><li>Time </li></ul><ul><li>Distance </li></ul><ul><li>Cost </li></ul>
    18. 21. Weber’s Location Theory <ul><li>Weber’s analysis focus on the role of transportation. </li></ul><ul><li>He devised a model that differentiate material-oriented manufactured from market-oriented manufacturing. </li></ul>
    19. 22. Geography of Manufacturing <ul><li>Alfred Weber (1868-1958) </li></ul><ul><ul><li>Focused on the role of transport costs </li></ul></ul><ul><li>Material oriented </li></ul><ul><ul><li>Considers cost to transport raw material </li></ul></ul><ul><li>Market oriented </li></ul><ul><ul><li>Considers cost to transport finished product </li></ul></ul>
    20. 24. Where to Place Industries? <ul><li>Market-oriented Manufacturing </li></ul><ul><li>Perishable – Ex. Baking bread- because the processing increases the perishability of the product </li></ul><ul><li>Bulky - Auto assembly, furniture </li></ul><ul><li>Weight Gain – beer, transporting water and wheat is cheaper than the final product. </li></ul><ul><li>Material-oriented Manufacturing </li></ul><ul><li>Perishable – can, freeze, or manufacturing cheese from milk. </li></ul><ul><li>Bulky – lumber pulp, plywood. </li></ul><ul><li>Weight loss – steel, rice, sugar beets. </li></ul><ul><li>Ex. Steel mills are located where the raw material can be found or cheaply assembled. </li></ul>Vs.
    21. 26. Weber’s Location Theory
    22. 27. Determining Location Today <ul><li>Weber’s factors still relevant </li></ul><ul><li>Falling transport costs </li></ul><ul><li>Increasingly added value to raw materials </li></ul><ul><li>Political stability </li></ul><ul><li>Government regulations </li></ul>
    23. 30. Manufacturing in the U.S. <ul><li>Highest world output at $1.6 trillion </li></ul><ul><li>Falling statistics </li></ul><ul><ul><li>1960- 31% of jobs and 27% of GDP </li></ul></ul><ul><ul><li>2002- 11% of jobs and 17% of GDP </li></ul></ul><ul><li>Relocating factories abroad </li></ul><ul><li>Imports increasing </li></ul><ul><ul><li>Incentive of lower prices </li></ul></ul>
    24. 31. What factors involved in location of Manufacturing? <ul><li>Raw materials </li></ul><ul><li>Behavioral factors </li></ul><ul><li>Labor </li></ul><ul><li>Transportation costs </li></ul><ul><li>Additional Factors: </li></ul><ul><li>Capital </li></ul><ul><li>Technology </li></ul><ul><li>Government regulations </li></ul><ul><li>Political stability </li></ul>
    25. 32. Diffusion of the Industrial Revolution Fig. 11-1: The Industrial Revolution originated in areas of northern England. Factories often clustered near coalfields. The need for large quantities of bulky, heavy coal, the iron Industry’s geographic pattern change from dispersed to clustered.
    26. 33. Diffusion of Railways Fig. 11-2: The year by which the first railway opened shows the diffusion of railways and the Industrial Revolution from Britain. Transportation played a crucial role In the diffusion of the I.R. New transportation systems enabled factories to attract large numbers of workers, bring in bulky material like iron ore and coal and ship finished goods to consumers. It took more than fifty years between the first railroad in England and the first ones in Eastern Europe. (Political instabilities such as French Revolution (1789-1799) and Napoleonic Wars (1796-1815
    27. 34. Manufacturing Regions Fig. 11-3: The world’s major manufacturing regions are found in North America, Europe, and East Asia. Other manufacturing centers are also found elsewhere.
    28. 35. Industrial Regions of North America Manufacturing was more expensive in the US than in Britain because labor was scares, and shipping to European markets was expensive. This manufacturing belt was achieved its dominance through a combination of historical (tied to European Markets) and environmental factors (Near raw materials, transportation routes such as canals, railways, and highways.
    29. 36. ePodunk Inc
    30. 37. Industrial Regions of North America New England (began with Cotton textiles and cheap immigrant labor); Middle Atlantic (large markets, main ports, financial centers); Mohawk Valley (steel and food processing and near abundant electricity); Western Great Lakes (market center and transportation hub main suppliers of finish products; and St. Lawerence Valley-Ontario Peninsula (centrality to Canadian markets and abundant electricity).
    31. 38. The Maryland Port Administration
    32. 39. Manufacturing Value Change The value and growth of manufacturing in major metropolitan areas in the U.S. between 1972 and 1997. New Manufacturing Centers emerging in the South and West. While the traditional Manufacturing belt is declining.
    33. 41. Manufacturing Centers in Western Europe Rhine- Ruhr Valley- Location of rivers, industry is dispersed rather than concentrated in few cities, iron and steel have concentrated in the valley. Mid-Rhine- consumer market (Old East and West Germany), financial center (Frankfurt), High value goods (Mercedes-Benz), France side largest iron-ore fields. United Kingdom- No longer a world leader in steel, textiles, and other industries. Has attracted new high-tech jobs Northern Italy- Larger population center, cheap labor, and cheap electricity .
    34. 42. Manufacturing Centers in Eastern Europe and Russia Major manufacturing centers are clustered in European Russia and the Ukraine. These centers were encouraged by the communist gov’t.
    35. 44. Manufacturing Centers in East Asia Fig. 11-8: Many industries in China are clustered in three centers near the east coast. In Japan, production is clustered along the southeast coast. Few raw material (China) but skilled labor, technology development, and large markets.
    36. 45. Why do Industries have different Distributions? <ul><li>Industry seeks to maximize profits by minimizing </li></ul><ul><li>production costs. </li></ul><ul><li>Situation factors (Relative Location) </li></ul><ul><ul><li>Location near inputs (resources/materials) </li></ul></ul><ul><ul><li>Location near markets </li></ul></ul><ul><ul><li>Minimizes the cost of transportation inputs to the factory and finished goods to the consumers. </li></ul></ul><ul><ul><li>Often effects the growth/evolution/change of cities </li></ul></ul><ul><li>Site factors (Absolute Location) </li></ul><ul><ul><li>Land </li></ul></ul><ul><ul><li>Labor </li></ul></ul><ul><ul><li>Capital </li></ul></ul><ul><ul><li>Physical location: mountain, river, valley, etc. </li></ul></ul>
    37. 46. Manufacturing <ul><li>Early stage </li></ul><ul><ul><li>Close to resource </li></ul></ul><ul><ul><li>Near water power, water falls </li></ul></ul><ul><ul><li>Lowell, MA; Merrimack, NH </li></ul></ul><ul><li>Later stage </li></ul><ul><ul><li>Become new industry centers </li></ul></ul><ul><ul><li>Tap resources around them </li></ul></ul><ul><ul><li>Rural – urban migration </li></ul></ul>
    38. 47. Copper Industry in North America Is a good example of Locating near the source of heavy bulky inputs to minimize transportation cost. The bulk and weight of this Ore are great. Copper mining, concentration, smelting, and refining are examples of bulk-reducing industries. 2/3 are located near the copper mines in Arizona .
    39. 48. Integrated Steel Mills Steelmaking is another bulk-reducing that has traditionally has been located to minimize the cost of transportation inputs. The U.S. steel industry also demonstrates how locations change when the source and cost of raw materials change. In the 1850 the steel industry centered around Pittsburgh and Cleveland. New steel mills emerged in the 1900’s when steelmaking required more iron ore in proportion to coal. The growth of steel mini-mills also demonstrate the increasing importance of access to markets rather than to inputs.
    40. 49. Steel Minimills Fig. 11-11: Minimills produce steel from scrap metal, and they are distributed around the country near local markets. These are the two largest minimill operators.
    41. 50. Location of Beer Breweries Fig. 11-12: Beer brewing is a bulk-gaining industry that needs to be located near consumers. Breweries of the two largest brewers are located near major population centers. Bulk-gaining Industries- Makes something that gains volume or weight during productions. Most major bottlers of beer are located near large population centers.
    42. 51. Casualty of the Recession: 2009 <ul><li>http://www.nytimes.com/interactive/2009/03/03/us/20090303_LEONHARDT.html </li></ul><ul><li>Jobless rates in the United States </li></ul><ul><li>http://www.washingtonpost.com/wp-srv/special/nation/unemployment-by-county/ </li></ul><ul><li>http://www.msnbc.msn.com/id/27913794/ </li></ul><ul><li>http://www.msnbc.msn.com/id/39918295/ns/business-eye_on_the_economy/39953048 </li></ul>
    43. 52. United States Economy General Welfare 2006 2007 2008 2009 U.S. GDP growth (annual percent change) 2.7 2.1 0.4 -2.4 U.S. federal debt as a percentage of GDP 36.5 36.2 40.2 53.0 National surplus/deficit in billions of current dollars -248.2 -160.7 -458.6 -1413.6 National unemployment rate 4.6 4.6 5.8 9.3 Annual personal saving rate 2.4 1.7 2.7 4.3 Annual average interest rate on 30-year fixed mortgage 6.41 6.34 6.03 5.04 Consumer sentiment index (annual average) 87.3 85.6 63.8 66.3 Average global happiness (scale of 0 to 10) 5.41 5.51 5.41 5.45 World GDP growth (annual percent change) 3.9 3.8 1.8 -2.1 Brazil GDP growth 4.0 5.7 5.1 -0.7 China GDP growth 11.6 13.0 9.0 8.5 India GDP growth 9.8 9.4 7.3 5.4 South Africa GDP growth 5.3 5.1 3.1 -2.2 World trade growth (annual percent change) 9.1 7.3 2.8 -12.3 Workers' remittances (world inflows, annual percent change) 15.3 21.3 15.3 -5.3
    44. 53. Globalization <ul><li>“ The 1970s marked the emergence of globalization as the latest stage in the evolution of the global political economy.” (p. 63) </li></ul><ul><li>“ Globalization is an international regime in which the economic interests of multinational corporations and other nonstate actors (IMF and the WTO) are coming to supersede the interests and power of individual states” (p.63). </li></ul><ul><li>The power has shifted from nations (empires) to multinational institutions…… </li></ul>
    45. 55. Globalization <ul><li>What is Globalization ??? </li></ul><ul><li>Globalization is creating two types of people cut across national boundaries, divided into the “fast” and the “slow” according to Ricardo Petrella, a futurist for the European Union. </li></ul><ul><li>Due to the access to computer-based information and communications technologies. </li></ul><ul><li>Colin Leys defines new international regime as a world: </li></ul><ul><ul><li>Dominated by multinational corporations. </li></ul></ul><ul><ul><li>Regulated by the International Monetary funds </li></ul></ul><ul><ul><li>Enforced by the military might of the United States. </li></ul></ul>
    46. 56. What are the components of Globalization <ul><li>Capital </li></ul><ul><li>Cheap Labor </li></ul><ul><li>Infrastructure </li></ul><ul><li>Markets </li></ul><ul><li>Technology </li></ul><ul><li>Raw materials/resources </li></ul><ul><li>Government Regulation </li></ul>$
    47. 57. Globalization Model GLOBALIZATION More Develop Less Develop X factor: Nike, Wal-Mart, Toyota, etc. Raw Material and Cheap Labor Tech, Capital, and high order Goods Country B Ex. Guatemala Natural Resources Country A Ex. United States Market, Capital, Tech Country C Ex. Vietnam Cheap Labor
    48. 58. Country A: United States: Markets, Capital Tech Country B: Colombia: Natural Resources Country C: Vietnam: Cheap Labor
    49. 60. Chevrolet Assembly Plants, 1955 In 1955, GM assembled identical Chevrolets at ten final assembly plants located near major population centers.
    50. 61. Chevrolet Assembly Plants, 2003 In 2003, GM was producing a wider variety of vehicles, and production of various models was spread through the middle of the country.
    51. 62. Site Selection for Saturn Fig. 11-1.1: GM considered a variety of economic and geographic factors when it searched for a site for producing the new Saturn in 1985. The plant was eventually located in Spring Hill, TN.
    52. 63. Motor Vehicle Parts Plants Fig. 11-14: U.S.-owned parts plants are clustered near the main final assembly plants. Foreign-owned plants tend to be located further south, where labor unions are weaker.
    53. 64. Car Industry
    54. 65. Car Industry
    55. 66. Car Industry http://www.nytimes.com/2008/11/17/business/economy/17impact.html
    56. 68. Car Industry <ul><li>Shares of Ford fell 2.7 percent, to $2.13 a share, after it reported a 29 percent drop in sales, while Toyota stock was flat after the company reported a 23 percent plunge in sales. </li></ul><ul><li>General Motors was down 2.4 percent, to $5.65, after reporting that it delivered 45 percent fewer cars in October than in October 2007. Truck sales were down 51 percent, to 97,119. </li></ul><ul><li>http://www.economistblog.com/2008/01/06/ongoing-slump-in-autos/ </li></ul>
    57. 69. Car Industry http://www.nytimes.com/2009/03/04/business/04auto.html
    58. 70. Car Industry http://www.nytimes.com/2009/03/04/business/04auto.html?_r=1&ref=automobiles
    59. 71. Car Industry
    60. 72. Car Industry <ul><li>Car industry Job distribution: </li></ul><ul><li>http://www.usatoday.com/money/autos/2008-12-04-auto-workers-by-state_N.htm </li></ul>
    61. 73. Other factors in Industrial location <ul><li>Enterprise zones – taxes </li></ul><ul><li>Value of Land – Montgomery Co. </li></ul><ul><li>Labor costs </li></ul><ul><li>Incentives </li></ul><ul><ul><li>Labor laws </li></ul></ul><ul><ul><li>Environmental Regulations </li></ul></ul><ul><ul><li>No unions </li></ul></ul>
    62. 74. <ul><li>http://www.nytimes.com/2009/10/27/business/media/27audit.html?hp </li></ul>
    63. 75. U.S. Recession http://www.washingtonpost.com/wp-dyn/content/article/2010/01/01/AR2010010101196.html
    64. 76. U.S. Recession http://http://www.nytimes.com/2010/03/30/business/economy/30states.html
    65. 77. Input (Raw Material) Cotton Yarn Production Production of cotton yarn from fiber is clustered in major cotton growing countries, including the U.S., China, India, Pakistan, and Russia. ¾ are yarn production is done in less-developed countries.
    66. 80. Aerial Photograph of the Duwamish Corridor
    67. 82. Why do Industries have different Distributions? <ul><li>Industry seeks to maximize profits by minimizing </li></ul><ul><li>production costs. </li></ul><ul><li>Site factors </li></ul><ul><ul><li>Land- Cheaper in suburban or rural locations </li></ul></ul><ul><ul><li>Labor- Labor intensive industry is one in which labor is a high percentages of expenses. </li></ul></ul><ul><ul><li>Capital-the ability to borrow money has become a critical factor in the distribution of industry Less Developed Countries. </li></ul></ul>
    68. 83. Electronic Computer Industry Fig. 11-20: Computer and parts manufacturing requires highly skilled workers and capital. It is clustered in the Northeast and the West Coast. Need access to high-skilled labor. Ex. Silicon Valley and Texas. Proximity to Universities
    69. 84. Silicon Valley
    70. 85. Capital <ul><li>The most important factor in the clustering of high tech industries in California’s Silicon Valley-even more important than proximity to skilled labor was the availability of capital. </li></ul><ul><li>LDC do not have access to borrow money so they must seek loans from banks in developed countries at a higher interest. </li></ul>
    71. 86. What are some obstacles to Industrialization? <ul><li>Global perspective </li></ul><ul><ul><li>Stagnant demand </li></ul></ul><ul><ul><li>Increased capacity </li></ul></ul><ul><li>More developed countries </li></ul><ul><ul><li>Trading blocs </li></ul></ul><ul><ul><li>Disparities within trading blocs </li></ul></ul><ul><li>Less developed countries </li></ul><ul><ul><li>Old problems for LDCs </li></ul></ul><ul><ul><li>New problems for LDCs </li></ul></ul>
    72. 87. Globalization Pop Quiz <ul><li>Which of the following companies are American own? </li></ul>http://www.tata.com/tata_motors/media/20080326_legacy.htm Company Product Country Purchase Prize Year Anheuser-Busch (St. Louis) Budweiser InBev (Belgium) $52 Billion 2008 Miller Brewing (Milwaukee) Miller Light South Africa Brewers (SAB) $5.6 Billion 2002 Coors Brewing (Colorado) Coors Light Molson (Canada) $4 Billion 2005 Reebok NFL Apparel Adidas (Germany) $3.7 Billion 2005 Jaguar and Land Rover (Part of Ford Motors) Jaguar and Land Rover Tata (India) $2.3 Billion 2008
    73. 88. Globalization Pop Quiz <ul><li>Which of the following teams are owned by Americans? </li></ul>http://www.usatoday.com/sports/soccer/2007-05-16-soccer-cover_N.htm http://msn.foxsports.com/foxsoccer/premierleague/story/121609-unfit-foreign-owners-make-prem-more-competitive Company Owner Nationality Purchase Prize Debt Year Manchester United Malcolm Glazer (Bucanneers) USA $1.49 Billion £699 m 2005 Liverpool Tom Hicks (Texas Rangers)/ George Gillete (Montreal Canadians) John Henry (Boston Red Sox) USA $435 million £300 million £280 m 2007 2010 Chelsea Roman Abramovich (Oil) Russia $223 million £701 m 2003 Aston Villa Randy Lener (Browns) USA $118 million 2006 Manchester City Thaksin (Thai former Prime Minister) Ruling Family of Abu Dhabi Thailand Abu Dhabi $148 million £200 million 2007 2008 Arsenal Stan Kroenke and Alisher Usmanov each owe 30% USA Uzbekistani £416 m 2009 Blackburn Rovers Venky's London Limited. India £43 million 2010 New Jersey Nets Mikhail Prokhorov (Oil) Russia $200 million 2009
    74. 89. Globalization Pop Quiz <ul><li>Which of the following companies are American own? </li></ul>http://www.tata.com/tata_motors/media/20080326_legacy.htm http://news.yahoo.com/s/ap/20100328/ap_on_bi_ge/eu_ford_geely_volvo Company Sold to Original Country Purchase Prize Year Saab (GM) Spyker Cars (Dutch) Sweden $400 Million 2010 Hummer (GM) Sichuan Tengzhong (China) USA $150 Million 2009 Volvo (Ford) Zhejiang Geely Holding (China) Sweden $1.8 Billion 2010 General Motors U.S. Government owns 60% 2009 Chryrsler Fiat (Italy) Daimler AG (Germany) Jeep Dodge Chrysler 1998-2007 2009
    75. 90. Globalization: Medellin <ul><li>Exports surged in the 1990s as the United States granted temporary trade preferences to Colombia, allowing many of its products to enter the world's largest market duty-free. </li></ul><ul><li>They really took off after 2002, when Washington expanded that agreement to include Colombia's all-important textile sector . </li></ul><ul><li>Humming assembly lines making Ralph Lauren socks and Levi's jeans sprang up across this picturesque Andean valley, creating tens of thousands of jobs and turning Medellin into a model of the curative power of liberalized trade. </li></ul><ul><li>It gave Colombian flower exporters the competitive edge they needed to dominate the U.S. market. </li></ul><ul><ul><li>Today, Colombian flowers make up roughly 90 percent of all those sold in the United States. </li></ul></ul><ul><li>Many of the U.S. companies in California and Texas that once grew flowers adapted and evolved into suppliers and distributors of flowers grown here, where a single stem can be planted, irrigated, trimmed, cut and packaged for about $1. </li></ul>
    76. 91. Shirt Production Sewing cotton fabric into men’s and boys’ shirts is more likely to be located near customers in MDCs, but much production now occurs in LDCs. Ex. Soccer Jerseys in El Salvador.
    77. 92. Woven Cotton Fabric Production Production of woven cotton fabric is labor intensive and is likely to be located in LDCs. China and India account for over 75% of world production. Production is near cheap labor.
    78. 93. Globalization: Medellin
    79. 94. Globalization: Medellin Video <ul><li>http://www.washingtonpost.com/wp-dyn/content/graphic/2008/07/11/GR2008071100549.html (7min.) </li></ul><ul><li>Other recommended Movies: Maria Full of Grace </li></ul>
    80. 95. China and Exports http://www.nytimes.com/2009/10/14/business/global/14chinatrade.html?scp=3&sq=china%20trade&st=cse
    81. 96. India and Investment http://www.nytimes.com/2009/10/14/business/global/14rupee.html?scp=1&sq=india%20is%20awash%20in%20foreign%20investment&st=Search

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