Flashcards in Chapter 11 Deck (43)
What sector of the economy does industry take place in?
What must a country do in order to industrialize effectively?
A country must identify its assets and obstacles and figure out what can be produced for the greatest profit at the lowest possible cost
The production of a product or service within an economy
Define site and situation
Site is where something is located, and situation is where something is located relative to other things
Why has industry diffused from MDCs to LDCs?
Cheap land, cheap labor, and countries shift from secondary to tertiary sector jobs as their economies develop
What fraction of its manufacturing jobs did the US lose during the first decade of the 21st century
When a company contracts with foreign companies to produce a product (the company doesn't move overseas, they just hire another company to produce the product)
What is NAFTA?
The North American Free Trade Agreement of 1994 – eliminated trade barriers, but also created conditions for the movement of industry and people (including illegal immigration and drugs)
What are maquiladoras and what caused them?
NAFTA has been blamed for the rise in foreign owned factories in Mexico called maquiladoras
Why has the population density in Mexico shifted from the central part of the country near Mexico City to the border towns of the north?
The Mexican government first required to maquiladoras to be along the border because of overcrowding in Mexico City. Plus, there are plenty of jobs on the US border and quick access to trade with the US. There's also cheaper land and living costs in the north
What's an unintended consequence of the Mexican population moving north?
An increase in illegal immigration to the US
What are the main factors when determining industrial location?
Land and transportation (costs)
Where is copper mostly mined in the US?
Why are copper factories located as close to the mines as possible?
Because copper is a conductor and isn't cheap. They can't move mines but they can move factories.
Is copper a bulk gaining or bulk reducing industry?
The addition of what usually makes something bulk gaining?
The added weight of something such as water
What are some examples of a bulk reducing industry?
Copper, iron, steel, baseball bats, paper, and ethanol
What are some examples of a bulk gaining industry?
Different foods, water bottles/ bottled drinks and foods, and cars
If your industry is bulk reducing then where do you want the factory to be located?
Close to the raw materials/ input
What are the 4 factors the location of industry is based on?
Transportation costs (bulk gaining or reducing), availability of labor, agglomeration (the clustering of other related industries which provides support), and the location relative the market
What parts of the "land" site factor are always changing?
The price of land, the proximity to markets, and transportation
What parts of the "labor" site factor are always changing?
The availability of low cost labor
What parts of the "capital" site factor are always changing?
Money, technology, equipment, factories, etc
Why have factories moved from urban areas to rural sites?
Because land is cheaper and more abundant and changes in access to transportation networks
What has been a competitor with Mexico's maquiladoras?
China's "special economic zones"
What are SEZs?
Special areas that the government exempts from taxes and government regulations, quotas, labor laws, etc
What are the 4 primary methods of shipping and what do they depend on?
Trucks, trains, ships, and air. Which one a manufacturer chooses depends on what and where it's going
What are break of bulk points?
Locations where large amounts of cargo can be easily broken up and shipped in different modes (from ships to trains and trucks, etc)
Where is reliance on low cost labor most commonly found?
In developing countries in South and East Asia