Chapter 11 Key Issues 3 And 4 Flashcards
What is the most important site factor at a global scale?
Labor
What are the three main site factors?
Labor
Land
Capital
What is a capital intensive industry?
An industry in which wages and other compensation paid to employees constitute a low percentage of expenses.
Are textiles labor or capital intensive?
Labor intensive
What part of textile production is done in MDCs and why?
Assembly, because most consumers live in MDCs
What is the preferred area for factories?
Rural sites
Industry is shifting away from traditional industrial regions of _______ US and ____ Europe.
Northeastern
Northwestern
Where has industry shifted in the US?
Towards the south and west
Where has industry shifted in Europe? Why?
Government policies have encouraged relocation towards economically distressed peripheral areas.
Where were right to work laws created?
Southern states
Right to work laws requires factories to maintain ____ and prohibits _____.
Open shop
Closed shop
What is a closed shop?
A company and a union agree that everyone must join the union to work in a factory.
What is an open shop?
A union and a company may not negotiate a contract that requires workers to join a union as a condition of employment.
Where has industry diffused in Europe?
Southern and Eastern Europe
What two regions does the European Union provide assistance to?
Convergence regions
Competitive and employment regions
What is a convergence region in Europe?
Primarily eastern and Southern Europe where incomes lag behind Europes average.
What are competitive and employment regions in Europe?
Primarily western Europes core industrial areas which have experienced substantial manufacturing job losses in recent years.
What are the three major growing industrial regions?
East Asia
South Asia
Latin America
In which two industries is the shift to new industrial regions clearly shown?
Steel
Clothing
Where are labor intensive industries especially attracted to?
LDCs
What is outsourcing?
Turning over much of the responsibility for production to independent suppliers.
What is the new international division of labor?
The selective transfer of some low skilled jobs to LDCs and higher skilled jobs to MDCs.
What two reasons would manufacturers want to stay in traditional industrial regions?
Proximity to skilled labor
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