2. 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
3. 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
4. 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.
6. 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.
7. 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
8. • 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
9.
10.
11.
12. Where are the Major Industrial Belts in the
World Today and Why?
Idle steel mill in Pennsylvania, part of the American Rust Belt
13. 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 in
Liverpool, England, where
the population has
decreased by one-third
since deindustrialization
14.
15. Newly Industrialized
China – 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
16. As China’s economy continues
to grow, old neighborhoods
(right) are destroyed to make
room for new buildings
(below).
Beijing, China
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
