Upload
gerard-daniel
View
214
Download
1
Embed Size (px)
Citation preview
Bellringer
•What are reasons Steve Jobs (former Apple CEO) said that jobs making iPhones would never move to the United States?
• Get out your notebook for Ch 12 notes
INDUSTRY AND SERVICESChapter 12 Lecture
Did you do your homework? Turn it in!
Industrial Regions of the US – Why There?
Location Theories
Location theory: – Predicting where business will or
should be located• Location depends on:
1.Variable costs• Energy, transportation, labor
2.Friction of distance • increased distance increases costs
Location Models
Weber’s Model
Manufacturing plants will locate where costs of transportation, labor, and agglomeration are the least
Theory: Least Cost Theory
Hotelling’s Model
Location of an industry depends on location of other industries of the same kind
Theory: Locational Interdependence
Losch’s Model
Manufacturing plants choose locations where they can maximize profit
Theory: Zone of Profitability
Major Manufacturing Regions of North America
How Has Industrial Production Changed?
• Fordist : Dominant mode of mass production during the 20th century, with production of goods at a single site
• Post-Fordist: Current mode of production with more flexible production practices – Multinational companies (like Apple) can
shift production, outsourcing it around the world
Time-Space Compression• Improvements in transportation and
communications technologies has led to post-Fordist systems
• Global division of labor: Corporations drawing from labor around the globe for different components of production
A Changing Economy
• Deindustrialization – A process by which companies move
industrial jobs to other regions with cheaper labor
– Leads to high unemployment in deindustrialized region
– Manufacturing jobs are sometimes replaced with service jobs