Industrial Location and Globalization of

Enterprise Geography: Meet the Profs Seminar Allocation Review Questions Changing Global Map

Global shifts in production and trade Student analysis of empirical data!

Foreign Direct Investment More student analysis of empirical data

Name Textiles Auto- SemiconBeef Fin.

SvcsDistrib-

ution

Boylan, Tyson R.            

Evans, Richard J.            

Friio, Erin B.            

Gilbride, Neill A.            

Hagen, Richard P.            

Han, Qiang X.            

Newman, Kenneth D.            

Platt, Clark C.            

Soup, Janetta M.            

Stupple, Geoffrey W.            

Thomas, Grant A.            

Ziebart, Lisa A.            

7 Surprises (p. 45)7 Surprises (p. 45)

Rise of Japan to #2 and #3Rise of Japan to #2 and #3 Continued dominance of the USAContinued dominance of the USA NIE/NIC export performance in NIE/NIC export performance in

manufacturesmanufactures Rapid development in ChinaRapid development in China Weak performance in Latin America and Weak performance in Latin America and

sub-saharan Africasub-saharan Africa ‘‘Transitional economies’ of C-E Europe is a Transitional economies’ of C-E Europe is a

new category, …too early to tellnew category, …too early to tell

Foreign Direct InvestmentForeign Direct Investment

Production, trade, investment as Production, trade, investment as indicatorsindicators

……of globalizationof globalization Investment:Investment:

spending on capital goods to increase spending on capital goods to increase productive capacity and earn a returnproductive capacity and earn a return

any purchase of an asset to increase any purchase of an asset to increase future incomefuture income

Foreign InvestmentForeign Investment

Purchase by non-residents of assets Purchase by non-residents of assets capable of yielding a returncapable of yielding a return

Short or long termShort or long term Portfolio investmentPortfolio investment in stocks and in stocks and

bondsbonds Direct investmentDirect investment in shares or in shares or

productive assets to own or operate a productive assets to own or operate a businessbusiness

FDIFDI Foreign Direct Investment (FDI-DFI)Foreign Direct Investment (FDI-DFI)

Direct investment by one firm in another to Direct investment by one firm in another to gain a degree of control over that firm’s gain a degree of control over that firm’s operations (p. 51)operations (p. 51)

‘‘across national boundaries’ across national boundaries’ vsvs ‘non- ‘non-residents’residents’

Acquisition of controlling interest in a firmAcquisition of controlling interest in a firm mergers and acquisitionsmergers and acquisitions

Establish a branch or subsidiary in another Establish a branch or subsidiary in another countrycountry

Building new facilities (greenfield investment)Building new facilities (greenfield investment)

Measuring InvestmentMeasuring Investment

StocksStocks Capital stock at market cost ORCapital stock at market cost OR Capital stock less accumulated Capital stock less accumulated

depreciationdepreciation

Flows:Flows: Inward flowsInward flows Outward flows Outward flows

Macro-scaleMacro-scale

National scale dataNational scale data Geographers explore other scales too!Geographers explore other scales too! Macro: global triad EU, US, East and SE Macro: global triad EU, US, East and SE

AsiaAsia 85% or world mfg output85% or world mfg output 81% of world mdse exports81% of world mdse exports

Growing concentrationGrowing concentration East AsiaEast Asia

29% and 26%29% and 26%

Micro-scaleMicro-scale

A ‘fine-grained mosaic’A ‘fine-grained mosaic’ Economic activity is grounded in spaceEconomic activity is grounded in space Urban areasUrban areas

Dense web of economic activityDense web of economic activity Labour marketLabour market Daily Urban System: city and functional Daily Urban System: city and functional

regionregion Perrouxian Growth Poles: China’s SEZsPerrouxian Growth Poles: China’s SEZs

Meso-scaleMeso-scale

Corridors and axesCorridors and axes MegalopolisMegalopolis Conceptions of the core of EuropeConceptions of the core of Europe Regional scale economic zonesRegional scale economic zones

Gigantic ConurbationsGigantic Conurbations JabotabekJabotabek

Border zone (s)Border zone (s) Maquiladora zone along U.S. Mexico borderMaquiladora zone along U.S. Mexico border