Industry Key Issue 4 (11.4)

Question 1

Define New International division of labor

Answer 1

Selective transfer of jobs to developing countries

Question 2

Explantion of International division of labor

Answer 2

Transnational business want to cut labor cost to stay on the same efficeny level as everyone in the global market so they veiw the production process of their product and if they can be preformed by low skill workers in developing countries. So they send the job materials over there. That is saving them more money then paying high wages to workers!!

Question 3

Define Outsourcing

Answer 3

Giving the Responsbilty of production to independent Suppliers (kinda sounds like sourcing outside people with production responsibility)

Question 4

How does transnational corperations distribute production to low wage ?

Answer 4

Outsourcing

Major impact on the locations of manufactrng because they have to pay attention to production process to find the perfect location of a facotry

Question 5

Define Vertical Intergration

Answer 5

When a company controls all the steps of a production process (opposite of Outsourcing)

EX. Car makers once made all the parts to the car now they outsouce so they parts come cheaper and better from a developing country

Question 6

Why has manufacutring in Mexico Increased?

Answer 6

Trade aggreemnts have elminated most (US and Canada) barries to moving goods into mexico becuase its the closest low wage country near the US plus low labor cost and close to the US market

Question 7

Example of Mexico’s Trades with the US and Canada

Answer 7

Nealy all motor vehicle production in north america has been located in mexico other then the US and Canada.

Question 8

Define Maquiladoras

Answer 8

Plants in Mexico on the US and Mexico Border

Question 9

What Happens At Maquiladoras?

Answer 9

Mexican Companies recieve tax breaks if they ship material from the US, assemble them in Maquiladoras in mexico and export them back

US and Canada are scared manufacturs will relocate to mexico and take advantage of the low wage workers there + the less stict laws on air pollution

Question 10

The World’s future growth in Manufacturing expected to clusters in 5 countries known as what?

Answer 10

BRICS - Brazil Russia India China and South Africa

Question 11

Why would the 5 Countries BRICS be the worlds dominant industrial bloc if they worked together?

Answer 11

China and India have the 2 largest labor forces and Russia and Brazil are rich in inputs (materials for manufacutring)

Question 12

Production of Textiles is an Example of what type of Industry that usually requires less- skilled and low cost workers?

Answer 12

Labor Intensive Industry

Question 13

What are the 3 important steps of textile and apparel Production?

Answer 13

1. Spinning of fibers to make yarn
2. Weaving or knitting of yarn into fabric
3. Assembly of fabric into products

These steps global distribution are not idenical All 3 step are NOT equally labor intensive!!!

Question 14

Step 1. of Textile and Apparael Production **Spinning **

Answer 14

• Fibers spun from natural or synthetic elements
• Prime Natural fiber is cotton
• Synthetics is 3/4 of world’s thread production
• done in low- wage countries
• China produces 1/4 and India produces 1/5 of the world’s cotton thread

Question 15

Step 2. of Textile and Apparael Production **Weaving ** MECHANIZED

Answer 15

• labor contrubutes a high pecentsage of production cost
• Clusted in low-wage countries
• China and India are the dominent fabric producers (becuase low labor cost offsets shipping materials and products long distances)

Question 16

Step 2. of Textile and Apparael Production **Weaving ** BY HAND!!!

Answer 16

• Woven together by hand on a Loom (Frame on which 2 sets of threads are placed at right angles to each other)
• 1 set of threads called a Warp (strung lenghwise)
• 2nd set of threads called the** Weft** (carried in a shuttle that is inserted over and under the wrap

Question 17

Step 3. of Textile and Apparael Production Assembly

Answer 17

• Developed countries play a larger role in assembly than spinning and weaving (because consumers of assembled products are located in developed countries)
• most clothing is assembled in developing countries
• the cost of the clothes get marked up by the retailer
• workers in developing countries earn around 1% of the final to the consumer

Question 18

Where are the largest flows of clothing exported?

Answer 18

East and South Asia to North America and Europe

Question 19

What is a Steel

Answer 19

An alloy of iron this manufactfuuring by removing impurties in iron like oxygen and adding elements such as manganese

Steel production was a good examplde of a bulk reducing industry located near its inputs

Question 20

What are the 2 changes in situation factors that have alterted the distribution of steel producers within the US and worldwide?

Answer 20

1. Changes in the relative importance of the main inputs
2. Increasing importance of proximity to markets

Question 21

Explain how the shift of the worlds manufacturing to the new industrial regions can be seen clearly in steel production?

Answer 21

At first developed countries had the most steel production and developing had the lowest but a few years later the roles switched. Developed countries decreased in steel production and developing countries increased plus doublded its world steel production mainly becuase of China (also India & South Korea) China’s steel industry grew becuase of acces to prime imputs like iron ore and coal

• increased demand by growing industries in China that uses a lot of steel such as motor vehicles

Question 22

What are the 2 principal inputs in Steel Production?

Answer 22

Iron Ore and Coal

Most Steel was produced at large intergrated mill complexes!

Question 23

What was the Process of Steel Production?

Answer 23

• They processed iron ore
• Converted coal into coke
• Converted iron into steel
  and Formed the steel into products like sheets, beams, and rods

Question 24

Traditionally why did steelmaking cluster near their 2 key sources of raw materials?

Answer 24

Because of the need for large quanities of bulky, heavy iron ore and coal

Question 25

In The US the disrubtuion of steel production changed because of what?

Answer 25

Because of changing Inputs (Materials)

Question 26

Explain why did Steel production relocated closer to markets?

Answer 26

The increasing importance of proximty to markets is displayed by the growth of minimills
* that has scrap metal as an input (other then iron ore and coal)
* less expensive to build and operate steel production
* can locate near their markes because their input (scrap metal) is widly available

Question 27

In the United states what regions has industry shifted?

Answer 27

From The Northeast towards the South and West Regions

Question 28

What was the lure (pull factor) for many manufactuers to shift to a new region in the US?

Answer 28

Right to Work Laws